Short answer. Production planning in Excel works until you grow. Then version chaos sets in (everyone has their own copy, final_v12 that is not the latest) and knowledge ends up locked in one person (the formulas and macros nobody else dares to touch). A planning tool or APS solves the standard cases. If your planning does not fit a package, you often need a custom solution that knows your machines, changeover times and people.
The file is called final_v12_new_final.xlsx. And it turns out not to be the latest version after all. Someone still had a copy on their laptop.
That is what version chaos looks like, and in production it costs you more than just frustration.
Version chaos: everyone has their own truth
The moment several people work in the same planning, copies appear. One person works in their version, another in theirs, and nobody knows for sure which one is correct. You lose hours merging them, and sometimes you plan production on figures that are already out of date.
A mistake in the planning also stays under the radar, because Excel flags nothing. The result is failure costs, waiting time and lost revenue that you only spot afterwards.
Only Jan understands the planning
The second risk is even bigger. If the formulas are so complicated and the macros so quirky that one person holds the key, then your production hangs on that person.
If Jan goes on holiday or leaves the company, nobody dares to touch the file. That is not planning, that is unsecured knowledge with a password.
Why Excel works against your planning as you grow
Excel was built for cells, not for capacity. It takes no account of changeover times, machine utilisation or the order in which jobs run most efficiently through your production. At ten orders that still works. At a hundred it is manual work that builds in errors and waiting time.
That is why many manufacturers switch to planning software or an APS system (such as Limis or CAPE). If your planning fits in there, use it.
When custom software pays off
The goal is control over your planning, with figures that add up and without dependence on one person. That is why I first go through your planning process, because some rules have simply grown over time and can be done smarter. What remains, a planning that knows your machines, changeover times and people and is readable for everyone, I build when a standard tool does not fit your production. This has to be secured one way or another. The question is whether it cannot be done smarter today than in an Excel that only one person understands.
Frequently asked questions
Why does production planning in Excel stop working as you grow?
Because Excel knows nothing about capacity, changeover times or machine utilisation, and it does not warn you about errors. With more orders and more planners, version chaos and mistakes set in that you only spot afterwards as failure costs and waiting time.
What are the risks of production planning in Excel?
Version chaos (multiple copies, unclear which one is correct), unsecured knowledge (one person understands the formulas), and errors that stay under the radar because Excel flags nothing.
What do I do if only one person understands the planning?
Secure the logic in a system that is readable for everyone, instead of in formulas and macros that hang on one person. Start by reviewing which rules are truly necessary, and capture those outside that person's head.
Production planning software or custom software: when to choose what?
If your planning fits in a standard tool or APS, use it. If your production has its own rules around changeover times, routing or utilisation that a package cannot handle, then a custom solution is often the better fit.
Further reading
- From quote to invoice you re-enter everything
- You do not know what an order really costs until the post-calculation
I am Ricardo Theijs of RNT Projects. With a background in enterprise process management, I secure knowledge in systems rather than in one person's head. I tell you honestly when a standard package will do.
Running into this yourself?
I review your process and build the solution where a standard package falls short. Remote, with visible results in two weeks.
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