Manufacturing operations management (MOM) is the coordinated set of processes that plan, execute, and monitor production so manufacturers turn raw materials into finished goods efficiently. From scheduling production runs to managing supplier relationships and tracking quality, MOM brings visibility and control to every step of the manufacturing floor. The stakes are high for companies that fall behind in operational efficiency. Deloitte and The Manufacturing Institute project that U.S. manufacturing could need as many as 3.8 million new workers between 2024 and 2033, with up to 1.9 million of those jobs going unfilled if the skills gap isn’t addressed. For operations teams trying to do more with fewer people, MOM provides a framework for keeping production on track and customers satisfied.
Key Takeaways
- Manufacturing operations management (MOM) coordinates production planning, procurement, execution, quality, maintenance, and logistics into one system.
- Implementing MOM helps manufacturers reduce costs, improve product quality, and respond faster to changing market demands.
- Key performance indicators (KPIs) like overall equipment effectiveness (OEE), on-time delivery, and first pass yield give plant managers measurable targets for continuous improvement.
- A manufacturing execution system (MES) is a core software component of MOM that gives teams live insight into production floor activity.
What is manufacturing operations management?
Here’s a closer look at examples of manufacturing operations and the wide range of functions that operations managers oversee:
- Production planning and scheduling: Managers determine the most efficient way to produce goods based on factors like demand, resource planning, and production capacity.
- Procurement and inventory management: Ensuring the right materials are available at the right times minimizes excess inventory and associated costs.
- Production execution and control: Monitor and manage the actual production process, tracking progress, identifying bottlenecks, and making necessary adjustments.
- Quality assurance: Take measures to ensure products meet specified quality standards and customer expectations.
- Maintenance and repair: Keeping equipment and machinery in optimal working condition is key to minimizing downtime and maintaining smooth production.
- Logistics and distribution: Managers have to organize the storage and transportation of finished goods to customers or distribution centers.
MOM, sometimes known as manufacturing process management, is a comprehensive system designed to integrate and optimize these various operational activities. It relies on software, data analytics, and other tools to give teams a live view of the entire production process. Manufacturers can then make informed decisions and respond quickly to changing conditions.
Here are some of the top benefits of implementing MOM:
- Increased efficiency and productivity: MOM streamlines processes, eliminates bottlenecks, and optimizes resource utilization, improving manufacturing productivity.
- Reduced costs: By minimizing waste and boosting efficiency, MOM significantly reduces production costs.
- Improved quality: MOM uses real-time monitoring and data analysis to identify and address quality issues early.
- Enhanced agility and responsiveness: Manufacturers can quickly adapt to changing market conditions or customer demands.
- Improved customer satisfaction: MOM helps manufacturers meet demand, leading to on-time delivery and consistent quality.
- Better compliance: Better management helps manufacturers comply with industry regulations and standards.
- Data-driven decision-making: MOM provides real-time data and insights to inform decisions.
What are the key areas of manufacturing operations management?
Each aspect of production operations plays a critical role in the manufacturing process‘s overall success. The key areas MOM covers span every stage of the production floor:
1. Production planning and scheduling
- Developing master production schedules based on demand forecasts and resource availability
- Creating detailed production plans for individual work orders or batches
- Optimizing production schedules to minimize lead times and maximize resource utilization
- Adjusting schedules in real time to accommodate unforeseen events or changes in demand
2. Procurement and inventory management
- Forecasting raw material requirements based on production schedules and inventory levels
- Generating purchase orders and managing supplier relationships
- Tracking inventory levels and stock movements as they happen
- Optimizing inventory levels to minimize carrying costs while ensuring sufficient supply
3. Production execution and control
- Monitoring the progress of work orders and batches throughout the production process
- Tracking machine performance and identifying potential bottlenecks
- Managing labor resources and assigning tasks to operators
- Collecting and analyzing production data to identify areas for improvement
4. Quality control and assurance
- Enforcing quality control measures at various stages of production
- Conducting regular inspections and tests to ensure product quality
- Identifying and addressing quality issues quickly and effectively
- Implementing corrective and preventive actions to prevent recurrence
5. Maintenance and repair
Unplanned downtime is one of the most expensive problems in manufacturing. Siemens estimates the world’s 500 biggest companies lose almost $1.4 trillion a year to unplanned downtime, equal to 11% of their revenues. Proactive maintenance strategies help reduce that risk:
- Developing preventive maintenance plans for equipment and machinery
- Scheduling and performing routine maintenance tasks
- Responding quickly to equipment breakdowns and minimizing downtime
- Tracking maintenance history and analyzing data to identify trends
6. Logistics and distribution
- Managing the storage and movement of finished goods
- Coordinating transportation and delivery schedules
- Tracking shipments and ensuring on-time delivery
- Optimizing logistics routes and processes to reduce costs
By addressing these key areas, MOM ensures that the production process runs smoothly, efficiently, and cost-effectively.
The 7 steps for implementing manufacturing operations management
Setting up a MOM system can be complicated. Follow these steps to give the process some structure.
1. Start with a pilot
Before using MOM across the entire operation, begin with a pilot project. Test the system on a smaller scale to identify issues and fine-tune your approach before full implementation.
2. Use a manufacturing execution system
A manufacturing execution system (MES) is a core component of MOM. This organized digital system gives you direct insight into production, saving time and reducing errors. Choose a customizable MES that integrates with your existing processes.
3. Collect quality data
Accurate, reliable data is essential for effective MOM. Enforce systems to collect data on machine performance, quality metrics, and production times.
4. Standardize essential procedures
Develop standard operating procedures (SOPs) for key processes to ensure consistency and reduce errors. Regularly review and update SOPs.
5. Use key performance indicators
Key performance indicators (KPIs) provide a measurable way to track progress. Common KPIs used in manufacturing operations include:
- Overall equipment effectiveness (OEE), which measures how effectively the plant uses its equipment
- On-time delivery (OTD), which measures the percentage of orders delivered on time
- Yield, which measures the percentage of quality finished goods produced
- First pass yield (FPY), which measures the percentage of products that pass inspection the first time
6. Base decisions on real-time metrics
Use the data and insights from the MOM system to make informed decisions about production, scheduling, and resource allocation.
7. Use software solutions to manage operations
Solid manufacturing is about more than your MOM system. Inventory management software like Fishbowl can streamline and automate manufacturing processes, from inventory tracking to production scheduling.
3 manufacturing operations best practices
The steps above are a great starting point, but once the MOM system is in place, following these best practices further enhances manufacturing operations.
1. Follow lean manufacturing principles
Lean manufacturing processes focus on eliminating waste and maximizing value through five principles: identifying value, mapping the value stream, creating flow, establishing pull, and pursuing perfection. These reduce costs, improve quality, and increase efficiency.
2. Use manufacturing intelligence software
Manufacturing intelligence software helps you collect production data and identify trends and patterns according to your KPIs. Use this information to make better production, scheduling, and resource allocation decisions.
3. Collect good data
On top of manufacturing-specific software, invest in systems to collect and analyze production data. Barcode scanning is a particularly effective option for tracking individual items’ lifecycles and maintaining accurate stock levels.
Take your manufacturing operations to the next level with Fishbowl
Effective manufacturing operations management isn’t a one-and-done effort. It’s an ongoing journey that combines strategic planning, technological implementation, and continuous improvement.
Fishbowl is an all-in-one inventory management solution that assists with tracking assets and controlling stock. Its manufacturing solution goes beyond managing inventory, offering a clear view of your production process to track material consumption and streamline manufacturing workflows. Grill Works Inc., a Marshall, Minnesota manufacturer, dropped order cycle times to an average of 3.9 days and reached a 99% on-time delivery rate after streamlining operations with Fishbowl.
Frequently asked questions about manufacturing operations management
What are the two basic types of manufacturing operations?
The two basic types are process manufacturing and discrete manufacturing. Process manufacturing produces goods through continuous or batch processes where ingredients are combined and cannot easily be separated afterward, such as food, beverages, or chemicals. Discrete manufacturing assembles distinct, countable units from individual components, such as automobiles, electronics, or furniture. Each type requires different production planning, quality control, and inventory management approaches.
What is the difference between manufacturing operations and service operations management?
Manufacturing operations management focuses on producing physical goods through transformation of raw materials. Service operations management deals with delivering intangible outputs like consulting, healthcare, or logistics. The key differences lie in inventory (manufacturers hold physical stock; services cannot), customer involvement (services often involve real-time customer interaction), and quality measurement (products can be inspected before delivery; service quality is evaluated during or after delivery).
What KPIs should a plant manager check every week?
Plant managers should track five core KPIs weekly: overall equipment effectiveness (OEE), on-time delivery rate, yield percentage, first pass yield (FPY), and unplanned downtime. OEE combines availability, performance, and quality into one metric. On-time delivery shows if production meets customer commitments. Yield and FPY reveal quality trends. Tracking downtime highlights equipment reliability issues before they escalate into larger production problems.
What is the difference between manufacturing operations management (MOM) and a manufacturing execution system (MES)?
MOM is a broad management strategy that coordinates all manufacturing activities, including planning, scheduling, quality, maintenance, and logistics. MES is a specific software system that gives teams direct oversight and control on the production floor. Think of MOM as the overall framework for running manufacturing operations, while MES is one of the software tools used to implement that framework. MES typically handles shop-floor data collection, work order tracking, and performance monitoring.
What is the 80/20 rule in manufacturing?
The 80/20 rule, also called the Pareto principle, states that roughly 80% of effects come from 20% of causes. In manufacturing, this often means 80% of defects come from 20% of root causes, 80% of downtime comes from 20% of equipment, or 80% of revenue comes from 20% of products. Manufacturers use this principle to prioritize improvement efforts, focusing resources on the small number of issues or products that drive the majority of results.
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