Job shop scheduling best practices

Efficient job shop scheduling is no mean feat.

In fact, it's complicated enough to have inspired a term in the computer science world, "the job shop problem." We might say that, at its basis, the job shop problem is an issue of balancing sequences of actions with a limited number of resources to finish work in the most time-conscious way possible.

Sound familiar?

Unlike larger manufacturing facilities that produce a standardized set of high-volume consumer or industrial goods, job shops are required to be nimble and produce quality, short-run custom parts for their customers.

Shifting needs mean less opportunity for standardization and lean implementation than in larger operations, but there's still a lot you can do to make scheduling more efficient and responsive at your job shop.

manufacturing manJob shop scheduling is a complicated task. Here's how to make it a little easier.

Job shop pressures

In addition to the small-batch, customized nature of the job shop, new, mounting pressures are putting strain on scheduling, and these issues need to be accounted for.

An article in the Fabricator pointed out that, "top-tier suppliers continue to push more functions down the supply chain, including inventory management."

Since they compete with comparable businesses largely on their ability to meet customer demands, and to do so on time, job shops have absorbed additional tasks, like inventory management, from their customers. This adds logistical complexity to an already challenging field. The article shares how job shops are now required to take care of forecasting duties.

Additionally, though job shop veterans anticipate that orders will be altered by the customer, a change in any one order or job has cascading effects for all other jobs being completed.

When you tweak the schedule for one job, you have to consider how it interacts with all other ongoing jobs and work in progress, as well as the equipment and staffing available.

What you should do to ease the pressure

Here are some strategies for more efficient, and adaptive, job shop scheduling.

Always be ready to change

The same Fabricator article mentions that it's easier to accommodate schedule changes when setup time is as a short as possible. They noted that the 5S methodology can help with this, as can investing strategically in updated equipment. You may still be able to retain older equipment for repetitive tasks that change little from one job to the next, requiring a minimal amount of resetting.

Enhance communication, transparency and integration

Manufacturing consultant Mark Stevens advised job shops to identify "barriers" like outdated data and poor cross-departmental communication. He also suggested keeping a closer eye on inventory.

If outdated information and siloed data across sectors of the job shop – and between the shop floor and the warehouse – are holding back your scheduling, you can do something about it. Keep your information up to date and accessible, and streamline communication.

Learn how Accent Software's ERP services can help you address pain points for your manufacturing operation today.

Additive manufacturing in the job shop: Use cases

In recent years, 3D printing has become much more popular, both as a desktop tool for home users and for practical applications on the shop floor.

In the manufacturing world, 3D printing is sometimes known as additive manufacturing.

The growing consensus is that additive manufacturing will have a central role in many manufacturing processes in the future. In fact, a study commissioned by Essentium found that 58% of respondents believed 3D printing would be used for full-scale production of parts in the future, as reported in Industry Week.

How should forward-thinking machine shops approach this technology?

In recent years, manufacturers have begun to realize the potential of 3D printing. How can job shops get in on the progress?In recent years, manufacturers have begun to realize the potential of 3D printing. How can job shops get in on the progress?

Prototyping: Getting started

For a job shop that wants to use 3D printing, there are many factors to consider, including price points and in-house expertise.

There are currently several lower-level and middle-tier 3D printers that are adequately suited to prototyping and small-run production needs.

Purchasing one of these models can be a good way for smaller job shops to get acquainted with the technology and start conceptualizing how they could leverage it efficiently for future jobs. For a preliminary trial run, renting the equipment may be a good idea, too.

If you have a reliable stream of jobs coming down the pike that would be a good fit for leveraging a 3D printer, investing in a production-grade metal additive manufacturing machine could be helpful.

The next level: Benefits of metal additive manufacturing

Beyond prototyping and small-run production, the recent development of innovative techniques in metal additive manufacturing has meant that this technology is now suitable for integration into existing manufacturing processes, perhaps even for job shops.

Using a process known as binder jetting, coupled with an additional sintering process, these powerful new 3D printers are finally able to compete with casting for speed and cost-effectiveness, though sintering does necessitate the use of a furnace, and machining may be required to smooth parts as well.

That said, 3D printing, particularly metal printing, is advancing at a very quick rate. Overinvesting in the technology without a sound plan for you using it effectively on your pending jobs could put you behind. As with most things, it's probably best to start slow. Investing in a less expensive prototyping machine is a good way to start thinking about how you'll use the technology in the future.

Implementing an enterprise resource planning (ERP) solution in the job shop can help you gain greater insight into your production processes and costs. Learn how today.

The downstream benefits of inventory management in manufacturing

With inventory management, no news is good news. That kind of calm and quiet is what inventory management professionals work so hard to achieve.

The importance of inventory management is difficult to overstate because it produces innumerable effects downstream for the supply chain, which have a huge cumulative effect on the manufacturer's reputation, rate of efficiency and financial performance.

Here are three downstream effects that help us realize just how how important inventory management is.

Inventory management is critical to several downstream factors for the supply chain.Inventory management is critical to several downstream factors for the supply chain.

1. Customer satisfaction depends on accurate and insightful inventory management.

By the end of 2019, customer satisfaction for manufacturing in both the durable and nondurable goods categories stood at 79.1 and 80.4 out of 100, respectively, according to the American Customer Satisfaction Index. Those were the highest scores for any sector, and manufacturers might have inventory management to thank.

For a manufacturer, the three most important drivers of customer satisfaction might be:

  • Quality of product.
  • Price of product.
  • Timeliness of order fulfillment.

Inventory management impacts all of these dimensions. Most obviously, keeping enough material in stock to fill orders on time means promises kept and happy customers.

In addition, proper inventory management enables manufacturers to purchase and store enough raw material to fill orders without having to buy more parts later at a higher price. It also keeps manufacturers from overstocking supplies, leading to reduced cash flow and extra storage costs or wasted materials.

Buying enough quality material upfront also helps manufacturers use the best goods for their finished products instead of having to scramble for cheaper substitutes if they run short.

2. Forward-thinking inventory management improves cost efficiency for manufacturers.

In addition to raising the price for customers, mishaps in inventory management can lead to cost inefficiencies across the manufacturer's supply chain, even when those expenses can't be absorbed by the customer.

Labor and operational costs essentially amount to a big loss for the manufacturer if they don't have the material on hand required to meet their throughput objectives. If they have excess material on hand, they may have to decide between paying extra to store the excess material or bankrolling overtime and taking out new contracts with logistics providers to move material out of their facilities quickly.

Lean operations are the objective, and inventory management is essential for making that happen.

3. Inventory management paves the way for smooth accounting.

As we've mentioned before, well-executed inventory management helps businesses streamline tax preparation, as well as other accounting functions and record keeping.

Decentralized and nonstandard inventory management procedures where manufacturers rely on various spreadsheets that are different from one facility to the next can be a huge headache.

When tax season comes around, manufacturers might find themselves struggling to synthesize or segment information so they can accurately and efficiently file the appropriate taxes in each jurisdiction where they operate.

Accent Software has a strong track record of creating industry-specific add-ons for our clients' enterprise resource planning (ERP) systems to enhance inventory management capabilities. Learn more about how we can help add value today.

Manufacturing job costing: How to get it right

According to a recent report from the Institute of Supply Management, manufacturers have mixed opinions about where profit margins are headed. Between the end of 2019 and May 2020, 67% of survey respondents predicted they'd see lower profit margins or no change.

For some manufacturers, job costing pitfalls may make a significant difference in their profit margins, despite great sales and high productivity and throughput. A failure to accurately forecast how much a job will cost, and to price it accordingly, can undercut your profits.

So where do manufacturers go wrong when it comes to job costing?

Accurate job costing can make a real difference for manufacturers.Accurate job costing can make a real difference for manufacturers.

Too broad a net: Overwhelmed by data, underperforming on analysis

One of the first major pitfalls manufacturers could experience is an onslaught of irrelevant data in their job costing forecasts.

While being comprehensive is important, taking too many factors into account, including metrics that are static and inflexible, may actually hinder your decision-making abilities. While a sum total of costs that includes all indirect costs, including the most tangential, can be helpful for establishing a price, there comes a time when the manufacturer simply needs to assume some items as the cost of doing business.

To keep your business focused on actionable metrics during your job costing, stick to keeping a close eye only on the KPIs that will actually influence your decision-making. This can change as time passes, but if you're focused on improving throughput or lowering prices by changing your sourcing practices, those are the metrics you should really monitor in drilled-down reports.

Improperly attributing indirect costs

That said, keeping tabs on your indirect costs is absolutely essential to understanding job cost breakdowns, particularly for manufacturers who run multiple facilities or simultaneously produce a slate of different products.

For instance, let's assume a manufacturer makes two different products and uses a dedicated facility for each. Obviously, most operations don't break down so simplistically, and in reality, sharing overhead resources can be a great cost-saving strategy. That said, there's something important to note here.

Namely, your indirect costs do not apply evenly across your facilities or the products you produce.

To go back to our example, let's suppose that one product needs to be created in a facility that's close to a specific source material. That facility may cost more to run and maintain than your other facilities due to its remote location. If that's the case, the product that is created in that facility requires a disproportionate amount of indirect costs compared to the products that are produced in cheaper facilities.

Accurate job costing relies on your ability to allocate overhead costs appropriately.

Outdated job costing processes

One monumental risk for manufacturers when it comes to job costing is using outdated manual processes to calculate their costs and margins.

This is risky for two main reasons. First, it introduces a greater chance for human error than automated calculations. Second, it's susceptible to relying on siloed information. If you have an incomplete level of access, you'll undervalue the product, and you won't account for the indirect costs mentioned above.

Learn more about manufacturing job costing, and find out how state-of-the-art ERP systems and implementation can help enhance the process.

The biggest trends in manufacturing ERPs to keep an eye on in 2020

Enterprise resource planning (ERP) systems have evolved significantly over the years.

The inventory control packages of the 1960s gave way to the materials requirement planning of the 1970s and then to the first versions of ERP as we now know it in the 1980s. Since then, ERP systems have gradually become more flexible, scalable and generally practical to use for companies of all sizes. Modern ERPs may offer multiple deployment options (e.g., in the cloud, on-premises or in a hybrid setup) and be tailored to the specific requirements of an industry like manufacturing.

As we look ahead to 2020, ERP change is ongoing. Let's look at a few of the major trends to pay attention to in the next year and beyond.

AI and machine learning will become more prominent in ERPs

Artificial intelligence (AI) and machine learning have already reshaped how people interact with their phones, tablets and PCs via voice-powered assistants. Now these technologies, which approximate human-like reasoning, are making inroads into ERPs.

Within an ERP system, AI and machine learning can help automate key workflows, improve information search and extract insights from large datasets. For example, AI algorithms might be able to pinpoint correlations between fluctuations in inventory and specific business function, in much less time than a human could.

AI and machine learning can help automate key workflows

Cloud ERP implementations will keep gathering momentum

Cloud computing has become a more popular deployment model for almost all types of business software, ERP included. Although a cloud-based setup might not be the ideal fit for every organization, for many it can deliver distinct benefits, including easier management, fewer upfront costs and continuous updates for functionality and security from the vendor. Overall, cloud ERPs can be highly flexible, scalable and cost-effective.

While most core company applications still run on-prem as of 2019, many IT decision-makers are at least considering a move toward cloud. There's risk involved, to be sure, since many existing ERPs are huge investments that can be tricky to migrate, but look for interest in cloud alternatives to keep rising. Note that "cloud ERP" may refer to software hosted in a service provider's public cloud, in a dedicated private cloud, or in a hybrid cloud that mixes different IT environments.

ERP adoption among SMBs will continue to grow

ERP systems were once associated primarily with larger enterprises, which were the only organizations that could reliably afford the costs of implementing an ERP solution, as well as the required ongoing maintenance. That's not the case anymore, as SMBs have implemented ERPs en masse and should continue to do so in 2020.

SaaS-based ERPs, which are managed entirely by the cloud service provider, are particularly popular among SMB organizations. IT research firm Forrester once estimated that most SaaS ERP adoption came from SMBs looking for an all-in-one solution, which SaaS can usually provide.

We've only scraped the surface of what the future of ERP will look like. To learn more about how to find the right ERP setup for your organization, reach out to the Accent Software team today.

4 strategies for empowering manufacturing ERP users [Video]

ERP adoption cannot be taken for granted. It’s important to empower users, so that they understand what’s in for them. Here are four strategies to consider.

First, define the need for change and describe how the ERP will benefit everyone. Also discuss what might happen if the project fails, to show the stakes involved.

Second, enlist SMEs from across the company, and give those expert users the power to make decisions and direct teams.

Third, train teams from the beginning of the project, instead of waiting until the end. Ensure they can all influence the ERP’s design and feel like they have ownership of it.

Finally, build a user community that will continuously discuss issues and share ideas on how to improve the ERP over time.

3 ERP implementation issues manufacturers might encounter [Video]

Implementing an ERP is a complex process with little margin for error. Here are some of the common implementation challenges to look out for.

First, setting up a project management team must be done carefully. Pick a project manager who can set and enforce clear deadlines, work well with a diverse team of employees and ensure proper communication between all stakeholders.

Second, legacy data can be tricky to integrate. Make data quality a priority, so you can identify and address discrepancies as older databases are integrated.

Finally, be sure to test thoroughly. Inadequate testing could put you at the mercy of incompatible apps, security vulnerabilities and permissions errors.

Why manufacturing ERP solutions are essential to production and supply chain forecasting

Inaccurate supply chain forecasts can be costly. In 2002, Cisco was forced into a $2.2 billion inventory write-off after it had overestimated demand for network equipment during the dotcom bubble. While the typical manufacturing organization will never run the risk of such a huge write down, there's still the possibility of a missed forecast straining its finances.

Why missed forecasts are so painful

Inaccuracies can hurt manufacturers in multiple ways:

  • Overestimating demand will result in excessive inventory that consumes storage space and cuts into profit margins by necessitating big discounts to move.
  • Underestimating will lead to shortages, which will frustrate customers. These stockouts may also require increased spending on expedited replenishment.

Striking the right balance between overstocking and understocking isn't easy, or else no one would struggle with the above (very common) issues. However, there are steps that many manufacturers can take to reduce the risk of unexpected carrying costs and stockouts, including the implementation of modern ERP technology.

ERPS helps forecast manufacturing demand.ERP solutions help forecast manufacturing demand.

How ERP solutions support more accurate forecasting and production

Since many manufacturers operate within just-in-time or made-to-order paradigms, the impact of an inaccurate forecast is particularly severe. Fortunately, ERPs deliver much-needed protection by:

  • Integrating up-to-date information from back office applications like CRMs.
  • Estimating lead times and material availability.
  • Offering insight into projected income, spending and changes in costs.
  • Providing data that can inform tasks such as job scheduling.
  • Giving teams a consolidated interface for managing inventory.
  • Streamlining logistics with real-time information on distribution and transportation.
  • Flagging operational efficiencies in real time and performing cost accounting.

Overall, a modern manufacturing ERP offers a substantial upgrade over other methods used for this purpose, such as relying on spreadsheets or custom in-house applications. Both of those solutions require a lot of manual effort, which is as time-consuming as it is error-prone.

Plus, relying on discrete Excel sheets or apps has the potential to create data silos, meaning there's no single version of the truth that everyone can rely upon when making decisions about production. Silos increase the chances of a costly stockout or inventory excess. In contrast, ERP gives you a consistent flow of data from the shop floor to the back office.

As you consider ERP options for your manufacturing organization, reach out to the experienced team at Accent Software. We can help you find the solution that meets your exact requirements and ensures you can adequately forecast demand.

Understanding manufacturing ERP technology’s automation power

Automation is the "secret sauce" that makes modern ERP solutions so beneficial. By consolidating, streamlining and automating a wide range of tasks including logistics and reporting, an ERP system can eliminate silos and reduce the amount of manual work required across a manufacturing organization. Contained within well-implemented and properly maintained solutions, ERP automation can yield productivity increases of more than 80% in some cases.

Many essential manufacturing functions can be automated within an ERP to keep production on track while avoiding costly delays and issues with quality. Let's dive into some of the specific areas in which automated ERP functionality can really pay dividends.

Logistics and supply chain management

Without ERP automation, it's difficult to keep up with customer orders while also avoiding excessive inventory and production related problems. Customers may be left waiting on backorders, which in turn contributes to the so-called bullwhip effect that distorts supply chain forecasts.

ERP automation helps by:

  • Recording exactly when buyers order and need components.
  • Integrating order and inventory data to avoid backorders.
  • Indicating when and where to move those items prior to production.
  • Incorporating data from wireless technologies, which can replace paper-based processes.
  • Signaling which dock to send a finished order to when it's ready for shipment.

AI-powered monitoring and reordering

Artificial intelligence (AI) refers to computer programs that reason in ways similar to a human. In a manufacturing context, AI can help with automation by analyzing datasets to make decisions without the need for time-consuming manual human intervention.

"An AI-powered program could track key performance indicators in real time."

An AI-powered program could track key performance indicators in real time so that it triggers reorders from suppliers as needed. This capability is helpful for reliably meeting demand by ensuring that supplies don't routinely run low and in turn fuel customer dissatisfaction.

Manufacturing specifications and parameters

Following manufacturing specs is essential in meeting quality expectations and controlling costs by avoiding errors. ERP automation provides pivotal support in getting the proper specifications for each job to the right spot.

For example, an automated ERP system could read a customer's specifications for a semiconductor from a purchase order and then relay them to the processing equipment in question so that the work is always done with the right die locations. Similar efficiency extends to jobs such as welding and lamination, both of which come with highly variable specifications that must be followed.

Chatbots and customer service

Chatbots are an important innovation in responding to customer service inquiries. They behave much like humans over chat, but are fully automated behind the scenes.

Using AI, they can comb through datasets such as customer interaction histories and orders to provide an accurate response. Chatbot interactions help free up more time for technical support teams, who get to spend much less of their days fielding routine requests that a chatbot could probably handle.

ERP automation has wide-reaching and transformative effects. To learn more about how to get started on the road to ERP success, contact the Accent Software team today.

How ineffective manufacturing ERPs hinder organizational innovation

American manufacturers are doggedly pursuing innovation, according to research from the Organization for Economic Cooperation and Development, who discovered that organizations within this space are almost twice as likely to invest in boundary-pushing techniques and tools than businesses occupying service industries. In fact, U.S. manufacturers' annual research and development budgets constitute 68% of all yearly commercial R&D expenditures here in the states, per the OECD. However, American manufacturing firms are not totally free to reach their innovative potential, despite what these numbers suggest. Why? Ineffective enterprise resource planning software.

Poor ERP solutions can hinder organizational advancement on multiple fronts and prevent manufacturers intent on future-proofing their back offices and shop floors from implementing bleeding-edge mechanisms and processes. Here are some of the ways in which faulty ERP platforms hold back stateside manufacturers:

Siloed or missing decision-making insights
Data propels manufacturing progress by lending decision-makers the relative certainty they need to greenlight projects that have impact. Unfortunately, manufacturing businesses with ineffective ERP solutions often cannot collect, analyze and centralize the definitive insights that leaders need to chart out transformation. What is the reason for this? ERP data siloing or loss are among the root causes, according to analysts for Ultra Consultants. 

A good number of manufacturers pursue ERP implementation with the purpose of breaking down departmental database barriers and streamlining data movement but end up leaving these informational partitions in place anyway or letting historical insights that propel existing processes fall to the wayside. Some implementers falter during the planning process, putting into place ERP solutions that are not compatible with current and future business processes, cannot keep pace with these functions and therefore do not allow for the sort of automated data collection that makes information consolidation a real possibility. Others simply fail to think about integration at all and end up overseeing ERP platforms that become silos themselves, unwittingly omitting important historical insights that offer additional context and even drive existing operational processes.

Depressed employee efficiency and productivity
Organizational innovation and staff productivity go hand-in-hand, even as the golden age of enterprise automation draws nearer. Approximately 55% of CEOs across all industries worldwide believe human capital availability correlates directly to their ability to catalyze innovation within their respective companies, according to PricewaterhouseCoopers. Strong ERP platforms actually allow businesses, including those in the manufacturing arena, to effectively harness the power of their people via features that boost productivity and encourage staff to take on more impactful duties that drive internal development at scale. Of course, poor ERPs do the exact opposite through difficult-to-navigate user interfaces that drag down efficiency and productivity.

Certifiably shoddy ERP UI components vary depending on the system. Many poor ERP solutions feature decidedly nonintuitive interfaces that employees struggle to navigate without looking over associated reference materials, while others do not support workflow customization, which is essential to user success. Lacking responsiveness is another common UI sticking point for less-than-stellar ERP platforms. Modern businesses must be able to access ERP software across multiple devices to take full advantage of this technological resource. Even a seemingly innocuous factor like platform design can hurt user productivity, making it difficult for employees to find important information or even dissuading them from logging in.

Ineffective cybersecurity protections
If information drives innovation then protecting sensitive internal data should rank among the most important functional enterprise imperatives. However, effectively defending company caches from hackers and other cybercriminals is often easier said than done, especially today when new digital threats seem to materialize with each software launch. Black hats managed to orchestrate more than 1,200 large-scale breaches and abscond with approximately 446 million corporate files in 2018, per the Identity Theft Resource Center. Manufacturing firms, while less susceptible to breaches than their peers in other sectors, are also dealing with regular intrusions — most notably, financially motivated cyberattacks and instances of online espionage, according to Verizon Wireless. Various enterprise processes and tools put manufacturers at risk for digital strikes of this nature, including poor ERP solutions.

ERP security is more important than ever before, according to researchers for Digital Shadows and Onapsis, who revealed that the volume of easy-to-exploit ERP vulnerabilities has risen dramatically over the last decade or so. And even highly respected ERP providers such as Oracle and SAP have seen more systematic weaknesses materialize, meaning that lesser solutions do not stand a chance against modern hackers. Why are lower-caliber ERP platforms more likely to face intrusion? Inconsistent vendor support is a major contributing factor, as vulnerability mitigation via effective patch management is a key variable in the ERP cybersecurity equation. Overcustomization and lacking code-level protections are significant issues as well, for manufacturers can only properly lock down their online assets with the help of streamlined, easy-to-update software and system modules designed with cybersecurity in mind.

American manufacturers can avoid suffering these innovation-stemming issues and move their organizations forward by taking time to select and implement proven ERP solutions that facilitate data centralization, support employee productivity and protect essential digital assets. Here at Accent Software, we help manufacturers do just that through our vendor-vetted Microsoft Dynamics NAV implementation services. As a certified Microsoft Business Solutions partner, we lend manufacturing firms of all sizes the deployment insight they need to install ERP technology that supports business advancement rather than hindering it.

Connect with us today to learn more about our selection of products and services.