India has now become a global manufacturing hub with initiatives like ‘Make in India’. Several mobile phone, luxury and automobile brands, among others, have either set up or are willing to establish their manufacturing bases in the country. But surprisingly, statistics show that there has been a decline in the momentum of the unorganized part of this sector. Every year many units in India close down or face challenges they are not equipped to cope up with. Surveys have indicated that this occurs due to inefficient usage of resources and lack of technical depth and integration. Improving these two can add value to the manufacturing business.
Manufacturing being a complex process, businessmen struggle to balance the men, materials and machines to attain maximum output. Mishandled production causes unprofitable depletion of resources even the best of managerial skills fall short of overcoming. That is why manufacturers in all sectors are deploying software tools for production planning. ERP software for manufacturing integrates all processes and ensures a seamless execution. Worldwide the industry has benefitted from these software solutions. India being a giant in integrated technologies has a host of options for customized software compliant with market norms. The small and medium manufacturers, in particular, have profited the most from cloud based Production Scheduling and Planning Software. It has been a stepping stone in increasing the viability and profitability of manufacturing units by simplifying production planning.
How does Cloud ERP simplify Production Planning?
ERP provides ease of business by streamlining the entire routine. The cloud base lets you access your entire order management system on your computer or mobile screen. It lines up orders according to delivery dates and supervises the execution by making sure that raw materials & machines are available when required.
The following chart shows the activities of a textile firm engaged in the manufacturing of shirts.
See how, for each sales order, a series of activities are triggered in the system. The ERP makes the execution seamless by following an organized flow
1. Job- order generation from the sale order
2. Assignment of production Routine– It is an important part of the production module, which defines the modus operandi or method of manufacturing a particular product. Routing lists all tasks of making an item.
3. Resource allocation- The bill of materials or BOM defines the structure of the end-product or its recipe and allots raw material accordingly.
4. Inventory checking- Creating purchase order(P.O) of deficit materials directly from BOM
5. Scheduling and operational planning- Effective utilization of resources is achieved by scheduling each activity and aligning it with men and machines. ERP makes scheduling quick and easy.
6. Real-time tracking via Confirmation- Tapping the progress of each job-order is updated on the dashboard by Confirmation feature.
7. Making bills and invoices- Accurate billing with proper tax structure is very important, often ignored.
What is the Role of Scheduling?
In simple words, scheduling tells a production facility when to make, what to make, on which equipment and with which staff. After assigning a BOM and routing to each job order scheduling plays a vital part in easing the execution with accurate visualization. It allocates machinery/plant resources/materials and aligns them with human resources ensuring maximum usage. Operational planning more specifically relates to each process and activity separately. Diverse job-works may require different materials, machines or work-force. Operational planning ensures uninterrupted activity by rescheduling and assigning. This minimizes production time and costs. Not only that, but the manufacturer can also view the status of each job order in the system in real-time.
How does Confirmation Help?
After the operational planning, the job orders get going. Coming back to the manufacturing of shirts, various activities like- cutting, sewing, buttoning, ironing and packing would be performed. The Confirmation will tap each activity (sewing, buttoning, ironing or packing) when it is completed. So, supervisors will confirm on the ERP when the shirts are buttoned and move from the buttoning station to the ironing station. Same goes for all other movements.
With this, the manufacturer can view what stage each job-order is in, at all times. And the system is updated about which material got consumed, and which machine is free. Android app for confirmation is also available.
This is the precise information that’s required for perfect planning! With a big load off the shoulders about the convolutions of production, the business gains enormously on many accounts.
Benefits of a Simplified Production
Efficiently planned production attacks cost from all fronts. You can achieve just in time inventory with Material management handling the timely purchase of raw materials. The efficiently stored finished products and raw materials minimise wastage and bring down costs.
Optimized Usage of Resources
Efficient routing and operational planning make augmented use of all resources- labour, equipment and material to maximise production capacity.
Higher Quality Control
Delivering quality products is the bottom line for customer satisfaction. We may compromise on cost but quality can never be compromised. What is the likelihood of a supervisor detecting underrated work on a chaotic floor? Almost nil, but with a smoothly running production line, quality is what you can focus on.
Time Management and Planning
Poor time management raises labour costs and delays orders. With an efficiently running production, you are no more operating on assumptions. You are empowered to forecast and plan. Real-time dashboard equips provides a birds-eye view of on-going processes on your computer or mobile screen at all times. You can accurately give delivery dates to customers and plan according to market expectation.
With the simplification of production, a manufacturing unit with all its challenges gets equipped to take fluctuations and innovations head-on. Various industry circles are currently deploying enterprise resource planning and the ERP software implementation is witnessing an unprecedented rise worldwide. Handling the intricacies of data migration necessitates diligence, skill and experience. Zenscale aims to provide its clients with the best user experience.