Meet Demand with ERP Capacity Planning
The process of capacity planning is essential to manufacturers, as it helps to ensure that they are able to meet demand for their products within a given time period, as well as optimize whatever capacity is available. Capacity planning software can be purchased as a stand-alone program, but most manufacturers find that it is more effective when integrated into their Enterprise Resource Planning system as an ERP module. This is because effective capacity planning is only as good as its data input. In other words, when data is being fed directly into the capacity planning module by other ERP modules, it is more likely that the data is accurate and up-to-date.
Capacity Planning vs. Capacity Scheduling
ERP capacity planning modules analyze the future from the perspective of both medium and long-term timelines and focus primarily on the “big picture” of meeting demand and what may be needed in order to do so efficiently. Decisions to open or close a facility, increase or decrease overtime hours for various departments, or purchase new equipment are all made based on information that is the result of capacity planning.
Many capacity planning modules also include capacity scheduling capabilities. While capacity planning gives manufacturers a “macro” view of the company’s operations, capacity scheduling is more focused on the “micro” perspective e.g. the finer details. This might mean looking a few days or weeks out in order to optimize jobs currently in or about to go into production in order to best utilize the capacity they already have without making major changes that require major capital investments.
Important Features of Manufacturing ERP Capacity Planning Software
Not all manufacturers will use every feature of their ERP capacity planning module, but there are some that are more broadly useful to the majority of companies. These include:
Demand Forecasting: This may be the most important facet of capacity planning software as it allows for greater insight in terms of current inventory and production schedules.
Supply Chain Coordination
Workflow Audits
Manufacturing Resource Planning
Product Life Cycle Forecasting
Benefits of ERP Manufacturing Capacity Planning Software
The benefits of utilizing an ERP with a capacity planning module can be immense, and include:
Greater cost control: Since the ERP feeds data from other areas directly into the capacity planning module—including the price of labor, processing, and materials—costs become easier to monitor and evaluate over time.
Automation: As mentioned above, integrated capacity planning modules, when implemented correctly as part of an ERP, can greatly increase automation and therefore efficiency by reducing human error related to manual data collection and entry.
Better understanding of key business cycles: Knowledge of historical business trends can help manufacturers better plan for the way seasonality affects demand, and therefore, production cycles.
Planning for growth: Capacity planning can help identify if and when new equipment or facilities will be needed, as well as better understand when additional personnel may be required to meet demand.
Capacity Planning for ERP = Built-In Efficiencies for Manufacturers
While there are a number of excellent reasons to invest in an ERP with an integrated capacity planning module, the biggest advantage comes from the efficiencies it can create across the entire organization, saving time, money, and even frustration. MIE Trak Pro from MIE Solutions was developed by a manufacturer, for manufacturers to meet the specific ERP needs of those in the industry, including those related to capacity and demand planning.