Production Planning Strategies for the Manufacturing Industry

What Is Production Capacity and How to Calculate It?

Production capacity is an essential metric for any manufacturer planning their production. Knowing it helps to provide customers with more accurate lead times and can be a great aid in forecasting cash flow. In this post, we look at what production capacity is and explore different ways how to calculate it.

By Mattias Turovski 11 min read

Production planningSupply Chain

What is Reorder Point and Reorder Point Formula?

Keeping optimal stock levels in order to avoid stockouts is an integral task of inventory management. One of the most fundamental ways in which to ensure this is setting and maintaining the right reorder points.

By Mattias Turovski 12 min read

NewsProduction planningSupply Chain

A Day in the Life of a Manufacturing Elf

Peasy the Elf is the Production Manager of Santa’s Workshop. Leaning on some software magic and his decades of experience in manufacturing, he makes sure the right presents reach the right people each holiday season.

By Madis Kuuse 4 min read

Manufacturing TipsProduction planning

What is a Multi-Level BOM (Indented BOM)?

A multi-level BOM is a bill of materials that represents the composition of various subassemblies in addition to the final product. This type of BOM becomes indispensable when a certain level of product complexity is reached but there are also situations where the use of a multi-level BOM is unwarranted.

By Madis Kuuse 7 min read

InventoryProduction planning

Serial Number Tracking in Manufacturing

Knowing the location and details of materials, components, and products as they move through inventory and the shop floor is important for any manufacturing company. Serial number tracking is one of the essential tools for ensuring traceability in manufacturing.

By Mattias Turovski 7 min read

Manufacturing TipsProduction planning

Make-to-Stock Manufacturing Workflow and Best Practices

Make-to-stock (MTS) is a manufacturing workflow that uses the push system. This means that goods are produced to stock by “pushing” them through the supply chain according to anticipated demand. In this post, we will look at the pros and cons as well as best practices for utilizing MTS.

By Mattias Turovski 8 min read

Manufacturing TipsProduction planning

Make to Order and Assemble to Order Manufacturing Workflows

Make-to-order (MTO) and assemble-to-order (ATO) are manufacturing workflows that use the pull system, meaning that production starts when an order comes in. As such, they are mostly used by companies that manufacture customizable products. In this post, we go over their differences, pros and cons, and production management considerations.

By Mattias Turovski 7 min read

Production planning

Capacity Utilization – A Simple Guide

Capacity utilization is an important KPI for manufacturing companies. It represents the percentage of production capacity (or productivity) that a factory, enterprise, or economy is operating at compared to its maximum potential capacity.

By Mattias Turovski 5 min read

Production planningSupply Chain

Push System vs. Pull System in Manufacturing Management

Push and pull systems are supply chain management strategies that are used depending on the uncertainty of the demand for a product. While push and pull are very different approaches, many companies also adopt a hybrid push-pull strategy.

By Madis Kuuse 8 min read