Risk or opportunity?

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.