Manufacturing process planning (MPP) is a critical aspect of the manufacturing industry. It involves strategizing and organizing the production process, from sourcing raw materials to delivering finished products to customers. Effective MPP ensures efficiency, cost-effectiveness, and quality in production while meeting customer demand.
Flipbook: Manufacturing Process Planning
A Chance to Automate
The rise of Enterprise Resource Planning (ERP) systems has revolutionized manufacturing process planning. ERP software integrates various functions within an organization, including finance, procurement, production, and sales. By streamlining and automating workflows, manufacturers can optimize operations and respond to market changes more quickly.
What is Manufacturing Process Planning?
Manufacturing process planning entails coordinating and sequencing production activities to transform raw materials into finished goods.
Key Technical ERP Terms in Manufacturing Process Planning
1. Bill of Materials (BOM)
BOM is a hierarchical list detailing all the components, parts, and materials needed to manufacture a product. ERP systems use BOM to automate purchasing, inventory control, and production scheduling.
Impact: Accurate BOM ensures efficient resource planning and minimizes waste by only procuring necessary materials.
2. Material Requirements Planning (MRP)
MRP calculates the materials needed for production based on demand forecasts and BOM. It helps schedule material deliveries to maintain efficient production flow.
Impact: MRP optimizes inventory levels, reducing carrying costs and production delays.
3. Master Production Schedule (MPS)
MPS outlines the production of each product over a specific period, detailing when and how much to produce.
Impact: MPS aligns production with demand, avoiding overproduction and underproduction.
4. Capacity Requirements Planning (CRP)
CRP assesses the production capacity needed to meet demand and balances workload across resources.
Impact: CRP ensures efficient utilization of machines and labor, preventing bottlenecks and resource shortages.
5. Inventory Management
Inventory management monitors and controls inventory levels to avoid shortages and overstocking.
Impact: Effective inventory management minimizes carrying costs and ensures materials are available when needed.
6. Work Order
A work order authorizes the production of specific quantities of a product within a certain timeframe.
Impact: Work orders enable structured production processes and facilitate scheduling.
7. Routing
Routing defines the optimal path and sequence for production processes.
Impact: Efficient routing reduces production time and costs.
8. Demand Planning
Demand planning uses sales data to forecast future demand accurately.
Impact: Accurate demand planning leads to better production scheduling and resource allocation.
9. Shop Floor Control
Shop floor control monitors and controls production activities in real-time.
Impact: Real-time data enables quick decision-making and efficient production management.
10. Kanban and Just-in-Time (JIT)
Kanban and JIT are lean manufacturing methods that focus on minimizing waste and inventory.
Impact: These methods improve production efficiency and reduce costs.
4IR and Smarter Manufacturing Process Planning
The Fourth Industrial Revolution (4IR) has transformed manufacturing process planning with advanced technologies such as artificial intelligence (AI), machine learning, and the Internet of Things (IoT). These technologies optimize decision-making and efficiency across various aspects of manufacturing. AI and IoT data improve routing by identifying optimal production paths, while machine learning predicts future demand, aiding production scheduling and inventory management.
IoT-enabled sensors enable real-time shop floor control, allowing quick adjustments for enhanced efficiency. Lean methods such as Kanban and Just-in-Time (JIT) reduce waste and maintain lean inventory levels. Digital tools streamline production orders, providing clear instructions for goods production and improving coordination.
Enterprise asset management (EAM) leverages IoT and AI to monitor and maintain physical assets, optimizing maintenance schedules and extending asset lifecycles. These advancements in manufacturing process planning lead to significant improvements in efficiency, cost savings, and responsiveness to market demands. As 4IR technologies continue to advance, manufacturers can expect even greater enhancements in process planning and operational excellence.
ERP in Manufacturing Process Planning
ERP systems provide a unified platform to manage all aspects of manufacturing process planning. Let’s explore how different ERP platforms facilitate MPP:
NetSuite: NetSuite offers comprehensive solutions for BOM, MRP, and inventory management. Its cloud-based system provides real-time insights and flexibility.
Salesforce: Salesforce Manufacturing Cloud integrates sales and production data, allowing for efficient demand planning and inventory management.
Microsoft Dynamics: Dynamics provides tools for MPS, CRP, and shop floor control, enabling smooth workflows and effective production scheduling.
SAP: SAP offers extensive ERP solutions, including advanced MRP like MRP Live, EAM, and PPDS capabilities for optimized production processes.
Statistics: Industry Growth Before and After ERP in MPP
Before ERP, manufacturing process planning relied on manual methods, which were prone to errors and inefficiencies.
This often resulted in:
- Production delays due to inaccurate demand forecasting.
- Excessive inventory carrying costs.
- Misalignment between production and sales goals.
After ERP implementation in MPP:
Efficiency Gains: Streamlined workflows and automation improved production efficiency by 15-30%.
Inventory Reduction: Better inventory management reduced carrying costs by 10-20%.
Lead Time Reduction: Improved demand forecasting shortened lead times by up to 20%.
Cost Savings: Optimized resource usage led to cost savings of 10-25%.
Incorporating ERP in manufacturing process planning has proven to be transformative. It enhances efficiency, accuracy, and flexibility while allowing manufacturers to stay competitive in a rapidly evolving market. As technology continues to advance, manufacturers must embrace ERP solutions to achieve smarter and more efficient production processes.