Production Management Software

Production management software is a crucial tool for companies that manage their own production systems. This software helps companies control raw material and product inventories while monitoring everything across the entire production line.

There are many other factors involved in the manufacturing process that companies need to watch closely and control precisely. Manufacturing management software allows companies to do this almost effortlessly. Before getting started, manufacturing business owners should understand the common product management systems and types of software available. They must also decide whether their company would benefit greatly from this production management system based on their workflow.

Manufacturing companies need to have complete control over their various operations. Production management software provides these companies with all the tools necessary to monitor their production process. This software can be of different types, so companies must choose the right type based on their specific needs.

Before getting into the various types of software, business owners should know the types of manufacturing systems to understand who needs each type of product management software. These include:

• Continuous Manufacturing System: Commonly known as a mass production system, this type is ideal for companies that manufacture the same product 24 hours a day, 7 days a week. In this system, the production line repeats the same process over and over again. As the workflow there is largely predefined, the use of ERP or MRP software is more common in these systems.
• Intermittent Manufacturing System : Intermittent or batch manufacturing is a type of system for companies that manufacture the same product in small batches. As a result, the quality of finished products may vary slightly between batches. To ensure that everything goes perfectly, companies use ERP or MRP software in this manufacturing system.
• Custom manufacturing system : This is undoubtedly the most complex manufacturing system, where companies manufacture all products upon customer order. Most of the products that companies manufacture in this type of system are made by hand. Highly skilled artisans manufacture these products, but they still need SRP or MRP software to track the progress of the manufacturing system.

Once business owners understand the types of manufacturing systems, they should focus on determining the type of software that best suits their business and employees.

BairesDev best practices

Focus on understanding customers

Listening to your problems. This is the only way to fix them and achieve a great value proposition. We do not listen to the solutions suggested by the customer. Whenever possible, we validate ideas and concepts with customers and users to reduce product risk.

Use Design Thinking

Finding innovative ideas that focus on understanding and solving real customer problems. Have a fresh mindset: don't get overwhelmed by knowledge.

Analyze the Context

Identify the main success factors and competitive advantages with the PESTLE and Porter Five Forces of Competitive Position structures.

Design Solutions

Using techniques like Crazy 8s and Google SCAMPER.

Observe the competition to better understand customer problems

Use your resources as user tests. See the reviews they get and the ideas that work really well.

Validate resources

Financially (funding), legally, commercially, economically (pricing) and technically to know whether we should move forward or pivot to achieve product/market fit.

Look for opportunities for product growth

Collecting, measuring and analyzing data.

Assist in prioritizing resources

Know whether users are willing to pay for resources before you create them. Additionally, make sure users understand the value they get with each pricing tier. Use the MoSCoW prioritization method to help prioritize resources and know which value category they belong to.

Use the Product!

We deeply understand how the product works and feels.

Use critical thinking to say “no”

Protect and keep customers happy, not everyone else (marketing, sales, even the CEO if they have a bad idea). Still, we work closely with developers, sales, marketing, and support to understand their feelings about the product. Everyone can bring valuable insights.

Remember UI/UX and Documents

It is essential to test, maintain and improve them to be successful.

Define functional and non-functional requirements

Such as scalability, reliability, performance and security. The client's emotional and social needs can be as important as functional needs. Smiling customers stay loyal longer.

Perform product discovery

Understand if, when and where the product should be improved to reduce value, usability, execution and viability risks. Some techniques for product discovery include A/B testing, interviews, surveys, consulting, coaching, immersive experiences, free trials, beta tests, the 5 whys, concept maps, Ishikawa diagrams, SWOT, and root cause analysis.

Understand the company's objectives

Including how they measure success, what their OKRs and KPIs are, and what they hope to achieve with the product.

Share the product concept and vision

With everyone involved: the development team, customers, users and interested parties. Use Sinek's golden circle from the inside out: Why are we building this product? So how is it built (features)? And finally, what is the product?

Consider the cost of delay

Every time we delay decision-making, value is destroyed. It's better to fail fast, early and often. Plan, execute and iterate.

Does your company need a production management system?

Before spending a large amount on ERP or MRP software, companies should consider the following criteria:

• Complexity of the production process. If the company produces a lot of custom, it may be necessary to monitor a wide variety of factors during the production process. In this case, the company will need production management systems to monitor all factors in real time.
• In-house or cloud software. In-house software costs a lot but offers much more flexibility than cloud software. However, cloud software is a good solution for small businesses using a mass production system that doesn't need as much flexibility. Cloud software also allows for use on the go.
• Off-the-shelf commercial product or custom solution. If they are on a tight budget, pre-built ERP or MRP software without many features is usually sufficient. However, if the company has enough budget, it can easily opt for customized software to meet all its exact needs by partnering with an outsourced software development company.
• Ability to run and troubleshoot such systems. Only companies with an IT-qualified workforce can opt for complex production management systems. Otherwise, it will be more convenient to choose common software with easy-to-use interfaces. Additionally, they must determine the resources the company needs for the products it manufactures.

Different Types of Manufacturing Management Systems

There are many different types of manufacturing management systems available on the market today. Three of the most popular include:

ERP

ERP, or Enterprise Resource Planning, is one of the oldest types of software that companies use for production management. This software allows users to perform basic tasks like listing customers based on their sales cycles. ERP software also tracks current orders along with all the corresponding necessary information and then processes them. Companies related to mass production use this software to organize resources such as raw materials, necessary tools, and so on. Furthermore, ERP software allows companies to control their inventory without much hassle.

MRP

MRP, or Material Resource Planning, is the updated form of ERP. With MRP software, companies can monitor and control the inflow and outflow of resources to achieve the highest efficiency in the production process. This software allows users to manage bills of materials (BOMs) and inventory without any hassle. Furthermore, companies can also do general accounting and machine programming with this software. With MRP systems, companies have better control of their inventory. Purchasing planning is also greatly improved by using software to manage data throughout the production process while improving production planning.

PRS

If a company is not directly related to production, but only provides services, using SRP or Service Resource Planning software is the best solution. This software is very similar to ERP software, but companies also have access to additional features to run their services. SRP software is mainly cloud-based, so it is more cost-effective than other production management systems. To better manage service scheduling and billing, the SRP software has several integrated tools. Businesses have access to this software from any device, making service management much easier from anywhere. This software also has many more customization possibilities than other production management systems.

Our advice for companies in their production management software projects

The manufacturing process is continually evolving around the world. Companies now need to deal with highly complex production processes and track all resources and results with maximum precision.

For this, production management software is the best solution. Be it ERP, MRP or SRP, companies can leverage these systems to closely monitor their production systems and manage all factors to have better control over the production process. With this control, manufacturing companies can improve their efficiency and reduce errors to a great extent.

For companies with unique needs or who just want a highly customized product, working with a software development company to build an entirely new production management product is the way to go.