The Problem: Constant Firefighting on the Shop Floor
A custom machinery manufacturer had 15 work centers and 200 active jobs at any time. Their scheduling was done on a whiteboard. The production manager spent six hours each day resolving conflicts: two jobs needing the same CNC machine, raw materials not arriving on time, and customer promises broken when priorities changed. Overtime costs were 18% of total labor, and on-time delivery was only 62%.
How ERP Solved It
The ERP system introduced finite capacity scheduling. It calculates the load on each machine and each operator, considering available hours, setup times, and material availability. When a rush order is entered, the system shows the earliest possible completion date and automatically shifts other jobs. The production manager no longer juggles a whiteboard; she reviews a visual graphical plan that updates in real time. The system also sends alerts when a job is about to miss its deadline due to a bottleneck.
The Improved Result
- On-time delivery improved from 62% to 94% within six months.
- Overtime costs were cut by 40%.
- Work-in-process inventory decreased by 30%.
- The production manager now spends only one hour per day on scheduling, freeing her to focus on quality improvement.
The company gained the ability to quote realistic lead times to customers, reducing last-minute expediting and “fire drill” mode.