How to transform production planning using MRP software

For any manufacturing business, production planning has become integral to business success and long-term prospects. In its broadest sense, production planning means making the production process as efficient as possible for manufacturers.

Doing this helps ensure accurate lead times for customers (contributing significantly to the overall customer experience), fosters good relationships with suppliers (no last-minute demands for components) and improves cash flow, which is critical for any midmarket manufacturer.

Surprisingly, many midmarket manufacturers still approach production planning using outdated, manual methods. This sector can lack the budget and resources of bigger companies, but using the right MRP or ERP software software can be transformative.

At 123Insight, our core sector consists of midmarket manufacturers. During our work, we’ve seen the impact that MRP software can have on production planning; there's no reason your company can't see that impact, too.

What is production planning, and why is it so crucial in manufacturing?  

Production planning is essential for any successful midmarket manufacturer. It optimises manufacturing processes to make them more efficient and cost-effective and allows the manufacturer to meet customer demands promptly.

With its provision of real-time data, it gives the manufacturer full control and transparency over the entire production process. This means they always have the right amount of stock and inventory and can anticipate any potential or likely problems along the supply chain.

Modern manufacturing can be an inherently complex sector. Even if your company manufactures something small and uses just a few components, managing the flow of those components is a challenge, especially if it is managed manually. 

The ultimate goal of production planning is for a manufacturer to use and manage resources effectively. When approached in the right way, this will mean:

• Accurate forecasting: You can assess how many products your customers are likely to use and, from that, determine the volume of materials, labour, and other resources.
• The right volume of materials and components: This can be calculated highly accurately according to production requirements. Furthermore, the scheduling of their purchasing can be automated to ensure they are always available.
• Smarter capacity planning: Assessing your company’s ability to meet production targets can be challenging. Production planning can tell you if you have the required equipment and staff to meet that challenge. 
• Top tier inventory management: This is one of the most important elements. Too much stock can be disastrous, causing storage headaches and tying up precious capital. Not enough means that production needs are not met, which greatly impacts customer service and overall customer experience.
• Process optimisation: When your production processes are fully optimised and streamlined, products move through the production line smoothly, with no delays and minimal waste. 

Unlocking the benefits of production planning

A material requirements planning (MRP) solution is pivotal for realising these benefits from production planning and meeting modern customer requirements. 123Insight is designed specifically for midmarket manufacturers, aiming to streamline processes and increase productivity. 

It is highly impactful and particularly delivers for our customers in the area of production planning. CSI Electronic Manufacturing Services Ltd is a subcontract electronics manufacturer based in Essex. 
Darren Webb, Manufacturing Director, said: 

"Within six months of starting the business, we literally had thousands of spreadsheets and no visibility of forthcoming orders, purchases, or deliveries. As a result, we were doubling up on purchases and did not know what was on site or what to chase. We ended up hiring temporary labour to solve the problem."

After evaluating the options available to them, CSI selected 123Insight. When they went live, they saw their day-to-day operations revolutionised. The company was able to run at a far greater capacity with the same number of staff, and estimated they could grow the business a further 25% without needing to increase staff numbers.

Stock control was also massively improved. CSI had visibility of all sales and purchase orders on the system, along with each item's stock/sales history, so that they could make informed decisions about each purchase. Errors and stock inaccuracies were massively reduced, as information was entered just once, often with safeguards and predictive text, and then followed through the system. 

Delivery dates from suppliers also improved as progress chasing was easier, and CSI had better visibility of what parts were due/overdue. 

Production planning for 2025 and beyond

Manufacturing can be a challenging industry, especially for midmarket manufacturers. You need to remain competitive in the short term and protect the business in the long term.

Production planning is a crucial element of it, and MRP systems are vital to its success. They help ensure operations are efficient, flexible, and responsive to changes in demand and help manufacturers optimise their production processes, reduce costs, and manage stock effectively.

Book one of our Evaluation Workshops, which includes a live demo of 123Insight, to learn how it can transform production planning.