Running a manufacturing plant is not easy, and any floor manager knows that without proper planning, a factory will not produce efficiently. In fact, resource plans (which are responsible for outlining all of the equipment, finances, personnel, time, etc. required to complete a specific task) are a necessity for any manufacturing company looking to operate at world class levels.
Though the amount of thought and effort that goes into these plans may be evident to those crafting them, it may not be as well reflected to factory outsiders—so today, we’ve decided to prepare a list of the hidden benefits in resource planning.
Saving Money
The most important aspect of any business is cash flow. Whether you’re a seasoned manufacturing mega-corporation or a small producer of fair trade coffee beans, running a manufacturing company won’t mean anything if it isn’t bringing in the funds to support itself.
Resource planning saves money and accelerates cash flow by calculating exactly how much a company can produce with the resources on hand and creating an efficient allocation of resources to achieve the business’ goals. With resource planning, you won’t lose money trying to assemble products that can’t be finished quite yet—whether it’s because one of your machines is awaiting maintenance for the next week, or one of your employees is away on his or her honeymoon for the next two. Resource planning allows you to budget based on the current demand, capacity, and material forecast of your company.
Saving Time
In addition to money, resource planning can also save your company loads of time.
Being able to account for your resources will allow you to strategically place labor, material, or equipment in the right place at the right time. Is one employee typically more efficient with one task than another? Are supervisors wasting time trying to figure out what can be run next? Are production managers burning 50% of their time expediting and firefighting? A good resource planning system will take this, amongst other things, into consideration so that you can best position your production lines and people for timely, organized product completions.
Improved Customer Service
Resource planning also means having hands-on knowledge of your materials from the moment they enter your factory pipeline to the moment they exit your factory doors. Not only does this give you better understanding of your shop floor, but it also allows you to better communicate with clients over the status of their orders. Better knowledge of the production schedule equals more accurate product completion predictions and, therefore, happier (and more) customers.
Team Enhancement
A strong team is a team that communicates well and understands their individual roles within the scheme of the working factory whole. Resource planning builds stronger teams because it keeps employees in the know—from production materials to equipment to labor expectations. Employees who understand exactly what is expected of them and the resources at their disposal will perform better.
There’s no doubt that resource planning can lend a company a plethora of benefits. Luckily, resource planning has become easier and easier to obtain in the Technology Age. Manufacturing software, such as ERP systems and APS systems, have made resource planning almost completely automated—meaning that your company’s processes can move faster and more efficiently than ever.
Does resource planning software sound like something you’d like for your company? Read our recent article on how production planning and control can up efficiency to find out more about how manufacturing software can help your business.
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