Planning is an essential part of every manufacturer’s life and the key to effective inventory and resource management. Even engineer-to-order and lean make-to-order manufacturers must plan for materials and resources (equipment, capacity, people/skills) to be available to satisfy customer requirements. Manufacturing planning is a coordinated process involving demand management, forecasting, master scheduling, material planning (MRP), and capacity planning, fully integrated with operational management applications including production control, inventory management, and procurement.
Planning is all about turning customer demand, a combination of real orders and forecasted demand, into production schedules and planned purchases mapped out in time to assure that the materials, parts and products are available when needed but only in the quantity needed and at the time needed to keep the plant operating efficiently with minimal excess inventory.
Execution applications – in production and purchasing – ensure that all activities are coordinated and work is completed on time, maximizing the efficient use of resources. The result is on-time shipment, happy customers, and minimal costs. This coordinated planning and execution ‘closed loop’ also keeps things coordinated in the face of changing demand, unexpected disruptions and other challenges.
The Acumatica manufacturing solution includes these planning and execution functions: