Introduction
In many factories, the daily schedule is created by a frantic manager juggling sticky notes and last-minute customer calls. This reactive approach leads to high overtime, missed delivery dates, and low equipment utilization. A modern ERP system brings visibility and constraint-based logic to production planning.
The Real-World Problem
A metal fabrication shop had 20 machines and 150 active jobs at any time. The production scheduler relied on a whiteboard. Every morning a “fire list” of overdue orders dictated the day’s work, causing constant setups. Machine utilization averaged only 55%, yet overtime was at 25% of total labor hours.
How ERP Solved It
The company adopted an ERP with finite capacity scheduling (FCS) capabilities. Key changes:
- Real-time load view: ERP showed each machine’s current and planned workload, allowing the scheduler to level capacity.
- Due-date back scheduling: The system suggested start times for each operation based on needed completion date, considering setup and run times.
- What-if simulation: Planners could test the impact of a new rush order before committing.
Improved Result
After three months, machine utilization climbed to 82%. Overtime dropped by 40%. On-time delivery improved from 68% to 93%. The scheduler’s role shifted from crisis manager to proactive planner. “I used to hate Monday mornings. Now I love seeing a smooth schedule in ERP,” he commented.