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The production routing process is an integral part of manufacturing, and it helps to establish the most efficient method of production.

Routing in production is about formulating a plan in detailed steps, to convert raw materials into finished products.

The Importance of Production Routing in Manufacturing

Production routing establishes the steps needed to produce something, defines operational sequence, and the materials and equipment required to convert raw materials into finished products.

It also mentions the time needed for each task.

Effective product routing helps manufacturers to cut costs, optimize operations, and boost efficiency.

Production is streamlined and quick and wastage is minimal; it also facilitates quality control and ensures consistency, essential for customer satisfaction.

Production routing is also required for maintaining compliance as manufacturers are mandated to adhere to several regulations with regard to safety, sustainability, and quality.

You can also become more flexible by adjusting your production routing strategy to adapt to fluctuating demand, sudden equipment breakdown, or supply chain disruptions.

This will help the business to stay competitive.

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The Shop Production Order

This shows all the materials, tasks, and equipment to be used in manufacturing; when the material is comprised of several items, a bill of materials is used to determine what items will be required in manufacturing.

It will also show the steps required to produce a finished good.

The routing shows the flow of work, even if they involve outsourcing to external parties for specific tasks.

Routing established the work to be done, how, and where it will be done.

Routing in production planning establishes the optimal sequence of operations to be executed from one machine to another so that manufacturing can be speedy and economical.

It must be continuously refined to achieve optimal supply chains.

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Product Routing Procedures

Operations

You must have a list of operations to be performed at specific times, along with the resource to be used to execute it – like a technician, a drill, blade, or level plane.

You have to allocate a specific amount of time to perform the task, after which it should be moved to the next operations.

The routing must have these operations in the right order to complete the manufacturing process correctly.

Make or Buy Decision

You have to decide what parts of the product you will manufacture in-house, and what you will buy from external vendors.

These decisions depend on lead time, quality, expertise, cost, etc.

Each component must be assessed to determine the best option.

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Bill of Materials

This is the product recipe, which lists all materials, accessories, sub-assemblies, etc. that are need for manufacturing a product, along with precise quantities of each item needed.

Work Center

This simply means the specific equipment or manual resource to be used in that operation or task.

For equipment, details like item capacity, and for employees, their skills; the system needs to be provided with such information.

Configuration and breakdown times have to be determined for every work center, so that the appropriate time is assigned.

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Route Sheet

This document defines the operational sequence of manufacturing, along with machines and tools to be used, time needed for each, and the employee in charge of every step.

Determining Lot Size

This is the quantity produced in one production run, and is determined on the basis of consumer demand, equipment capacity, and inventory levels.

Cost, lot size, and production efficiency must all be carefully balanced.

Scrap

Scrap is the material lost in manufacturing, and must be factored in to calculate overall production cost, and determining the lot size.

Material is lost in processes like shaping, cutting, melting, etc.

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Outside Processing

This refers to the processes that are outsourced to external vendors; you must ensure that they meet your quality standards and stick to the schedule.

Sometimes they may come to your facility to execute the work.

Give Necessary Information and Forms

Manufacturers should give all requisite information and forms to the production team to ensure product consistency and standardization.

Manufacturing orders, job and inspection tickets, equipment and tools, orders for moving materials, etc. are required to be communicated.

Factors Affecting Routing Procedure

Several factors can impact the efficacy of the routing procedure, and manufacturers need to keep them in mind, and take action to address them so that costs are low and efficiency is high:

• Complex designs require more steps, special skills, or equipment
• High-volume production necessitates special equipment or more production lines; low-volume production is less efficient, but more flexible
• Availability and quality of raw materials is an important factor
• Unavailability of specialized equipment required for specific operations
• Labor availability and skill level
• Poor quality control which causes defects or problems
• Regulatory compliance requirements must be met
• Disruptions in supply chain like delayed receipt of raw materials
• Market demand; production process must be adjusted to meet changes in this demand.

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Personnel In Charge of Production Routing

• Production planner creates the production schedule and defines the operational sequence required. The production planner tracks the progress of the production and adjusts the schedule.
• Manufacturing engineer designs and optimizes the manufacturing processes needed to manufacture every product. He also checks for snags or inefficiencies in the process.
• Production supervisor oversees the production and ascertains that every step of the routing is performed efficiently. It’s his job to ensure that they stick to the schedule and optimize the process, manage the employees involved in production, and handle their training.

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• Materials Manager is in charge of handling materials flow through the process, and has to make sure that materials are available as required, without stocking excess inventory. They must ensure material quality and meet the requisite specification for every product.
• Quality control manager is responsible for products fulfilling requisite quality standards. He tests and inspects products comprehensively prior to their launch in the market.

All these personnel collaborate with one another to ensure optimal and economic production processes, and ensure efficiency and productivity, and product quality.

When Is Production Routing Typically Used

• When a new product is developed, the sequence of operations is established via production routing and the raw materials, human resources, and equipment required to execute every step are identified.
• The changes required in the production process in the event of upgrading existing products is defined in a production routing along with all the resources required.

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• To optimize production processes and identify wastage and inefficiencies, the production process in use is assessed to detect hurdles and redundancies.
• At the time of planning expansion of production capacity, routing establishes additional resources that will be required for it after evaluating current processes and identifying areas where extra capacity is required.
• When product quality has to be improved, production routing can identify where quality control measures can be implemented, by assessing the current process and detecting quality issues to be fixed.

KPIs Used to Measure the Effectiveness of a Production Routing System

• On-time Delivery – refers to the percentage of orders that were delivered on the promised date or earlier; high OTD rate indicates efficiency.
• Cycle Time – time taken to finish a production cycle, from the start of an operation to the start of the following one. This rate helps in identifying process bottlenecks.
• Capacity utilization – percentage of production capacity that is actually used; a high rate indicates efficiency
• Overall Equipment Effectiveness – indicates how well equipment is used in production, factoring in equipment quality, performance, and availability.

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• Scrap rate – percentage of materials or products discarded or wasted in production; lower the rate, lower the wastage
• First pass yield – percentage of products manufactured correctly on the first try – high rate is desirable
• Work-in-progress – value of products in production currently but not yet completed. This metric helps detect production process bottlenecks
• Cost per unit – the total cost of producing a single unit of that product; this helps in spotting areas where costs can be reduced.

Challenges of Implementing Production Routing

As in everything, implementing production routing has its own problems; especially so when it’s a large manufacturing company.

1. No Standardization

Lack of standardization is a huge challenge as production routing requires collaboration of multiple employees and departments.

In the absence of standardization, you will find no consistency, and several anomalies in production processes that could give rise to mistakes, more expenses, and delays.

2. Incorrect Data

Production routing needs accurate data on personnel, equipment, and raw material for every step, and without it, the routing may be incomplete, leading to chaotic production processes.

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3. Resistance to Change

Implementing any new system means your employee have to learn new procedures and methods, and they often resent and resist change.

They may fear change thinking their job security is reduced.

This resistance can cause delayed implementation, leading to poor productivity and higher expenses.

4. Lack of Collaboration

We have already seen that production routing includes multiple individuals and departments; if these departments don’t collaborate there can be several anomalies in production.

It is critical that you encourage all departments and personnel involved to communicate and collaborate so that everyone knows what is happening.

5. Training and Education

It is essential that you provide adequate training to your employees so that they get familiar with the new system and how it helps in attaining company objectives.

Without training, there can be a lot of confusion and mistakes, leading to expensive delays in production processes.

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The Role of Technology Developing and Managing Production Routing in Manufacturing

Technology is an essential part of developing and managing production routing, as the manufacturing environment of today is complex and fast-paced.

1. Manufacturing Software

Manufacturing software helps manufacturers streamline and automate production processes like scheduling production, inventory control, and quality control.

It can also help manufacturing companies to develop and manage production routing by offering a centralized platform to plan and monitor the production process.

2. Automation

Automation helps manufacturers to boost efficiency and productivity, enhance quality of products, and decrease costs.

Robots and automated machines can execute labor-intensive, repetitive tasks more efficiently and quickly, freeing human employees to concentrate on complex tasks that add value.

Automation also helps production to be more accurate and consistent, making for high-quality products.

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3. Machine Learning

Machine learning leverages algorithms and statistical models to help machines to ‘learn’ from historical data to make more accurate forecasts and identify problems in production that could possibly occur, while optimizing production schedules.

Machine learning algorithms study production data and detect patterns and trends that human beings may overlook.

4. Internet of Things (IoT)

IoT means a network of interconnected devices and machines; the technology can be used in production routing for keeping a watch on equipment, improve processes, and facilitate real-time decision taking.

Equipment is embedded with IoT sensors that gather data on different aspects of the production process, like inventory levels, machinery performance, and environmental circumstances.

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5. Digital Twin

This is a virtual prototype of an actual system or product, and is used to simulate and enhance processes before real-world deployment.

If they have a digital twin of a specific process, manufacturers can detect latent production issues and test varying scenarios without disturbing production.

Tranquil offers real-time visibility into inventory, assets, and more, delivering valuable insights that helps you take informed decisions for business growth. Schedule a FREE demo at your convenience to know more.

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Clean Workspaces

It’s said that cleanliness is next to godliness.

A neat and clean workplace helps prevent inventory damage, injury to workers, and increases productivity and efficiency.

Clean Regularly

It is essential that you keep your warehouse free of dust and dirt, and make sure to clean up spills safely and immediately.

It will not only keep your workers safe; it will protect your equipment and inventory from damage too.

You can either a cleaning service to do the job, or assign cleaning duties in rotation to your employees via a checklist to be carried out when their shift ends.

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Train Employees

Your employees should be properly trained in maintaining the warehouse in an organized manner.

Define expectations, and carry out checks to see that it is being followed.

Conduct Regular Maintenance

Adhering to manufacturers’ recommended maintenance schedules is in everyone’s best interests; you must prioritize the maintenance of your equipment, as it keeps your facility in working order and eliminates unexpected downtime.

Operational equipment ensures employee productivity.

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Keep Aisles clear

Every warehouse has moving parts – even organized ones.

It is important that your aisles are free of any clutter, and clear enough to let forklifts and other vehicles move without hassles, and keep your workers safe.

Remember however, that you should not waste precious floor space; allow forklifts to travel by optimizing aisle space, and reducing clutter.

This will also let you access stored products easily.

Warehouse Layout

Your warehouse layout is probably the most important factor to consider when we talk about warehouse organization ideas.

Overhauling it completely can be very daunting – but even optimizing a few things in your current system and processes can help boost efficiency and speed.

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Organize Floor Plan for Optimal Process Flow

If you thought about having a well-organized warehouse in the early stages – during design, then it’s great, as you can get the right start!

If not, you can slowly change things one at a time, and set this is a long-term goal that needs continuous work; assuming of course, that the process flow in your warehouse is far from ideal.

The warehouse layout should be such that it offers a safe environment for your employees, and allows them to be efficient and productive.

The flow should be logical, and set up in the same order as that of the operations.

Like, inventory is first received, and then stored as per the method followed in the warehouse; when orders are received, the products are picked, then packed, and sent to shipping, and finally sent out.

The layout must be such that it makes this flow smooth.

You can take feedback from your employees, and ask them if any specific areas of the warehouse can be altered in any way to make things easier for them.

Encourage your employees to be part of process improvement.

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Use Appropriate Labels and Signage

This is not optional; it is absolutely essential.

Label your inventory and working zones across the warehouse, and you will be able to ensure smooth flow for the long term, in addition to keeping the warehouse organized.

After the layout is established, the labels and signage will help workers to find things easily, and know where everything belongs.

New and temporary hires will find this especially useful.

Be sure to also label any restrictions and hazards prominently to boost employee safety.

Whenever necessary, make sure to replace labels and signs to avoid misplacing inventory and other errors.

Provide Maps

If your warehouses are huge, provide maps to your employees, which will make it easy for them to navigate quickly and easily.

The quicker workers can reach where they need to, the faster they can complete the job.

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Evaluate Storage Capacity

Now you have a place for everything and have labeled everything, you need to assess your storage capacity – meaning, the maximum quantity of inventory that can be held in your warehouse.

There’s a simple formula for this: height x depth x breadth = storage capacity.

Remember that even vertical space can be used, so don’t waste that space.

Inventory Management

By inventory management, we are talking about everything that is physically present in your warehouse.

You need a robust system to track your inventory, so that your workers can do their jobs efficiently.

You can classify inventory and store it properly, maximizing your existing capacity, and even free up space that was being used wastefully, to enhance storage and boost efficiency.

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Inventory Classification

This should be your first step; when you classify inventory properly, you will be able to organize and store products according to the rate at which they sell.

You can use data to profile your SKUs appropriately.

Take stock of your current inventory – size, and shape in addition to quantity, and check the frequency of its picking.

Categorize your inventory into fast, medium, slow, and very slow-moving items.

Then, do a cross-check of your documented SKU velocity against the picking time for the same, and you have your inventory picking cost.

By applying the 80/20 rule, you know that 20% of your inventory gets picked 80% of the time.

However, if you only focus on that 20%, you end up ignoring opportunities to improve the rest of your inventory.

Ergo, you need to look at your SKU profiling and inventory classification very seriously.

Compartmentalize Inventory

Storage devices like racks, bins, totes, etc. help you to organize even the tiniest item – whether it is screws, needles, or socks.

These can be easily stored in bins and labeled for clarity.

Dividers can be used within bins to separate the same item based on size, color, or more.

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Implement a Slotting Strategy

After classifying, compartmentalizing, and labeling inventory, you can slot it, and see how much faster your employees pick products.

Carry out slotting by velocity first; during inventory classification, you identified your fast and medium-moving gods are along with your slow and very slow-moving items.

It makes sense to slot your A and B or fast and medium moving items into areas that are easiest to access.

You can place the C and D items in the not-so accessible areas, and it won’t hamper your speed or productivity.

By reducing the distances between the A and B products to the shipping zone, you automatically reduce employee fatigue, and increase speed of shipping.

Based on size, shape and weight of inventory, you can slot your SKUs by technology or zone – heavier items closer to the shipping area, for example.

Of course, there might be a little conflict of interests here, and you will need to put a lot of thought into your slotting process.

Set up an Efficient Receiving Process

You simply cannot have boxes piled up near your receiving area!

Inventory coming in is as important as what you are sending out.

Assign a worker to manage the receipt of inventory properly; they need to check that the inventory received was in good condition and that the quantity was correct, and accordingly process the shipment.

They must direct other workers to store the inventory items according to the storage system you follow.

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Improved Returns Handling Procedures

This is another thing to think about.

Clearly define every step of the returns handling so that employees take proper care of returned products.

After all, if goods returned are misplaced, it’s a loss for you.

With a well-documented returns process you can enhance overall warehouse efficiency.

Automate Storage

Automation is a sure-fire way to maximize your storage space.

Of course, there are numerous methods of storage you can choose from; you can consult an expert to check if your current system can be improved.

As we mentioned before, most warehouse managers forget about the huge vertical space available for storage, and it often goes unused.

By using tall racks, you can efficiently utilize this space and maximize your warehouse storage.

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Lean Inventory

You can follow the just-in-time inventory approach, and maintain lean inventory – less inventory, less effort to organize it!

Store only what is essential to prevent stockouts and avoid over-stocking too.

Having less inventory on hand will allow your warehouse to be highly efficient, and deliver outstanding customer service.

Organize Safety Stock

We just mentioned lean inventory, but it’s also essential to have a buffer to accommodate sudden spikes in demand, or delays in getting replenishments from vendors.

Mark an area to store this safety stock so that it doesn’t get used in the normal course, or get displaced.

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Implement Cycle Counting

There’s nothing more tedious and time-consuming than the annual process of counting inventory at financial year-end.

However, if you perform cycle counts – monthly, quarterly, or even weekly, and keep track of inventory across the whole year, you need not undertake this annual count.

Cycle counting is efficient, and helps in maintaining accurate levels of inventory, saving you time and money.

Adopt a Warehouse Management System

A warehouse management system is software that can streamline and automate most of the warehouse activities, and also support most of the ideas we have mentioned above.

It will make profiling, classification, slotting, inventory tracking, and many other tasks easy and quick.

Final Thoughts

Implementing a robust and reliable solution like Tranquil will support you substantially to ensure that your warehouse is organized and efficient; it will provide you with vast amounts of data which will be invaluable in the future, when you can use it to further improve warehouse functionality.

Tranquil offers real-time visibility into inventory, assets, and more, delivering valuable insights that helps you take informed decisions for business growth. Schedule a FREE demo at your convenience to know more.