Production planning digitalisation is a transformation project that moves material requirements planning (MRP), the master production schedule and capacity planning into software, built on correct master data and defined processes. This checklist collects, in order, what needs to be prepared before and during an MRP or production planning project. The ORELSIS delivery team uses the same list as a working reference on projects.
The list is independent of software choice. Whatever system you use, the quality of the plan is capped by the quality of the master data. That is why most items focus on data, process and ownership readiness before the software itself.
Goals and scope
The project should start with a measurable business goal. “Getting off Excel” is not a goal, it is an outcome. The real goals are business results such as better on-time delivery, balanced inventory levels, shorter planning cycles or seeing capacity bottlenecks in advance. Measure today's value for each goal; if you can't measure it, your first task is to define how.
- 01Goals and scopeBaseline measurement
- 02Master dataCleanup and ownership
- 03Pilot lineTrial with limited risk
- 04CutoverReconciliation and decision
- 05MeasurementPost go-live KPIs
Keeping scope narrow and going deep is usually better than going wide and staying shallow. Starting phase one with a single site or product family and then scaling a working model carries less risk than bringing the whole factory live at once.
Master data: item master, BOMs and routings
The MRP calculation rests on three core data sets: the item master (what?), the bill of materials (made from what?) and the routing (how and where?). An error in any one of them spreads through the whole plan. Master data work is the longest and most critical work package of the project; manage it with its own owner and schedule.
- Code and type
- Unit conversions
- Lead time
- Planning parameters
- Component quantities
- Scrap rates
- Revision and validity
- Alternative components
- Operation sequence
- Work centre
- Setup and run time
- Subcontracted operations
Item master
- Unique item code and a coding rule (has the smart vs. non-smart code decision been made?).
- Item type: raw material, semi-finished, finished good, packaging, consumable, spare part.
- Base unit of measure and alternative units with conversion factors (kg, piece, metre, case).
- Procurement type: purchased, manufactured or subcontracted.
- Purchasing and production lead times (in days, with realistic values).
- Planning parameters: safety stock, lot sizing rule, minimum and multiple quantities.
- Lot and serial tracking requirements, shelf life and expiry date rules.
Bill of materials (BOM)
- One valid production BOM for every finished and semi-finished item.
- Component quantities in the base unit, scrap rates in a separate field.
- Validity dates and revision number (how will engineering changes be managed?).
- Alternative components and substitution rules.
- Phantom (sub-assembly) levels; for process manufacturing, recipes, by-products and co-products.
- An owner for differences between the engineering BOM and the production BOM.
Routings and operations
- Operation sequence for every manufactured item and the work centre for each operation.
- Setup time and per-unit run time kept separate.
- Queue and move times between operations.
- Alternative work centres and their priority order.
- Subcontracted operations and the related supplier link.
The most common mistake is moving master data into the new system without cleaning it first. A wrong unit, a missing scrap rate or an outdated BOM revision produces wrong requirements in the new system too; this time users blame the software and trust in the system is lost.
Capacity and work centre model
The capacity model shows whether the plan is physically feasible. A work centre can be a machine, a line, a cell or a team. The right level of detail depends on the level at which you make planning decisions: if you don't plan each machine separately, making each machine its own work centre adds needless complexity.
- Work centre hierarchy: site, department, line, machine.
- Shift calendar, public holidays and planned maintenance stops.
- Available capacity: shift length, number of parallel machines and efficiency factor.
- A list of bottleneck work centres and whether they need finite capacity planning.
- Whether machine and labour capacity are planned separately or together.
- Whether secondary resources such as moulds and fixtures are capacity constraints.
A practical approach: first calculate material requirements correctly with infinite capacity, then move to finite capacity scheduling only at bottleneck work centres. OREL MRP shows capacity load per work centre, so you see which line is overloaded in which week before the plan is released.
Inventory and warehouse data
MRP calculates net requirements by subtracting on-hand stock and open orders from gross demand. If stock is wrong, net requirements are wrong. That is why stock accuracy should be confirmed by a physical count before go-live, at least for critical materials.
Backflushing reduces the recording workload, but it hides stock differences if BOMs and scrap rates are wrong. If you choose this method, schedule more frequent counts in the first months.
Planning parameters
Planning parameters determine how and in what quantity the system proposes requirements. Parameters are not entered item by item; they are assigned to groups through a classification such as ABC/XYZ and reviewed regularly at group level.
- 01DemandForecast and firm orders
- 02Master production scheduleFinished-goods plan
- 03MRP runNet requirements
- 04Proposed ordersPurchasing and production
- 05Shop floor and supplyExecution and feedback
| Parameter | What it determines | Who decides |
|---|---|---|
| Master production schedule (MPS) | What finished goods to make, and when | Planning + sales |
| Planning horizon and frozen zone | How far the plan reaches and which part is fixed | Planning manager |
| Safety stock | Buffer against demand and supply uncertainty | Planning + purchasing |
| Lot sizing rule | Lot-for-lot, fixed quantity, periodic, etc. | Planning + production |
| Minimum and multiple quantity | Supplier or machine constraints | Purchasing + production |
| Lead time | How early an order is released | Purchasing + production |
| Forecast consumption rule | How orders consume the forecast | Planning + sales |
- 01Clarify demand inputs
Write down which source, how often and with whose approval the sales forecast, firm orders and stock targets will arrive.
- 02Build the master production schedule
Balance the weekly or daily finished-goods plan against capacity; set an approval rule for changes inside the frozen zone.
- 03Run MRP
Calculate net requirements, create proposed purchase and production orders, and list exception messages (expedite, defer, cancel).
- 04Manage exceptions
Planners review only exceptions, not every proposal. If the exception count stays high, it is a parameter or data problem.
- 05Release and monitor the plan
Send approved orders to the shop floor and purchasing; review the gap between plan and actuals in a regular meeting.
ERP and accounting integration
A production planning system usually works alongside the ERP and accounting system. At the start of the project, decide which system is the source of truth for each data object: is the item master created in the ERP, are BOMs managed in the planning system, in which system is a stock movement finalised? Changing these decisions later is expensive.
- Master data flow: in which direction and how often items, business partners, BOMs and routings are transferred.
- Transaction flow: sales orders, purchase orders, work orders, production receipts and consumption records.
- Cost flow: how work order costs reach accounting and with which period close.
- Error handling: who sees failed transfers and who fixes them.
- Reconciliation: regular comparison of stock and work order status across both systems.
For integration design details, see the “ERP and system integration guide”. OREL DM can be used to collect and match data from different systems on one platform and produce reconciliation reports.
Pilot line, roles and responsibilities
A pilot lets you test the system in real production with limited risk. A good pilot line is representative (it covers the factory's typical products and operations), manageable (the product count is reasonable) and has a willing team. Starting with the most complex line slows learning; the simplest line won't reveal the real problems.
| Activity | Responsible (R) | Accountable (A) | Consulted / informed |
|---|---|---|---|
| Goals and scope | Project manager | Sponsor | Department heads |
| Item master and units | Master data owner | Planning manager | Purchasing, warehouse |
| BOMs and routings | Manufacturing engineering | Production manager | Quality, planning |
| Planning parameters | Planning specialist | Planning manager | Purchasing, sales |
| Integration | IT / integration team | IT manager | Accounting, software team |
| Data migration and reconciliation | Master data owner | Project manager | IT, warehouse |
| Training | Key users | Project manager | HR, shift supervisors |
| Go-live decision | Project manager | Steering committee | All departments |
Appointing a key user from each department is recommended. The key user tailors the system to their department, runs the tests, trains colleagues and is the first point of support after go-live. If this role doesn't get regular weekly time, the project schedule slips.
Data migration and cutover
Cutover is the move from the old method to the new system within a planned window. Master data can be migrated some time in advance, but open balances (stock, open orders, open work orders) should be taken as close to the cutover moment as possible.
- 01Prepare migration templates
Create templates for each data object with the field list, mandatory fields, code mappings and validation rules.
- 02Run trial migrations
Run at least two full trial migrations into the test environment; don't move to the live migration until the error list is closed.
- 03Reconcile
Compare record counts, stock quantities and open order balances with the source system; close differences with a signed reconciliation record.
- 04Plan the cutover window
Track the transaction freeze, final count, open balance migration and first planning run with an hour-by-hour plan.
- 05Write the fallback plan
Decide in advance under which conditions, by whose decision and how you will return to the old method if a critical problem occurs.
Don't schedule cutover on top of month-end close, peak season or a major shipping period. Users work more slowly in the first weeks after cutover; stacking that period on a busy operation puts both production and trust in the system at risk.
Training and go-live criteria
Training should use role-based business scenarios, not screen tours. A planner needs the answer to “how do I update the plan when a rush order arrives?” far more than “how do I run MRP?”
- A role-based training plan: planner, buyer, warehouse, shift supervisor, operator, manager.
- A training environment and scenarios built on real data.
- Short, visual work instructions (one page, one task).
- Hands-on assessment after training.
- A hypercare plan with on-site support for the first weeks after go-live.
Post go-live KPIs
Go-live is not the end of the project, it is the start of measurement. Measure post go-live values with the same method as the baselines you set during the goals and scope phase. Review KPIs weekly in the first months and monthly once the process has settled.
| KPI | Definition | Why it matters |
|---|---|---|
| On-time delivery | Share of orders or work orders completed on time | Keeping promises to customers |
| Schedule adherence | Match between planned and actual production | Feasibility of the plan |
| Inventory accuracy | Share of items where count matches system stock | Reliability of the MRP calculation |
| Days of inventory | Average stock relative to daily consumption | Tied-up capital |
| Exception message count | Warnings per planning run | Data and parameter quality |
| Bottleneck load | Load / capacity at bottleneck work centres | Capacity management |
| OEE | Availability × performance × quality | Equipment effectiveness |
KPI definitions must be the same for everyone. For example, if you don't write down whether “on time” in on-time delivery means the customer ship date or the warehouse receipt date, departments will read the same number differently. For details on measuring OEE, see the “OEE measurement and improvement guide”.
Conclusion
Production planning digitalisation is less about installing software and more about discipline in data, parameters and ownership. Teams that set measurable goals, clean their master data, learn through a pilot and keep measuring after go-live get lasting results. Reopen this list at every stage of your project and bring unfinished items to the next steering committee agenda.