How to Replace Spreadsheet-Based Production Planning With Manufacturing Software

Even in the age of rapidly evolving technology, where every day is dotted with headlines about AI’s advancements, many Ontario manufacturers still share a common inefficiency. They still rely on spreadsheets to manage the very critical task of production planning.

While spreadsheets can be an accessible starting point for tracking schedules, work orders, materials, and capacity, they are bound to fall short as production grows more complex. To prevent issues such as delays, errors, and limited visibility, manufacturers must consider switching to custom software.

In today’s blog, ERPion will explain how manufacturing ERP software is the only viable solution to spreadsheet woes. 

Why Spreadsheet-Based Production Planning Becomes a Problem

Manufacturing businesses that are just starting out can use spreadsheets to manage their operations. At this stage, production requirements are simple and predictable, so rudimentary tools can be used. However, as orders, products, resources, and scheduling demands increase, maintaining accurate production plans in Excel turns into a pain.

How Spreadsheets Are Used in Production Planning

When it comes to production planning, spreadsheets are primarily used to create production schedules, track work orders, calculate material requirements, manage inventory, and record production progress. Each department may maintain its own spreadsheets to manage processes relevant to them.

Common Limitations of Spreadsheet-Based Planning

Production information and process overlap. However, if each department maintains its own spreadsheet, data consistency is lost. When critical information becomes fragmented, the risk of errors increases. Especially since data is still flowing manually. This may impact production schedules, throwing them completely off-track.

Signs Your Manufacturing Operation Has Outgrown Spreadsheets

Warning signs will manifest themselves if you continue using spreadsheets for processes beyond what they can handle. Common indicators include:

• Multiple versions of the same production schedule with no clarity on which of them is current
• Waste of company hours with excess time spent on manual data entry 
• Difficulty in flagging and managing last-minute production changes 
• Limited visibility into processes, machine capacity, and material levels 
• Inconsistent and time-consuming reports that do not contain the latest information 

What Manufacturing Software Changes in Production Planning

Dedicated manufacturing software removes all traces of disconnected data. It combines scattered files and information into a centralized environment, making production management smooth and hassle-free. Stakeholders no longer have to rely on manual updates, and teams can coordinate production events without a hitch.

Centralizing Production Planning Data

A lot goes into planning a production cycle. Manufacturing software unifies production schedules, work orders, product information, and planning data to prevent duplicate records and ensure every department gets to work with consistent information.

Improving Production Scheduling and Capacity Visibility

Having a centralized system on board can also help planners evaluate current production requirements against available capacity to determine the feasibility of the cycle. This makes it easier to spot any potential bottlenecks or scheduling conflicts that may blow up later.

Connecting Production With Inventory and Orders

ERP software for manufacturing also monitors customer demand and material availability to support the delay-free fulfilment of pending orders. Since it connects production with inventory, businesses get a broad overview of their operations any time they need.

Providing Real-Time Production Visibility

Spreadsheets need to be manually updated before they can be circulated, and we all know just how time-consuming that really is. With a dedicated manufacturing system, information circulation is instant. It provides real-time visibility into current production activities, helping manufacturers stay on top of changing priorities and schedules. 

How to Transition From Spreadsheets to Manufacturing Software

Moving away from spreadsheets might seem daunting at first, but taking it one step at a time can make the transition smoother and easier for all your teams. In fact, following the steps given below can minimize resistance by helping manufacturers build a software workflow anchored in their real operational requirements.

1. Map Your Existing Production Planning Process

Determining how work orders turn into elaborate production schedules reveals how information moves through various departments and stages. This can help you spot the most problematic areas.

2. Identify Planning Bottlenecks and Manual Tasks

Manual tasks and repetitive data entry are among the biggest reasons why delays and inaccuracies exist. Identifying all time-consuming activities is necessary to understand which of them will benefit most from automation.

3. Consolidate and Clean Your Production Data

Before migrating data to the new custom software, make sure existing data is cleaned up and free of duplicates, outdated information, and inaccuracies. Feeding clean product, BOM, inventory, and work-order information into the system ensures it provides accurate insights at all times.

4. Define Your Production Planning Requirements

Determine the capabilities and modules you would like integrated based on your unique production requirements. Good examples include scheduling, capacity, inventory management, work order processing, and reporting.

5. Select and Configure Manufacturing Software

Instead of opting for generic manufacturing software, choose a tailored system that is capable of fully supporting the core processes your business relies on. It should be configured around your production requirements, instead of forcing them into rigid workflows.  

6. Migrate Relevant Production Data

Only move information that is required to keep current production processes running as usual. Transferring unnecessary historical data may complicate or overwhelm the system.

7. Test the New Planning Workflow

Before initiating a company-wide rollout, run simulation tests with normal production scenarios to ascertain if the software can swiftly handle complex manufacturing requirements such as schedule changes, material shortages, urgent orders, and capacity constraints.

8. Train Teams and Phase Out Spreadsheets

Once the software has been implemented, appoint champions in each department so they can educate team members about the new workflows. This helps in gradually retiring spreadsheets without encountering much resistance. 

Key Features to Look for in Manufacturing Production Planning Software

The right manufacturing ERP software will be truly customizable. In fact, it will offer the flexibility to add or drop features based on your company's unique production requirements. However, if you do not know what to look for, start by shortlisting features that address the limitations spreadsheet-based planning introduces. The following features are a must-have in this regard:

Production Scheduling and Capacity Planning

Scheduling tools can help you optimize production planning by aligning equipment availability, labor requirements, time, and capacity constraints.

Work Order Management

Work order management is essential for the centralization of activities that fall under its purview, such as work order creation, assignment, updates, and monitoring.

Bill of Materials and Routing Management

BOM and routing capabilities connect available materials with relevant production activities to ensure core manufacturing functions work in sync.

Inventory and Material Availability

Inventory management is another useful feature that can automate functions such as stock alerts while maintaining complete visibility into current levels, which is essential for planning realistic production timelines before committing.

Production Tracking and Reporting

Detailed dashboards with the latest information on active production cycles can help teams compare planned schedules with actual progress to identify potential delays.

ERP and Business System Integration

Integrating all departments and functions – from inventory and purchasing to orders and finance – eliminates data silos and promotes coordination.

Here are the features your chosen manufacturing ERP software should be able to offer:

• Production scheduling
• Capacity planning
• Work order management
• Inventory visibility
• BOM management
• Production tracking
• Reporting and dashboards
• System integrations

How to Measure the Impact After Replacing Spreadsheets

While replacing spreadsheets with a dedicated manufacturing is bound to result in production bottleneck reduction, businesses can measure its actual impact by tracking the following:

Production Planning Time

Assess how much time your team spends on planning and distributing production schedules to determine efficiency gains.

Schedule Adherence

Track how much time is saved by monitoring production progress, including whether things are moving as per schedule and how quickly deviations are identified and sorted.

Production Lead Time

Compare the time each production cycle takes before and after implementing custom software.

On-Time Delivery

Monitor the impact of improved planning and coordination on delivery timelines.

Planning and Data Entry Errors

Check error rates and data accuracy to determine the reduction of issues associated with manual planning and maintenance of records.

Production Visibility

Measure how quickly key stakeholders can access key information, especially production status, capacity, materials, etc., as opposed to manual updates. 

Common Mistakes to Avoid When Moving Away From Spreadsheets

Most manufacturers are under the impression that implementing any software can save them from the troubles caused by spreadsheet-based planning. The truth is, the transition can be tricky, and if efficiency is the goal, the following mistakes must be avoided at all costs:

Automating an Inefficient Planning Process

Only automate processes that are inefficient when handled manually rather than all processes, including strategic ones.

Migrating Inaccurate or Unnecessary Data

Do not migrate historical or duplicate data that is no longer relevant. It can make the software produce erroneous information.

Ignoring Shop Floor Requirements

Make sure the software reflects how production actually operates. This prevents generic templates from introducing new limitations.

Switching Systems Without Adequate Training

Train your team well to minimize resistance and improve adoption rates, or they might revert to manual workarounds.

Keeping Critical Planning Data in Unconnected Spreadsheets

Do not continue maintaining spreadsheets for critical data, as it may reintroduce limitations. 

Conclusion

Modular manufacturing ERP software like ERPion is the fastest way to streamline production and remove all spreadsheet-based inefficiencies once and for all. Specifically designed for local Ontario manufacturing plants, our compliant and intelligent software quickly adapts to ground-level variables while maintaining the highest levels of productivity and accuracy. Contact us to learn why ERPion is exactly what your manufacturing business needs. 

FAQs

What is the best software for production planning?

Tailored manufacturing ERP software that accommodates real production planning processes is the best option.

How do manufacturers track production?

Most manufacturers use spreadsheets, emails, and other informal forms of communication to track critical data, which can lead to serious inconsistencies.

What are the benefits of production planning software?

Dedicated production planning software centralizes manufacturing information, streamlines production planning, and prevents delays and bottlenecks.

Can manufacturing software replace Excel?

Yes, it can, and it should if data consolidation and real efficiency gains are the aim.

What is the difference between ERP and production planning software?

Production planning software purely focuses on production planning, while manufacturing ERP connects all critical business processes and functions.