When most people imagine a factory, the scene is simple. A worker pushes a big red button, and like magic, a conveyor belt whirs to life and pops out a shiny new product.
Of course, a real production process is far more complicated. To transform raw materials into finished products, several operational activities have to happen behind the scenes — an efficient supply chain delivers the necessary parts and components to the plant, demand forecasting informs production schedules and resource allocation, and quality control checks ensure compliance with safety standards.
These aspects of the production process all fall under manufacturing operations. Manufacturing operations management (MOM) keeps everything running smoothly, and it’s a fundamental part of a business’s sustainability and growth.
Understanding manufacturing operations management
Here’s a closer look at examples of manufacturing operations and the wide range of functions that operations managers oversee:
- Production planning and scheduling: Managers determine the most efficient way to produce goods based on factors like demand, resource planning, and production capacity.
- Procurement and inventory management: Ensuring the right materials are available at the right times minimizes excess inventory and associated costs.
- Production execution and control: Monitor and manage the actual production process, tracking progress, identifying bottlenecks, and making necessary adjustments.
- Quality assurance: Take measures to ensure products meet specified quality standards and customer expectations.
- Maintenance and repair: Keeping equipment and machinery in optimal working condition is key to minimizing downtime and maintaining smooth production.
- Logistics and distribution: Managers have to organize the storage and transportation of finished goods to customers or distribution centers.
MOM, sometimes known as manufacturing process management, is a comprehensive system designed to integrate and optimize these various operational activities. It relies on software, data analytics, and other tools to provide real-time visibility into the entire production process. Manufacturers can then make informed decisions and respond quickly to changing conditions.
Here are some of the top benefits of implementing MOM:
- Increased efficiency and productivity: MOM streamlines processes, eliminates bottlenecks, and optimizes resource utilization, improving manufacturing productivity.
- Reduce costs: By minimizing waste and boosting efficiency, MOM significantly reduces production costs.
- Improved quality: MOM uses real-time monitoring and data analysis to identify and address quality issues early, setting a higher standard for finished goods.
- Enhanced agility and responsiveness: Manufacturers can quickly adapt to changing market conditions or customer demands, giving them a competitive edge.
- Improved customer satisfaction: MOM keeps customers happy by helping manufacturers meet demand, leading to on-time delivery and consistent quality.
- Better compliance: Better management helps manufacturers comply with industry regulations and standards, reducing the risk of penalties and reputational damage.
- Data-driven decision-making: MOM provides real-time data and insights to inform decisions based on accurate, up-to-date information.
The key areas of manufacturing operations management
Each aspect of production operations plays a critical role in the manufacturing process’s overall success. Here’s a breakdown of some of the key areas MOM covers.
Production planning and scheduling
- Developing master production schedules based on demand forecasts and resource availability
- Creating detailed production plans for individual work orders or batches
- Optimizing production schedules to minimize lead times and maximize resource utilization
- Adjusting schedules in real time to accommodate unforeseen events or changes in demand
Procurement and inventory management
- Forecasting raw material requirements based on production schedules and inventory levels
- Generating purchase orders and managing supplier relationships
- Tracking inventory levels and stock movements as they happen
- Optimizing inventory levels to minimize carrying costs while ensuring sufficient supply
Production execution and control
- Monitoring the progress of work orders and batches throughout the production process
- Tracking machine performance and identifying potential bottlenecks
- Managing labor resources and assigning tasks to operators
- Collecting and analyzing production data to identify areas for improvement
Quality control and assurance
- Enforcing quality control measures at various stages of production
- Conducting regular inspections and tests to ensure product quality
- Identifying and addressing quality issues quickly and effectively
- Implementing corrective and preventive actions to prevent the recurrence of quality problems
Maintenance and repair
- Developing preventive maintenance plans for equipment and machinery
- Scheduling and performing routine maintenance tasks
- Responding quickly to equipment breakdowns and minimizing downtime
- Tracking maintenance history and analyzing data to identify trends and optimize maintenance schedules
Logistics and distribution
- Managing the storage and movement of finished goods
- Coordinating transportation and delivery schedules
- Tracking shipments and ensuring on-time delivery
- Optimizing logistics routes and processes to reduce costs and improve efficiency
By addressing these key areas, MOM ensures that the production process runs smoothly, efficiently, and cost-effectively.
The 7 steps for implementing manufacturing operations management
Setting up a MOM system can be complicated. Follow these steps to give the process some structure.
1. Start with a pilot
Before using MOM across the entire operation, begin with a pilot project. Test the system on a smaller scale to identify any issues and fine-tune your approach before full implementation.
2. Use a manufacturing execution system
A manufacturing execution system (MES) is a core component of MOM. This organized digital system provides real-time visibility into production, saving time and reducing errors. Choose a customizable MES that integrates with, and adjusts to, your existing processes.
3. Collect quality data
Accurate and reliable data is essential for an effective MOM because it fosters continuous improvement. Enforce systems to collect data on various aspects of production, like machine performance, quality metrics, and production times.
4. Standardize essential procedures
Develop standard operating procedures (SOPs) for key processes to ensure consistency and reduce the risk of errors. Regularly review and update your SOPs to reflect best practices and improvements.
5. Use key performance indicators
Key performance indicators (KPIs) provide a measurable way to track progress and identify areas for improvement. Common KPIs used in manufacturing operations include:
- Overall equipment effectiveness (OEE), which measures how effectively the plant uses its equipment
- On-time delivery (OTD), which measures the percentage of orders delivered on time
- Yield, which measures the percentage of quality finished goods produced
- First pass yield (FPY), which measures the percentage of products that pass inspection the first time
6. Base decisions on real-time metrics
Use the data and insights from the MOM system to make informed decisions about production, scheduling, and resource allocation.
7. Use software solutions to manage operations
Solid manufacturing is about more than your MOM system. Inventory management software like Fishbowl can streamline and automate manufacturing processes, from inventory tracking to production scheduling.
3 manufacturing operations best practices
The steps above are a great starting point, but once the MOM system is in place, following these best practices further enhances manufacturing operations and drives continuous improvement.
1. Follow lean manufacturing principles
Lean manufacturing processes focus on eliminating waste and maximizing value through five principles: identifying value, creating the value stream, upholding the flow, implementing a pull production system, and achieving perfection. There are several methods and strategies for lean manufacturing, but they all reduce costs, improve quality, and increase efficiency.
2. Use manufacturing intelligence software
Manufacturing intelligence software helps you collect production data and identify trends and patterns, according to your KPIs. Use this information to make better production, scheduling, and resource allocation decisions.
3. Collect good data
On top of manufacturing-specific software, invest in systems to collect and analyze data on various aspects of production. Barcode scanning is a particularly effective option for tracking individual items’ lifecycles and maintaining accurate stock levels.
Take your manufacturing operations to the next level with Fishbowl
Effective manufacturing operations management isn’t a one-and-done effort. It’s an ongoing journey that combines strategic planning, technological implementation, and an unfailing commitment to continuous improvement.
Fishbowl is an all-in-one inventory management solution that assists with tasks like tracking assets and controlling stock. But its manufacturing solution goes beyond managing inventory, offering real-time visibility into your production process to track material consumption and streamline manufacturing workflows.
Are you ready to take control of your stock and gain end-to-end visibility over your manufacturing operations? Schedule a demo today.
