Project Management in Manufacturing: Solving the Resource Management Issue
If you work in manufacturing, you’re likely familiar with Enterprise Resource Planning (ERP) or Materials Resource Planning (MRP)—the system used to manage product planning, inventory management, production, fulfillment, and other aspects of production management and control. What’s more, you probably have a decent appreciation of how ERP/MRP systems have enabled manufacturing companies to optimize core business processes.
But what about the rest of the picture? Contrary to the “R” in the name, most modern ERP/MRP systems fail to fully address a key type of resource—namely, the people whose work supports and feeds into your core manufacturing operations.
Why an Optimized Manufacturing Floor Isn’t Enough
To remain competitive, you need to continually improve your products and optimize your manufacturing processes. Regardless of where an idea originates, the “heavy lifting” to make it happen isn’t done on your manufacturing line; it’s done by the engineers, designers, technicians, and other skilled professionals whose work supports—and feeds into—your manufacturing floor. And therein lies the problem that many companies face: after handoff to manufacturing, things go rather smoothly. Before that handoff, however, it’s likely to be much more of a free-for-all, with each person’s immediate priorities often based on who’s yelling the loudest.
More often than not, this is due to a lack of proper project management. Many companies still use spreadsheets to plan and track peoples’ work. Rarely does this yield more than a static, infrequently updated list of tasks.
While this approach may be OK for initial, high-level planning, it quickly falls apart as the rubber meets the road. Tasks take longer than estimated; customers submit change requests; team members get pulled off projects; budgets change; corporate priorities shift; and so on. There are endless examples. Regardless of the specifics, without proper project management, as things change, people waste time spinning their wheels—and decisions are made without full visibility into how they may affect other commitments.
The fact is that you need to treat each team member like any other enterprise resource—possessing a finite amount of output over time. And like any constrained resource, to get the most out of it, that resource’s output must be optimally orchestrated with respect to the work done by other resources.
While people aren’t machines, and the information or inputs they need to start a task are different than the raw materials that land on your loading dock, you can still think of the collective results they produce as a system of inputs, outputs, dependencies, units of effort, potential bottlenecks, and so on. Of course, unlike a machine that produces widgets at the rate of 600 per hour, when it comes to people, you’ll also need to take into account the uncertainty that comes along with estimating how long a task will take.
Given this, how do you best allocate the efforts of all team members to maximize your overall business throughput? That’s where the right project management tool can help.
A Better Way
You wouldn’t try to optimize your manufacturing operations without your ERP/MRP system, would you? Then why not take advantage of the same computational power that makes this possible to optimize how the people who support your production processes work, letting it do the “heavy lifting” (i.e., algorithmic optimization) to determine the optimal path forward?
A good project management tool, applied within a proper project management framework, can help you to:
1. Manage your team as a set of constrained resources. You need to apply the same discipline to planning and orchestrating peoples’ work as you do to optimizing your supply chain and production floor. This starts with realizing that, just like the machines on your production line, your team members are constrained resources—capable of doing one thing at a time, and capable of only so much output (or effort) in a given unit of time. A plan that’s effort-based (as in “this task will take between 35 and 40 hours”) instead of date-based (as in “management wants this finished by the end of the month”) will make sure your plans are grounded in reality instead of wishful thinking.
2. Create realistic schedules based on availability. Given the effort required for each task in a project, a project management tool that incorporates resources and availability into its scheduler across all your projects can help you estimate realistic delivery dates across your team’s entire workload. Delivering by the end of the month may be key to your job security, but without a plan that’s based on the actual effort involved and the availability of the people who will do that work, how much confidence will you have in hitting your date?
3. Handle the uncertainty of innovation. Unlike the amount of time required for a machine to crank out a widget, the effort required for an engineer to first design that widget is less deterministic. You never know what can happen, and a good project management tool can help you take that uncertainty into account. Look for a project management tool that lets you input task estimates based on best case/worst case scenarios—or, even better, one that lets the people who will actually be doing that work estimate the effort involved. This helps lead to a project schedule that’s grounded in reality, taking into consideration that you’ll probably encounter a few unexpected issues along the way—a common occurrence when attempting to innovate.
4. Make your team a part of the process. Modern project management tools are designed to tie team members into the project management process—enabling them to see their individual tasks (ideally in priority order); take ownership of that work from start to finish; and see how their efforts relate to the efforts of others and the bigger picture. Many collaborative project management tools also deliver other team-centric functionality, such as commenting, document sharing and notifications.
5. Monitor progress. As team members mark tasks complete, your project management tool can use that information to recalculate delivery dates in real time—provided you’ve chosen one that includes this functionality. This will help you quickly identify potential issues, such as a late task that’s threatening your delivery date, so that you can investigate further and take any necessary actions. Remember that, no matter how much you plan, things won’t go exactly as expected. The question is: Do you want to know about potential issues as soon possible, or do you want to hear about them for the first time in your weekly status meeting—if they get brought up at all?
6. Track time. In many companies, tracking time to project codes (think timesheets) is mandatory. Some project management systems have this built-in, eliminating the need for people to use a parallel process. Even if this isn’t required for your organization, the ability to look back on past projects can be invaluable when it comes to refining your task estimates for the next project.
7. Adjust to changing priorities. Everyone working on the right tasks at the right time is essential to optimizing team output. A project management tool can help you easily prioritize (and re-prioritize) peoples’ work, in a way that’s clear to everyone on the team. While this can be invaluable within a project, with the right project management tool, as overall project priorities change, individuals can see this shift in their task assignments across all projects—and know that, every day, they’re focused on the same number-one priority as the company as a whole.
The above capabilities can help you apply the same discipline to managing peoples’ work as you do to your core manufacturing processes—think of it as “ERP for Your Peeps.”
So if you’re still using Excel to manage your work, it may be time to dump the spreadsheets, find a real project management tool, and put it to proper use. Before long, your schedule estimates and project plans will likely improve. And with team members tied into those plans, you’ll likely have a more accurate picture of project progress and potential threats to meeting your deadlines. Best of all, you’ll eliminate a good deal of the chaos, churn, and frustration that often accompany a lack of proper project management.
There’s more! Managing resources is a tricky business—and well worth doing impeccably! To learn more, download our eBook, “5 Best Practices to Manage Project Resources Effectively.”