Operations Management Software | 360-Degree Overview
THE ESSENCE OF OPERATIONS MANAGEMENT SOFTWARE
Operations management software (OMS) helps plan, monitor, and coordinate production or service operations, digitalize daily workflows of involved employees (e.g., operations managers, planners, supervisors, project managers), identify and mitigate operational process bottlenecks. With OMS, all operational aspects are efficiently managed with a single system instead of 3-5 separate applications that require complex integration procedures.
TYPES OF OPERATIONS MANAGEMENT SOFTWARE
Software for production operations
Software for service operations
BENEFITS OF PRODUCTION OPERATIONS MANAGEMENT SOFTWARE
Increased reliability of operations due to analytics-based capacity planning and production KPIs monitoring.
Improved quality and regulatory compliance of production outputs due to standardized operational processes, facilitated quality management and visibility into operational workflows.
Reduced inventory costs due to accurate inventory planning, inventory tracking (with barcode/RFID technology) and automatic alerts for replenishment.
Mitigated operational risks due to operations monitoring and tools to alert on operational issues (e.g., delays, defective products) and then collaborate on their resolution.
Reduced reporting latency due to automated collection and analysis of operational data.
Improved productivity and collaboration of employees involved in operations due to automated request and order routing (production and purchase order requests, maintenance requests, etc.) and communication tools.
KEY FEATURES OF PRODUCTION OPERATIONS MANAGEMENT SOFTWARE
The list below represents a sample feature set of custom production operations management software. However, each real-life use case for such software is unique, so functionality should be elaborated on and tailored to the business specifics accordingly.
- Production KPIs setup and monitoring (e.g., production volume and costs).
- Material requirements planning.
- Production scheduling.
- Automated production schedule adjustment (e.g., in case of incoming make-to-order requests or production delays).
- AI suggestions for production optimization (based on historical production data).
- Multi-plant production optimization (balancing production load across several plants).
- What-if production scenario modeling and cross-comparison (to generate different options of a production schedule and choose the best one).
- Multi-location inventory optimization (calculating optimal inventory levels across warehouses based on multiple factors, from sales data to weather conditions).
Production order management
- Production order creation (with auto-attachment of BOMs, e.g., via an integration with PLM software).
- Automated estimation of production order costs and capacity requirements (based on product specifications).
- Automated reservation of materials for a production order.
- Production order routing (defining the sequence of operations to produce a product, integrating an order into the production schedule) and status tracking.
- Automated generation of a production order receipt (with the final calculation of production costs based on the recorded material, machine and workforce usage).
- Inventory levels monitoring.
- Setup of inventory reorder points and automated trigger of purchase orders.
- Alerts on low-level inventory.
- Creation, routing and status tracking of inventory transfer orders.
- Automated inventory location tracking (with barcode/RFID technology).
- Expiration and shelf-life tracking (e.g., for raw materials).
- AI-based inventory storage suggestions (optimal inventory location indicated based on its storage requirements, expiration date, etc.).
- Order picking routing (the system suggests the quickest route to pick up an order for a warehouse worker).
- AI-based packing suggestions (the system automatically defines the type and amount of packing required for an order).
Sales order management
- Sales order creation and status tracking.
- Automated invoice generation and routing for approval.
- Automated generation of purchase and/or production orders from a sales order.
- Automated inventory reservation for a sales order.
Purchase order management
- Purchase order request creation and automated routing for approval.
- Purchase order creation and status tracking.
- Setup of preferred suppliers for particular inventory groups.
- Setup of spend limits per user/department (on purchase orders).
- Workforce scheduling (production and maintenance workers, etc.).
- Workforce performance reports.
- Instant messaging (for easy communication between planners and operations managers and the shop-floor personnel and vice versa).
Production quality control
- Quick form-based creation of quality control charts.
- Scheduling and assignment of quality checks (with auto-attachment of quality control charts).
- Alert escalation on defective products (to production supervisors).
Machinery and equipment maintenance management
- Machine maintenance scheduling (for regular maintenance activities coordinated with a production schedule).
- Maintenance request creation and automated routing for approval (for on-demand activities, e.g., in case of machine malfunction or irregular performance).
- Maintenance order assignment and status tracking.
- Predictive maintenance for equipment.
Analytics and reporting
- Product demand forecasting.
- Product demand vs. production capacity analysis.
- Workforce demand forecasting.
- Impact analysis for production schedule adjustments (to see how current production orders will be affected by the changes).
- Capacity utilization reports (on machine and workforce utilization).
- Production reports (on the production outputs at a given period, e.g. day/week).
- Production costs monitoring and analysis.
- Inventory carrying costs analysis.
- Inventory purchasing reports (with historical costs trends).
IMPORTANT INTEGRATIONS FOR PRODUCTION OMS
OMS + business intelligence (BI) tool
to transform operational data into insights (reveal dependencies and trends influencing operational efficiency) that operational managers can rely upon to plan and optimize the operations strategy.
OMS + supply chain management (SCM) software
to assign purchase orders directly from OMS to suppliers (in SCM software) and monitor orders’ statuses; to automatically transfer data on supply lead time forecasts from SCM software to OMS for accurate production planning.
OMS + customer relationship management (CRM) software
to automatically transfer customers’ purchase orders from CRM software to OMS for streamlined sales order creation; to update CRM specialists on stock availability and current production capacity (e.g., in case of the make-to-order production strategy).
OMS + financial software
to transfer data on produced goods, machine capacity utilization, purchasing and inventory movements to financial software for accurate accounting reporting, compensation and payroll management; to transfer cost targets (for machine time, labor, energy, supplies, etc.) and payment conditions for suppliers from financial software to OMS.
OMS + product lifecycle management (PLM) software
to automatically attach bills of material (BOMs) from PLM software to production orders scheduled in OMS and get updates on changes in products’ design from PLM software.
OMS + manufacturing execution system (MES)
to transfer data on the production process (machine and workforce availability, production orders in progress, etc.) from MES to OMS for real-time production monitoring; to transfer planned production orders from OMS to MES for their execution.
OMS + human resources management (HRM) software
to transfer workforce demand data from OMS to HRM software and assign workforce with fitting skillset and availability (as reflected in employee profiles in HRM software) to different tasks.
SUCCESS FACTORS OF PRODUCTION OPERATIONS MANAGEMENT SOFTWARE
High visibility into operational data (due to real-time data collection and analysis) to monitor the health of operations and efficiently react to any bottlenecks (e.g., operational delays, product defects).
Automated workflows for operational managers and other personnel to enable faster operations, reduce labor costs and human errors (e.g., lost or incorrectly entered data).
Comprehensive data analytics for data-driven, accurate operations planning and optimization resulting in reduced operations costs and higher capacity utilization.
Advanced data security methods including authorized user access, user activity logs, data encryption at rest and in transit, etc. to protect sensitive operations data.
User-friendly mobile software version to streamline information flows between operational managers and shop-floor personnel, simplify production reporting and escalation on operational process bottlenecks.
OMS IMPLEMENTATION COSTS AND FINANCIAL OUTCOMES
The cost of OMS implementation varies greatly depending on:
- Functionality scope (the number of functionality modules, implementation of AI features, RFID technology, etc.).
- Complexity of data migration procedures (the volume of data that needs to be migrated from the spreadsheets and/or software currently used for operations management).
- Complexity and the number of integrations (with ERP, CRM, PLM, etc.).
A custom solution of average complexity requires investments from $200,000 to $400,000, with payback expected starting from 3 months of usage. Key financial outcomes of OMS implementation include the optimized costs of goods sold and asset utilization.
WHEN TO OPT FOR CUSTOM OPERATIONS MANAGEMENT SOFTWARE
Custom operations management software is a more feasible option compared to platform-based software in the long term if:
- Software should be accessed by a large number of users and allow the management of multiple work centers, as enterprise-scale licensing for platform-based OMS software is expensive.
- You need software completely tailored to your operations. Custom OMS may replace 3-5 separate platform-based applications that would require expensive customization and additional integration efforts.
- You need to integrate operations software with custom legacy systems (SCM, CRM, etc.), which may be complex or impossible in case of platform-based software.
OPERATIONS MANAGEMENT SOFTWARE IMPLEMENTATION
ScienceSoft leverages 32-year experience in custom software development to implement functionally rich and high-performing OMS for operations of any complexity.
Operations management software consulting
- Elicit business and user requirements for OMS.
- Define a suitable set of OMS features.
- Design OMS architecture for high performance, security and scalability.
- Prepare an integration plan (with BI, SCM, CRM etc.).
- Deliver UX/UI mock-ups (optional).
- Provide project cost & time estimates, expected ROI calculation.
Operations management software development
Our team offers:
- Analysis of OMS-related needs.
- Operations management software conceptualization.
- Back-end and front-end OMS development.
- Mobile app development (if required).
- Integration of OMS with other systems (BI, SCM, CRM, etc.).
- User training.
- After-launch support and OMS evolution (on demand).
ScienceSoft is an IT consulting and software development vendor headquartered in McKinney, TX. We offer consulting and development services to help our customers achieve more productive and cost-effective operations with fitting operations management software. Visit our custom software development page for more information on our approach.