In an economy that is becoming increasingly globalised and characterised by competition, companies are constantly on the lookout for ways to reduce their production costs whilst at the same time improving quality and efficiency. The manufacturing industry, in particular, is a key focus here, as even minor savings can have a significant impact on a company’s profit margins and competitiveness. tetys also offers valuable solutions and approaches to improve efficiency and sustainability in manufacturing. In this article, we look at some methods for reducing production costs that both cut operating expenses and incorporate more sustainable processes.

Automation as the key to improving efficiency

A key factor in reducing production costs is the automation of processes. Industrial robots and artificial intelligence (AI) play a crucial role in this regard. Repetitive or complex tasks are carried out by industrial robots with a high degree of precision, thereby reducing human error. Not only do these technologies boost productivity – they also reduce labour costs in the long term.
Furthermore, AI-based systems enable production data to be analysed in real time, facilitating well-informed decision-making. This includes, for example, optimising machine uptime, predicting maintenance requirements and reducing scrap rates. Companies that make data-driven decisions in this way can significantly improve their efficiency and reduce costs.

Process optimisation through ERP systems

Enterprise Resource Planning (ERP) systems are effective tools for managing and improving manufacturing processes. They enable the seamless integration of production planning, materials management and logistics. An improved production plan reduces downtime and prevents unnecessary costs arising from inefficient processes. Furthermore, ERP systems are able to identify bottlenecks and reallocate resources accordingly, leading to improved productivity and a more efficient cost structure.

Lean Manufacturing: Minimising waste

Another approach to reducing costs is lean manufacturing. The aim of this concept is to eliminate waste as far as possible in all production processes. Waste can take various forms, such as unnecessary movements, waiting times or excessive stock levels. By implementing lean principles, companies can significantly reduce their production costs, shorten delivery times and improve overall quality.

A key component of lean manufacturing is avoiding overproduction, as this leads to unnecessary material consumption and waste. There are various lean principles. Through the use of, for example, computer-aided design (CAD) systems, production processes can be precisely planned and simulated in advance. This optimises the use of resources and reduces material wastage. Another principle is the flow principle, which ensures a steady and continuous production flow, thereby reducing waiting times and potential interruptions.

Recycling of production waste

Recycling not only protects the environment, but is also an effective way of cutting costs. The issue is not only ever-present in everyday life, but also within manufacturing companies. Production residues such as metal shavings or plastic waste can be collected, processed and reintroduced into the production process. This saves on disposal costs and reduces material costs. Companies that consistently prioritise recycling have the opportunity to significantly reduce their production costs whilst contributing to sustainability.

Energy efficiency through innovative technologies

Energy efficiency is an area where savings can often be made in manufacturing, but which is not given sufficient recognition. The latest generation of machinery consumes up to 30 per cent less energy than older models. It can therefore be worthwhile in the long term to regularly upgrade your machinery.

Furthermore, modern energy management systems help to monitor and optimise energy flows. These systems identify inefficient processes and recommend measures to reduce energy consumption. Switching to energy-efficient lighting, such as LEDs, is also a sensible investment. This enables companies to reduce their energy costs for lighting by up to 70 per cent.

Reduction in error and scrap rates

Production errors are not only a nuisance, but also incur costs. To cut costs, it is therefore important to reduce scrap rates. This is where quality management comes into play, for example through the implementation of the Six Sigma methodology. This data-driven approach supports the systematic identification and elimination of sources of error. The results are impressive: reduced error rates, improved product quality and lower production costs. Another method is, for example, the 5 Whys method, which helps to identify defects more quickly. It involves a systematic attempt to find the root cause of the defect by asking the question ‘Why?’ five times. This method reduces the likelihood of hasty attempts at a solution or false solutions.

Material optimisation to improve efficiency

The selection of suitable materials and their effective use are also crucial to reducing costs. High-performance materials with greater durability or better processing properties can improve production processes and reduce material costs. CAD systems and other lean manufacturing methods help to plan material usage precisely in advance, thereby avoiding unnecessary waste.

Comprehensive strategy for sustainable cost reduction

In order to implement cost-reduction strategies in manufacturing, it is necessary to consider them from a holistic perspective. It is not enough to focus solely on individual measures. Instead, companies should continuously improve all their processes in order to achieve savings in both the short and long term.

Careful production planning, which takes into account all aspects such as resources, staff and machine running times, is of great importance in this regard. A combination of automation, lean manufacturing, energy savings and material optimisation provides a solid foundation for reducing costs whilst increasing productivity and quality.

Cost reduction in production through tetys

tetys can also help to reduce manufacturing costs, as we take care of the entire production planning process – from staff planning and seasonal planning right through to resource and energy savings. At tetys, we plan efficiently to minimise costs wherever possible. If you’re interested, please fill in the contact form in the top right-hand corner and we’ll get back to you as soon as possible.

Conclusion

There is considerable potential for cost reduction in manufacturing. Whether through the use of industrial robots, the automation of processes, the optimisation of material and energy consumption, or the application of lean principles – every measure helps to promote a company’s competitiveness and sustainability.

Companies that are constantly exploring new technologies and improvement strategies have the opportunity to reduce their expenditure and thrive in a challenging market environment. The key lies in taking a holistic approach and being committed to continuous improvement.

A material batch refers to a defined quantity of a raw material or intermediate product that has been manufactured or supplied under identical conditions. A product batch, on the other hand, refers to a specific quantity of a finished product that has been produced in a continuous manufacturing process. Both types of batch are uniquely identified to ensure that their origin and processing steps can be traced without any gaps.

Batch recording plays a key role in manufacturing companies when it comes to quality assurance, traceability and process optimisation. As digitalisation continues to advance, the precise and automated recording of batches is becoming increasingly important. Modern technologies enable the comprehensive documentation of all relevant information and offer numerous benefits for companies wishing to future-proof their production processes.

In more detail, batch tracking refers to the unique identification and documentation of material or product batches throughout the entire value chain. Each batch is assigned a unique, unambiguous number containing information such as origin, production date, raw materials used and process parameters. The digital recording of this data forms the basis for efficient and transparent production, as it enables seamless traceability. Particularly in regulated sectors such as the food, pharmaceutical or medical technology industries, this traceability is not only a competitive advantage but a legal requirement. In the event of complaints or recalls, affected batches can be quickly identified and isolated, thereby minimising financial losses and damage to reputation.

End-to-end and digital: batch recording with tetys

Digitising your batch recording processes plays a key role in boosting efficiency. Through the use of barcodes, RFID technology or mobile devices, data is captured automatically and in real time. This significantly reduces the risk of errors associated with manual data entry and speeds up workflows. The integration of batch recording into tetys-MES ensures that all relevant information is available centrally and can be analysed at any time:

Has a supplier batch failed to meet your requirements, and are you looking to identify the points in your process where the material or material batch in question was used?
Forward analysis starting from the point of material receipt enables you to carry out a targeted search for the critical points.

Does one of your customers require detailed information about a specific delivery of prefabricated components? When and where was it manufactured, and which production or material batches are involved?
This can be easily traced via a reverse analysis from the goods dispatch record and presented and communicated in the required level of detail.

Our tetys batch recording system can be configured (not programmed) within the system to suit your specific processes.
This significantly improves the planning and management of your supply chain through the precise documentation of batch information. You can also optimise your stock levels, minimise waste and manage material usage in a targeted manner. Last but not least, by working with us, you can lay a sustainable foundation in good time to meet the growing regulatory requirements for a fully traceable supply chain. tetys is already supporting several of your customers on their journey towards fulfilling the digital product passport requirements for their products. You too can benefit from our expertise in this area.

To successfully overcome the challenges mentioned when implementing digital batch recording solutions, we offer comprehensive support to interested companies. Our range of services encompasses both the provision of suitable software solutions and comprehensive services – from analysis and process definition through to system integration, staff training and continuous optimisation. We place particular emphasis on seamless integration between ERP and MES systems and production machinery, ensure the highest standards of data quality and security, and make sure that all stakeholders are fully prepared for the new technologies. This provides companies with a bespoke solution that is precisely tailored to their individual requirements and creates lasting added value.

Overall, batch recording is far more than just a mandatory task. It represents a strategic lever for quality, efficiency and competitiveness. Digitising this process enables manufacturing companies to create transparency, reduce costs and reliably meet regulatory requirements.

Please do not hesitate to let us know your specific questions and concerns. Our experts will be happy to guide you from your individual starting point right through to an optimised application.
We look forward to hearing from you on this topic – to help you take your own production to the next level.

What do E. coli bacteria in sausages, small parts that can be swallowed from children’s toys and cracks in a bicycle helmet have in common?

It’s all product recalls! Negative press and a loss of consumer confidence included.

That really sticks in your memory and burns itself into your mind! Who doesn’t still remember those exploding Samsung smartphones? It’s been nine years already, and yet it came straight back to me.

In manufacturing, costs need to be cut and everything produced as quickly and cheaply as possible so that we can keep up with the competition and avoid going under. But shouldn’t we rather rethink our approach and, for that very reason, focus on quality?
‘Made in Germany’ has long been regarded as THE hallmark of quality. And especially today, when it feels like a rarity for something to still be ‘Made in Germany’, we should pay all the more attention to the quality of these products!

The demands placed on manufacturing companies are constantly increasing: shorter lead times, regulatory requirements and rising customer expectations. As a result, professional quality management is becoming a crucial factor in a company’s competitiveness and long-term viability.

What is meant by quality management in production?

Quality management encompasses everything that can contribute to the continuous improvement of products and processes. In production, this involves reducing scrap, preventing defects and increasing customer satisfaction. This can only be achieved by planning, monitoring and controlling every step and process, from order placement through raw material procurement right through to delivery. Naturally, this is best achieved with the appropriate software.

 The main reasons for investing in quality initiatives

1. Greater customer satisfaction and a stronger brand image
   . Following my introduction, this point is almost self-explanatory. Customers expect fault-free, durable and reliable products. If you meet these expectations (or even exceed them), you build trust and secure customers’ long-term loyalty to the company. Satisfied customers buy more and recommend the company to others. In this way, they ensure stable turnover and strengthen the brand image.
2. Cost savings through reduced scrap and rework
   Errors result in high costs, whether through scrap, rework, product recalls or delayed deliveries. You therefore save money, time and materials by using an effective quality management system to identify errors at an early stage, or even prevent them altogether. There are many sophisticated software solutions available today, and AI is playing an increasingly important role, particularly in the prevention of errors.
3. Compliance with legal requirements and competitive advantages
   : There are numerous regulations and standards in industry. With a good system, you can reliably meet these requirements and avoid product recalls or fines. Furthermore, customers and partners are increasingly demanding proof of quality. In some sectors, certified quality management systems – such as ISO certification – are essential prerequisites for even being able to operate in the market! There is no better way to demonstrate that you prioritise quality and reliability. This is how you gain a clear competitive advantage!
4.  More efficient processes and higher output
   Quality management helps to establish standardised processes and procedures, thereby creating greater transparency. This not only makes work easier, but also speeds up production and boosts efficiency. This means that not only can errors be identified and rectified more quickly, but opportunities for improvement can also be identified and implemented.
5. Greater employee involvement and a better approach
   to dealing with mistakes Thanks to the new processes and greater transparency, employees are able to get more involved. This fosters a general focus on quality and an open, constructive approach to dealing with mistakes. This in turn promotes teamwork and ensures we are well-positioned for the future.

Conclusion: Quality is no accident – it is the result of targeted investment

The demands placed on manufacturing companies today are highly challenging and varied. Customers expect fault-free products that meet the highest standards, at reasonable costs, delivered on time and, ideally, produced in a sustainable manner. And companies are under pressure to deliver all of this whilst remaining efficient and cutting costs. This makes it clear that quality management is not just a ‘nice-to-have’ but a key component of long-term business success.

Investing in quality measures pays off in several ways: it helps to minimise sources of error and reduce waste and rework. This cuts costs and boosts the efficiency of the entire value chain. It builds trust and strengthens the brand image.

Quality management also fosters an open culture of error acceptance and, consequently, employee involvement. Experience and ideas lead to innovation and continuous improvement. Modern software solutions can help to collect and analyse quality data in real time and derive targeted measures. This is an advantage for anyone wishing to operate in an agile and forward-looking manner.

Another positive effect is that a structured quality management system can help to meet legal and regulatory requirements and minimise risks such as product recalls and damage to the company’s reputation. Investments are therefore not short-term expenditure, but a sustainable strategy to equip the company to meet future challenges.

Those who invest in quality today are laying the foundations for tomorrow’s success.

Now more than ever, industrial production is under pressure to operate flexibly, efficiently and transparently. Manufacturing Execution Systems (MES) form the backbone of the modern factory. They link the business planning level (ERP) with operational manufacturing, thereby enabling end-to-end digitalisation and control of production processes. MES systems record, analyse and control all relevant production stages in real time. The aim: maximum transparency, optimised processes and a sustainable increase in competitiveness.

Whilst ERP systems provide the broad framework for production planning, the MES handles the detailed planning and control of manufacturing. Here, production orders are not merely scheduled at a high level, but are precisely planned, taking into account actual resources, current machine statuses, material availability and staffing levels. Detailed planning acts as the link between planning and execution: it ensures that production orders are optimally allocated across machines and shifts, lead times are minimised, and delivery deadlines can be met. Modern MES solutions such as our tetys-MES offer a holistic approach: they integrate all planning functions, materials management and resource management into a single system, thereby enabling seamless, digital production control.

The MES control centre

At the heart of detailed planning is the MES control centre, also known as the digital planning board. It acts as the nerve centre of production and visualises all relevant manufacturing processes, resources and their interdependencies. The digital planning board from tetys, for example, enables new orders to be scheduled optimally and the consequences of changes to be identified immediately. It provides a transparent overview of the entire production process – from order receipt through to delivery. All machines, tools, materials and personnel resources are monitored and controlled in real time. The production board is therefore the central control tool for managing complexity and responding quickly to deviations.

One of the greatest strengths of the MES control centre is its visualisation capabilities. Modern systems such as tetys rely on intuitive Gantt charts and graphical interfaces that compare the current actual status of production with the planned target status. Bottlenecks, delays or overloads become visible at a glance. This comparison of planned versus actual status covers not only quantities and deadlines, but also machine statuses, material stocks and quality data. This enables planners and production managers to immediately identify where action is required and take targeted action. This transparency is crucial for managing production efficiently and responding flexibly to changes.

Another advantage of modern MES control centres is the ability to define individual optimisation criteria and configure detailed planning accordingly. For example, companies can set set-up times, lead times, capacity utilisation, on-time delivery or labour costs as priorities – depending on their strategic focus and current challenges. The tetys system allows production orders to be scheduled according to the company’s own requirements and enables effective set-up optimisation to be integrated. Through continuous bottleneck analysis, potential bottlenecks are identified at an early stage and can be proactively mitigated. In this way, detailed planning becomes a bespoke tool for production optimisation.

Manufacturing is a dynamic environment – disruptions, material shortages or last-minute changes to orders are the order of the day. The MES control centre acts as a flexible toolbox in this context: planners can respond to changes with just a few clicks, move orders using drag-and-drop, or schedule alternative machines and resources. The system immediately simulates the effects of these changes and shows how the adjustments impact other orders and the overall schedule. This ensures that production remains operational and on schedule, even in the face of unforeseen events. The ability to simulate scenarios and compare different alternatives makes the control centre an indispensable tool for agile production management.

In addition to operational control, the MES control centre offers comprehensive analysis and reporting functions. Systems such as tetys present all relevant production key performance indicators (KPIs) in clear, easy-to-read dashboards: from machine availability to shift reports and lead times. Analyses and reports make it possible to identify weaknesses, recognise opportunities for optimisation and use these insights to make informed decisions. Drill-down functions allow users to move from the overall overview to a detailed analysis of individual orders or machines. In this way, the control centre becomes not only a control tool, but also a tool for analysis and improvement.

The MES control centre is at the heart of digital production management. It combines the benefits of end-to-end digitalisation in the form of maximum transparency, flexibility and efficiency. By integrating all relevant information, offering the scope for customised optimisation and providing comprehensive analysis functions, production is equipped to meet the challenges of the future – at tetys, you’ll find a reliable and sustainable partner to accompany you on this journey!In fact, the shortage of skilled workers can even be turned into an opportunity – for example, to take your own production planning, and thus your own production, to the next level.

Industrial manufacturing presents companies with numerous challenges, particularly in terms of efficiency, cost optimisation and resource utilisation. Variety production is a tried-and-tested method for specifically improving these aspects. It involves manufacturing products with similar properties and production requirements in successive batches in order to minimise set-up times and material wastage.

Characteristics of unoptimised mass production

In traditional batch production, different products are manufactured one after the other without any specific coordination regarding the similarity of materials or process requirements. This leads to inefficient processes, which result in frequent set-up times, as machines have to be reconfigured for each new product, incurring both time and costs. Furthermore, high material consumption results from non-optimised changes between product types. Longer lead times are also a problem, as delays occur due to waiting times between production batches. To cope with fluctuations in production, unnecessarily high stock levels are required, which in turn necessitates larger buffer stocks.

Variant production: planning products with similar characteristics together

In contrast to uncoordinated batch production, product-type production focuses on grouping together products with similar characteristics. The aim is to enable production runs that are as long as possible without having to change over the machinery. The advantages of this strategy include a reduction in set-up costs due to longer production intervals within a single product type, more efficient use of materials, as there are fewer losses during product changeovers, lower production costs through optimised machine running times and reduced downtime, and greater flexibility, as production planning can be tailored to market demand and seasonal fluctuations.

Chocolate production is an excellent example of optimised product range manufacturing. Here, products with similar recipes and production processes can be grouped into series, thereby making the entire production process more efficient.

Criteria and their optimisation effects

Chocolate products can be grouped according to various criteria. Products with a similar cocoa base, such as milk chocolate, dark chocolate and white chocolate, can be produced together. Varieties containing nuts, dried fruit or caramel should also be produced together to minimise production changeovers. Chocolate bars, chocolate sticks and pralines have different requirements in terms of moulds and packaging, and similar packaging sizes and materials simplify logistics and reduce set-up time. In addition to product characteristics, production-related factors can also be used to optimise production by product type.
In our example of chocolate, for instance, the size or capacity of the available conches can be selected as a planning factor.

Variety-based production enables a number of optimisation benefits to be realised in chocolate production. Cleaning and set-up times are minimised, particularly when switching between products with identical base mixtures. The utilisation of raw materials is optimised, as the same ingredients are processed in large quantities, thereby reducing purchasing costs and minimising material waste. Efficient stock management is made possible by coordinated production plans, enabling raw materials to be ordered and stored in line with demand. Increased machine uptime is achieved through longer production cycles without changeovers, which improves capacity utilisation. Using the approach outlined above – taking the conche size into account in our chocolate example – a possible optimisation measure here is to select the batch size in production as a multiple of the existing conche volume.

Variant production (complex products): chocolates

Whilst simple chocolate bars and tablets have relatively uniform production processes, pralines are an example of a more complex, variant-based production process. Pralines often consist of several layers, fillings and decorations, which requires detailed planning. Nevertheless, efficiency gains can also be achieved here through variant production. Chocolates with similar fillings are produced together, and tempering is optimised by manufacturing chocolates with the same melting temperatures and cooling times in a single batch.

Software-supported production planning

Digital production planning offers significant advantages over manual planning methods. The use of Fekor enables the following optimisations: Automated production planning utilises intelligent algorithms that analyse production capacities and control the optimal production sequence. Real-time monitoring enables the continuous collection of machine and material data to identify bottlenecks at an early stage. Flexibility in the face of production changes is achieved through rapid adjustments without significant changeover losses. The error rate is reduced, as digital planning minimises human planning errors and ensures optimal use of resources.

Fekor is one of our digital solutions that uses modern technologies to optimise production planning in the manufacturing industry. By utilising software solutions, manufacturing processes can be planned and managed more efficiently.

Product group management

A good example of a slightly more specific measure for optimising production with Fekor is product group management. This allows your products to be grouped according to their characteristics during the planning stage and planned collectively. The advantages of this method include optimised stock management, as raw materials and semi-finished products are managed more efficiently. It also enables you to easily reduce capital tied up in stock by avoiding excess inventory, whilst improving production capacity utilisation, as machinery and labour are utilised more evenly.

Conclusion

Variety-based production is an exciting use case for our solutions to optimise production planning, even beyond our example in chocolate production. By strategically grouping similar products together, costs can be reduced, lead times shortened and material wastage minimised. Digital tools such as Fekor and the tetys MES help to further optimise these processes and boost your company’s competitiveness. Those who set the course today will secure a decisive competitive advantage in the long term.

Monday morning, 6.30 am. The chaos begins.

The production manager is sitting in front of a digital mountain of Excel spreadsheets, sipping his first coffee of the day. An employee has suddenly fallen ill, a machine has broken down, and the most important customer sent an email on Friday evening to bring forward an order at the last minute. Now everything has to be rescheduled by hand. Enjoying his coffee is the last thing on his mind.

The situation is quite different in a company that uses automated production planning. Whilst one person is still laboriously moving cells around in Excel, the system analyses the current situation in real time, suggests optimal solutions and even adjusts shift schedules automatically. If there is a shortage of materials for production, the purchasing department is notified immediately. The result is less stress, faster decision-making and greater efficiency – and the coffee definitely doesn’t go cold.

Why automated production planning is essential

Surprisingly, many manufacturing companies still rely on Excel, whiteboards or outdated systems for production planning. But if you want to remain competitive in the long term, you need a solution that keeps pace with the realities of production – ideally in real time.

If companies continue to rely on this already uneconomical and highly error-prone way of working, they will face another major problem: the shortage of skilled workers. Experienced production planners are hard to find, whilst the demands of manufacturing continue to rise. Automated solutions take the pressure off the team and ensure stable processes, even when staff shortages occur.

Furthermore, customer requirements have become increasingly dynamic in recent years. Shorter lead times, smaller batch sizes and sudden changes are now part of everyday life. Companies need to respond more quickly and flexibly than they did 10 years ago, but manual planning systems often limit their ability to do so.

Another stumbling block to efficient and sustainable production planning is Excel’s limited capabilities. Whilst it is a powerful tool, it was not designed for complex production planning. Changes have to be laboriously entered by hand, and dependencies between machines, staff and materials can hardly be mapped in real time – moreover, viewed objectively, planning with Excel becomes increasingly prone to errors as complexity rises.

The solution to all these challenges lies in intelligent and (partially) automated production planning, which analyses all relevant factors in a matter of seconds, calculates various scenarios and identifies bottlenecks at an early stage.

How to make the switch – step by step

The transition from manual to automated production planning may sound like a complex undertaking at first, but if companies take a structured approach, it becomes manageable and predictable.

The first step is to carry out a review. This involves analysing which areas of production planning are still carried out manually and where problems regularly arise. Particularly common weak points include last-minute changes, staff shortages or inefficient use of machinery. Existing systems such as ERP or MES solutions should ideally also be included in this analysis. Ideally, one or two existing processes should then be optimised following this phase.

The second step involves gradual automation. It is not necessary to convert the entire system straight away. Many companies start with individual sub-areas. Automated solutions ensure optimised machine utilisation, thereby significantly reducing set-up costs and preventing bottlenecks. Shift planning can also be optimised to reduce downtime caused by a lack of machine operators or set-up staff. Modern algorithms therefore help to ensure that machine capacity is utilised as effectively as possible, whilst taking all relevant factors into account.

Another key area is dynamic order planning. Automated systems identify bottlenecks at an early stage and suggest alternatives to avoid delays.

A modern planning tool should also integrate seamlessly into the existing system landscape. When ERP and MES systems communicate with one another, real-time data flows are generated, enabling flexible and dynamic planning.

A successful roll-out depends not only on the technology, but also on the people who work with it. Automation does not mean that people will become redundant. On the contrary: planners and dispatchers are given better tools to make informed decisions. To ensure a smooth transition, it is crucial to involve staff at an early stage and to familiarise them with the new system through targeted training, thereby fostering acceptance.

Different approaches to automated production planning

Companies wishing to automate their production planning have several options: they can either use their own planning software or opt for a flexible service-based solution.

The traditional solution involves implementing specialised production planning software such as FEKOR. The system is customised and fully integrated into the production process. The process begins with a workshop phase in which all relevant planning parameters are defined. The software is then configured and tested in accordance with the requirements. Once implementation is complete, the company has a powerful tool at its disposal with which it can optimise production planning independently.

This solution is particularly suitable for companies that wish to retain control of their own planning in-house in the long term and have trained staff who can use the software efficiently.

An alternative to this is tetys planning flex, a service that takes care of production planning on your behalf. Companies do not need to purchase software or build up in-house expertise, but can instead access an external solution on a flexible basis. Planning is carried out by experienced experts who utilise a powerful planning system and optimise processes in line with individual requirements.

This solution is particularly suitable for companies that either do not have their own planning department or are experiencing difficulties with internal production planning due to a shortage of skilled staff. By outsourcing their planning, companies save time and money, whilst at the same time benefiting from professional, automated production planning.

Conclusion: If you don’t automate, you’ll lose out

Manual planning is a thing of the past. Companies that automate their production planning save time, reduce costs and boost efficiency, which ultimately enhances their competitiveness.

The good news is that making the switch is easier than many people think. Those looking for their own software solution can integrate FEKOR, a powerful planning system, into their production processes. On the other hand, those who wish to remain flexible or do not have the capacity for their own planning department can make use of tetys planning flex, a bespoke service.

Now is the right time to address this issue. Those who set the course today will secure a decisive competitive advantage in the long term.

Imagine going to work every day, knowing that it is up to you and your team to keep a complex system of forces and decisions running smoothly. It is a system comprising machines, people, materials and time – a system that must be precise, efficient and reliable. This is the day-to-day reality for production planners. They are key players behind the scenes in production, problem-solvers and strategists who set the pace of the day for many employees.

The responsibilities of a production planner are demanding and multifaceted. They require a combination of strategic thinking, practical problem-solving skills and a deep understanding of the interrelationships within production. The production planner ensures that everything runs smoothly – from the timely delivery of raw materials, in collaboration with the materials planning department, right through to the on-time completion of the end product. Production planning works alongside production managers to ensure that all the cogs in the production process mesh together, that every step is carefully thought through, and that every single part of the whole is in the right place at the right time.

General duties of a production planner

The primary role of a production planner is to manage the production process in such a way that it runs both efficiently and cost-effectively. A key aspect of this is meeting deadlines – ensuring that all products are completed on time. In doing so, the production planner works closely with the sales, procurement and logistics departments. Together with the plant and production managers, they ensure that production capacities are always aligned with market demands.

It is not just the scheduling aspect that matters. Cost optimisation also plays an integral role. The production planner works continuously to make the production process as efficient as possible without compromising quality. There is also a constant focus on accurately determining requirements: what materials are needed, and in what quantities, to keep production running? The aim is to make accurate forecasts in order to avoid unnecessarily high stock levels.

Specific daily tasks

No two days are ever the same for a production planner, and they are often faced with unforeseen tasks. A key aspect of their day-to-day work is stock management. They regularly monitor stocks of raw materials, semi-finished goods and finished products to ensure that the materials currently required for production are always available. This involves not only ensuring that materials are available but also monitoring the flow of materials, identifying any potential bottlenecks at an early stage and eliminating them.

Another important issue is determining batch sizes. This decision affects how many products are manufactured per production run. Larger batch sizes can reduce production costs, whilst smaller batch sizes offer greater flexibility in other respects. The production planner finds the optimal balance here.

Cooperation with other departments

A production planner does not work in isolation. Rather, they rely on close cooperation with other departments. Contact with the shop floor, in particular, is crucial. This is where it becomes clear whether the planning is in line with actual production conditions. Adjustments are made when unforeseen problems arise or machines suddenly become unavailable.

The procurement department is also a key partner. If materials are missing or delivered late, this can significantly disrupt production. In such cases, it is the production planner’s responsibility to quickly find alternatives or work out solutions with the purchasing department. Communication with the sales department is equally important in order to be able to respond to short-term changes in customer demand.

The Human Resources department also plays a key role as a point of contact for production planning. Production orders may be rescheduled at short notice, which may therefore require additional staff. Here, too, the production planner works closely with the Human Resources department to ensure that sufficient qualified staff are available. Management is the next point of contact for strategic matters, such as investments in new machinery or production capacity. This often involves regular meetings with senior management, during which the production planner ensures an effective flow of information through skilful reporting and the use of dashboards.

Challenges in the day-to-day work of a production planner

The day-to-day work of a production planner is characterised by unpredictability and rapid changes. Sudden changes in demand or in the production process often require rapid adjustments. These may be caused by seasonal fluctuations, public holidays or unforeseen events. The production planner must remain flexible and be able to find solutions that ensure operations run smoothly.

A common problem in production planning is bottlenecks in production. These can be caused by various factors, such as machine downtime, material shortages or a lack of skilled workers. There are various approaches to resolving such bottlenecks. Predictive maintenance can minimise machine breakdowns, whilst alternative supplier strategies can reduce material shortages. Flexible workforce planning, which allows for the short-term deployment of additional staff, also helps to prevent production downtime. Digital tools for bottleneck analysis and simulation also enable the early identification of potential problems, so that appropriate measures can be taken in good time.

Another area presenting a constant challenge is striking a balance between costs and meeting deadlines. Production planners are often faced with the difficult task of choosing between an efficient production process and the need to deliver all orders on time. In many cases, making the right choice between trade-offs is crucial to success.

The tools of a production planner

The work of a production planner is now supported by a wide range of modern tools that make their tasks more efficient. The days when all planning was done with pen and paper are largely over. Nowadays, digital production planning software and Manufacturing Execution Systems (MES) are used. These software solutions enable the planner to monitor stock levels in real time, manage production efficiently and respond quickly to changes. They facilitate precise coordination between the various departments, identify bottlenecks at an early stage and thus ensure smooth production.

By using FEKOR, tetys’ PPS system, it becomes possible to draw up robust and workable production plans that do not require constant adjustments or last-minute changes. The solution not only improves planning accuracy but also raises service levels, reduces set-up costs and thus helps to optimise the entire production chain. The integrated functions for the early identification of problems and the ability to always have the right information to hand lay the foundations for a stress-free and efficient way of working. With FEKOR, production planners can optimise their workflows and ensure that they don’t overlook anything – a valuable tool for maintaining an overview even in complex production environments.

Production planning: a wide range of applications – our solutions keep pace

The production planner is the unsung architect behind production. They ensure that the complex production system runs smoothly by coordinating resources, monitoring stock levels and efficiently managing production. Without their constant dedication, planning and adaptability, production would grind to a halt. It is a role that requires not only technical knowledge but also communication and problem-solving skills – and one that always remains somewhat in the background whilst production runs smoothly.

In addition to FEKOR, our tetys MES also enables a significant reduction in planning effort. Here, thanks to the simultaneous recording of multiple process values, the planner is kept informed of the current status of production at all times and can react immediately to changes. And if the prospect of a comprehensive software roll-out in your company still seems a long way off for the moment: the process and planning expertise of our specialists is available to you not only through our software products. Our team would be happy to work with you in our tetys Optimisation Workshop to first develop a basic strategy tailored to your processes. Or you could take a look at our new tetys planning flex model. Those who set the course today will secure a decisive competitive advantage in the long term.

Imagine you’re sitting in the cockpit of an aeroplane – without a navigation system, autopilot or a clear plan. You’re flying by sight, improvising with every change in the weather and hoping for a safe landing. Sounds risky? That’s exactly what happens to manufacturers who neglect their production planning or rely on manual processes – and it happens all the time in industry. Let’s clear up a misconception here: this problem affects small firms just as much as large corporations.
Production planning is the heart of any company with its own manufacturing operations. It sets the pace and synchronises everything – from raw materials to the finished product. Without a robust system or when relying on manual methods, production planning quickly becomes a game of chance.

The challenges of manual production planning

In many manufacturing companies, production planning is still carried out manually. Often, Excel spreadsheets that have grown over the years are used, or handwritten plans that are updated weekly. At first glance, this method seems practical and cost-effective. However, on closer inspection, significant weaknesses become apparent. Manual planning quickly reaches its limits, particularly in modern and complex production environments. Production lines must remain flexible to keep pace with the increasing variety of products.
At the same time, customers expect shorter lead times and consistently high quality. Added to this are internal challenges such as optimising the utilisation of machinery and staff, as well as coordinating material flows.

Without digital support, it becomes difficult to reconcile these requirements. Planning errors, incorrect prioritisation or overlooked bottlenecks can have far-reaching consequences. Often, the necessary transparency is also lacking: Which machines are idle? Where are materials missing? What is the current status of production? Manual methods rarely provide reliable answers to such questions, and certainly not at the speed required today.

The consequences of planning errors

Planning errors in production quickly have an impact at several levels. A typical example is production downtime. Without forward-looking planning, it often happens that a machine comes to a standstill because a required part is missing or a tool is not available on time. Such downtime is not only frustrating, but also costs money.
Delays in the production chain also have serious consequences. A delayed production order disrupts the schedule and can result in customer orders arriving late. In the long term, this damages customer relationships and the company’s reputation. Ultimately, all production depends on customers being satisfied and placing repeat orders.

In addition to the direct consequences, planning errors also give rise to hidden costs. These include costly rework when a job has had to be completed under time pressure. The need to work extra shifts to make up for missed deadlines is also a factor. All of this puts a strain on a company’s budget and reduces its competitiveness.

The impact of the skills shortage

The shortage of skilled workers is significantly exacerbating the challenges of manual production planning. In many companies, the most experienced planners are approaching retirement. These employees often possess a deep understanding of production processes, built up over many years. When this group of people leaves the company, their knowledge is frequently lost. At the same time, finding qualified young talent to fill this gap is proving difficult. Planning requires both technical expertise and experience in dealing with the specific challenges of production. These include, for example, prioritising orders or taking machine capacities into account. This places enormous pressure on the remaining staff. They often have to take on tasks outside their remit and lack the necessary tools to do so. This not only leads to overwork but also increases the error rate. As a result, the already strained situation in planning becomes even more difficult.

The missed opportunities of digitalisation

Many companies continue to rely on manual methods, whilst others are already making the most of the opportunities and benefits offered by digitalisation. With digital planning tools, for example, all relevant data can be recorded and analysed in real time. This not only enables more precise planning, but also provides greater control over production processes. Companies that completely eschew digital solutions run the risk of falling behind. Without new planning technologies, there is often a lack of flexibility when it comes to changes and potential adjustments to material availability.

Furthermore, manual planning can stifle a company’s capacity for innovation, because if it is constantly having to react to short-term problems, its capacity to develop new business models is limited.

Conclusion: The clock is ticking

Companies that continue to manage their production planning manually – or even neglect it altogether – are putting their efficiency, competitiveness and, ultimately, their very survival at risk, as the modern world of manufacturing is far too fast-paced and complex. But there is hope: in the next instalment of this series, we’ll take a look at how modern production planning not only takes the pressure off companies but also gives them a clear competitive advantage.

It is not a new realisation, but one that occurs to me with increasing frequency: the shortage of skilled workers is no longer a bleak future scenario, but a bitter reality. In manufacturing too – and specifically in production planning – the shortage of qualified skilled workers is becoming increasingly apparent. Without well-trained and satisfied staff, production processes become inefficient, leading to bottlenecks, delays and higher costs. But is the skills shortage really just a risk – or could it also prompt companies to explore new, innovative approaches, thereby optimising their planning and existing manufacturing processes and thus remaining competitive?

Warning: spoiler. I believe that the skills shortage presents opportunities for us on many levels. This applies both to individual companies and to Germany and Europe as business locations. But first, I’d like to briefly outline the (undoubtedly well-known) risks that the skills shortage poses, particularly for manufacturing companies.

Skills shortages – a problem with far-reaching consequences: statistics show that, as I have noted in detail, numerous vacancies remain unfilled in production planning too. The ‘war for talent’ has taken the manufacturing industry by storm. Small and medium-sized enterprises (SMEs) are particularly affected, as they often lack the resources to keep up in the competition for the best talent. But what specific risks does the skills shortage in production planning actually pose?

Risks associated with the skills shortage:

1. Production bottlenecks: A shortage of planners can result in production processes running suboptimally. This causes bottlenecks which, in the worst-case scenario, can bring the entire production process to a standstill. Unplanned machine downtime, an increase in set-up operations and the associated waste of resources are common consequences.
2. A decline in staff satisfaction: Flawed and short-sighted production planning, and the resulting perceived chaos on the production floor, is eroding staff satisfaction – beyond the realm of production planning itself. Staff are becoming increasingly distracted from the actual work they enjoy doing. Dissatisfied staff mean one thing above all else: actual production efficiency is falling dramatically.
3. Supply chain delays: Inefficient planning inevitably leads to delays in the supply chain. Customers cannot be supplied on time, which leads to dissatisfaction and, in the worst case, the loss of key customers. In a world where ‘just-in-time’ deliveries and significantly reduced stock holding periods have become the norm in many sectors, this can have disastrous consequences.
4. Cost spiral: Any error in planning usually results in additional costs – whether through overtime, the use of expensive workarounds or penalties for late deliveries. A shortage of skilled staff makes it difficult to avoid such errors and to make up for any mistakes that have been made.
5. Competitiveness at risk: Companies that do not have their production processes under control risk falling behind in both national and global competition. At a time when markets are becoming increasingly competitive, this can make the difference between success and failure.

Opportunities arising from new strategies: However, the shortage of skilled workers is also forcing companies to rethink their usual strategies and explore new avenues. Two particularly promising approaches have emerged: outsourcing production planning and introducing specialised production planning software.

1. Outsourcing production planning: Outsourcing business processes is by no means a new concept, yet it has so far been little used in production planning. It offers numerous advantages, particularly at a time of skills shortages.

Advantages of outsourcing:

• Cost-effectiveness: By outsourcing production planning, companies save on the costs of recruiting and training specialist staff, as well as on investments in their own planning tools. Instead, they pay only for the planning services actually provided.
• Access to expertise: External service providers specialise in production planning and often bring with them in-depth specialist knowledge that would be difficult to build up in-house. This enables companies to benefit from tried-and-tested ‘best practices’ and innovative solutions without having to develop them themselves.
• Flexibility: Another advantage of outsourcing is flexibility. Companies can decide how much work to outsource depending on their order book. This allows them to make the best use of their resources and avoid bottlenecks in planning.
• Focus on core competencies: By outsourcing their production planning, companies can focus more on their core competencies. This takes the pressure off the in-house team, allowing it to concentrate on strategic tasks.

Risks associated with outsourcing: Of course, there are challenges too. These include reliance on external partners and the need to share sensitive data. Trust and clear contractual agreements are crucial here to ensure smooth operations. Communication must also be effective to prevent any misunderstandings.

2. Introduction of production planning software: An alternative strategy for tackling the shortage of skilled workers is the introduction of specialised production planning software (PPS) or an advanced planning system (APS). These tools are designed to make production processes more efficient and transparent.

Advantages of software solutions:

• Automation and efficiency: Production planning software automates many repetitive tasks that would otherwise have to be carried out manually. This increases efficiency and minimises planning errors.
• Transparency and control: With the right software, companies have a clear overview of their production processes at all times. They can identify bottlenecks at an early stage and take corrective action. Furthermore, key performance indicators can be monitored in real time, which improves decision-making.
• Scalability: Software solutions can be flexibly adapted to meet growing requirements. As the company grows, the software can be easily scaled up without the need to hire new planners.
• Integration: Modern production planning software can be integrated into existing systems such as MES (Manufacturing Execution Systems) or ERP (Enterprise Resource Planning). This ensures a seamless flow of data and prevents duplication of effort.

Implementation challenges: However, rolling out new software is not without its challenges. Companies must be prepared to invest in the implementation and training of their staff. Furthermore, existing processes will need to be partially adapted to the new software, which requires time and resources. Regular updates and adaptation of the software to new processes along the value chain are also necessary in order to keep pace with changing market conditions.

Conclusion: The shortage of skilled workers in production planning undoubtedly poses a major risk. However, as is so often the case – and as I mentioned at the outset – this challenge also presents opportunities for companies that are prepared to break new ground. Whether through outsourcing or the use of modern software solutions – companies today have more options than ever to optimise their production processes and position themselves for the future – in other words, a clear break from the ‘We’ve always done it this way!’ mindset. In my view, the key lies in finding the right solution for your own company and implementing it consistently.

Ultimately, it is a question of viewing the skills shortage not merely as a threat, but as a catalyst for change and innovation. With the right measures in place, the shortage of skilled workers can even become an opportunity – for example, to take one’s own production planning, and thus one’s own production, to the next level.

Expansion of the comprehensive shop floor solution under its new name, tetys

Press release – Aachen, 4 January 2021

On 1 January 2021, the two Aachen-based companies successfully completed their merger and change of name to the new tetys GmbH & Co. KG. The business is now set to be further expanded in collaboration with existing and potential new customers. The existing points of contact and services will remain in place for customers and partners.

tetys enables manufacturing companies to adapt to new operating conditions with a high degree of dynamism and flexibility, and to communicate revised plans down to the plant level and to each individual machine within minutes. It combines detailed planning, MES, production data acquisition, in-process quality assurance, materials management and all other areas of work relating to production within a single, integrated system. This comprehensive, holistic concept builds on the three pillars of both companies: planning, shop floor data collection and – with a view to the future – the area of intelligence. The latter focuses on future-oriented solutions in production.

This comprehensive approach offers you the greatest possible flexibility when choosing the components of your solution. Both systems are modular in design, so they can be tailored precisely to your specific needs. Janina Keuters, the new managing partner and former managing director of FLS, emphasises this point once again:

“Following the merger of the two companies, existing and potential customers and partners will always remain our top priority. With this move, we are further expanding our long-standing collaboration, thereby ensuring the expansion of our portfolios. Together with tetys, we are integrating our systems into a unified solution for the entire shop floor. Many customers have already been using both systems in parallel and will now benefit from this move.”

With over 40 years’ experience, FLS’s GRP Manufacturing Execution System and FEKOR System are among the leading software solutions for Industry 4.0. These multi-award-winning systems embody comprehensive expertise in quality and production management within the industrial manufacturing sector.

For further information, visit www.tetys.de

Press contact

tetys GmbH & Co. KG
Marina Henkelmann
Tel. +49 241 88930 26
Email: marina.henkelmann@tetys.de

About tetys
tetys GmbH & Co. KG offers a seamless, integrated solution for all aspects of shop floor management. It ensures the complete end-to-end flow of all order and production data between detailed planning, manufacturing execution and production data acquisition. The tetys system thus enables manufacturing companies to adapt to new conditions with a high degree of dynamism and flexibility, and to communicate revised plans within minutes down to the workshop level and to each individual machine. It combines detailed planning, MES, production data acquisition, in-process quality assurance, materials management and all other areas of work relating to production within a single, integrated system. The family-run, medium-sized company is based in Aachen, close to the centre of innovation research. It was here, in 1979, that the two companies GRP and FLS were founded as spin-offs from the IKV at RWTH Aachen University; they merged in 2021 to form tetys GmbH & Co. KG. This comprehensive, holistic concept is used by leading companies such as Eaton Industries, Georg Fischer, Warema, Geberit, MöllerTech and Bataillard.

GRP and FLS
GRP and FLS were founded in Aachen in 1979. FLS’s core product is the detailed planning software FEKOR for production coordination, which also covers the entire materials management process within production. GRP specialises in Manufacturing Execution Systems (MES) for the manufacturing industry. To combine the expertise of both divisions even more closely, everything has been offered from a single source since 2016. As co-CEOs, Manfred Keuters, Managing Director of GRP, and Janina Keuters, Managing Director of FLS, have led both companies into the future.

One of the first outcomes of the merger between FLS and GRP was the integration of the “FEKOR” and “GRP-MES” software products into the “tetys” software suite. It combines planning with data collection at shop floor level and paves the way for networked, intelligent and self-optimising production in an increasingly digital manufacturing environment.

The customers of both companies include numerous firms in the plastics, food, automotive supply and metal industries, such as Eaton, Geberit, HEWI, P&G and Warema.