manufacturing workplaces and tasks assignment quizlet

Want to create or adapt books like this? Learn more about how Pressbooks supports open publishing practices.

11.1 Operations Management in Manufacturing

Learning objectives.

• Define operations management, and discuss the role of the operations manager in a manufacturing company.
• Describe the decisions made in planning the production process in a manufacturing company.

Like PowerSki, every organization—whether it produces goods or provides services—sees Job 1 as furnishing customers with quality products. Thus, to compete with other organizations, a company must convert resources (materials, labor, money, information) into goods or services as efficiently as possible. The upper-level manager who directs this transformation process is called an operations manager . The job of operations management (OM) , then, consists of all the activities involved in transforming a product idea into a finished product, as well as those involved in planning and controlling the systems that produce goods and services. In other words, operations managers manage the process that transforms inputs into outputs. Figure 11.1 “The Transformation Process” illustrates this traditional function of operations management.

Figure 11.1 The Transformation Process

In the rest of this chapter, we’ll discuss the major activities of operations managers. We’ll start by describing the role that operations managers play in the various processes designed to produce goods and offer services. Next, we’ll look at the production of goods in manufacturing firms; then, we’ll describe operations management activities in companies that provide services. We’ll wrap up the chapter by explaining the role of operations management in such processes as quality control and outsourcing.

Operations Management in Manufacturing

Like PowerSki, all manufacturers set out to perform the same basic function: to transform resources into finished goods . To perform this function in today’s business environment, manufacturers must continually strive to improve operational efficiency. They must fine-tune their production processes to focus on quality, to hold down the costs of materials and labor, and to eliminate all costs that add no value to the finished product. Making the decisions involved in the effort to attain these goals is the job of the operations manager. That person’s responsibilities can be grouped as follows:

• Production planning . During production planning, managers determine how goods will be produced, where production will take place, and how manufacturing facilities will be laid out.
• Production control . Once the production process is under way, managers must continually schedule and monitor the activities that make up that process. They must solicit and respond to feedback and make adjustments where needed. At this stage, they also oversee the purchasing of raw materials and the handling of inventories.
• Quality control . Finally, the operations manager is directly involved in efforts to ensure that goods are produced according to specifications and that quality standards are maintained.

Let’s take a closer look at each of these responsibilities.

Planning the Production Process

The decisions made in the planning stage have long-range implications and are crucial to a firm’s success. Before making decisions about the operations process, managers must consider the goals set by marketing managers. Does the company intend to be a low-cost producer and to compete on the basis of price? Or does it plan to focus on quality and go after the high end of the market? Perhaps it wants to build a reputation for reliability. What if it intends to offer a wide range of products? To make things even more complicated, all these decisions involve trade-offs. Upholding a reputation for reliability isn’t necessarily compatible with offering a wide range of products. Low cost doesn’t normally go hand in hand with high quality.

With these factors in mind, let’s look at the specific types of decisions that have to be made in the production planning process. We’ve divided these decisions into those dealing with production methods, site selection, facility layout, and components and materials management.

Production-Method Decisions

The first step in production planning is deciding which type of production process is best for making the goods that your company intends to manufacture. In reaching this decision, you should answer such questions as the following:

• How much input do I receive from a particular customer before producing my goods?
• Am I making a one-of-a-kind good based solely on customer specifications, or am I producing high-volume standardized goods to be sold later?
• Do I offer customers the option of “customizing” an otherwise standardized good to meet their specific needs?

One way to appreciate the nature of this decision is by comparing three basic types of processes or methods: make-to-order, mass production , and mass customization . The task of the operations manager is to work with other managers, particularly marketers, to select the process that best serves the needs of the company’s customers.

Make-to-Order

At one time, most consumer goods, such as furniture and clothing, were made by individuals practicing various crafts. By their very nature, products were customized to meet the needs of the buyers who ordered them. This process, which is called a make-to-order strategy , is still commonly used by such businesses as print or sign shops that produce low-volume, high-variety goods according to customer specifications.

Mass Production

Figure 11.2

Automakers produce a high volume of cars in anticipation of future demand.

Dawn Endico – Dealer Prep – CC BY-SA 2.0.

By the early twentieth century, however, a new concept of producing goods had been introduced: mass production (or make-to-stock strategy) is the practice of producing high volumes of identical goods at a cost low enough to price them for large numbers of customers. Goods are made in anticipation of future demand (based on forecasts) and kept in inventory for later sale. This approach is particularly appropriate for standardized goods ranging from processed foods to electronic appliances.

Mass Customization

But there’s a disadvantage to mass production: customers, as one contemporary advertising slogan puts it, can’t “have it their way.” They have to accept standardized products as they come off assembly lines. Increasingly, however, customers are looking for products that are designed to accommodate individual tastes or needs but can still be bought at reasonable prices. To meet the demands of these consumers, many companies have turned to an approach called mass customization , which (as the term suggests) combines the advantages of customized products with those of mass production.

This approach requires that a company interact with the customer to find out exactly what the customer wants and then manufacture the good, using efficient production methods to hold down costs. One efficient method is to mass-produce a product up to a certain cut-off point and then to customize it to satisfy different customers.

The list of companies devoting at least a portion of their operations to mass customization is growing steadily. One of the best-known mass customizer is Nike, which has achieved success by allowing customers to configure their own athletic shoes, apparel, and equipment through Nike’s iD program. The Web has a lot to do with the growth of mass customization. Levi’s, for instance, lets a woman find a pair of perfect fitting jeans by going through an online fitting process that first identifies her “curve” type: slight (straight figure), demi (evenly proportioned), bold (curvy figure, which experiences waist gapping in the back), and supreme (curviest shape, which needs a higher rise in the back). Oakley offers customized sunglasses, goggles, watches, and backpacks, while Mars, Inc. can make M&M’s in any color the customer wants (say, school colors) as well as add text and pictures to the candy 1 .

Naturally, mass customization doesn’t work for all types of goods. Most people don’t care about customized detergents or paper products (although a customized Kleenex tissue box with your picture on it and a statement that says, “go ahead…cry over me!” might come in handy after a relationship breakup with your significant other (Windisman, 2008).) And while many of us like the idea of customized clothes, footwear, or sunglasses from Levi’s, Nike, or Oakley, we often aren’t willing to pay the higher prices they command.

Facilities Decisions

After selecting the best production process, operations managers must then decide where the goods will be manufactured, how large the manufacturing facilities will be, and how those facilities will be laid out.

Site Selection

In choosing a location, managers must consider several factors:

• To minimize shipping costs, both for raw materials coming into the plant and for finished goods going out, managers often want to locate plants close to suppliers, customers, or both.
• They generally want to locate in areas with ample numbers of skilled workers.
• They naturally prefer locations where they and their families will enjoy living.
• They want locations where costs for resources and other expenses—land, labor, construction, utilities, and taxes—are low.
• They look for locations with a favorable business climate—one in which, for example, local governments might offer financial incentives (such as tax breaks) to entice them to do business in their locales.

Managers rarely find locations that meet all these criteria. As a rule, they identify the most important criteria and aim at satisfying them. In deciding to locate in San Clemente, California, for instance, PowerSki was able to satisfy three important criteria: (1) proximity to the firm’s suppliers, (2) availability of skilled engineers and technicians, and (3) favorable living conditions. These factors were more important than operating in a low-cost region or getting financial incentives from local government. Because PowerSki distributes its products throughout the world, proximity to customers was also unimportant.

Capacity Planning

Now that you know where you’re going to locate, you have to decide on the quantity of products that you’ll produce. You begin by forecasting demand for your product. As we discussed in Chapter 10 “Product Design and Development” , forecasting isn’t easy. To estimate the number of units that you’re likely to sell over a given period, you have to understand the industry that you’re in and estimate your likely share of the market by reviewing industry data and conducting other forms of research.

Once you’ve forecasted the demand for your product, you can calculate the capacity requirements of your production facility—the maximum number of goods that it can produce over a given time under normal working conditions. In turn, having calculated your capacity requirements, you’re ready to determine how much investment in plant and equipment you’ll have to make, as well as the number of labor hours required for the plant to produce at capacity.

Like forecasting, capacity planning is difficult. Unfortunately, failing to balance capacity and projected demand can be seriously detrimental to your bottom line. If you set capacity too low (and so produce less than you should), you won’t be able to meet demand, and you’ll lose sales and customers. If you set capacity too high (and turn out more units than you should), you’ll waste resources and inflate operating costs.

Key Takeaways

• The job of operations management is to oversee the process of transforming resources into goods and services.
• The role of operations managers in the manufacturing sector includes production planning, production control, and quality control.
• During production planning, managers determine how goods will be produced (production process), where production will take place (site selection), and how manufacturing facilities will be laid out (layout planning).
• In selecting the appropriate production process, managers compare three basic methods: make-to-order strategy (goods are made to customer specifications), mass production or make-to-stock strategy (high volumes of goods are made and held in inventory for later sale), and mass customization (high volumes of customized goods are made).
• In choosing the site for a company’s manufacturing operations, managers look for locations that minimize shipping costs, have an ample supply of skilled workers, provide a favorable community for workers and their families, offer resources at low cost, and have a favorable business climate.
• Managers estimate the quantity of products to be produced by forecasting demand for their product and then calculating the capacity requirements of the production facility—the maximum number of goods that it can produce over a given period under normal working conditions.

(AACSB) Analysis

Two former surfers invented a material for surfboards that’s lighter and stronger than anything manufacturers now use. They have received funding to set up a production facility, and they want you to help them select a location. In addition to your recommendation, identify the factors that you considered in reaching your decision.

Compare and contrast three common types of production processes: make-to-order, make-to-stock, and mass customization. What are the advantages and disadvantages of each? Why are more companies devoting at least a portion of their operations to mass customization? Identify three goods that could probably be adapted to mass customization and three that probably couldn’t.

1 See these websites for examples of customized products: Nike ( http://nikeid.nike.com/nikeid/index.jsp ), Levi ( http://us.levi.com/shop/index.jsp?categoryId=4370093 ), Oakley ( http://www.oakley.com/custom ), and Mar’s M&M’s ( http://www.mymms.com/utility.aspx?src= ) (accessed November 2, 2011).

Windisman, A., “ Personalized Packaging: Kleenex Offers Customizable Tissue Boxes ,” One of a Kind Publishing, Inc., January 3, 2008, http://blogs.oneofakindpublishing.com/index.php?/archives/77-Personalized-Packaging-Kleenex-Offers Customizable-Tissue-Boxes.html (accessed November 1, 2011).

Exploring Business Copyright © 2016 by University of Minnesota is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License , except where otherwise noted.

Share This Book

Manufacturing Shift Scheduling: A Complete Guide

In this comprehensive guide to manufacturing shift scheduling, you’ll discover the importance of effectively scheduling your employees to meet production demands. We’ll walk you through various scheduling approaches, best practices, and how to improve your overall manufacturing management process using modern scheduling tools.

Key takeaways:

• Manufacturing shift scheduling involves assigning work times to employees to ensure complete coverage that meets production demands.
• Effective employee scheduling is not just about filling in spots; it’s about empowering employees, respecting their work-life balance, and using real-time data for forecasting future needs.
• Common shift schedules in manufacturing include fixed shift schedules, split shift schedules, overtime shift schedules, rotating shift schedules, on-call shifts, and no-schedule shifts.
• Effective shift scheduling can lead to reduced labor costs, increased productivity, better work culture, and improved employee retention.
• Using modern scheduling software like When I Work can greatly simplify the complex task of managing manufacturing schedules.

Without people, there’s no manufacturing. 

That’s why paying attention to how you schedule your employees should top your list of concerns.

While your attention has to be divided across the entire manufacturing process, the most important focus must be your people.

Manufacturing shift scheduling is tricky and has traditionally been a manual process of spreadsheets and phone calls with shift schedules posted in break rooms or locker rooms. That no longer works in today’s technological age where people live on their phones and expect to access information relevant to them whenever they want. 

Understanding manufacturing shift schedules is the first step towards revamping your process to one that works, both for your employees and for you.

Looking to learn about rotating shift schedules? Keep reading or watch our YouTube video and learn about the various types of rotating shift schedules, determine which is right for you, and how to create a more balanced schedule that benefits your employees and your business.

What is manufacturing shift scheduling?

Manufacturing shift scheduling is simply assigning work times to your employees for complete coverage that meets production demands.

To do that, you’ll:

• Define work shift lengths
• Choose shift schedule types
• Determine overtime policies
• Determine scheduling policies

It seems simple, but can become pretty complicated once you move from theoretical to actually scheduling people to meet manufacturing demands.

How to schedule employees effectively in a manufacturing setting

Improving your manufacturing management process includes understanding how to properly schedule employees. You’re not just writing names on a calendar to fill in blank spots.

Effective employee scheduling is about empowering employees and respecting their work-life balance. To make that happen, you should know what your team needs to accomplish, an understanding of how busy (or slow) production is during different times of the day, and data that allows for forecasting changes in the future.

In other words, it means you need to:

• Understand your schedule. You can’t optimize your manufacturing shift schedule if you don’t understand it. For that, you need data that allows you to see what’s happening in real time, what’s happened historically, and what might happen in the future ( labor forecasting ). 
• Practice dealing with the unexpected. It’s easy enough to throw overtime at every labor problem that suddenly crops up, but that’s expensive. Taking a scheduling approach that doesn’t involve overtime as the go-to solution is more difficult, but makes a difference in the long-run.
• Stay in communication. Talk to your managers and employees to find out what is and isn’t working with the schedule. Effective scheduling that looks good on paper but fails in the real world is simply that: a failure.

Shift scheduling best practices 

When you understand how to schedule employees effectively, you can put into place several best practices:

• Plan ahead: Last-minute scheduling, or constant rushed changes, are frustrating to employees. They may have made plans, or are already overworked. Schedule in advance, and build and publish upcoming schedules at regular times so employees know when to expect the schedule to come out. In a way, that’s part of empowering employees, having a time they can count on seeing the latest schedule.
• Plan far ahead: Be ready with a plan for sudden schedule changes, and communicate that with employees so they aren’t surprised. This means constantly reviewing your schedule to see what needs fixing now, or in the next round.
• Comply: Federal and local laws, as well as any internal HR or union agreements, have to be followed when building your schedule.
• Communicate: Let your employees know the upcoming schedule as soon as it’s ready, and communicate any contingency plans that might affect them. Again, employees are empowered by knowledge; they can plan their lives better the sooner they know.
• Make it accessible: It shouldn’t take heroic effort to see the schedule, so make the schedule as accessible as you can for all employees.

Commonplace approaches to shift work schedules

When it comes to choosing which manufacturing shift schedule to use, you have options. Each has its own benefits (and challenges); most can be mixed with other types on the same calendar. Since manufacturing is often 24/7, you’ll need to build a 24-hour shift schedule .

These different approaches will help you.

Fixed shift schedules 

A fixed shift schedule is one of the most common approaches, and also one of the easiest to manage when it comes to planning and being compliant with federal labor laws. 

With fixed shifts, employees have regular shifts in which they work the same days, and hours each day, every week.

Fixed shift schedules provide stability and allow employees to balance work and personal life easier because their schedule is predictable. 

Split shift schedules 

Split shifts are exactly what they sound like: regular shifts split into parts. Instead of an employee work day that is a single block of time, the day is divided into two or more parts. Typically, a shift is split by at least two hours.

Split shifts are helpful for employees who have obligations that fall during a traditional shift, such as picking up a child after school. 

Overtime shift schedules 

Overtime shifts are when employees work longer than a typical shift. Overtime shifts come with extra pay, and that means your labor costs can get out of control if you rely on them too much. They can also lead to employee burnout .

Managing overtime in manufacturing is especially tricky; it’s useful during temporary situations where labor is short or demand is high, but it’s easy for a temporary fix to become standard practice.

Overtime definitions are covered by federal (and possibly state) labor laws. Generally, overtime is determined by total hours in a week and kicks in when an employee works more than 40; in some states, working past 8 hours in a day might be considered overtime.

Some employees like overtime because of the extra pay, but they might unwittingly burn themselves out if you don’t stop them. Required overtime, due to persistent labor shortages , can have a negative impact on turnover.

Rotating shift schedules 

Rotating shifts are a set cycle of shifts that your employees switch through over a set period of time. Not all shifts are equally preferred by employees, so rotating shifts make things fair by having all employees eventually work all shifts at some point.

Not all rotating shifts are set up the same way. You might have something as basic as day shift and night shift. For businesses like manufacturing, which are often running 24/7, you might have day shift, swing shift, and night shift.

Rotating shifts can also have different frequencies when it comes to the rotation. Frequent rotation can be hard on employees’ physical and mental health, while slower rotation gives them time to adapt and adjust.

On-call shifts

On-call shifts means that an employee is available to work on demand, should the need arise. Employees who are on call may be used to fill in for absent employees or during emergencies when more help is needed.

On-call shifts can be a burden on some employees, as they aren’t at work but can’t make plans. For this reason, they are often compensated more, and are rotated through the staff so everyone has their turn.

No-schedule shifts 

Don’t let the name fool you! 

No-schedule shifts are still scheduled, just like any other shift. The difference is that they aren’t as regular as the other shifts we’ve covered. Scheduling managers put employees on the schedule wherever they’re needed, and it might differ from week to week based on need.

These shifts can be difficult for employees as they prevent a good work-life balance. Employees never know what their schedule will be from one week to the next. No-schedule basically means unpredictable, from the employee’s point of view.

Benefits of effective scheduling in manufacturing

The benefits of great shift planning are reduced labor costs, increased productivity, and increased agility as a manufacturer. 

When you effectively schedule your manufacturing shifts, you’ll end up with the right amount of shift coverage to meet production demand. But even more importantly, you’ll avoid burning out your employees and you’ll build a great work culture .

Employees who like their shifts, feel that shifts are being doled out fairly, or that they have some say in their work schedule , are much happier and safer. They’re willing to stay on the job instead of contributing to turnover.

The most important benefit of effective scheduling, in other words, is a solid employee base that sticks around.

Manufacturing employee scheduling software

The most obvious takeaway from all of this is that managing manufacturing schedules is highly complex. At this point, it’s too complicated for you to continue using manual methods; employee scheduling software is necessary.

When I Work is a deceptively easy manufacturing labor planning software that comes with all the features you need to create any (or a mix) of the schedule types listed above. It’s ideal for all manufacturing scheduling .

• Mobile apps mean you can manage the schedule anywhere, and employees can check the schedule anytime.
• Internal messaging and communication between managers and employees creates a cohesive team. 
• Employees are empowered by allowing them to request time off or swap shifts with each other without having to get manager approval. 
• Managers save time and still stay on top of things by setting up the schedule templates, shift rules, list open and available shifts, and watch for alerts on your schedule that indicate overtime issues

In a way, your schedule becomes self-sustaining. Employees are empowered. You have options that keep you flexible if an emergency crops up. And your production can continue, unhindered.

Sign up for a free trial today and take a look under the hood. You’ll see how every scheduling concern has an easy solution, all in one manufacturing employee scheduling software .

Manufacturing shift schedules FAQs

Manufacturing shift scheduling involves assigning work times to employees to ensure full coverage that aligns with production demands. This process includes defining work shift lengths, choosing shift schedule types, and determining overtime and scheduling policies.

What are some best practices for shift scheduling in manufacturing?

Some best practices for shift scheduling in manufacturing include planning ahead to prevent last-minute changes. Be sure to comply with federal and local laws and regulations as well as internal policies. Maintain open communication with employees about the schedule, and make the schedule accessible to all employees.

What are the common types of manufacturing shift schedules?

The common types of manufacturing shift schedules include fixed shift schedules, split shift schedules, overtime shift schedules, rotating shift schedules, on-call shifts, and no-schedule shifts. The choice of schedule type depends on the unique needs of the manufacturing process and the workforce.

What are the benefits of effective scheduling in manufacturing?

Effective scheduling in manufacturing can lead to reduced labor costs, increased productivity, and increased agility as a manufacturer. It can also help to avoid employee burnout, create a better work culture, and reduce turnover by ensuring fair scheduling and allowing employees some control over their work schedules.

Why is manufacturing employee scheduling software necessary?

Managing manufacturing schedules is a complex task, especially when using manual methods. 

Employee scheduling software like When I Work simplifies this task by providing features that allow for creation of different schedule types, communication with employees, shift rule setting, and overtime issue alerts. This enables a more efficient and self-sustaining scheduling process, benefiting both management and employees.

Like What You See?

Join over 140,000 other people and get valuable business tips delivered right to your inbox.

Something Went Wrong

We had some issues creating your account. Please check your info and try again.

Employee Burnout: Causes, Signs, And Strategies

9 Strategies For Decreasing Labor Costs

Rotating Shifts: A Manager’s Guide to Rotating Schedules

How to Save Time And Money With Automatic Scheduling For Employees

40 Employee Appreciation Ideas Your Staff Will Love

How to Write Up an Employee in 8 Easy Steps

What is Work Specialization? Definition, Examples, and Pros/Cons

Table of Contents

What is Work Specialization?

Work specialization, also known as division of labor , is a process where work activities are divided into separate tasks, allowing employees to specialize in specific areas. This specialization increases work output and efficiency. In manufacturing, it involves breaking complex tasks into smaller, repetitive steps, leading to expertise in each task.

Work specialization, also called job specialization benefits organizations by improving productivity and creating skilled workers. However, it can lead to inflexibility and challenges in career shifts. Employees become highly proficient in their specialized tasks but may face difficulties adapting to changing job demands.

Overall, work specialization is a method of organizing work that maximizes efficiency, but balancing it with adaptability is crucial in modern workplaces.

How Does Work Specialization Work?

Work specialization functions by breaking down work activities into smaller, specialized tasks that employees excel in. Each worker becomes proficient in their specific area, leading to increased productivity.

For instance, in manufacturing, assembly lines assign repetitive tasks to individual workers, streamlining production. While specialization enhances efficiency, it may limit career flexibility and adaptability.

Workers must strike a balance between honing expertise and being open to change. Successful work specialization involves maximizing skills while remaining versatile to meet evolving demands in the modern workforce.

Also Read: What is Span of Control? Definition, Features, Types, Factors, and Importance

Advantages of Work Specialization

Work specialization offers several benefits that enhance productivity and efficiency in the workplace. Here are six advantages:

Increased Efficiency

Dividing tasks allows workers to focus on specific areas, becoming skilled and faster at their assigned roles. This streamlined approach boosts overall productivity, leading to faster completion of projects and tasks.

Expertise Development

By concentrating on a particular set of tasks, employees gain in-depth knowledge and expertise. Their specialized skills enable them to handle complex or technical aspects of their work with precision and accuracy.

Reduced Training Time

With job specialization, employees receive specific training for their designated tasks. This targeted training saves time and resources, as workers quickly become proficient in their roles.

Enhanced Quality

Specialized employees are more likely to produce high-quality work due to their mastery of the assigned tasks. This results in better products or services and increased customer satisfaction.

Also Read: What is Management?

Job Satisfaction

Workers tend to take pride in their specialized roles, leading to higher job satisfaction. As they become experts, their confidence and motivation increase, positively impacting their overall morale.

Cost Savings

Efficient job specialization reduces wastage and errors, leading to cost savings for the organization. Additionally, specialized employees can complete tasks more effectively, optimizing resource allocation.

Disadvantages of Work Specialization

While job specialization offers various benefits, it also has some drawbacks . The followings are its some disadvantages:

Limited Skill Set

Work specialization narrows employees’ focus to specific tasks, limiting their exposure to a broader range of skills. As they become highly skilled in their assigned area, they may struggle to adapt or handle tasks beyond their specialization, hindering overall versatility.

Performing repetitive tasks repeatedly can lead to boredom and reduced job satisfaction. Employees may feel unchallenged and unfulfilled, impacting their motivation and enthusiasm for work.

Career Rigidity

Over time, specialized workers may find it challenging to switch career paths or explore new opportunities within the organization. This lack of flexibility can hinder professional growth and limit future job prospects.

Dependency Issues

Relying heavily on specialized employees can create dependency within the organization. If a specialized worker leaves or is unavailable, it may disrupt the workflow and create bottlenecks.

Resistance to Change

Specialized employees may resist changes in their tasks or work processes, as they have become comfortable and proficient in their specific roles. This resistance to change can impede innovation and hinder the organization’s ability to adapt to evolving market demands.

Also Read: Chain of Command: Definition, Elements, Example, Types, Strategies, and Pros/Cons

Examples of Work Specialization

Let’s look at some examples of how organizations are implementing job specialization.

Manufacturing Assembly Lines

In manufacturing, work specialization is evident in assembly lines. Organizations divide complex production processes into smaller, repetitive tasks. Each worker is trained and assigned to perform a specific task, such as assembling parts or inspecting products. This specialization streamlines production, increases efficiency, and ensures consistent quality.

Digital Marketing Teams

In the realm of digital marketing, organizations implement job specialization by creating specialized teams for various tasks.

For instance, one team focuses on content creation, another on social media management , and another on search engine optimization (SEO). Each team member becomes an expert in their respective area, maximizing the effectiveness of marketing strategies.

Healthcare Professionals

In the healthcare industry, work specialization is evident among different healthcare professionals. Doctors, nurses, and technicians specialize in specific medical fields like cardiology, pediatrics, or radiology. Each professional gains expertise in their area, ensuring patients receive specialized care tailored to their medical needs.

Read Next: What is Scalar Chain?

By profession, Sujan Chaudhary is a BBA (Bachelor in Business Administration) graduate, and by passion a blogger. He loves to share his business knowledge with the rest of the world. While not writing, he will be found reading and exploring the world.

Leave a Comment Cancel reply

Save my name, email, and website in this browser for the next time I comment.

3.4 Taylor-Made Management

• How did Frederick Winslow Taylor influence management theory, and how did efficiency in management affect current management theory?

The economic upheaval of the Industrial Revolution also witnessed tremendous social upheavals. The U.S. professional classes (lawyers, administrators, doctors) had numerous concerns. 28 Because more and more people were now working in factories, there was the potential for creating a permanent underclass of poorly educated workers struggling to make a living. Many reformers felt that workers could be radicalized and actively try to better their working conditions, pay, and so on, thus disrupting the status quo of the labor markets, leading to strikes, riots, violence. There were also concerns that money, influence, and pressure from big business were corrupting politics and overriding the will of the people.

The working class had many concerns about their work life. As mentioned earlier, there was a deep fear that work would disappear because of overproduction. There were also concerns over wages, job tenure, and workplace justice. And there was little in the way of standardization when it came to how tasks were to be accomplished. 29 When Frank Gilbreth, a pioneer in scientific management, was apprenticed as a bricklayer in 1885, he noted that he was taught three ways to lay bricks even though there was no need for more than one method.

In the factories, there was little concern for the workers’ physical or mental health, and there were no breaks. 30 Management and the workforce were in vicious contention with each other. Management would set the rate of work expected for the day, and in response, workers would band together to limit production. This action, called “soldiering,” was a deliberate reduction of productivity on the part of the worker. Those workers who either over- or underproduced could expect that their equipment would be destroyed or that they themselves would be physically harmed. There were very few, if any, incentives provided by management. When managers sought to motivate workers, they did so through physical beatings and other punishments. 31 Neither side had a reason to trust or cooperate with the other.

Compounding management problems, there was now a demand for managers, but there were very few of them to fill this demand, as there was little training provided. Prior to the Industrial Revolution, companies were largely in the hands of a family or a single owner/manager. As companies were getting larger and more complex and the exchange of goods was taking place across more and more regions, most business owners no longer had the expertise to run such vast geographic and financial enterprises. 32 Yet there was little in the way of management training or education. There were no established scholarly journals, such as the Academy of Management Journal , or practitioner journals, such as the Harvard Business Review . Nor were there business schools until 1881, when the Wharton School of Business at the University of Pennsylvania was established. Business education at this time consisted mostly of classes that taught secretarial work. Allied fields, such as psychology and sociology, were in their infancy. Any management education that did exist was mostly learned from lessons of history and literature. Although there were numerous examples of both excellent and terrible management, this education was anecdotal and not systematic.

The second phase of the Industrial Revolution commenced with the establishment of management as a distinct discipline of knowledge. Management’s birth was not in Great Britain, but in the United States. 33 According to management consultant and educator Peter Drucker, the development of management was one of the United States’ primary contributions to the world, along with the Declaration of Independence. 34 At the same time management was getting established, sociology and psychology were developing, and the studies of history and economics were becoming more scientific and formal. Management also became formalized as a field of study using the scientific method. Drucker stated that the development of management was one of the factors that held off the development of radicalism in the United States because it increased productivity, lowered prices, and increased wages for workers. The success of scientific management lifted workers into the middle class. This crucial development has been attributed to one person in particular: Frederick Winslow Taylor .

Frederick Winslow Taylor (1856–1915) is known as the father of scientific management. He was born to the Quaker aristocracy of Pennsylvania, and initially he planned to go to Harvard and become a lawyer or an executive until he suffered an eye injury that prevented him from reading, 35 With Harvard no longer an option, Taylor went to work at a family friend’s factory, the Midvale Steel Company. Taylor took to the work and was promoted quickly from pattern maker to foreman and then to chief engineer. During this time, he witnessed many acts aimed at limiting or reducing production—including having his tools destroyed—and it was he who coined the term soldiering to describe this deliberate act. 36 Rather than stand by and see such senseless acts affect the business he worked for, Taylor decided to take action. First, he went to Stevens Institute of Technology to gain a background in engineering. Then he took this knowledge and applied it to his work.

It is important to note that Taylor was not an original thinker. Many of his ideas came from other thinkers, especially the Englishman Charles Babbage (1791–1871). 37 Taylor’s contribution was that he advanced a total system of management by uniting the ideas and philosophies of many others. While he may not have invented the scientific study of management, Taylor contributed to the use and synthesis of management by pioneering the use of time studies, division of labor based on function, cost-control systems, written instruction for workers, planning, and standardized equipment. Taylorism is still the basis of modern management, including the use of incentives. For example, Taylor stressed piecework production, meaning that workers were paid for how much they produced. Taylor also stressed the idea of differential piecework, meaning that if workers produced more than a certain amount, they would be paid more. Some compensation systems, such as sales commissions (i.e., being paid for how much you sell), have their bases in Taylor’s work.

Taylor’s major contribution was that he prized knowledge and science over tradition and rules of thumb. He broke down each act of production into its smallest parts and watched the best workers perform their jobs. Using a stopwatch to time the workers’ actions, Taylor determined the most effective and efficient way to accomplish a given task. After breaking down each job into its component parts, Taylor then reconstructed them as they should be done. Taylor also developed time management studies to break down a person’s workday into a series of activities. He then timed the execution of each activity to see which way was the quickest. He would rebuild the job using only the most efficient ways possible and then train workers to perform the task. And by allowing workers to have rest periods throughout the day, he was able to get workers to work faster and better without making them tired. 38

Another one of Taylor’s significant contributions to the practice and profession of management was the concept of first-class work. When Taylor developed the notion of first-class work, he did so with the idea that workers should do as much work as they are physically and mentally capable of doing. Those who were not physically or mentally capable of keeping up with production and job demands were sent to different areas in the plant where they could work most effectively. First-class work was based not on physical strain or bursts of activity, but on what a worker could realistically be expected to do.

Taylor also developed a task management system that allowed work to occur more efficiently and allowed for breaking up a supervisor’s work so that he could function within a discrete area of activities. This focus allowed supervisors to better plan and control the activities for which their workers were responsible. Taylor believed that managers would become better at and more suited to analyzing their specific area of expertise, with authority that came from knowledge and skill and not simply from position or power. He also developed a cost-accounting method that became an integral part of daily planning and control, not something that was applied only to long-term analysis.

Taylorism was based on four principles of management illustrated in Table 3.2 .

Principle 1: A manager should develop a rule of science for each aspect of a job. Following this principal ensures that work is based on objective data gathered through research rather than rules of thumb. For example, many people believed that allowing workers to take breaks would limit how much work could be done. After all, how could a worker produce if he was not working? Taylor changed this attitude through research that demonstrated the benefits of breaks during the workday. Due to Taylor’s research, we now enjoy coffee breaks.

Principle 2. Scientifically select and train each worker. When you get to the chapter on human resource management, you will see that Taylor’s ideas still hold. Prior to Taylor’s work, the selection of workers was made based on favoritism, nepotism, or random choice. Taylor got his job at Midvale because the owner was his father’s friend. Likewise, workers were usually selected for a particular job with little consideration of whether they were physically or mentally fit to perform it. Taylor changed this viewpoint by using research to find the best worker for the job.

Principle 3. Management and the workforce should work together to ensure that work is performed according to the principles of management. Taylor’s observation went against the long-established principles of both management and the worker who believed that each was the other’s enemy. Rather than enmity, Taylor stressed cooperation and the need for the work relationship to be mutually beneficial.

Principle 4. Work and responsibility should be equally divided between management and workers. Previously, management set the directives, and workers obeyed or blocked them. Taylor believed that management and workers had joint responsibilities to each other. Management’s responsibility was to scientifically select the quantity of output for the day and provide a fair wage. In return, workers were to provide a fair day’s work.

Taylor’s Acolytes

In addition to his groundbreaking work on scientific management, Taylor attracted a wide variety of talented individuals who aided him in his research. The first important individual was the mathematician Carl G. Barth (1860–1939). Barth made two notable contributions. The first was his work on employee fatigue. He attempted to find what aspects made a worker tired. The second was his use of the slide rule for calculating how much steel to cut. A slide rule is a ruler with a sliding central strip. It makes it possible to perform calculations rapidly and accurately. Barth developed one for cutting steel. Before Barth’s work, workers were required to make difficult calculations to determine how much steel to cut. Usually, they guessed, which led to a lot of errors and waste. With the slide rule, however, the number of errors decreased, as did the costs associated with them.

Another notable contributor to Taylor’s methods was Henry Gantt (1861–1919), who developed the Gantt chart, which allowed for greater and more precise control over the production process. The Gantt chart, illustrated in Exhibit 3.4 , tracked what was supposed to be done versus what was actually done. Gantt gives two principles for his charts: First, measure the amount of time needed to complete an activity. Second, use the space on the chart to visually represent how much of an activity should have been completed in that given time. Today, the closest thing to a Gantt chart is a scheduling system. These charts allowed management to see how projects were progressing, take steps to see if they were on schedule, and monitor budget concerns. 39 Gantt also pioneered the employee bonus system, in which employees were given a bonus if they completed the task they were assigned.

The next key contributors to Taylor’s system of scientific management were Frank (1868–1924) and Lillian Gilbreth (1878–1972), 40 a couple that sometimes competed with and sometimes worked with Taylor. Frank Gilbreth was a bricklayer who, before who he heard of Taylor, began to find ways to limit his fatigue and more efficiently lay down more bricks. Unlike Taylor, Gilbreth was concerned with motion studies , in which he would film various motions while someone worked on the job. To determine the most efficient way to perform a task, for example, Gilbreth reduced all motions of the hand into some combination of 17 basic motions. Gilbreth would then calculate the most efficient way of carrying out a job. Gilbreth filmed workers performing a wide variety of jobs, including bricklaying, secretarial duties, and even a baseball game.

When working in construction, Gilbreth developed a management system that included rules about no smoking on the job, a ten-dollar prize for the best suggestion in how to improve labor, and a new system of training so that workers were taught only the best way to perform a task. He developed a rule that all accident sites be photographed for use in future lawsuits. Gilbreth also prepared employees for their present and future positions by introducing a plan for promotion, training, and development. This system required charting promotion paths and record keeping for performance appraisals. He wanted to impress upon both workers and managers an understanding of fatigue and of how to improve pay. In his research, Gilbreth realized that monotony came not from the job itself, but from a worker’s lack of interest in the job.

Lillian Gilbreth may not have been the originator of the industrial psychology movement, but she brought a human element into the study and practice of management with her training and insight. She stated that to understand how to work better, we must understand the worker. Under scientific management, for example, understanding the worker became a fundamental principle in selecting workers for particular tasks and providing workers with incentives. The object was to develop each person to his fullest potential by strengthening his personal traits, special abilities, and skills. After Frank Gilbreth died, Lillian Gilbreth shifted her focus to increasing domestic efficiency and, in the process, designed the modern kitchen.

Taylor’s Shortcomings

Taylor was a monomaniac on a mission to convert as many people to scientific management as possible. Yet despite his conviction and zealousness, Taylor’s ideas were poorly understood, and he attracted more enemies than followers. 41 Taylor attracted enmity from unions because he was against them; he believed that unions separated workers from management. Taylor attracted enmity from the workers because he compared them to apes and other beasts of burden. And Taylor gained the distrust and enmity of management because he criticized them for their previous management failures. Taylor had a difficult personality and angered just about everyone.

Additionally, Taylor made several mistakes. Taylorism, despite its claims, was not an overall theory of management, but a management system designed for frontline managers, those immediately supervising. He generally ignored strategy and implementation and thought of workers as machine tools to be manipulated rather than as human beings. Although he was aware of group pressures, he believed that monetary incentives could overcome group pressures. This oversight made him ignore the human aspects of handling workers, those that involved emotions, personality, and attitudes.

While Taylor was certainly a flawed individual, these criticisms do not diminish his great contributions. Taylor dramatically changed management practices and created the modern management world. Future researchers did not replace Taylor, but complemented him. What is remarkable about Taylor was not that he was right in his time and place, but that his vision continues to have meaning and consequence even today. 42 Management was truly Taylor-made.

Concept Check

• List the contributions from Taylor and his associates.
• How did Taylor change management?

As an Amazon Associate we earn from qualifying purchases.

This book may not be used in the training of large language models or otherwise be ingested into large language models or generative AI offerings without OpenStax's permission.

Want to cite, share, or modify this book? This book uses the Creative Commons Attribution License and you must attribute OpenStax.

Access for free at https://openstax.org/books/principles-management/pages/1-introduction

• Authors: David S. Bright, Anastasia H. Cortes
• Publisher/website: OpenStax
• Book title: Principles of Management
• Publication date: Mar 20, 2019
• Location: Houston, Texas
• Book URL: https://openstax.org/books/principles-management/pages/1-introduction
• Section URL: https://openstax.org/books/principles-management/pages/3-4-taylor-made-management

© Jan 9, 2024 OpenStax. Textbook content produced by OpenStax is licensed under a Creative Commons Attribution License . The OpenStax name, OpenStax logo, OpenStax book covers, OpenStax CNX name, and OpenStax CNX logo are not subject to the Creative Commons license and may not be reproduced without the prior and express written consent of Rice University.

• See all articles
• Business tips
• Inventory management
• Manufacturing
• Product updates

Production planning and scheduling for manufacturing

James humphreys.

Senior Content Manager

Production scheduling is essential for growing manufacturing operations to take their production to the next level. If you’re looking to maximize efficiency on your shop floor, you need a way to optimize your production planning and scheduling.

Nowadays, your scaling manufacturing business has many options for finding production planning software explicitly crafted for manufacturers.

This guide will provide you with a comprehensive understanding of manufacturing scheduling and how it can help you allocate your resources efficiently and cost-effectively to meet customer orders. So, read on to learn how to improve production scheduling in your scaling manufacturing business.

Table of contents:

• What’s the difference between production planning and scheduling?

The importance of production planning and scheduling

5 stages of production planning and scheduling.

• Download production schedule template

A simple production plan example

The key factors to consider when scheduling production.

• Production Planning KPIs

How to optimize production scheduling

Production planning and scheduling mistakes, can you use excel for production planning, production planning and scheduling with katana, what’s the difference between planning and scheduling.

Production planning and scheduling are two key activities in manufacturing and operations management. Although closely related, they involve different aspects of the production process. Let’s take a closer look at the difference between these two concepts.

What is production planning?

Production planning is an important process that involves strategic decision-making to determine the optimal production strategy, resource allocation, and scheduling to meet customer demand and organizational objectives. It encompasses a comprehensive analysis of what products should be produced, in what quantities, and when.

By considering market demand, sales forecasts, and internal capabilities, production planning ensures efficient utilization of resources while maintaining a competitive edge in the market. This process plays a vital role in aligning the overall business strategy with the operational aspects of production, enabling companies to meet customer expectations, maximize productivity, and achieve their desired outcomes.

The main objectives of production planning include:

• Forecasting customer demand and market trends
• Setting production goals and objectives
• Determining the types and quantities of products to be produced
• Identifying the necessary resources (materials, equipment, labor, etc.)
• Allocating resources efficiently
• Developing manufacturing schedules and timelines

What is production scheduling?

Production scheduling is a vital process that entails the creation of a comprehensive and detailed timetable outlining the specific order and timing of production activities. It involves making critical decisions on when each task or operation should commence and conclude, taking into account resource availability, constraints, and dependencies.

By considering factors such as machine availability, labor capacity, and material availability, production scheduling aims to optimize efficiency and streamline workflow.

This process ensures that production tasks are executed in a coordinated manner, minimizing idle time, maximizing resource utilization, and ultimately facilitating the timely delivery of products.

Effective manufacturing scheduling plays a pivotal role in enhancing productivity, reducing costs, and maintaining a smooth and well-organized production process.

The primary objectives of production scheduling include:

• Sequencing the order of production tasks
• Assigning resources (equipment, labor, etc.) to specific tasks
• Minimizing idle time and maximizing resource utilization
• Adapting to changes in customer demand or unforeseen disruptions
• Ensuring timely delivery of products

In summary, production planning focuses on the big picture and long-term decisions to ensure that production activities align with the overall business strategy and customer demand. On the other hand, production scheduling focuses on short-term decisions that aim to optimize efficiency, minimize costs, and maintain a smooth workflow within the production process.

Both planning and scheduling are essential for effective production management and meeting customer demands efficiently.

Production planning and scheduling are crucial aspects of a business’ operations and have significant importance for several reasons:

• Meeting customer demands — Effective manufacturing planning and scheduling ensure timely delivery of products in the required quantities, avoiding stockouts , minimizing lead times, and enhancing customer satisfaction.
• Optimal resource utilization — Proper planning and scheduling enable businesses to allocate resources efficiently, minimizing idle time, reducing costs, and maximizing productivity, leading to improved operational efficiency and resource utilization.
• Cost control — Accurate demand forecasting and efficient scheduling help avoid overproduction, minimize inventory holding costs, reduce setup times, eliminate bottlenecks, and optimize resource use, contributing to cost savings.
• Improved production efficiency — Effective planning streamlines production processes, eliminates inefficiencies, and reduces waste, optimizing production flow, reducing cycle times, and increasing overall efficiency.
• Timely decision-making — Well-defined plans facilitate informed decisions on resource allocation, production priorities, and capacity management, enabling adaptation to changes and ensuring timely production.
• Coordination and collaboration — Manufacturing planning and scheduling involve cooperation between departments, enhancing communication, improving coordination, and achieving a synchronized production process, reducing delays and enhancing operational efficiency.
• Scalability and growth — Well-designed production plans and schedules lay the foundation for handling increased demand, expanding operations, and adapting to market conditions. This helps to facilitate scalability and capitalizing on growth opportunities.
• Continuous improvement — Monitoring production performance, analyzing data, and evaluating schedules help identify areas for improvement, driving continuous optimization and maintaining a competitive edge.

So, if you want to ensure timely delivery, optimal resource utilization, cost control, improved efficiency, and scalability, you need to have a solid production plan.

Production planning and scheduling involve a systematic approach to ensure efficient and timely production of goods. The best way to achieve this is by dividing the process into four distinct stages, each serving a specific purpose.

These stages provide a structured framework for organizations to plan, schedule, and control their production processes effectively. Let’s explore each stage in detail.

1. Demand forecasting and capacity planning

The first production planning and scheduling stage involves demand forecasting and capacity planning.

Demand forecasting entails estimating future customer demand based on historical data, market trends, and other relevant factors. It helps organizations determine the expected demand volume and patterns for their products.

To forecast demand, you need to incorporate a variety of data, including:

• Historical sales performance
• Local and national taxes and regulations
• Current manufacturing trends and predictions
• Technological advancements

Learning and understanding your product demand will help you make the best choices when arranging and improving your operations.

Once the demand is forecasted, capacity planning comes into play.

It involves evaluating the production capacity and capabilities of the organization to determine if it can meet the projected demand. Factors such as workforce availability, equipment capacity, and facility constraints are taken into account during this stage.

The goal is to align the production capacity with the anticipated demand to avoid underutilization or overburdening of resources.

2. Material planning and procurement

The second stage focuses on inventory control , including material planning and procurement. In this stage, organizations identify the raw materials, components, and resources required for production. The quantities needed are determined based on the manufacturing schedule and demand forecast.

Efficient material planning ensures the timely availability of materials while minimizing inventory costs and the risk of shortages or excess stock.

Establishing strong supplier relationships is essential during this stage to ensure a reliable supply chain. Organizations collaborate with suppliers to coordinate delivery schedules, negotiate pricing, and maintain consistent quality standards.

Effective material planning and procurement help optimize production flow and prevent disruptions in the supply chain.

3. Scheduling and resource allocation

The third stage involves detailed scheduling and resource allocation. It focuses on creating a comprehensive production timeline and sequence of activities to ensure smooth operations.

Scheduling involves assigning tasks to different workstations or production lines, considering factors such as equipment availability, setup times, and dependencies between jobs.

Resource allocation is another crucial aspect of this stage. It entails determining the optimal allocation of labor, equipment, and other resources to specific production tasks. Balancing workloads, considering skill levels, and maximizing resource utilization are key considerations during resource allocation.

The goal is to create an efficient schedule that minimizes idle time, bottlenecks, and unnecessary delays.

4. Production control and monitoring

The fourth stage revolves around production control and monitoring. Once production is underway, it is essential to track work progress, ensure adherence to the planned schedule, and maintain quality standards. Production control is all about monitoring the production process, identifying deviations or bottlenecks, and taking corrective actions as necessary.

Efficient production control relies on real-time data collection, performance measurement, and analysis. It enables organizations to identify issues, make adjustments, and optimize the production flow. This stage also includes quality control measures to ensure the final output meets the required standards and customer expectations.

5. Master production schedules

Once your manufacturing plan looks achievable, you can progress to the next step, producing a master production schedule , the ultimate document for production.

Your master production schedule (MPS) will detail how many items need to be produced within a certain period. Most manufacturers use manufacturing technology to create an MPS that will provide real-time data and allow manufacturers to make production changes on the fly.

By effectively controlling and monitoring the production process, organizations can improve productivity, minimize waste, and ensure timely delivery of products to customers.

Imagine a small but modest workshop with five artisans making psychedelic T-shirts.

Each artisan works eight hours a day, from Monday to Friday. They follow a make-to-stock workflow in a job shop setting. It takes 2 hours to produce a single T-shirt.

The max capacity of this Funkadelic business is 200 hours .

In this scenario, the annual hippie fest is fast approaching — and looking at your historical data collection — the T-shirt makers expect to see a surge in sales. Last year they were overwhelmed, so this year, they have decided to put together a quick manufacturing plan a week before they expect an increase in demand. They also want to have a safety stock level of ten for each of their items.

As per their initial plan, they won’t be able to meet production requirements, but they can now use this knowledge to readjust their current production plan. They decide to limit the production of Far Out T-shirts to 40 and Peace T-shirts to 8 .

They can still meet the forecasted demand with the modified plan by sacrificing some of the safety stock.

However, this plan put their operations and resources at 100% capacity . If one of the artisans calls in sick on Wednesday evening, the max capacity for the week falls to 176 hours . When planning production, a rule of thumb is to have 20% free to give yourself wiggle room if a problem occurs.

Production planning is vital for any manufacturing business. Even basic products need a clear and defined flow to turn them from raw materials into quality goods. If you don’t follow this flow or your production quality control checklist , your products will surely drop in quality. Without a proper process, your standardized practices will be forgotten.

So, when scheduling the production, what are the key factors to consider?

Crew management

Use your team well.

Your people are a valuable asset to your business. They play a key part in manufacturing process optimization. Make it your business to know your people, including their strengths and weaknesses. This way, you can assign each team member to the most suitable tasks and machines.

If someone is sick or goes on holiday, you have the additional capacity to make up for the temporary loss.

Effective production planning allows you to get the most out of your people and machines. Every team member knows the tasks assigned to them and what their expected output is. Keeping tabs on this process lets you compensate for shortfalls and keep up with high demand.

Running at capacity

Is your workshop constantly running at 100% of its output?

It only takes a minor bump to bring things to a grinding halt. Capacity planning helps to make sure you’re not running at max capacity. If you do receive an unusually large order or two, you will be glad you prepared.

The same goes for your team, as they have enough resources to do their job on time.

Raw materials

Frequent stalls in production planning mean paying team members and machines to stand by.

Integrating a robust MRP or manufacturing ERP software into your business can help ensure you always have the required raw materials available. This means:

• You never have to push back production because of supply order delays or stockouts.
• Priority deadlines do not have to be set back due to undersupply.
• There’s no need to constantly step over excess raw materials on your shop floor.

If done right, warehousing and transport costs won’t skyrocket due to oversupply. As a bonus, every team member always has something to do as they work with your available materials.

Workshop logistics

The logistical flow of each part of your manufacturing process also requires consideration. This may not seem so important, but you would be surprised. Many production lines have come grinding to a halt as one weak link has been placed on the wrong stage.

Pushing machines and people to unsuitable locations can harm efficiency.

Sometimes, what seems like common sense could be harmful to your flow. It takes careful analysis to determine how materials, resources, people, and supplies travel around your shop floor.

It may be that a more efficient layout or order exists for your business. Sometimes a small change can make a world of difference to your production schedule.

Problem-solving

Trial-and-error problem-solving costs your business money through each failed attempt.

Overordering or overproducing is a band-aid solution, as this leads to extra costs or staff burnout. You need effective production planning software to track your flow and find manufacturing scheduling issues to get to the root of a problem.

Know your manufacturing processes

Understanding manufacturing planning and scheduling allow you to oversee your manufacturing methodically to overcome production issues easily.

Track and manage everything effectively, and everything should run like clockwork. Effective manufacturing scheduling makes it easier to do everything by the book — it is set out clearly for your whole team and is available 24/7.

Production planning KPIs

Now you know everything there is to know about putting together your production plan — the next step is understanding how to measure its effectiveness. Here are some KPIs to track to get you started:

• Manufacturing costs — Track how much it costs to produce an item by looking into raw materials, utilities, salaries, rent, etc.
• Capacity utilization rate — You don’t want resources running at max capacity, but you don’t want machinery or workstations sitting idle.
• Planned production vs. actual hours — This will help you better understand how long it takes to produce an item or uncover any issues which lead to delays on your shop floor.
• Employee utilization (productivity) — The same as your capacity rate. The only difference is that you don’t want to overwork them. Make sure you schedule your human resources reasonably to void burnout.
• Takt time — A lean manufacturing concept that looks into the actual time it takes to produce a single unit of item.

This checklist will guide you in creating your business analytics to observe your production and develop plans to make them even more efficient.

But, as you can tell, doing this is a long and arduous process, and many scaling manufacturers turn to automation to help them with this task.

Optimizing production scheduling involves maximizing efficiency, minimizing costs, and ensuring timely delivery of products. Below you’ll find some strategies for optimizing manufacturing scheduling.

Demand-driven scheduling

Incorporate demand-driven scheduling by aligning manufacturing schedules with customer demand. Use accurate demand forecasting to determine the required production volume and adjust schedules accordingly. This approach helps avoid overproduction or underproduction and reduces excess inventory or stockouts.

Utilize advanced scheduling techniques

Employ advanced scheduling techniques such as finite capacity scheduling, just-in-time (JIT) scheduling, or theory of constraints (TOC) to optimize production schedules. These techniques consider capacity constraints, setup times, and dependencies between tasks to create efficient and realistic schedules.

Optimize resource allocation

Ensure optimal utilization of resources by assigning tasks based on skill levels, availability, and efficiency. Consider the capabilities and capacities of equipment, machinery, and workforce while allocating resources. Efficient resource allocation minimizes idle time, reduces bottlenecks, and improves overall productivity.

Minimize changeovers and setup times

Reduce changeover and setup times by implementing strategies like single-minute exchange of die (SMED). Streamlining changeover processes allows faster transitions between different product configurations, enabling shorter production runs and increased flexibility.

Implement real-time monitoring

Utilize real-time monitoring systems and production control tools to track progress, identify bottlenecks, and make data-driven decisions. Real-time data provides insights into the actual status of production, enabling prompt adjustments and proactive problem-solving.

Prioritize critical tasks

Identify critical tasks or processes that significantly impact the overall production timeline. Prioritize these and allocate resources accordingly to ensure timely completion. Focusing on critical tasks minimizes the risk of delays in the entire production process.

Consider production constraints

Take into account any constraints that may affect production scheduling, such as limited capacity, equipment maintenance schedules, or supplier lead times. By incorporating these constraints into the scheduling process, you can avoid scheduling conflicts and optimize production flow.

Implement lean manufacturing principles

Apply lean manufacturing principles such as just-in-time production , continuous flow, and waste reduction techniques to optimize production scheduling. Eliminate non-value-added activities, reduce inventory, and optimize process flows to improve overall efficiency.

Embrace technology

Utilize production scheduling software or manufacturing execution systems (MES) with advanced planning and scheduling capabilities. These tools automate the scheduling process, optimize resource allocation, and provide real-time visibility into production activities, enabling better decision-making and scheduling optimization.

Continuous improvement

Foster a culture of continuous improvement by regularly reviewing and analyzing production schedules, performance metrics, and feedback. Identify areas for improvement, implement changes, and monitor the impact of these adjustments. Continuously striving for optimization ensures ongoing efficiency gains in production scheduling.

By implementing these strategies, organizations can optimize their production scheduling processes, enhance operational efficiency, minimize costs, and deliver products on time, ultimately improving customer satisfaction and competitiveness.

Production planning and scheduling mistakes can lead to inefficiencies, delays, increased costs, and customer dissatisfaction. Let’s review some common mistakes to avoid in manufacturing planning and scheduling.

Inaccurate demand forecasting

Failing to accurately forecast customer demand can result in overproduction or underproduction. Overproduction leads to excess inventory and increased carrying costs , while underproduction can result in stockouts and missed sales opportunities. It is important to gather and analyze relevant data, consider market trends, and collaborate with sales and marketing teams to improve demand forecasting accuracy.

Insufficient capacity planning

Inadequate evaluation of production capacity can lead to resource constraints and bottlenecks. If the production capacity does not align with the forecasted demand, it can result in missed deadlines, backlogs, and delays in fulfilling customer orders. Conducting regular capacity assessments and considering factors such as equipment maintenance, workforce availability, and facility constraints are essential for effective manufacturing capacity planning .

Poor material planning

Inaccurate material planning can cause disruptions in the production process. Insufficient stock of raw materials or components can halt production, while excessive inventory ties up capital and increases storage costs. Utilizing efficient inventory management systems, establishing reliable supplier relationships, and continuously monitoring material requirements are crucial to avoid material planning errors.

Inefficient scheduling

Inefficient scheduling can lead to production issues, increased setup times, and idle resources. Poor task sequencing, inadequate consideration of setup times, and neglecting resource availability can result in unnecessary delays and production bottlenecks. Utilizing advanced scheduling techniques, considering the dependencies between tasks, and optimizing resource allocation is vital for efficient scheduling.

Lack of flexibility

Failure to incorporate flexibility in manufacturing planning and scheduling can make it challenging to adapt to unforeseen events or changes in demand. Market fluctuations, machine breakdowns, and supplier delays can disrupt the planned schedule. It is important to build contingency plans, have backup suppliers, and maintain buffer capacity to accommodate unexpected disruptions and maintain operational continuity.

Ignoring feedback and continuous improvement

Neglecting to gather feedback from the production floor, customer feedback, and performance metrics can hinder process improvement.

Regularly reviewing production performance, analyzing data, and actively seeking feedback from relevant stakeholders can help identify areas for improvement and drive continuous optimization in production planning and scheduling.

Lack of communication and collaboration

Poor communication and collaboration among departments can lead to misalignment and delays. Production planning and scheduling require coordination among different teams, including sales, operations, procurement, and logistics.

Clear communication channels, regular cross-functional meetings, and shared visibility of information are essential for effective collaboration and synchronization of activities.

By avoiding these common production planning and scheduling mistakes and adopting best practices, organizations can enhance their operational efficiency, minimize costs, and improve customer satisfaction by consistently delivering products on time and as per requirements.

The absence of affordable production planning software has led to many manufacturers using inefficient spreadsheets .

There are three main problems with this approach:

• Spreadsheets are slow — It may be better than doing it with a pen and paper, but Excel is still too labor-intensive.
• Spreadsheets are error-prone — They are vulnerable to mistakes that cause confusion, production delays, and business-disrupting problems.
• Spreadsheets are static — They do not update automatically. This can lead to delays as changes are not communicated.

Many modern manufacturers are stuck with Excel because they can’t see better options.

This is understandable. Most manufacturers do not need the gargantuan flow diagrams and Gantt charts seen in large enterprise software. Shop-bought software like Excel seems like a quick and easy option.

But it is not powerful enough for using production management effectively.

The best way to avoid production planning mistakes and implement different optimization techniques is through software. Katana is a cloud manufacturing platform that allows you to do all that and more. It offers advanced features with an intuitive interface, so you don’t need a 3-month boot camp to start using it.

Let’s have a look at what production planning with Katana looks like.

The Production operations tab lets you do production planning as it automatically assigns team members and workstations to each process your manufacturing orders require. It also calculates all the resources needed and associated costs.

The Make screen lets you review all outstanding manufacturing tasks. If something comes up, or you want to change tack, simply reorganize your manufacturing queue, and Katana’s real-time master planner reallocates all resources to ensure the prioritized orders get out of the door first.

Production planning with Katana allows you to:

• Generate forecasts and plan inventory
• Prevent idle time in your workshop
• Significantly reduce scheduling errors
• Generate accurate, realistic deadlines
• Minimize inventory transport and storage costs
• Identify inefficiencies that could lead to production bottlenecks
• Gets products out the door and to customers on time

Take control of your production processes with Katana. Request a demo today to see it in action.

James Humphreys has produced content on manufacturing and inventory management practices for 5+ years. He began his journey into writing via the creative industry, writing and producing plays, some of which toured the UK and Europe.

Related Articles

Manufacturing lead time: what it is and how to reduce it, mastering batch production: enhance efficiency and quality control, what is discrete manufacturing in theory and practice, what is continuous manufacturing and can you use it, repetitive manufacturing and what crafters can learn from it, routing manufacturing: mapping your production, forward scheduling vs. backward scheduling for manufacturers, kitting manufacturing: making and selling bundles of joy, trending articles, 11 warehouse mistakes and how to fix them, erp vs. wms: which one is right for your business, inventory liquidation: why, when, and how to do it, woocommerce inventory sync solutions for your business, shopify inventory forecasting: the crystal ball you can master, top 7 best inventory management software for shopify, from chaos to order: a guide to warehouse order picking, clash of the titans: wholesale vs. retail.

• SUGGESTED TOPICS
• The Magazine
• Newsletters
• Managing Yourself
• Managing Teams
• Work-life Balance
• The Big Idea
• Data & Visuals
• Reading Lists
• Case Selections
• HBR Learning
• Topic Feeds
• Account Settings
• Email Preferences

For Women and Minorities to Get Ahead, Managers Must Assign Work Fairly

• Joan C. Williams
• Marina Multhaup

Who’s booking the conference room? Who’s pitching the client?

Some assignments can set you up for promotion — this is the  glamour work . Other assignments are necessary but unsung — this is the  office housework . Research shows that women and people of color are much more likely to get housework-type assignments than to get assigned to glamour work. Managers and executives have to fix this imbalance if they’re going to make progress on corporate diversity goals. To do that, start keeping track of how projects are assigned in your organization. Managers can identify what the office housework is in their department and who is doing it, and spread out these humdrum assignments more evenly. For new glamour work assignments, consider  all  eligible employees, not just the ones who come to mind first or who ask to do it. Senior executives and HR leaders can help hold middle-managers accountable for making progress. The result will not only be a system that is fairer for women and minorities, but for all employees.

Organizations have been trying to improve diversity in the workplace for decades — with little success. The most common techniques, such as one-time sensitivity trainings, haven’t worked . The numbers of women and people of color in leadership roles are still staggeringly low across industries. Also well documented are the high rates of turnover for women, especially women of color.

• Joan C. Williams is a Sullivan Professor of Law at University of California College of the Law, San Francisco and the founding director of the Center for WorkLife Law. An expert on social inequality, she is the author of 12 books, including Bias Interrupted: Creating Inclusion for Real and for Good (Harvard Business Review Press, 2021) and White Working Class: Overcoming Class Cluelessness in America (Harvard Business Review Press, 2019). To learn about her evidence-based, metrics-driven approach to eradicating implicit bias in the workplace, visit www.biasinterrupters.org .
• Marina Multhaup is a former Research & Policy Fellow for the Center for WorkLife Law at the University of California, Hastings College of the Law.

Partner Center