How to be an Effective Production Planner?

Old methods of production planning are no longer sufficient to respond to today's dynamic, globally connected supply chain ecosystem.

Without question, Industry 4.0 has been expected to bring new breath. The benefits of digitization, encompass AI (artificial intelligence), advanced business analytics capabilities, and AR (augmented reality) systems - these are slated to revolutionize the manufacturing industry. The Industrial Revolution is certainly a different beast from one portrayed in history books. However, where do SMBs (small and medium-sized businesses) fit into this business paradigm? More importantly, how can SMBs avoid being overshadowed in their race to the top?

Some key findings by Sapio Research on behalf of Zetes may help map out the next steps:

  • 65% of manufacturers do not have real-time data about their suppliers' manufacturing schedules.
  • 68% do not have real-time data about their manufacturing volumes across their company.
  • Only 30% have end-to-end visibility of their supply chain operations. This means that two-thirds of manufacturers have yet to implement the tools to inject value into their supply chain operations.
  • 89% believe that an aggregated view of the supply chain is necessary, but key constraints make it an unrealistic expectation.

Due to the fact that 68% of manufacturers lack of real-time visibility across the supply chain, they cannot provide decision-makers with the necessary data to make informed business decisions.

In the world today, a demand-driven global consumer base craves product differentiation at cost-effective levels, without sacrificing quality and consistency in delivery. To remain competitive, a good production plan at heart, is a comprehensive ERP system that provides a real-time, aggregated view of the supply chain, and that is the fundamental.

An Effective Production Plan

A good production plan is aimed at increasing throughput. Increased throughput (to put it in another way, shorter time-to-market intervals) is what generates increased revenues. An effective plan also increases real-time visibility into the manufacturing process, allowing SMBs to eliminate bottlenecks (inefficiencies), decrease excessive buffer stock holdings, optimize equipment deployment, and maximize workers productivity.

In the era of Industry 4.0, the traditional manual process of managing day-to-day operations is fast becoming unsustainable. Instead of wrestling with a confusing series of spreadsheets, production planners in resource-restricted manufacturing companies need cost-effective solutions to increase business agility.

How MONITOR ERP System can Help?

The concept of “lean manufacturing” is closely related to Dr. Eliyahu Goldratt's Theory of Constraints. Lean manufacturing focuses on eliminating waste from the operation process, while the Theory of Constraints centers around identifying and removing constraints that limit throughput. By reducing waste, lean manufacturing reduced lead times, improved throughput, and increased profits. In order to increase throughput and lower OPEX (operating expense), production planners need to identify constraints within the manufacturing process. With the combination of traditional floor-monitoring and MONITOR ERP software, planners can identify the types of constraints, whether they are physical, policy-related, part of a company's unique corporate culture, or market-driven in nature.

An effective ERP (enterprise resource planning) system provides visibility to production data. Production planners are necessarily focused on reducing time-to-market intervals and increasing throughput. MONITOR ERP equips production planners with advantages. It helps them identify dependencies in the manufacturing process, and in case of disruptions, plan for the deployment of alternative procedures. By providing this level of flexibility to production planners, SMBs can leverage a leaner manufacturing process to their advantage.

MONITOR ERP system consists of six modules which allows production planners a bird-eye view of end-to-end supply chain. This is a crucial advantage in determining how constraints can be eliminated with minimal expenditure and upheavals. As the demand-driven economy fuels the rising of Industry 4.0, MONITOR supports the shift from traditional MRP (material requirements planning) to DDMRP (demand driven material requirements planning). MRP focuses on anticipating supply generation, whereas DDMRP’s focal point is on the actual demand allocations to align with supply chain complexities. MONITOR users will be able to gain higher transparency from one single source of truth as the system integrates various departments across the company in one system. They can easily trace back to where the supply and demand come from with MONITOR and identify the quantity of raw materials needed. With DDMRP, SMBs can avoid the dreaded bullwhip effect, where faulty supply forecasting leads to supply chain dysfunction.

As an enabler of Industry 4.0, Monitor is dedicated to providing our customers the solutions that help them win in their markets through innovation. With 40 years of experience, we are here to help SMB production planners thrive in a demand-driven economy. Click here to read about the journeys we walk alongside our customers to make the most of MONITOR ERP to improve manufacturing efficiency and achieve on-time delivery.

As an enabler of Industry 4.0, Monitor is dedicated to providing our customers solutions to win in their market. We are here to help SMB production planners thrive in a demand-driven economy.

How MONITOR ERP System can Help?

The concept of “lean manufacturing” is closely related to Dr. Eliyahu Goldratt's Theory of Constraints. Lean manufacturing focuses on eliminating waste from the operation process, while the Theory of Constraints centers around identifying and removing constraints that limit throughput. By reducing waste, lean manufacturing reduced lead times, improved throughput, and increased profits. In order to increase throughput and lower OPEX (operating expense), production planners need to identify constraints within the manufacturing process. With the combination of traditional floor-monitoring and MONITOR ERP software, planners can identify the types of constraints, whether they are physical, policy-related, part of a company's unique corporate culture, or market-driven in nature.

An effective ERP (enterprise resource planning) system provides visibility to production data. Production planners are necessarily focused on reducing time-to-market intervals and increasing throughput. MONITOR ERP equips production planners with advantages. It helps them identify dependencies in the manufacturing process, and in case of disruptions, plan for the deployment of alternative procedures. By providing this level of flexibility to production planners, SMBs can leverage a leaner manufacturing process to their advantage.

MONITOR ERP system consists of six modules which allows production planners a bird-eye view of end-to-end supply chain. This is a crucial advantage in determining how constraints can be eliminated with minimal expenditure and upheavals. As the demand-driven economy fuels the rising of Industry 4.0, MONITOR supports the shift from traditional MRP (material requirements planning) to DDMRP (demand driven material requirements planning). MRP focuses on anticipating supply generation, whereas DDMRP’s focal point is on the actual demand allocations to align with supply chain complexities. MONITOR users will be able to gain higher transparency from one single source of truth as the system integrates various departments across the company in one system. They can easily trace back to where the supply and demand come from with MONITOR and identify the quantity of raw materials needed. With DDMRP, SMBs can avoid the dreaded bullwhip effect, where faulty supply forecasting leads to supply chain dysfunction.

As an enabler of Industry 4.0, Monitor is dedicated to providing our customers the solutions that help them win in their markets through innovation. With 40 years of experience, we are here to help SMB production planners thrive in a demand-driven economy. Click here to read about the journeys we walk alongside our customers to make the most of MONITOR ERP to improve manufacturing efficiency and achieve on-time delivery.

As an enabler of Industry 4.0, Monitor is dedicated to providing our customers solutions to win in their market. We are here to help SMB production planners thrive in a demand-driven economy.
Todd_Abraham.jpg

Todd Abraham

Business Development Director,
Monitor ERP System Asia