Manufacturing Capacity Planning – S&OP
What is Manufacturing Capacity Planning?
Manufacturing Capacity Planning is the process of taking a demand forecast and then properly matching workforce labor, raw materials, production equipment, warehousing and shipping resources to appropriately produce finished goods in accordance with time constraints.
Often poor manufacturing capacity planning yields the following symptoms:
- Staffing problems
- Late Product Deliveries to customers
- Unsatisfied master schedule
- Not enough product on the shelf for customers – Decreased revenue
- Forecast is not accurate – good systems have feedback loops
- Consumption of required Inventory levels – robbing Peter to pay Paul
How does software help with manufacturing capacity planning?
Manufacturing capacity planning requires balancing an incredible number of data points or details surrounding each and every product. As a result, most companies use manufacturing capacity planning software to help manage the process and to generate the Capacity Requirements Plan or CRP.
Manufacturing capacity planning software is typically provided as a subset of most Enterprise Resource Planning software (ERP). This ERP software provides a structure for taking a demand forecast from the sales team and then matching the demand to an operations plan.
How does RAM Supply Chain help with Manufacturing Capacity Planning?
RAM Supply Chain can help you internally sell the idea that a successful supply chain requires improved capacity planning. Most manufacturing companies have satisfactory ERP software packages installed at their facilities. Problems existing in today’s environment are most likely due to under utilization of these powerful tools. RAM Supply Chain has successfully improved manufacturing efficiencies by evaluating, recommending and implementing improvements to clients’ current ERP software. The process improvement activities are the foundation of our success over the past 15 years.
How can RAM Supply Chain implement Manufacturing Capacity Planning Software?
Implementing improved capacity planning tools offers your team the internal controls necessary to manage efficiency in the supply chain process. RAM Supply Chain guides you through the entire process. We start with a detailed analysis of your current business process, including, but not limited to, Standard Operating Policies and Procedures, ERP software and pull systems. Using practical application experience obtained by improving manufacturing capacity for various customers in a wide range of industries, we can help your company achieve your goals.
Does RAM Supply Chain have consultants for lean manufacturing?
RAM Supply Chain uses lean manufacturing principals when aligning resources in the implementation stage of Manufacturing Capacity Planning. Our experience indicates that lean manufacturing, as a silo practice, is not effective unless it is tied into an overall strategic operational program. Our consultants are seasoned veterans in dealing with various ERP software providers and can help your organization unlock hidden capacity from your current resources.
Other Manufacturing Capacity Planning and Fluctuating Demand Resources
Pharmaceutical Services Group of America (PSGA) improved capacity of its prescription drug and OTC process manufacturing facilities by more than 50% by the implementation of these capacity planning methodologies.