Production Planning

Free Trial
Request Info
hero pianificazione della produzione

The Crucial Role of Production Planning

Avoid Waste and Delays with Accurate Production Planning

Production planning is one of the most strategic areas in ERP systems designed to manage manufacturing processes, enabling companies to respond quickly to market changes. This process allows businesses to plan and organize production strategies aimed at meeting customer delivery expectations while ensuring operational efficiency across production departments.

Fluentis ERP supports strategic production planning approaches, including MTO (Make to Order), MTS (Make to Stock), ATO (Assembly to Order), and ETO (Engineering to Order). In some cases, businesses may require a hybrid approach. The strategic choice of how to configure the production workflow directly impacts a company’s ability to maintain a balance between meeting demand (Demand Planning) and managing production capacity.

The ultimate goal is to leverage the system for maximum efficiency and effectiveness while maintaining optimal cost control.

Modules and Features

Strenghts

Demand forecasting and management

Job order management

Infinite capacity planning

FCS scheduling (Finite Capacity Scheduling)

CRP – Capacity Requirement Planning (Gantt, Work Center Capacity)

Delivery zone planning

MRP (Material Requirements Planning)

Phase sequencing

Seamless integration with other business modules

Guidelines for Better Production Planning

Production planning is a complex process involving various activities to ensure that materials, equipment, and human resources are available when and where they are needed.

With effective production planning and scheduling strategies, businesses can lower labor costs, streamline processes, minimize waste, maximize equipment utilization, and ensure timely fulfillment of customer demands.

For manufacturing companies, optimizing every aspect of production planning is essential to achieving efficiency and competitiveness.

 

Want to learn more?
Download the brochure “Best Practices and Tips for Improved Production Planning.”

Download the Brochure

The Only Thing That Can’t Go Wrong Without a Plan Is the Plan Itself

Enhance Your Forecasting

Having advanced reporting tools that provide comprehensive and accurate insights into sales and inventory is essential for generating precise forecasts based on past data analysis. While reviewing historical data is important, it’s not enough to predict future market conditions effectively.

If your business already has digital data streams from production workflows and broader market trends, consider leveraging advanced Analytics or Machine Learning solutions to create more accurate, data-driven forecasts.

Know Your Production Capacity

Production capacity can be calculated based on employee productivity, the goods you produce, and the machines used in production. Automating this calculation is possible with production management software.

Mapping your production processes is essential for determining your actual maximum capacity. This can range from simple tasks like identifying and timing specific processes to advanced strategies, such as digitally mapping your factory to train analytics algorithms on your operations.

Leverage Technology

Adopting the latest production technologies is crucial to ensuring a smooth manufacturing process. For instance, implementing smart, connected IoT sensors in your production chain can enhance real-time monitoring, track the progress of each product along the production line, and oversee machine usage. This ensures everything runs efficiently, avoiding slowdowns that could impact the final output.

Finite Capacity Scheduling

The finite capacity scheduler performs automated analyses and calculations, factoring in production constraints such as limited resource and material availability. It determines the workload capacity available for a specific time period to meet customer demands in terms of production quantities.

The scheduler operates on an “as-soon-as-possible” logic, starting from a given date and simulating the forward progression of production, purchase, or subcontracting orders.

What’s the Benefit?

This forward-planning approach ensures optimal utilization of work centers and a consistent, efficient production flow. It maximizes workload distribution across production bottlenecks, optimizing lead times for delivering finished products to customers.

Automatic Job Order Planning? Yes, with MRP

With MRP integration, production job orders can be automatically planned based on material and resource requirements.

Reschedule Orders and Production Loads with a Click

In cases of overload, Fluentis can prioritize orders, deferring less critical ones while preserving deadlines for high-priority tasks.

Additionally, the vertical loading technique enables sequential scheduling of work centers. Work center loads are distributed incrementally across different time periods—starting with the first, moving to the second, and so on—until the available planning horizon is fully utilized.

Full Integration with Other Business Modules

The Production Planning module in Fluentis ERP connects and interacts with multiple business functions in real-time, ensuring a flexible and efficient workflow.

Sales

The Sales module provides customer demand data to the Production Planning module, which in turn calculates expected delivery dates and feasibility for each order line.

Purchasing

The Purchasing module offers visibility into when and how much material will arrive to meet production and subcontracting needs. In turn, the Production Planning module automatically generates purchase requests for required materials.

Logistics / WMS

The Logistics and WMS modules supply information on the actual availability of materials within the company, enabling the Planning module to determine production and subcontracting feasibility. They also receive material allocation details from Production Planning.

Production / MES

The MES module shares work center capacity data, enabling finite capacity scheduling. It also provides information on material and semi-finished product availability for production orders. The Planning module, in turn, generates new production order proposals and allocates resources accordingly.

Subcontracting

The Subcontracting area reports material and semi-finished product availability and commitments for subcontracting orders. The Planning module automatically generates new subcontracting order proposals based on these inputs.

Cost Management

The Planning module pulls sales forecast data from Cost Management to develop job orders or production orders. It also enables cost estimation for products, allowing a comparison between estimated and actual production costs after the process is completed.

What our customers say about Fluentis

La soluzione proposta e implementata in Fluentis ERP ha permesso di coprire tutte le aree interessate in azienda ottenendo una navigabilità completa tra i documenti dei vari moduli implementati

- Paolo Fabbri, Project Manager

Ponzi Srl

Production Job Order Generation

The Production Job Order Generation allows the creation of job orders by determining the demand size, which comes from customer orders, sales forecasts, and stock shortages. The created production job orders can be for single or multiple products and define the set of items to be produced, enabling the planning manager to organize the production schedule.

Features

  • MTO (Make to Order): job order generation from customer orders
  • MTS (Make to Stock): job order generation from stock shortages
  • Forecast: job order generation from sales forecasts
  • Single/Multiple Product Job Order Generation

Production Job Orders

Production job orders are the main document in the production schedule. They can identify a single product or a group of products logically aggregated for organizational or logistical reasons. These job orders are divided into three categories based on the type of supply for the requested item (Purchase, Subcontracting, Production), each of which follows a dedicated flow, seamlessly integrating with other modules of Fluentis ERP.

Features

  • Creation of single/multiple product job orders
  • Creation of purchase job orders
  • Creation of subcontracting job orders
  • Creation of production job orders
  • Assignment of scheduling priorities
  • Ability to adjust the supply type, production site, and bill of materials version suggested

Production Scheduling

This represents the Master Scheduling algorithm, which is the production scheduling process that focuses on selected job orders and analyzes their “production feasibility” based on their structural composition.

This type of scheduling, which can be executed using “earliest” or “latest” analysis logic, allows for the verification of the need for additional production capacity. It highlights over-allocation of critical work centers, enabling the operator to decide whether to increase internal capacity, purchase external capacity, or shift workloads over time, potentially accepting delivery delays.

Features

  • Schedule “latest”
  • Schedule “earliest”
  • Resource/materials only
  • Purchase scheduling
  • Production scheduling
  • Subcontracting scheduling
  • Option for automatic order release
  • Option to include material availability calculation

Finite Capacity Production Scheduling (FCS)

Finite capacity production scheduling helps determine how much work can be accomplished within a defined period, considering the limitations of certain resources. The ultimate goal is to ensure maximum efficiency across the entire internal production line, optimizing time and reducing costs for work centers.

With this scheduling method, it is possible to create optimal processing sequences for each work center, achieving maximum utilization. Through quick and easy parameterization, it is possible to:

  • Assign an execution priority to job orders, considering delivery dates, critical customers, order deadlines, and other parameters.
  • Consider or disregard the availability of necessary materials for the production phases.
  • Schedule within a predefined time frame.

Additionally, for each work center, it is possible to:

  • Adjust capacity by directly modifying the daily availability in the calendar.
  • Define efficiency and maximum daily utilization percentages.
  • Operate at infinite capacity.

Features

  • Finite capacity scheduling per work center, on a specific date

MRP

As the acronym “Manufacturing Resource Planning” suggests, this process allows users to analyze the correct availability of materials and production resources based on the production plan. Through this process, the operator can receive a series of recommendations for advancing material supplies, adjusting required quantities, or canceling unnecessary item orders, making the management and control of operations as smooth as possible.

MRP generates a production plan by taking into account various production constraints, available raw materials, and semi-finished goods, as well as those on order. Thanks to this process, the operator can analyze the production coverage for each active job order, managing and coordinating all processes related to procurement, production, and delivery of the finished product.

The core principle of the material requirements planning system is optimizing inventory based on business needs, leading to lower stock levels and increased efficiency. Essentially, using the algorithms in this function, Fluentis MRP can track the commitment of each material in stock and its availability on a given date.

Fluentis MRP can operate in an informational or actionable context, functioning either partially on selected job orders or globally across all job orders in production.

Features

  • Analysis of materials and resources, management of early or delayed deliveries, surplus, and tolerances

Planned Orders

The result of the planning and MRP processes will lead to the creation of Planned Production Orders, Work Orders, and Purchase Orders. These documents contain all the necessary information for procurement in terms of materials and processes, and they can be modified as needed.

Releasing these documents will generate Production Orders, Work Orders, and Purchase Requests, respectively.

Features

  • Creation / modification of planned orders
  • Generation of bill of materials (BOM) and work cycle directly from the planned order

Discover how Fluentis ERP
can transform your business

15-day free trial | No automatic renewal | Instant access

Infografica 2

Contact us for more information

    Get in touch with us if you:

    • Are a SME in Manufacturing, Distribution, or Services
    • Need to streamline and digitalize your business processes
    • Want to take advantage of the benefits of a native cloud solution
    • Want to replace your non-integrated softwares with a unified ERP platform

    +1 281 404 1726

    Chat with us