When does Excel stop being enough for production planning?
A small manufacturer can often manage production with spreadsheets, paper job sheets, and WhatsApp when the same few people handle most of the work.
Problems usually begin when the business grows and different departments start working from different information.
Sales may confirm an order without knowing whether enough raw materials are available. Purchasing may only discover shortages after production has already been delayed. Production instructions may be shared through paper or messages, while inventory records are updated much later.
At that point, the main problem is not necessarily Excel itself. The problem is that sales, purchasing, inventory, and production are no longer connected.
An MRP system can bring these processes together by tracking demand, material requirements, manufacturing orders, work stages, and stock movements in one workflow. It can also provide clearer visibility into production progress, batch traceability, quality checks, and costing.
However, not every manufacturer needs a full ERP system immediately. If the existing process is still accurate, easy to coordinate, and does not cause delays, simpler tools may still be enough.
The system also needs to match the actual factory workflow. Bills of materials, work centres, inventory rules, and staff responsibilities must be properly defined.
Full disclosure: I work with the team that published this article, but I thought the production-planning breakdown could be useful for discussion:
For those involved in manufacturing, which becomes difficult first as production grows: material planning, scheduling, stock accuracy, or costing?
Posted Jul 29, 2026, 6:57 AM UTC