Back to blog

How to Reduce PCP Costs During the Pandemic?

July 27, 2020 Useall

How to Reduce PCP Costs During the Pandemic?

Production planning and control (PCP) is a process designed to help manage an organization's main operations.

That is how PCP directly impacts the results and profitability of industrial companies. In machining and foundry processes, for example, having a tool that increases PCP efficiency while reducing administrative and production costs is very important.

After all, it allows you to get through this period of global crisis with more confidence.

An assertive machining system that meets the company's needs makes it possible to reduce PCP time.

That time can be used for other activities that are essential to the company right now, such as reviewing strategies and developing new actions better suited to the current reality.

The method your company practices today has room for improvement, and technology emerges as a great ally at this moment.

Increasingly complete and robust software helps companies achieve better results, making it easier to survive and keep jobs through the coronavirus pandemic crisis.

Right here in this article, check out the benefits of adopting an ERP tool to gain efficiency in your machining and foundry system.

PCP and Digital Transformation

By contributing to the management of a machining and foundry company's operations, PCP focuses its efforts on defining the company's goals and the ways to achieve them by optimizing production processes.

Here, controlling the performance of activities and projects is essential. After all, it ensures everything is being done as planned and with maximum effectiveness.

In this scenario, technology emerges as a great ally for managers and employees in PCP.

By adding technological tools such as ERP software to production planning and control, you gain increased effectiveness, lower costs, less time spent on each activity and, consequently, more satisfied customers and partners.

Terms like Artificial Intelligence and Machine Learning are part of the PCP software universe and help make the industrial companies that adopt these resources more competitive in the market.

In a scenario of so much uncertainty like the current crisis, betting on these solutions helps keep your production effective and, consequently, your company alive and stronger to face this moment.

Benefits of an ERP for PCP

Adopting ERP software for production planning and control brings a series of advantages to an industrial company.

In times of crisis, these benefits become even more important for strengthening the company and making its processes more assertive.

Data quality

For accurate PCP, information quality is essential. Only with correct, real-time data is it possible to build quality PCP that meets the industry's needs at any given moment.

A complete ERP gathers this information in a clear, accessible way — at any time and from anywhere.

Optimized cash flow

Efficient production planning and control contributes to better cash flow. After all, you can forecast and organize raw material purchases and supplier negotiations more assertively, for example.

Planning speed

Another major benefit of having an ERP when building your PCP is the speed with which that planning can be done.

This way, the company gains time to focus on other strategies and activities, while making its processes more agile. With the PCP delivered faster, everyone involved becomes more agile too.

Process integration

An ERP integrates processes and departments, and this integration is essential for building efficient PCP. One example of this effectiveness lies in the data that serves as the basis for planning.

When that data lives inside the system itself and is captured automatically, leaders and managers gain efficiency. This information includes order history, quantities in production, and stock balances.

Shorter delivery times

By making order fulfillment more efficient, delivery times go down.

This change in the way orders are fulfilled also reflects optimized inventory management. Waste is reduced, and your company can deliver higher-quality service to its customers.

Increased productivity

With all the efficiencies and gains from adopting software, departments become more productive. This translates into higher productivity for the company as a whole, with increased profitability — something so desirable in times of crisis.

With processes automated and the ability to build more assertive PCP that matches reality, teams also work more motivated and focused on results.

Less rework

By adding technology to PCP, the chances of human error are reduced. This also decreases rework within teams.

With teams more focused on meeting demand and wasting less time redoing activities, the company can offer a better service or product to its customers — and even think about innovations for the market.

More assertive PCP in the crisis: less time, lower costs

With all the benefits we saw above, industrial companies gain important competitive advantages over the competition during this period of crisis:

  • Less time spent on production planning;
  • Lower raw material acquisition costs;
  • Lower inventory carrying costs;
  • Fewer losses from rework;
  • Lower costs from contractual penalties imposed by customers when the supplier fails to meet quality requirements;
  • Lower administrative costs.

Now that you know how to get ahead of your competitors during the crisis, find the right software for your business.

Originally published in Portuguese at useall.com.br.