In many manufacturing companies, creating the daily production schedule is a crucial task. After all, with carefully prepared production schedules, processes run smoothly. Unfortunately, it is not uncommon for this planning to be done in Excel, outside of any business software. Often the ERP system is insufficiently flexible or simply inadequate in terms of functionality for the company’s specific needs. Excel often seems like a practical solution, but can have major consequences when the knowledge of the ins and outs of planning lies primarily with one person, such as a planner.

It is common for a planner to one day leave the company after years of loyal service. And the company thereby loses a concentration of knowledge about, for example, lead times, setup costs, specific skills of personnel, raw materials needed, and other essential data. After all, when planning is done in Excel, this knowledge is not secured and rarely documented. Much of it is often in the planner’s head and in the complex formulas of his or her Excel sheet.

7 threat to daily production

What are the dangers and common problems of such a situation? We list some of them below:

• Loss of critical knowledge: When the planner leaves the company, all accumulated knowledge from years is lost. This includes not only the operational details such as lead times and setup costs, but also the intuitive knowledge the planner has gained over the years. It is frequently found that without this knowledge, a company cannot continue to operate efficiently.
• Dependence on One Person: A company that depends on the knowledge of one employee is in a vulnerable position. This dependence can lead to significant operational disruption when that person is suddenly unavailable, such as in the event of illness, departure, or retirement.
• Lack of documentation and transparency: Excel sheets developed by one person often contain hidden formulas and complex calculations that are not easily understood by others. This lack of documentation and transparency makes it difficult for others to take over or modify tasks as needed.
• Delays in production: New planners or employees may struggle to understand and correctly apply complex Excel sheets. Production processes may be delayed as a result, setup costs may increase, and quality of work may decrease. This leads to higher operational costs and reduced customer satisfaction.
• Increased costs: Inexperience can lead to inefficient use of raw materials and labor, increasing production costs.
• Risk of data loss: Excel sheets are prone to corruption and loss. A single error in a formula or a technical problem can lead to the loss of crucial data. Without backup or thorough documentation, recovering this data may be impossible. Moreover, historical data is often not built up from which to learn.
• Reduced flexibility: The company can respond less flexibly to changes in the market or customer needs without the planner’s ready knowledge, because the new planners do not have the necessary knowledge to respond quickly and appropriately.

Knowledge Assurance and Digitization

To avoid the aforementioned dangers and problems, it is crucial that companies commit to knowledge assurance and digitization. This can be done by:

• Use of scheduling software: Make use of self-learning scheduling software that better suits the needs of the business and is less dependent on individual knowledge.
• Integration of systems: Ensure that all the data needed for planning is transparently available and easily accessible through user-friendly interfaces and APIs, for example.
• Documentation: Document all processes and knowledge required for production planning. This can be in the form of manuals, training materials and detailed rocess descriptions.
• Education and training: Train multiple employees in the use of the systems and knowledge needed for production planning. This reduces dependence on one person.
• Regular audits: Conduct regular audits of production processes and knowledge assurance to ensure that systems and documentation remain up-to-date.

The case of the departing planner shows how vulnerable manufacturing companies can be if critical knowledge about the planning process is not properly secured. By digitizing and taking proactive measures to document and share knowledge, companies can safeguard their continuity and be better prepared for unexpected changes. Data Refinery Amsterdam ‘s approach and planning system can play an important role here.