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4 essential factors in production management

Axes Software ยป 4 essential factors in production management

Efficiency in manufacturing companies is based on production management, a complex approach that includes the most important activities of planning, organization, management and control.

The main objectives in production management are to find the best answers to the questions of what, where, when, how much and how such a company should produce in order to make a profit and grow sustainably.

Here are the most important factors that help to achieve a successful management that involves the integration of the latest technologies as well:

Decision-making factor

One of the most important factors in the exercise of management functions is decision-making, which involves the adoption of decisions, directives and tasks established under conditions of certainty, risk or uncertainty. These may be strategic, tactical or routine decisions.

The variety of these managerial approaches means that a comprehensive analysis on the basis of which coherent decisions and actions can be taken to increase production efficiency and improve the company’s overall activity is needed.

It is well known that 20% of production errors generate 80% of product returns. That is why the decision-making challenges need to be tackled pragmatically by delegating day-to-day responsibilities and properly coordinating strategic decisions.

The steps to be followed are: identifying the problem, generating possible solutions, choosing the optimal option, implementing the chosen alternative and obtaining feedback to evaluate the effectiveness of the decision and applying any necessary corrections.

In order to achieve these actions, it is recommended that a manufacturing company has an ERP software solution implemented.  This enterprise resource planning system facilitates the collection of all the data in a company into a single platform in order to achieve an integrated management of production processes and operations.

Operational factor

Operational management ensures the functional stability of production by coordinating input variables, changes in internal processes according to the dynamics of market requirements.

Specially designed applications are implemented to carry out these operations, e.g. xTrack MES, a software solution dedicated to the efficient management of production activity.

This software application provides the link between the managerial level and the execution level and allows the control and coordination of all production resources. This cuts down logistics costs by reducing times needed to enter data, complete operations such as storage of raw materials and WIPs, pick and deliver finished products from manufacturing warehouses.

Being a high-performance production management system, xTrack MES can be integrated with any ERP software solution and provides automatic production planning based on various parameters (available staff, maintenance periods, etc.), real-time monitoring of technological operations and performance indicators, goods traceability and product quality control.

Another important aspect is the modular structure of the xTrack MES application, which allows each company to choose the components they consider useful, depending on the activities they carry out and their short, medium and long-term development objectives.

The logistical factor

In production management, material flows, information flows and energy and/or gas consumption are managed through the following subsystems:

The link between these subsystems is achieved through logistics activities comprising positional transfer operations (transport) and scheduled transfer operations (warehousing).

Logistics is a key factor in production management, as between 60% and 80% of the manufacturing cycle duration is allocated to logistics operations (handling, transport, storage).

In this context, the use of software applications such as  xTrack WMS (Warehouse Management System) is recommended for digitizing data flows related to production and related logistics (distribution, warehousing, goods handling and even transport preparatory operations). The system improves production management, reducing logistics costs and the risk of human error, and making the most of existing resources, especially when it used in tandem with xTrack MES.

Also, by using a software solution such as xTrack TMS, it is possible to quickly optimize shipments within a network of warehouses owned or managed by the same company, or between the company’s warehouses and its suppliers and/or customers. Transport times costs are reduced and profits increase.

The transport of certain types of goods also requires the use of returnable packaging (crates, pallets, etc.) which, in the event of loss, causes significant annual financial “losses” that can amount to thousands of euros. Therefore, retrieving and using them whenever necessary requires a set of logistics actions that can be easily managed through the xTrack PMS (Packaging Management System) application. Designing the functionalities of the software solution started from the premise of solving the logistical challenges in this area: real-time tracking of returnable packaging stocks (number, type, condition, location, etc.) and their efficient use (ways to identify and allocate available packaging where it is needed).

Technological factor

A factor that has a decisive influence on production management is the informational technological one, which generates economic efficiency and organizational progress. The use of new technologies, the Internet of Things, provides a higher level of organization and control for the entire economic activity of the company.

An example of the use of new technologies in the day-to-day work of manufacturing companies that also provide freight transport services is POD (Proof of Delivery) software applications. One software solution that falls into this category is xTrack POD.  The application can be implemented to track and control deliveries of parcels and goods from the moment they leave the warehouse until they are handed over and, if applicable, the money is collected. In addition, the xTrack POD solution can also be used for picking up goods from suppliers.

Mobile devices  whereby data is collected, centrally accessed and relayed in real time to all workplaces and mobile units are used. In the case of xTrack TMS and xTrack POD, drivers may even turn to their smartphones when using the apps to keep in touch with the managers at the headquarters while on the move. In this way, all activities related to picking up raw materials, WIPs and other components from suppliers, as well as deliveries to beneficiaries can be automatically coordinated.

A unified approach to the factors influencing production management is a key factor for organizational success. This vision can only be put into practice with the help of specialized software applications, integrated into a flexible software system that is perfectly adapted to the specific needs of each company.

To make use of such systems, turn to companies that specialize in designing and implementing software solutions that perfectly match your company’s logistics requirements. This will help you to increase managerial performance and achieve better results in terms of both profit and efficiency.

How can we help you?

The applications in the xTrack LMS (Logistics Management System) suite, of which we have presented just a few (xTrack MES, xTrack WMS, xTrack TMS, xTrack POD and xTrack PMS) are flexible and compatible with any other software solutions that the companies interested in optimizing logistics activities already use.

Are you facing logistical challenges and would like more information to help you choose the right solution?  Write us a few lines by filling in the form below and we will contact you within 48 hours.

9 May 2022

Over 250 successful software deployments

Our customers come from various sectors of activity that have a common denominator: the need for logistics software solutions.

+ 30%

Optimization of warehouse processes

+ 25%

Increase in transport performance

+ 30%

Improvement in production efficiency

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Antim Mogos
Sales Manager
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