The Shop Floor Was a Constant Crisis
A custom furniture manufacturer operated with a whiteboard and gut feeling. The production manager decided which orders to start based on which customer shouted loudest. Machine changeovers were chaotic, raw materials were often allocated to the wrong job, and finished goods sat waiting for missing components. Delivery promises were broken weekly, and overtime costs soared. The company needed a way to schedule work intelligently without adding administrative burden.
How ERP Brought Order to the Factory Floor
The company implemented a production planning module within their ERP system. First, the ERP created a master production schedule based on confirmed customer orders and forecasted demand. Then it performed material requirements planning (MRP) to ensure all components were available before releasing work orders. The system automatically prioritized jobs by promised delivery date and machine capacity. Shop floor workers logged start and finish times using barcode scanners connected to the ERP.
Measurable Gains
- On-time delivery improved from 55% to 88% – customers stopped calling to complain.
- Machine utilization increased 30% – the ERP reduced idle time between changeovers.
- Work-in-process inventory shrank 40% – jobs moved through the floor without waiting for parts.
- Overtime costs decreased 25% – production was balanced and predictable.
With ERP-driven production planning, the manufacturer gained the confidence to accept more complex orders. The shop floor now runs smoothly, and the production manager can focus on continuous improvement instead of fighting fires.