Author: klaudia.krzeminska

Implementing a production management system. Where to start and what mistakes to avoid?

Written by klaudia.krzeminska on 2025-09-01. Posted in Blog EN. No Comments on Implementing a production management system. Where to start and what mistakes to avoid?

Chaotic processes, costly downtimes, and lack of full control over orders are common problems in many factories. A well-selected and properly implemented production management system is the answer to these challenges. However, the implementation process itself can be difficult. Success depends on a solid plan and the ability to avoid costly mistakes that could undermine the entire investment.

Where to Start When Implementing a Production Management System?

It must be emphasized that the implementation of a production management system should be preceded by a thorough needs analysis. This is the most important stage, determining the success of the entire project. Business objectives must be clearly defined—such as increasing efficiency, reducing operating costs, improving product quality, or shortening order lead times.

An audit of current production processes is also essential. It helps identify bottlenecks, inefficiencies, and areas requiring immediate optimization. This documentation becomes the foundation for the system’s functional requirements specification.

It allows you to understand how information flows through the company and where communication gaps or delays occur. The analysis should cover every stage—from raw material intake, through individual production cells, to quality control and storage of finished products. Involving employees from different departments—from machine operators to production managers—provides valuable, practical insights. Thanks to this, the requirements specification for the new software will reflect the real needs of the organization, not just theoretical assumptions of management.

Defining Key Performance Indicators (KPIs)

An important aspect of the analysis phase is determining key performance indicators (KPIs). These allow for objective measurement of whether the implementation delivers the expected results. Without defined metrics, evaluating project success becomes subjective and imprecise.

Explaining what a production management system is often boils down to its ability to monitor and report these KPIs. The most common ones in manufacturing include:

Overall Equipment Effectiveness (OEE)
cycle time
Mean Time Between Failures (MTBF)
defect and scrap rate

The choice of KPIs must be closely tied to previously defined business goals. If the objective is downtime reduction, tracking machine availability and downtime duration is key. If the priority is quality, defect-related metrics become crucial.

A modern production management system should enable automatic real-time data collection for calculating these indicators. This gives managers up-to-date insights into process performance and allows for immediate response to deviations—rather than delayed action based on historical reports.

Choosing the Right Production Software

The decision on which production management system to choose should directly follow from the needs analysis and defined requirements. The market offers a wide spectrum of solutions, from simple scheduling tools to comprehensive platforms. Broadly speaking, production management systems fall into two main categories:

MES (Manufacturing Execution Systems)
production modules within integrated ERP (Enterprise Resource Planning) systems

ERP has a broader scope, covering finance, HR, or logistics, while MES focuses exclusively on the shop floor.

Key selection criteria include scalability and flexibility. The software should grow with the company and adapt to changing processes. A modular architecture is also worth considering, as it allows for gradual implementation of additional functionalities. All this makes for a comprehensive production management tool—such as TOMAI Factory System.

The Implementation Process in a Manufacturing Company

Implementing a production management system is a complex project requiring a detailed roadmap. The plan should define each stage, assign responsibilities to specific people, and set measurable milestones.

One of the biggest mistakes is attempting to roll out all modules and functionalities at once. A much safer approach is phased implementation, starting with the area that offers the highest optimization potential or causes the most issues. Such a pilot project allows the solution to be tested in a controlled environment and provides valuable experience before scaling up.

A dedicated project team should be established, including representatives from both IT and production departments. The project leader must have strong authority within the organization and support from senior management. Regular communication with the software vendor and recurring status meetings are essential for monitoring progress and resolving ongoing issues.

The implementation phase covers not only technical installation and configuration but also data migration from existing systems, acceptance testing, and preparation of the production environment. Rushing this stage is one of the most common causes of later system malfunctions.

Training the Team to Overcome Resistance to Change

One of the most underestimated aspects is training future system users. Even the best software won’t bring benefits if employees can’t—or won’t—use it. Training must be tailored to each person’s role—machine operators will need different instructions than production managers or analysts.

Education should not be a one-time event. Refresher sessions must be planned, and ongoing access to training materials should be provided. Implementing new software is the perfect moment to review and standardize processes, and in this context, production systems become valuable support tools.

Resistance to change is natural. To minimize it, open and transparent communication is necessary from the very start. Employees must understand why the change is happening and what benefits it brings—not only to the company but also to them personally (e.g., eliminating monotonous paperwork).

It’s also worth involving respected employees in testing and implementation. They can become change ambassadors within their teams, helping dispel concerns and demonstrating the practical benefits of the new tool in daily work. This builds trust in the project.

Production costs – what they are, what affects them, and how to reduce costs

Written by klaudia.krzeminska on 2025-08-25. Posted in Blog EN. No Comments on Production costs – what they are, what affects them, and how to reduce costs

Full control over expenses is the foundation of a profitable business. In a manufacturing company, production costs are of key importance, as they directly affect the product price and the company’s competitiveness. Understanding their components and learning optimization methods is a straightforward way to increase profits and ensure market stability.

What are production costs?

Production costs include all expenses incurred to create a finished product. They are not limited to the value of raw materials but also include labor costs, machine usage, energy, and many other factors. Knowing their structure in detail allows for effective management of the final product price and the profitability of the entire business. Analyzing these expenses makes it possible to identify areas where savings can be introduced without negatively affecting the quality of the final product.

Indirect production costs vs. fixed costs

Within the cost structure, direct expenses can be clearly assigned to a specific product. These include primarily the value of consumed raw materials and materials, as well as wages of employees directly involved in manufacturing. These elements form the basic production costs, which are the core of unit pricing. This category also includes energy used by machines during the production cycle and unit packaging costs. Tracking these expenses precisely is relatively simple, and most importantly, essential for ongoing profitability control.

Equally important are indirect production costs, although assigning them to a single product is much more complicated. They cover a wide range of expenses, including:

rent for the production hall,
depreciation of machinery and equipment,
salaries of administrative and supervisory staff,
expenses for cleaning and equipment maintenance.

Although they are not directly tied to producing one unit, they are essential for the operation of the entire plant. Proper allocation of these costs requires using appropriate distribution keys, such as machine hours or man-hours.

Types of production costs in a company

The division into variable and fixed costs is one of the most important in business financial management.

Fixed costs are expenses incurred regardless of production volume. These include fixed rent payments, property taxes, administrative staff wages, or equipment lease installments. Their amount remains unchanged whether production runs at full capacity or faces downtime. Knowing their scale is crucial, as they represent a constant burden that must be covered by product sales revenue.

Variable costs, on the other hand, are directly linked to the volume of goods produced. They increase as production rises and decrease when it falls. Typical examples include raw material purchases, machine energy consumption, piece-rate wages, or packaging costs. Analyzing these allows for accurate determination of how much total expenses will rise when production increases by a given number of units.

Cost calculation methods in a company

Proper calculation of production costs is necessary to set the selling price and assess profitability. There are several methods for doing this. One of the most popular is the job-order costing method, used in diversified production, where direct costs are assigned to specific orders and indirect costs are allocated via overhead rates. Another approach is the process costing method, used in mass and batch production, where total costs for a given period are divided by the number of produced units. The right choice depends on the company’s business profile and production type.

Equally important as the calculation itself is analyzing production costs. Variance analysis allows you to compare actual expenses with planned ones, helping to identify inefficiencies and unforeseen issues. Regularly monitoring indicators such as unit cost or the share of individual components in total cost provides valuable management insights. This enables quick responses to negative trends—such as rising raw material prices—and corrective actions. Knowing how to calculate production costs is the foundation for optimization.

Strategies and methods to reduce production costs

Actively seeking ways to reduce production costs is a constant element of a company’s competitive strategy. One of the fundamental approaches is process optimization, often carried out under the Lean Manufacturing philosophy. This involves eliminating all forms of waste, such as overproduction, unnecessary transport, excessive inventory, waiting, or product defects. Tools like 5S, Kaizen, or value stream mapping streamline the flow of materials and information, directly reducing expenses and shortening production cycle times.

Investing in modern technologies and automation is another effective long-term cost-reduction strategy. While the initial expense for industrial robots, advanced CNC machines, or IT systems may be high, the benefits are measurable. Automation reduces the need for manual labor, minimizes the risk of human error, increases precision and repeatability, and enables more efficient raw material use. Implementing intelligent production management systems, such as TOMAI Factory System, makes it possible to monitor performance in real time and make faster decisions.

Practical measures to optimize expenses

How to reduce expenses in practice? Optimizing supplier relations is one effective action that can deliver significant savings. Regularly renegotiating contracts, seeking alternative supply sources, and building long-term business partnerships allow companies to obtain better prices for raw materials and components. Bulk purchasing to secure volume discounts is also worth considering—provided it doesn’t lead to excessive storage costs. Supply chain management, including implementing Just-In-Time systems, reduces the need to maintain large inventories and frees up working capital.

Conducting an energy audit can reveal areas of unnecessary electricity, heat, or water consumption. Replacing lighting with LEDs, upgrading heating and ventilation systems, or installing frequency inverters on electric motors are examples of investments that pay off quickly. At the same time, analyzing the production process for waste generation makes it possible to implement recycling programs or find ways to reuse leftover materials, reducing the company’s overall production costs.

Production planning and scheduling – methods and principles of production management

Written by klaudia.krzeminska on 2025-08-18. Posted in Blog EN. No Comments on Production planning and scheduling – methods and principles of production management

Chaos on the shop floor, delivery delays, and rising costs are the bane of many companies. The key to overcoming these challenges is thoughtful production scheduling. This process determines operational flow, optimal use of machinery, and timely order fulfillment. Mastering its principles allows you to turn potential losses into real profits and gain a competitive edge.

What is the role of scheduling in the production process?

Effective production planning and scheduling are the foundation of smooth plant operations. This process consists of precisely assigning specific production tasks to available resources—machines, assembly lines, and workers—within clearly defined timeframes.

In other words, production scheduling is about creating a detailed operational plan. This plan specifies the sequence of activities, their start and end times. It is an indispensable tool that translates broad strategic goals into concrete, measurable shop floor tasks.

A well-constructed schedule is crucial for achieving maximum efficiency. Its main objectives are minimizing downtime, optimizing production capacity, and ensuring on-time delivery. The schedule coordinates all activities—from raw material supply to final assembly.

It is also a dynamic tool that must account for unforeseen events such as machine failures or supplier delays. With scheduling, companies can identify potential bottlenecks and implement corrective actions before they negatively impact the entire process. Tools such as TOMAI Factory System make production scheduling easier.

Main goals and tasks in production planning

The primary goal of planning is maximizing efficiency while minimizing costs. This is achieved by making the best possible use of available human and machine resources.

Good planning helps shorten the production cycle, which directly translates into faster order fulfillment and higher customer satisfaction.

Another important goal is maintaining inventory at optimal levels. Excess inventory increases storage costs, while too little risks downtime. Planning helps find the balance, ensuring production continuity without unnecessarily tying up capital.

Key tasks in this process include demand forecasting. Based on historical data and market analysis, future product demand is estimated. Then the Master Production Schedule (MPS) is developed, forming the basis for further, more detailed planning.

The next step is Material Requirements Planning (MRP), which determines what raw materials and components are needed and when they must be ordered. The process culminates in detailed production scheduling—assigning individual operations to specific workstations at precise times.

Production scheduling methods used in industry

There are several main approaches to building schedules:

Forward scheduling – Operations are planned as early as possible, starting from the earliest start date. Each task begins right after the previous one ends. This results in early completion of orders, which can lead to stockpiling finished goods. It’s useful when the priority is freeing production capacity quickly.
Backward scheduling – Planning starts with the due date and works backward. Each task is scheduled as late as possible, so production finishes just in time for delivery. This reduces storage costs and is especially beneficial in Make-to-Order systems.
Parallel scheduling – Multiple tasks are carried out simultaneously on independent machines or workstations. This approach shortens overall lead times and is effective for complex products with components that can be produced independently.
Sequential scheduling – Operations are performed one after another in a fixed order. The next task cannot begin until the previous one is complete. This linear flow, common in assembly lines, simplifies control but risks bottlenecks when one stage slows down the entire process.
Dynamic scheduling – A flexible approach where the schedule is continuously adjusted in real time in response to events such as breakdowns, urgent orders, or supplier delays. It requires specialized APS (Advanced Planning and Scheduling) systems that automatically update the plan, ensuring flexibility and resilience.

Principles of production scheduling for process optimization

The foundation of effective scheduling is accurate knowledge and management of available resources. This requires data on machine capacity, tool availability, operator skills, and work schedules. Planned downtimes (maintenance, inspections) and realistic failure rates must also be considered. Ignoring these factors leads to unrealistic, unworkable schedules. Optimization means assigning tasks to maximize machine uptime and avoid idle time.

The sequence of tasks directly affects system performance. Different prioritization rules help determine the optimal order. Common ones include:

FIFO (First-In, First-Out): orders are processed in the order they arrive,
SPT (Shortest Processing Time): shorter tasks get priority,
EDD (Earliest Due Date): orders with the nearest deadlines come first.

The right rule depends on production specifics and business goals, such as minimizing cycle time or maximizing delivery punctuality.

Why create a production schedule?

A production schedule is a central communication tool within a company. It provides a clear, unified plan of action for all departments—from procurement and production to logistics and sales.

The purchasing department knows when to order raw materials.
Shop floor supervisors receive clear instructions on task order and deadlines.
The sales team gets reliable information on realistic delivery dates.

This synchronization eliminates chaos and enables smooth collaboration.

But creating a plan is just the beginning. Equally important is monitoring and controlling progress. A production schedule provides a benchmark for comparing planned vs. actual performance.

Regular shop floor reporting allows managers to track whether tasks are on schedule. In case of deviations—such as machine breakdowns or quality issues—corrective measures can be taken quickly. This feedback loop ensures the schedule adapts dynamically to changing conditions, minimizing the impact of unexpected events.

What are the factors of production and how do they affect business management?

Written by klaudia.krzeminska on 2025-08-11. Posted in Blog EN. No Comments on What are the factors of production and how do they affect business management?

The efficiency and competitiveness of any company depend on skillful management of key resources. These are the factors of production – from raw materials and labor to capital and technology – that form the foundation of every manufacturing process. Understanding their nature and interrelations is key to cost optimization, scaling operations, and building lasting market advantage.

What are the factors of production?

Analyzing what the factors of production are is fundamental to understanding economic mechanisms. In the simplest sense, they are all elements, both tangible and intangible, used in the process of creating goods or providing services. Without them, no production activity would be possible. Effective management of these resources determines a company’s competitiveness, operating costs, and ability to generate profit. Tools like TOMAI Factory System – a production management program – can help with this.

Proper identification and allocation of resources are the keys to success in any organization. Classical economics distinguishes three basic factors of production – human, natural, and capital (labor, land, capital):

Human factor – physical and intellectual effort invested in the production process.
Natural factor – not only land but also all natural resources, such as minerals, water, or solar energy.
Capital factor – financial and physical assets, i.e., money, machinery, buildings, and tools.

The special role of capital goods in production processes

One of the most dynamic production factors is capital, as it can be multiplied and improved. It is divided into financial capital (money enabling investments) and physical capital. The latter includes capital goods – all man-made items used to produce other goods. Examples include assembly lines in factories, computers in design offices, or vehicle fleets in logistics companies.

Investing in modern capital goods directly translates into higher labor productivity and better product quality. The efficiency of capital use is a measure of a company’s technological and organizational maturity. An outdated machine park leads to higher operating costs, frequent breakdowns, and lower quality, weakening market position. Conversely, smart investments in automation, robotics, or modern software reduce unit costs, speed up production cycles, and minimize human error.

Fixed and variable factors of production

In short-term analysis, it is important to distinguish between two main categories of resources:

Fixed factors of production – resources that cannot be easily changed in the short run, regardless of production scale. These include real estate (factories, warehouses, offices), heavy machinery, or specialized technological installations. Related costs such as depreciation, rent, or property taxes are incurred even when production halts. They form the company’s operational base.
Variable factors of production – resources that can be adjusted depending on production volume. These include raw materials, energy, components, and labor measured in work hours (e.g., hiring temporary workers or overtime). Managing them is crucial for financial flexibility and quick response to demand fluctuations.

The optimal balance between fixed and variable factors depends on the industry and company strategy. Businesses with high fixed costs (e.g., steelworks, power plants) achieve strong profitability at scale but are less flexible and vulnerable to demand drops. Companies relying on variable factors can scale operations more easily but often face higher unit production costs.

A modern view of production factors

The traditional division into labor, land, and capital has been expanded to include new intangible resources, which have gained importance in the knowledge-based economy. The fourth factor of production is technology and information. This includes patents, licenses, know-how, software, and databases.

Today, competitive advantage often comes not from owning better machines, but from having unique technologies or valuable information that enables innovation and process optimization inaccessible to others.

The fifth factor is organization and entrepreneurship. This refers to the ability to effectively combine all other factors into a well-functioning system. Entrepreneurship is the driving force that initiates activity, identifies market opportunities, takes risks, and manages the entire process. Good work organization, efficient logistics, and a culture of innovation can multiply the effectiveness of resources, turning production factors into real customer value and company profit.

Modernization of the production line – What does it involve?

Written by klaudia.krzeminska on 2025-08-04. Posted in Blog EN. No Comments on Modernization of the production line – What does it involve?

Increasing production efficiency is the key to success for any company. One of the most effective ways to achieve this goal is by modernizing the production line. Let’s take a look at the benefits and challenges that come with this complex technological process.

What is production line modernization?

Production line modernization is a comprehensive process that goes far beyond simply replacing individual machines. It is a strategic undertaking aimed at thoroughly restructuring and upgrading the entire manufacturing system. This process is based on:

detailed analysis of current operations,
identifying low-efficiency areas,
implementing technological and organizational solutions that improve overall performance.

The objective is not only to increase production volume but also to improve product quality, ensure greater operator safety, and flexibly adapt to changing market demands.

Main goals of upgrading the production process

Every modernization project of a production line is focused on achieving specific, measurable business objectives. The most important of these is boosting efficiency by shortening cycle times and eliminating unplanned downtime. Equally important is reducing operating costs, which is achieved through automation, lower energy and raw material consumption, and minimizing waste.

Modern systems enable greater repeatability and precision, which directly translates into higher product quality and fewer complaints. Streamlining the production line also aims to improve ergonomics and workplace safety.

Production line modernization: from audit to implementation

A properly executed modernization begins with an in-depth technological audit. This stage makes it possible to pinpoint so-called bottlenecks—elements of the process that limit overall throughput. Production data analysis, workstation performance measurements, and evaluation of machine condition form the foundation for developing an action plan. Based on this, key performance indicators (KPIs) to be improved are defined. Only after gathering complete information is a detailed technical design created, taking into account the selection of new equipment, software, and methods of integrating them into the existing infrastructure.

Robotics and automation – key components

Modern production line upgrades are inseparably linked with automation and robotics. The introduction of industrial robots allows for the takeover of repetitive, physically demanding, or hazardous tasks. Collaborative robots (cobots) can safely work alongside humans, assisting them in precision assembly tasks or quality control.

The use of advanced vision systems enables 100% real-time product inspection. Integrating these solutions within the framework of Industry 4.0 makes it possible to collect and analyze data, further optimizing processes.

Financial and operational aspects of modernization

The decision to modernize a production line is an investment, and therefore must be preceded by a thorough financial analysis. A key metric is return on investment (ROI), which takes into account not only the cost of purchasing and implementing new technologies but also the expected savings. This includes lower utility consumption, reduced labor costs, minimized material losses, and gains from increased production capacity. Implementing a new production line can also open the door to external financing, such as innovation grants or preferential technology loans.

It is also crucial to plan the implementation process in a way that minimizes production downtime. Preparing personnel through appropriate training is equally important, ensuring full utilization of the potential of new technologies. A well-designed system should be flexible and ready for future modifications.

Production line automation – What does it involve?

Written by klaudia.krzeminska on 2025-07-28. Posted in Blog EN. No Comments on Production line automation – What does it involve?

Modern industry is driven by efficiency and precision. A key element in achieving both is the automation of production lines. Learn the details of this process and its fundamental importance for modern enterprises to understand how it works.

What is production line automation?

Production line automation is the process of replacing or supporting human labor with machines and computer systems. Its purpose is to streamline, accelerate, and standardize manufacturing processes. In practice, this means integrating actuating devices such as manipulators or conveyors with control systems based on PLCs and advanced sensors. These systems monitor and adjust production in real time, ensuring a smooth flow of materials and semi-finished products through subsequent stages of assembly or processing. All this takes place with minimal human involvement.

Stages of Implementing Production Line Automation

The implementation of production line automation is a complex engineering project carried out in several key phases:

The process begins with a detailed audit and analysis of current production processes. Based on this, a technical concept is developed, defining the scope of work, choice of technologies, and estimated budget.
The next stage is the design phase, covering mechanical, electrical, and control software aspects.
Once the project is approved, the construction of machines and assembly of the line take place.
The final stage involves testing, commissioning, and optimization of the entire system.

Audit and needs analysis

The foundation of effective automation is a precise audit. It consists of a thorough analysis of the existing production line to identify so-called bottlenecks—areas that cause downtime and reduce efficiency. During the audit, cycle times are measured, process repeatability is examined, and workstation ergonomics and safety are assessed. The results of this analysis make it possible to clearly define the objectives automation should achieve within the company. Key performance indicators (KPIs) are then established, serving as benchmarks of success and allowing assessment of return on investment.

Robotics vs. Automation – key differences

The terms automation and robotics are often used interchangeably, but they are not the same.

Automation is a broader concept describing the entire system that enhances production, which may include conveyors, vision systems, sensors, or software.
Robotics, on the other hand, is one element of automation and focuses on the use of industrial robots to perform specific, repetitive tasks such as welding, palletizing, assembly, or painting. A robot is therefore a specialized tool within an integrated, automated production system.

Modernizing existing machines

Full automation of a production line does not always require building everything from scratch. Often, a far more cost-effective solution is to modernize the existing machinery. This process, known as retrofitting, involves equipping older machines with modern components. Examples include installing new PLC control systems, adding precision servo drives, integrating vision systems for quality control, or installing additional sensors. Such modernization can significantly increase the efficiency and functionality of machines at a lower financial cost.

What benefits does production automation bring to industry?

The main benefit of implementing production line automation is increased manufacturing efficiency. Machines can operate continuously, without breaks, and at consistently high speeds. A second key aspect is ensuring repeatability and the highest quality of finished products. Automated processes eliminate the risk of human error, resulting in fewer defective items.

Additionally, automation significantly improves workplace safety by taking over monotonous, hazardous, or physically demanding tasks. It also enables the collection of production data for further analysis and optimization.