Microsoft Excel has been a staple in the business world for over 3 decades. With its familiar grid layout, formula features, and graphing capabilities, Excel has been used for data analysis, tracking budgets, and creating reports.
However, the businesses and industries relying on Excel quickly realize its limitations. The rise of big data, complex calculations, and the need for real-time information has pushed Excel beyond its capabilities.
Specifically, automated data collection and analysis have become the norm in production and manufacturing industries. This shift towards automation has prompted businesses to say goodbye to Excel and hello to innovation.
In this article, we'll explore why Excel is no longer enough and its challenges in manual processes.
Challenges with Manual Processes and Reliance on Excel
Manual processes and reliance on Excel pose several challenges for businesses, especially in production and manufacturing industries. These challenges include:
The need for in-person communication hinders smooth information flow
In a manual process, information collection and data sharing rely heavily on in-person communication. With Excel, employees must physically transfer data by delivering it in person or through papers, emails, shared drives, or USBs. This leads to delays, errors, and information gaps. With the rise of remote work and global teams, in-person communication is no longer viable for efficient data sharing.
Human errors in data entry and calculations
Human errors are bound to happen in manual data entry and calculations. Even the most meticulous data entry staff can make mistakes, resulting in inaccurate data and calculations. Typos, misplaced decimal points, and incorrect formulas in Excel can cause major setbacks in production processes and financial calculations.
Needing to employ a dedicated staff member for data entry
Manual data entry and analysis require significant manpower. Companies often need dedicated staff for data entry, removing valuable resources from core business tasks. This is not only expensive but also limits the company's growth potential as resources are allocated to functions that can be automated.
Financial losses due to Excel quirks
Excel is notorious for its quirks, which can lead to financial losses for businesses. For example, rounding numbers in Excel can lead to insignificant discrepancies, but when applied to financial calculations, these discrepancies can add up to significant amounts. Similarly, hidden cells and incorrect cell references can cause major financial errors.
Anonymizing documents for confidentiality
The Big data era has raised concerns about confidentiality and privacy. Excel falls short in providing robust solutions in industries where sensitive information needs to be anonymized. Companies often resort to manual methods of anonymizing data, such as creating a copy of the original documents, increasing the risk of human errors and data breaches.
For example, accidentally omitting certain data points during the anonymization process can compromise the confidentiality of sensitive information. This can also occur if a potential client visiting the production hall inadvertently sees documentation or observes competitors' projects.
Buying pre-made ERP solutions means dealing with complexity without knowing how to use them
To address the limitations of Excel, many companies turn to pre-made Enterprise Resource Planning (ERP) solutions. However, they come with their own set of challenges.
The generic nature of SaaS platforms is a significant barrier for users. Companies often have to adapt their processes to fit the standard templates and workflows these systems provide. The complexity of the systems and the lack of knowledge of how to fully utilize them can result in underutilization. This leads to wasted resources and hinders the company's ability to optimize its production processes fully.
Transitioning to Automated Production
In 2024, businesses have realized the need for automation in their production processes. The transition from manual processes and reliance on Excel to automated production has become inevitable. Production companies have begun to invest in automation to eradicate manufacturing headaches.
Let's explore the benefits of replacing Excel with customized production planning software and why businesses should switch.
Benefits of Replacing Excel with Customized Production Planning Software
Here are some significant benefits of making the switch from Excel to customized production software:
Real-time updates and no mistakes in deliveries
One of manufacturers' biggest headaches is sending the wrong number or type of components to clients due to communication breakdowns and lack of control over production.
Bespoke production software solves this by keeping everyone updated on component status in real-time. Managers, coordinators, and workers can effortlessly monitor the progress of each part through every stage, including cutting, bending, powdering, or any other specific production phase involved, all the way to assembly.
With this control, there's no need for constant checking or inquiries. If an issue arises, the software identifies when and where it occurred. It also provides a clear view of ready-to-deliver elements, eliminating the need for frequent visits to the production hall. This system streamlines production management for all involved.
Increased employees’ motivation and satisfaction
Imagine a worker completes a task, such as finishing the bending process for a component. As they update the status in the bespoke production software, they receive a virtual reward, like a badge or points. These rewards accumulate, creating a sense of achievement and progress.
Bespoke production software not only directly optimizes efficiency but also transforms the workplace culture through gamification. Employees actively engage with the software, tracking their tasks, and gaining visibility and responsibility over the production process. Additionally, the software provides real-time feedback on individual performance, showing daily, weekly, and monthly results. Workers can track their productivity over time, setting personal goals and striving to improve their performance.
More time for higher-value tasks
Automated production software allows employees to devote their time to higher-value tasks and leave the calculations or data sharing to the system. They don't have to walk back and forth to transfer data or spend hours fixing errors in Excel manually. Automating these tasks frees up time for employees to focus on improving production processes, identifying new opportunities, and driving growth for the company.
Reducing reliance on manual data entry
If there is one thing that automated production software eliminates, it's the need for manual data entry. The system automatically collects and updates data in real-time, eliminating human errors and delays. This results in more accurate data, faster information flow, and better decision-making for the company.
Automation software is customized for the manufacturer’s needs, not the other way around
Unlike Excel or SaaS platforms, bespoke production software is customized to fit the manufacturer's specific needs and processes. Companies don't have to adapt their methods to provide the software; the software is tailored to fit their unique service and workflows. This results in better efficiency, higher productivity, and faster adoption rates for the system.
Intuitive interface reducing training needs
Customized production software is designed with the manufacturer in mind. This means a user-friendly and intuitive interface that requires minimal training to use. This reduces the learning curve for employees and makes it easier to onboard new team members. More accessible and user-friendly software means greater adoption rates and fewer barriers to implementation.
Moreover, an interface resembling familiar manufacturing processes promotes quicker adoption rates, minimizes resistance to change, and facilitates smoother implementation. In many cases, prioritizing such functionality over a sophisticated design proves more effective and provides better user satisfaction, underscoring the importance of UX considerations in software development.
User roles and data access control
In traditional spreadsheet software like Excel, users often have access to all information contained within a document. It poses risks, especially when dealing with sensitive or confidential data. Business owners and managers may not want all employees to have visibility into certain information, such as costs, financial data, or other proprietary details.
Bespoke production software can provide access control through user roles as a solution to this challenge. User roles allow administrators to define specific permissions and access levels for different categories of users within the system.
Automated invoicing
Bespoke production software can automate invoicing, saving time and minimizing billing errors. The system can generate invoices based on production data and pull them automatically from the system, reducing the need for manual invoicing. The notifications built into the system also ensure timely payments from clients, improving the business's cash flow.
Capturing more opportunities
With accurate and real-time data at their fingertips, companies can identify new opportunities for growth and improvement. The time saved from manual processes means companies have more resources to invest in exploring new markets, developing new products, or optimizing existing processes. This can result in improved profitability and more significant opportunities for the company.
How to Effectively Switch From Excel Sheets to Automated Production Software?
As businesses realize the benefits of transitioning to automated production, the question arises: how can they effectively make this switch?
Here are some steps to help companies successfully implement customized production software and reap its benefits:
Identify your main everyday challenges with production processes
The first step is to identify the specific pain points in your current production processes. These can include manual data entry, calculation errors, a lack of real-time updates, or difficulty accessing and sharing data among team members.
Every business is unique, and its challenges with production processes can vary. Therefore, assess your operations and determine the areas where automation could significantly impact.
Compare available production software solutions
Once you identify your business challenges, it is worth exploring available production planning tools that solve your issues. Off-the-shelf solutions might be sufficient if you deal with straightforward and low-complexity production processes. However, while ready-made solutions might be sufficient for some businesses, they may not meet the specific needs of all, especially those in bespoke manufacturing. While they may seem cheaper initially, some companies abandon those tools because they don’t align well with their processes, often finding themselves compelled to continue paying for the subscription.
In such cases, it is advisable to turn to a software development company to develop a customized solution tailored to your specific needs. iRonin.IT can assist in evaluating which option is best for your business.
Customize the software to your specific needs
The software you choose should be customizable to fit your unique workflows and processes. This ensures that the software works for you and not vice versa.
To achieve that, you can consider engaging in a product discovery workshop. In this workshop, you and the development team discuss your business inside and out, translating your needs into the exact software solution you require. Such a workshop includes mapping the user journey, identifying key functionalities, and creating a roadmap for the entire project.
Plan the transition process
Switching from Excel sheets to automated production software requires careful planning and execution. Work with the software development team to outline a timeline and process for transitioning to the new system. This includes data migration and system testing before going live. It's important that the software is not only functional, and user-friendly for all stakeholders, including managers, production planners, and workers.
Providing training and support for employees
Employees may resist change, primarily if they are used to working with Excel sheets. Therefore, it is essential to provide training and support for employees to ensure a smooth transition. Unlike ready-made solutions, tailored production software is designed to be user-friendly and requires minimal training.
You can also implement the previously mentioned gamification, which involves using game-like elements, such as points and rewards, to motivate employees and encourage them to adopt the new system, especially if some hesitate to change.
Monitor and optimize performance
Once the new system is in place, regularly monitor its performance and gather employee feedback. This will help identify any areas that need improvement or additional features that could further enhance your production processes. One of the most significant advantages of customized software is that it can continue to evolve and improve as your business grows.
Don’t Stay Behind, Stay Ahead
Switching from Excel sheets to automated production software can significantly benefit businesses in terms of efficiency, accuracy, and opportunity capture.
Companies can use automated production software to ensure quality control of their contact parts and equipment throughout manufacturing.
By following these steps and working with a reliable software development team, businesses can smoothly transition and easily grow their operations.
Don't wait until your competitors have already made the switch.
