Have you heard of the kaizen method? It’s a set of principles and techniques for continuous improvement that helps organizations across industries be more productive. But before we dive into it, let’s begin by defining the Japanese word “Kaizen.”

What Is Kaizen?

Kaizen means improvement, but more than just that, it means continual improvement for your business operations. Improvement that is not reaching beyond what it can currently do is static.

Kaizen, more precisely, means change for the better (kai is change and zen is for the better). In terms of business, kaizen means that all activities must be continuously improving. That means everything in the organization, from employees to the CEO. But it’s not just applying to personnel, processes are also included.

The idea was codified by Masaaki Imai, an organizational theorist and management consultant, over 30 years ago with the publication of this book, Kaizen: the Key to Japan’s Competitive Success. Since then, the implications have reached beyond industry and the kaizen principles have been used to help in healthcare, psychotherapy, government, banking and even life coaching.

The kaizen methodology works at constant improvements through the elimination of waste. It’s been around in Japan since after World War II, though influenced by quality management ideas from the United States. It’s part of The Toyota Way, which is a set of principles that support the company’s management approach to production.

What Is the Kaizen Method?

Kaizen is a continuous improvement philosophy to increase the efficiency of business operations, rooted in Kaizen principles such as eliminating waste (muda, mura, muri), standardizing business processes through the 5S system, and using the Plan-Do-Check-Act cycle to implement operational and organizational planning changes.

Kaizen is a methodology that emphasizes bottom-up management, empowering employees at all levels to identify problems, offer their input and participate in solving them.

Practices like Gemba Walks encourage firsthand observation of employee performance and operations, while focused Kaizen events target rapid process improvements. Together, these tools and mindsets foster a culture of efficiency, teamwork and long-term operational excellence through small, incremental changes that drive meaningful progress and lasting results over time.

Let’s now define each of the elements that make up this continuous improvement method.

Kaizen Principles

A philosophy focused on continuous, incremental improvement in all areas of life, especially in the workplace. It emphasizes small, consistent improvements over time to achieve larger long-term gains.

Kaizen Waste Types (Muda, Mura, Muri)

Muda refers to waste in any form that does not add value, such as excess production or time spent on non-essential tasks. Mura is unevenness or inconsistency in processes, often leading to inefficiency or unnecessary stress. Muri refers to overburdening people, equipment or processes beyond their capacity, which can cause breakdowns or fatigue.

Kaizen Gemba Walk

A practice where managers and team members go to the “Gemba” (the actual place where work is done) to observe processes, understand challenges and gather insights directly from the people involved in the work.

Kaizen 5S System

A methodology for organizing the workplace to increase efficiency and reduce waste. The 5S principles are: Sort (seiri), the removal of unnecessary items; set in order (seiton), organize items for easy access; shine (seiso): clean the work area; standardize (seiketsu): establish consistent processes. sustain (shitsuke), maintain the improvements.

Plan-Do-Check-Act (PDCA)

A continuous improvement cycle used to test and implement changes. It involves planning a change (plan), implementing it (do), checking the results (check), and taking action based on the results (act).

Bottom-Up Management

A management approach where decisions are
made with input from lower-level employees, encouraging their involvement and fostering a sense of ownership in improvement initiatives.

Kaizen Events

Focused, short-term activities where a cross-functional team works intensively to make significant improvements to a specific area, often using the Kaizen principles.

Kaizen Board

A tool for visualizing and tracking the status of improvement
initiatives. It typically displays a list of ongoing, planned and completed projects or ideas, helping teams stay aligned and transparent in their improvement efforts.

Kaizen Principles

The five principles of kaizen are fundamental to any application of kaizen.

1. Know Your Customer: Knowledge of who your selling a product or service to is how one creates value. It is key that companies identify their customer’s interests to enhance their experience.
2. Let It Flow: This applies to the target of achieving zero waste. It might be an impossible goal, but that’s kaizen for you: if you could achieve that objective improvement would stop. Therefore, everyone in the organization is working towards removing any waste from their corner of the business while also in the process creating value.
3. Go to Gemba: The literal translation for gemba is “the real place.” In this context, it’s about leadership and knowing what is happening at every level of the organization. You can think of it as following the action, as value is created where something is actually happening. That’s where you want to be.
4. Empower People: This one is directed towards teams and having them organized in such a way that it supports the kaizen principles. Therefore, leadership must set goals for their teams that are not contradictory. They should offer a system and tools to help the teams achieve these goals.
5. Be Transparent: Data is the strongest determining factor. It’s the metric that measures success. Therefore, performance and improvements must be tracked with real data

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Kaizen in Action: Practical Tips

The principles are the guiding lights; the action plan is where kaizen hits the road running. It’s all about organizing, so that the focus is always on improvement and its targets are every part of the organization. Everyone is part of the process. A consistent application of the kaizen action plan leads to continuous improvement.

First, take each corner of your organization and look at ways it can be improved. This will involve team collaboration and total involvement from everyone. Individuals need autonomy to take action on improvements themselves, which builds a culture of engagement. This is done with a continuing flow of suggestions and then implementing them to improve the organization.

Each event is outlined by the acronym PDCA, which stands for plan, do, check, act. Begin by setting goals, with documentation and background. Then review what the current state is with that part of the business and plan towards improving it. Identify what improvements will be implemented and try and fix what isn’t working. Report the results, follow up and repeat.

The idea of always making small improvements is not dissimilar to lean manufacturing, especially with the emphasis of eliminating waste. Kaizen, like a lean or agile approach, works with iterations. It keeps companies flexible.

How Kaizen and ProjectManager Work Together

Ideas are great and methodologies are fundamental to implementing those ideas. But the best plans of mice and men often go astray if they don’t have a project management tool to track their progress. ProjectManager is a dynamic and nimble software that cashes the check that kaizen writes.

ProjectManager has Kanban Boards to Track Progress

What ProjectManager.com provides is a way to monitor that improvement. Kanban is another Japanese work, which translates as signboard or billboard. It also grew from the Toyota Way of manufacturing, offering a visual workflow that increase efficiencies by making sure that the supplies you need now are always on hand, but not more than must be stored.

It’s an elegant system of columns and cards. Each column can have a to do, doing and done heading. Under each of those column headings are cards, which capture the individual task. These cards are then moved from column to column as they’re identified, worked on and completed.

These boards are a great way to track the progress of the improvements. With ProjectManager.com, the kanban boards are even more useful, as they can be assigned to specific team members or a whole group. Then, because the software is online, as teams update their status that information is instantly reflected across the software.

ProjectManager’s Real-time Dashboard Tracks Progress

Kaizen encourages collaboration and ProjectManager supports teamwork by giving teams a platform to communicate at the task level. Documents and images can be attached to the card in the board view of our software, so these important files are easy to access. There is a conversation box to dialogue with other team members. When a comment is added, all those assigned the task are notified. It’s especially helpful if your teams are distributed on different sites.

But teams aren’t the only ones who benefit from ProjectManager. Just as kaizen involves the whole organization in making continuous improvements, ProjectManager also gives managers the tools they need to assign easily and monitor the progress of the improvements as they’re implemented.

While project managers can view the progress of the kaizen implementation on the kanban board, they probably are going to want more detailed information. ProjectManager has a real-time dashboard that collects all the data team members input and then crunches those numbers into a series of project metrics that are displayed all in one place.

The real-time dashboard has colorful and easy to read graphs and charts that track progress, workload, timelines and more. These can be shared or printed out for presentation. But in ProjectManager.com, the graphs and charts can be filtered to show just the amount of data you need. This means when a project manager is discussing items with the team, they can go deep into the data, but if the stakeholders need a more general overview, that can be displayed in a click.

Kaizen and ProjectManager.com are a match made in project management heaven. But ProjectManager can do so much more than help you implement change. Our cloud-based project management software can plan, monitor and report on any kind of project. Online Gantt charts make scheduling collaborative and teams love our easy-to-use task lists and timesheets. See how ProjectManager can improve your project management today by taking this free 30-day trial.

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In this roundup, we’ve selected various free order form templates from our site, which has over 100 free templates for Excel and Word that cover all aspects of managing projects across numerous industries. These ready-to-use formats save you time, boost professionalism and make collecting the information you need easy.

Ensuring alignment between what was agreed upon with the customer and how the internal team plans and tracks progress requires more than an order form template can provide. For that, project management software is required. ProjectManager is award-winning project and portfolio management software with robust Gantt charts that can link all four types of task dependencies to avoid cost overruns, filter for the critical path and set a baseline to track progress in real time. Get started with ProjectManager today for free.

Free Order Form Templates

While it’s recommended to upgrade to software to deliver on the content of the order, that doesn’t mean templates are without value. They can help in several ways we’ve already detailed above. That’s why we’ve selected the following order form templates below from our vast repository of free templates. Download them to help with the order form process.

1. Purchase Order Form Template

Download this free purchase order form template for Excel to formally request goods or services from a supplier. It outlines the key details of the transaction, including item descriptions, quantities, prices, delivery instructions and payment terms. By using a template, businesses can ensure consistency and accuracy in their procurement process, minimizing the risk of miscommunication or errors. Once the supplier accepts the purchase order, it becomes a legally binding agreement between both parties, serving as a record of the terms agreed upon.

An order form is especially useful because it streamlines the purchasing workflow. Instead of drafting a new document for every order, employees can fill in the relevant details, saving time and maintaining a standardized format across the organization. A good template also supports internal tracking, budgeting and auditing by clearly documenting each purchase. A purchase order form template is vital for organized, professional and accountable procurement practices.

2. Sales Order Form Template

Use this free sales order form template for Excel to confirm and process customer purchases. It includes important details such as the buyer’s information, the products or services being sold, quantities, prices, total costs, delivery schedules and payment terms. Once completed and approved, the sales order serves as an internal document that guides inventory management, order fulfillment and invoicing. It ensures that everyone involved—from sales and logistics to accounting—has a clear and consistent understanding of what the customer has ordered.

A sales order form template brings structure and efficiency to the sales process. It helps prevent errors, supports clear communication with customers and simplifies tracking and reporting. This order form also ensures that all required information is consistently captured, making it easier to process orders quickly and accurately. A well-designed sales order form template plays a key role in delivering smooth, reliable customer service and maintaining organized business operations.

3. Work Order Form Template

This free work order form template for Excel is used to request and track specific tasks or services to be performed, typically within maintenance, repair, service or project-based industries. It outlines the details of the job to be completed, including a description of the work, location, personnel assigned, materials required, estimated time and any associated costs. Work order forms serve as a formal record that helps coordinate efforts between departments or service providers and ensures accountability and consistency in how work is requested and executed.

Using a work order form template improves efficiency by streamlining the workflow from job initiation to completion. It provides a clear reference for technicians or workers, helping them understand what needs to be done, when and with what resources. The order form also supports progress tracking, status updates and documentation of completed tasks, which is especially useful for recurring maintenance, audits or customer billing. It’s a vital tool for organized, transparent and effective task management.

4. Inventory Order Form Template

Businesses use an inventory order form template to request, track and manage the ordering of stock or inventory items. This free order form includes key information such as item names or codes, quantities needed, unit prices, supplier details and the order date. It helps ensure inventory levels are maintained efficiently, avoiding both shortages and overstocking. It’s commonly used by inventory managers, warehouse staff or purchasing departments to communicate clearly with suppliers and keep internal records accurate and up-to-date.

An inventory order form template streamlines the inventory management process by providing a consistent format for ordering stock. It helps businesses stay organized, reduces the chances of ordering errors and facilitates easier tracking of what has been ordered and received. Over time, these order forms also serve as valuable historical records for analyzing purchasing trends, supplier performance and budget management. Use an inventory order form template as a practical tool for maintaining control over a company’s supply chain operations.

5. Request for Quote (RFQ) Template

Businesses use a request for quote template to solicit price quotes and terms from potential suppliers for specific products or services. It includes detailed information about the items needed—such as descriptions, quantities, specifications and delivery requirements—along with other relevant terms like payment conditions, deadlines or quality standards. The goal of this order form is to gather comparable proposals from vendors so the buyer can evaluate options and select the most suitable supplier based on cost, availability and service.

This free order form for Word helps streamline the procurement process by ensuring all necessary details are communicated to suppliers. It also allows the buyer to easily compare responses, as each vendor is responding to the same structured request. A well-prepared request for quote template reduces misunderstandings, speeds up decision-making and supports more competitive and transparent supplier selection. It’s especially useful in larger organizations or for more complex purchases where formal bidding and vendor evaluation are essential.

6. Request for Information (RFI) Template

Download this request for information template for Word to gather preliminary data from potential suppliers, contractors or service providers. It’s typically used early in the procurement or project planning process when a business needs to explore the capabilities, products, services or solutions available in the market. This order form does not request pricing or binding proposals—instead, it focuses on gathering insights, qualifications and general information to help the organization make informed decisions about next steps.

The value of this order form lies in its ability to bring consistency and clarity to the information-gathering process. By using a structured format, businesses can ensure they receive comparable data from multiple sources, making it easier to analyze and assess options. A good request for information template includes sections for company background, service offerings, technical capabilities, previous project experience and general timelines. It sets the stage for more detailed order forms later, like a request for proposal or request for quote, and helps narrow down the list of vendors or partners for future engagement.

Why Are Order Forms Important?

Order forms are an essential component of any business transaction, bridging a customer’s needs and a company’s ability to fulfill them. At their core, order forms formalize and streamline the purchasing process. They capture vital information such as the type of product or service, quantity, pricing, customer details and payment terms. This not only reduces the risk of miscommunication but also ensures that both parties are clear on what is being requested and provided. By setting expectations early in the process, order forms help avoid costly errors, delays or misunderstandings that could damage customer relationships.

Operational Efficiency

Beyond logistics, order forms also contribute significantly to a company’s operational efficiency. For businesses, having a standardized format for collecting and processing orders means less time spent clarifying details and more time fulfilling requests. This structure enables better inventory management, accurate forecasting and improved customer service. It also supports the finance team in tracking receivables, managing cash flow and preparing for audits, since order forms serve as documented proof of an agreed-upon transaction.

Improved Customer Perception

From a customer experience standpoint, a well-designed order form can reflect a company’s professionalism and reliability. It shows that the business is organized and takes orders seriously, which can build trust and encourage repeat business. Especially in online and B2B environments, where face-to-face interaction is limited, the clarity and usability of an order form can make a lasting impression. In summary, while often overlooked, order forms are critical tools that support accuracy, efficiency, accountability and customer satisfaction in the sales process.

Informs Project Plans

In project-based or service-driven industries where tasks need to be scheduled and tracked over time, the order form can inform the creation of a Gantt chart. When an order form contains detailed information about deliverables, deadlines, phases and resource requirements, it becomes a valuable input for creating a Gantt chart.

For example, if a client places an order for a marketing campaign, website development or custom manufacturing, the order form might specify: the project start and end dates, milestones or key deliverables, dependencies between tasks, assigned personnel or departments and client approvals or review stages. This data can be used to build the timeline in a Gantt chart.

ProjectManager Helps Control the Order Form Process

An order form serves a purpose. They are helpful throughout the life cycle of a project. But it is not useful for planning, managing and tracking that project. While they can complement the process a more dynamic tool than a static template is needed. That’s where project management software comes in.

ProjectManager is award-winning project and portfolio management software that keeps the project moving forward, staying on budget and meeting quality standards. With multiple project views (Gantt charts, kanban boards, sheet, task and calendar views) that allow teams to work on the right tool for their tasks, automated workflows with task approval settings to add efficiency without sacrificing quality and resource and tracking tools, it’s the one tool to deliver successful projects.

Stay Productive With Resource Management Features

To keep to the details agreed upon in the order form, projects have to carefully manage their resources to ensure they have what they need when they need it. This starts on the Gantt chart, scheduling resources. Then, when onboarding teams, project managers set their availability to streamline the assignment process.

To view resource allocation for one or multiple projects, use the color-coded workload page. It makes it quick and easy to see who is overallocated or underutilized, balance their workload right from the chart and keep everyone working at capacity, but not burnt out. A team page shows daily or weekly activity. It can be filtered by priority or progress and tasks can be updated without leaving the page.

Track Key Project Metrics With Real-Time Dashboards and Reports

Resources are one, but not the only metric to monitor. For a high-level project overview, toggle to the real-time project or portfolio dashboards. They don’t require setup and are automatically updated with live data. They display time, cost, workload and more in easy-to-read and quickly digestible graphs and charts.

Customizable reports on status, variance, workload, timesheets and more can be filtered to go deeper into the data or provide a progress report to share with stakeholders. Even the secure timesheets help by monitoring labor costs to stay on budget.

Related Content

For those who want to read more about order forms and the procurement process, below are some related pieces that we’ve published on our blog.

• What Is a Purchase Order? (Example Included)
• Purchase Management: A How-To Guide With Best Practices
• Creating a Request for Quote (RFQ) for Procurement
• How to Make a Procurement Management Plan
• Procurement Contracting: Types of Contracts & Best Practices

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Whether you’re in IT, construction or retail, mastering the basics of workforce management can benefit you immensely.

What Is a Workforce, Exactly?

A workforce is the total number of people employed or available for work within a specific context, such as a company, organization, industry or geographic region. Think of it as the human capital available for productive activities within a defined boundary. In project management, a workforce includes all the personnel contributing their skills, time and effort to achieve the project’s objectives. This includes project team members, subject matter experts, contractors, consultants and support staff.

What Is Workforce Management?

Workforce management is the process of scheduling your staff in the best possible way to ensure your workforce is functioning at its most productive levels. It’s less of a singular management style and more of a company-wide process or team management software solution that’s implemented from the top down.

Know certain staff members who are morning people? Schedule them to interface with customers for shifts that are first thing in the morning. Have certain creative employees that are the most productive in the afternoon or late evening shifts? Schedule them during their more optimally productive hours.

Related: Free Weekly Work Schedule Template

Not everyone works the same way: workforce management aims to capitalize on that fact, and thus makes your employees more efficient and engaged. This cuts back on waste and keeps your company output balanced against overhead costs

Aside from optimizing staff schedules and time management plan, a great workforce management system also includes workforce forecasting, monitoring and analysis. Considering supply (your workforce) versus demand (the schedule), your workforce can be scheduled and assigned their appropriate tasks. From there, they can be analyzed for efficiency and compensated for their work appropriately.

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Key Components of Workforce Management

Workforce management is all about ensuring the right people with the right skills are in the right place at the right time. This helps them perform tasks efficiently and cost-effectively.

• Legal: One major component is contractual agreements and legal compliance. For example, the workforce needs to adhere to all applicable labor laws and regulations, using contractual agreements when necessary. This helps identify and mitigate potential risks related to staffing, compliance and labor costs.
• Compensation: Compensation and payroll should also be factored in. Payroll processing ensures that wages are paid accurately and on time, including deductions and overtime. Compensation management can help develop and administer fair and competitive compensation plans.
• Planning & Forecasting: Workforce planning and forecasting can help predict future staffing needs based on anticipated workload, business trends, historical data or seasonality. This is where capacity planning also comes into play, as it assesses the current and future workforce capacity while factoring in skills, availability and potential constraints.
• Attendance: Attendance management and time tracking are also integral to workforce management. For example, recording employee hours, including start and end times, overtime and breaks, can be accomplished with time tracking software. This also includes tracking and managing employee vacations and time off to ensure compliance with company policies.

Who Is in Charge of Workforce Management?

Who oversees workforce management depends on the organization’s size and structure. However, there are common teams that contribute to the process. In larger organizations, there may be a dedicated workforce management team or department that oversees staffing needs.

Smaller organizations, however, may rely on the human resources department, where HR managers handle workforce planning, leave management, attendance tracking, etc. Operations managers may also be involved in scheduling and ensuring there’s adequate staffing to meet production or service demands. Other involved parties in workforce management can include department managers, team leaders or C-level executives.

What Are the Benefits of Workforce Management?

Workforce management is one of those processes that doesn’t just aim to make your employees more efficient, it also aims to benefit the employee by having them work on the processes they’re best suited for. In turn, this serves to better help customer service, increasing output and profits across the board. Call it a win-win-win.

The process started gaining popularity in the 1980s and 1990s with the rise of Enterprise Resource Planning (ERP) systems, seeing large benefits from its use in industries such as healthcare, manufacturing, retail and more.

But there’s a new benefit to workforce management: as we enter the era of the gig economy, many part-time workers are coming under financial stress as they’re either unable to find full-time work or are getting their hours cut. In the gig economy, workers are hired as independent contractors, paid by the project, rather than by the hour or salary.

Many workers in the gig economy will often have many different jobs to balance at one time, which can place a lot of strain on their financial certainty. When workers are under financial stress, productivity also suffers. For companies that use workforce management, this can help ease the burden of workers who are trying to balance multiple workloads by helping them plan out their schedules in advance just as you plan yours. The more you can help them plan and ease that financial uncertainty, the more productive your workers will be.

Types of Workforce Management Systems

Workforce management software solutions can be installed onsite, hosted in the cloud, or via Software-as-a-Service (SaaS).

Most of the time, workforce management is handled using spreadsheets. However, there are a growing number of solutions that are tailored to suit their industries, such as Customer Relationship Management (CRM) tools, ERP systems and project management tools.

Additionally, many project managers will integrate workforce management and project management through an application that will help schedule out tasks to their respective assignees, monitor resources, track employee time, analyze the project costs, and report on status updates. This is called Project Workforce Management. And more than just helping allocate your workforce’s time for projects, it also combines the additional elements listed above, making it a powerhouse of a process.

Workforce Management Tools

Just like great project management leads to the success of a project, great workforce management software leads to the success of all the workforce.

The pillar that workforce management is based on is proper scheduling. The original algorithm, invented by Agner Krarup Erland, has evolved to encompass richer state management, such as availabilities, budgets, state and federal law restrictions, wages, skills, time off and holidays. A workforce management tool that includes all of these is a good investment for your company.

Time Tracking

Any method where you have to rely on spreadsheets to keep track of your workforce is a method that involves too much risk of human error. That’s why it’s important to make sure that whichever workforce management tool you’re investing in includes a time tracking element. A good time-tracking software will allow you to view tracked time by project status, download reports, submit timesheets online and monitor progress in real time.

Planning & Collaborating With Your Workforce

Because no two workforces are the same, your software must include a workforce planning element. This means team-specific plans for IT & Software, Construction and Marketing. A workforce planning tool that’s worth its salt will enable you to plan projects, track issues, collaborate with teams and monitor risks.

Scheduling

With a proper project scheduling tool, you can get visibility into your projects online, so no matter where your team is located, they can see changes to their schedules in real-time. This should also enable your workforce to get better visibility into exactly which deliverables are needed and when—better helping them prioritize their tasks in advance.

Monitoring & Reporting

Aside from time tracking, one of the biggest elements of workforce management involves monitoring and reporting on the progress of your workforce. Without the added element of analyzing your workforce’s performance, you won’t know how or when to pivot to the most optimal schedule. For any workforce management tool, ensure it includes monitoring and reporting elements so you can see if you’re behind schedule or right on time.

How ProjectManager Can Help You Manage the Workforce

Your workforce is a key element to the success of any project. Managing them is a task that doesn’t just require attention to detail, it also requires a certain level of diplomacy and finesse. With ProjectManager, our online Gantt charts let you schedule your entire workforce and their tasks. Add new tasks and due dates, or link tasks together to better optimize your employee’s time.

Your staff can also attach comments or files to project tasks directly so you can collaborate no matter what state you’re in.

ProjectManager also features resource management tools that let you balance the hours worked across your team. This helps you make sure that no one is over or under-allocated on a project.

You can also categorize supplies and equipment—and track all of it—to make sure your team is the most efficient it can be.

When trying to plan out your workforce, don’t leave scheduling and resource management up to chance. ProjectManager is a cloud-based software that helps you to better track which employee is assigned to which task and plan resources for future projects so you never miss a beat. See how ProjectManager can help you better manage your workforce by starting this free 30-day trial.

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Aggregate planning is a technique to create an equilibrium between demand and capacity. It’s something every company that is producing something needs to know. Let’s take a look at what aggregate production planning is and some aggregate planning strategies.

What Is Aggregate Planning?

Aggregate planning is a method for analyzing, developing and maintaining a manufacturing plan with an emphasis on uninterrupted, consistent production. Aggregate planning is most often focused on targeted sales forecasts, inventory management and production levels in the mid-term (3-to-18-month) future.

Note that production planning is not just goods, but services as well. Aggregate planning defines the necessary production inputs for a good or service (including facilities, workforce, raw materials and inventory levels) to maintain consistent delivery dates, all while keeping costs down.

This doesn’t apply solely to individual production lines or the manufacturing of one product. It will cover all the jobs being done at a facility or across several facilities. This allows manufacturers to get the most out of their resources even if there are different demands for products and changes in customer orders, the supply chain or other variables.

Project management software facilitates aggregate planning. ProjectManager is award-winning software that helps manufacturers manage costs and resources to allow for uninterrupted production. Planning on our powerful Gantt charts helps to control costs and resources associated with production runs and reallocate those resources as necessary to keep production lines running smoothly.  You can even track the planned effort against the actual effort in real time. Get started with ProjectManager today for free.

Who Is Responsible for Aggregate Planning?

Typically, operations management or a sales and operations planning team (S&OP) is responsible for aggregate planning. Operations managers develop and implement the aggregate plan to balance production capacity with forecasted demand. They help oversee decisions about production rates, workforce levels, inventory and outsourcing.

The S&OP team is cross-functional and includes representatives from different departments such as sales, marketing operations, finance and engineering. They work collaboratively to align demand forecasts with the company’s capacity and strategic objectives.

How to Create an Aggregate Plan

To create an aggregate plan, you must first determine the number of units that are produced over a specific time frame, which is the capacity, and the number of units needed, which is the customer demand.

Here are some of the factors to consider when trying to create consistency in your process:

• Pricing Strategies: When demand is low, reduce the price to match capacity. You can also do the reverse; when demand is high, increase the price.
• Advertising/Promotion: Marketing and promotional activities can impact the demand for your product or service.
• Back Ordering: Delay delivery until demand catches up with capacity.
• New Demand Creation: Create another demand to supplement an existing one.
• Workforce: You can lay off or hire employees to meet the demand or respond to a lack of it. Overtime, subcontracting or use of a temporary workforce is also an option.

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What’s the Purpose of Aggregate Planning?

As stated, the goal of aggregate planning is figuring out the level of production, inventory and workforce required to respond to fluctuating demand in the medium term. With this information, a business can assess when demand will spike or wane, and ensure it has enough product to meet the moment. Aggregate production planning also lets manufacturers know what staff, materials, output rates, timeline estimates and budget costs they need.

Making forecasts saves the company from changing its production schedule quickly, which is not only expensive but also creates insecurity and uncertainty. With aggregate planning, you can make a fairly accurate forecast of demand and capacity in the medium term.

Resource Management

In other words, you’re working on short-term resource allocation. This reduces the risk of overproduction, which wastes resources, depresses prices and can lead to oversaturation of your product in the market. By reducing production during periods of weak demand, you save money on labor and materials.

Cost Savings

Aggregate planning helps companies achieve their financial goals and improve the bottom line. It allows for maximum utilization of the available production capabilities while meeting customer demand and reducing their wait time, as well as reducing the cost of stocking excess inventory.

Good Data is Required

Aggregate planning forecasting is not a magic bullet, though. It’s only as good as the data you collect (and the people you use) to forecast. People have biases, and they can misread economic indicators or use faulty forecast models. There are always unknowns, too, such as material price spikes, implementation of new policies, changing interest rates. Not to mention labor; alterations in labor conditions can cause unrest in your workforce.

3 Types of Aggregate Planning Strategies

Success depends on having the following inputs: an aggregate demand forecast for the period you’re planning for, evaluating capacity management (including using subcontractors, outsourcing, etc.), and the existing operational status of your workforce. All this will lead to greater accuracy, and therefore, a greater likelihood of success.

You can achieve this by applying a variety of aggregate planning strategies. There are three main ones that organizations have used:

1. Level Strategy: The goal of an aggregate planning strategy is to keep the production rate and the workforce level. This requires strong forecasting of demand to know if production levels must be increased or decreased as customer demands grow and shrink. This aggregate production planning strategy will keep your workforce steady but can increase your inventory and backlog.
2. Chase Strategy: As the name implies, you are chasing market demand. The production matches demand, and excess inventory isn’t held over. This is part of a larger lean production strategy, which saves money by waiting until an order is placed. However, productivity and quality can be reduced, and it can negatively impact the morale of your workforce.
3. Hybrid Strategy: There is a third alternative, which is a hybrid of the previous two strategies. This keeps the balance between the production rate, workforce and inventory levels, while still responding to demand as it changes. This alternative offers a bit of flexibility that can satisfy demand while working to keep production costs low.

Best Practices for Making an Aggregate Plan

Whatever strategy you choose, there are some things to keep in mind when using aggregate planning. For one, you want to figure out the demand and capacity for each period. These two should match one another, though this might require overtime or sub-contracting to achieve.

You’ll also want to identify any policies, be they union, departmental or companywide, that can impact production levels. Cost is also important, obviously, so you’ll want to determine fixed and variable costs as well as direct and indirect labor costs.

It never hurts to have an alternative plan just in case. These plans should also follow the same best practices for making an aggregate plan. If you come up with one that meets your objectives, you might discover it in fact costs less and should be your primary aggregate production plan.

Three Things to Avoid in Aggregate Plans

While we’ve covered the best practices and types of aggregate planning strategies, let’s review three things to avoid when making aggregate plans.

1. Ignoring Demand Variability and Forecast Inaccuracies

Don’t treat demand forecasts as absolute, as you’ll end up creating a rigid plan that doesn’t account for the inherent variability or inaccuracies in these forecasts. Instead, the plan should be flexible. For example, use strategies like flexible workforce options (temporary staff, overtime) and regularly adjust the plan based on actual demand and updated forecasts.

2. Creating Unrealistic Capacity Assumptions

When teams overestimate the available production capacity or ignore limitations on equipment or labor availability, it makes plans impossible to execute. This results in missed deadlines, reduced quality and frustrated employees. Instead, base capacity assumptions on realistic assessments of resources.

3. Developing the Aggregate Plan in Isolation

Ignoring input and buy-in from key departments such as finance, marketing, sales and human resources can result in a plan that doesn’t align with sales targets, financial constraints or workforce capabilities. Ideally, foster strong communication and collaboration between all relevant departments and gather stakeholder feedback.

Free Aggregate Planning Templates

Finding the right balance between demand and capacity is easier with the right tools. Here are some free project management templates that can improve aggregate planning.

Production Schedule Template

An accurate production schedule can outline what needs to be produced, when and by whom or with what resources. Use this free production schedule template for Excel to better balance supply and demand.

Capacity Planning Template

Download this free capacity planning template for Excel as a streamlined way to determine how much production capacity is needed to meet the demand for products. It helps balance the available resources to meet customer demand or the project’s capacity needs.

Inventory Template

This inventory template for Excel makes it easy for managers to see all inventory details in one place. It helps monitor stock levels, manage the reordering process, track inventory turnover and more.

How ProjectManager Helps with Aggregate Planning

Work management software helps you reign the variables in your aggregate planning and let you manage your production to keep capacity matched with demand. ProjectManager is a cloud-based software that gives you better insights into your manufacturing process, workforce and budget because it delivers real-time data.

Managers understand that aggregate planning is all about resources. You can use the Gantt chart to plan production, filter for the critical path and set a baseline to always have project variance available to view. Set up your budget, then manage costs. Your resources’ costs are automatically calculated as your team logs their hours worked. The Gantt chart has a timeline, which provides a visual of the whole production cycle.

Keeping track of your team, their hours and availability is key to a successful aggregate production plan. With ProjectManager, you can set your teams’ workdays, holidays and PTO. You can also view all the tasks assigned to them on a Team Page. Then, you can switch over to the color-coded workload chart. From there, you can re-allocate their work to balance their workload and help them work more productively.

Another of ProjectManager’s work views is the kanban board. This visual workflow tool lets your teams manage their backlog, while you get transparency into where they are in the production cycle. Aggregate planning is all about matching capacity to demand.

With the board view, you can see potential roadblocks and re-allocate resources to keep the team working. ProjectManager is fast, flexible and provides the visibility needed for project planning, resource management and capacity planning.

ProjectManager is award-winning software that gives teams collaborative platform, and gives managers transparency without getting in the way of their workforce. See how it can help you meet demand, whether you’re working on one or dozens of projects at once. Try ProjectManager today for free.

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How does a business or organization make sure that its processes and people are aligned with creating success and customer satisfaction? That’s where total quality management comes in.

What Is Total Quality Management (TQM)?

Total Quality Management is a management approach that focuses on delivering products and services with the highest quality to maximize customer satisfaction and meet regulatory standards. Total quality management is an organization-wide effort for continuous improvement. That improvement can be defined as an employee’s ability to provide on-demand products and services that are of value to their customers, even as their needs change.

That’s the “quality” in total quality management. The “total” indicates that the effort is one that touches every inch of every employee of an organization. As a methodology, however, total quality management has no widely agreed-upon approach. It does, though, draw from other tools and techniques, such as project quality control, quality assurance and testing, and others.

To make sure you’re delivering quality to your customers, you need to be able to monitor the processes you’re using to create the product or service you’re making for them. ProjectManager is online work and project management software that tracks real-time data with its live dashboards, which monitor six project metrics automatically. There’s no setup. It’s ready when you are. Get started with ProjectManager for free today.

Why Is Total Quality Management Important?

Total quality management is important for several reasons. First, it fosters a culture of continuous improvement and customer satisfaction, leading to higher-quality products and services. When customers are satisfied, they’re more likely to be loyal and can help spread positive messages about your company.

It also streamlines processes and eliminates waste, helping to reduce errors and increase productivity. Not only does this translate into cost savings, but it also contributes to the idea that preventing problems is usually less expensive than fixing them.

Finally, TQM helps organizations gain a competitive advantage in the marketplace. They can deliver high-quality products and services and are better positioned to attract and retain customers.

Total Quality Management Principles

Just as the definitions of total quality management (TQM) differ, so do its principles. However, we’ve gathered the most important TQM principles for you below.

• Customer Focused: The definition of quality lies with the customer, and all efforts to achieve success in the organization lead to customer satisfaction.
• Total Employee Involvement: The effort is not isolated to one department of an organization. To be successful in its objective of customer satisfaction, there must be a common goal for all aspects of business and for each employee.
• Process Oriented: Process thinking is fundamental to total quality management; the internal steps a company takes directly result in the external output delivered to the customers.
• Integrated System: Basically, regardless of the size or complexity of the organization, all its distinct parts must work together.
• Strategic and Systemic Approach: Using strategic planning to create a strategic plan that integrates quality as a core component of the company is a way to structure total quality management into an organization’s mission.
• Continual Improvement: The mantra for total quality improvement is customer satisfaction, but that is not a one-shot goal: the act of improving quality for the customer is a process without an end.
• Fact-Based Decision Making: In order to know if an organization is meeting its objectives, there must be data on performance, and those metrics must be collected and analyzed with accuracy and without prejudice. (For more on this, learn how to use data to be a better manager.)
• Communications: It’s impossible to maintain a successful TQM approach without an effective communication plan. Communication plans make sure that every department is aware of what they and others are responsible for, so they can coordinate operations to achieve their common goal.

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Quality Control Template

Use this free Quality Control Template for Excel to manage your projects better.

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Total Quality Management Methodologies

Being able to deliver total quality management requires methodology. There isn’t just one way to manage quality in your project. There are several approaches you can take. A few of them are listed below.

Lean Manufacturing

Lean manufacturing is a type of lean projection that comes from Japan, specifically, the car manufacturer Toyota. It’s all about targeting and eliminating what it calls muda or waste, in order to add value and maintain quality.

Six Sigma

Six Sigma is another quality management methodology that is directed towards improving current processes, products or services. It does this by finding and removing any defects in order to streamline quality control.

ISO 9000

ISO 9000 is a set of international standards focused on quality management and quality assurance. It was created to help companies document quality system elements that they needed to maintain an efficient quality system.

How to Implement Total Quality Management in 4 Steps

Getting started with total quality management requires that the top management learns about the methodology, and then commits to it as one of the organization’s strategies. The organization writ large must then assess its customer satisfaction and quality management systems.

One of the easiest methods to implement TQM is called PDCA. PDCA stands for Plan, Do, Check and Act. It’s a four-step management method to control the continuous improvement of processes and products.

1. Plan

Planning includes identifying and understanding the problem or opportunity as it relates to TQM. From the information you’ve gathered, come up with ideas and develop the best into an implementation plan.

2. Do

With a planned solution, you can now test it and build a pilot program to see if you achieve the quality improvements you expected. Document the results.

3. Check

Here you’ll analyze the results of your pilot program against what you expected to achieve. If you’ve met those criteria move on to the next step. However, if you’ve fallen short, then you need to return to step one.

4. Adjust

Once you’ve tested and are satisfied with the solution, you can implement it at full scale. This process is a loop, however, with no beginning or end. The success is only the new baseline of which you’ll again test to improve.

The need for active management participation is critical to the success of any total quality management plan. This is done by creating steering committees to make sure everyone is working together to improve quality.

There is also the formation of ad hoc cross-functional teams that are responsible for addressing the immediate process issues. There are also standing cross-functional teams that have similar responsibilities, only those are over the long term.

Total Quality Management Systems & Tools

When it comes to analyzing quality-related issues, the U.S. Navy employed the seven basic tools of quality. This is a fixed set of graphical techniques identified as being most helpful in troubleshooting quality-related issues. These tools are often used in Six Sigma as well.

The seven tools for TQM are:

• Check sheet used to collect data in real time
• Control chart to determine if a process is in a state of control
• Stratification (or flow or run) chart to sample a group
• Pareto chart, which is both a bar and line graph that assess the most frequently occurring defects by category
• Histogram to roughly assess the probability distribution of a given variable by depicting the frequencies of observations occurring in certain ranges of value
• Cause-and-effect diagram
• Scatter diagram to display the value for two in a set of data

How to Get Your Team to Buy Into Total Quality Management

To get your team excited about total quality management, it’s ideal to take a strategic and consistent approach. Rather than solely implementing a set of procedures, aim to foster an underlying culture shift in the organization.  For example, senior management needs to lead by example and embrace TQM principles. Actions speak louder than words, so participating in training and recognizing quality efforts can go a long way in getting team buy-in.

Education on TQM principles, tools and techniques is another important aspect. Customize training to address the specific needs and roles of team members and offer continuous learning opportunities to reinforce key concepts.

History of Total Quality Management

The roots of total quality management can be traced back to the economic instability of the late 1970s and into the early 1980s. It was at this time that the dominance of North America and Western Europe was challenged by competition from the East, specifically Japan’s skill at making high-quality inexpensive products.

While the origin of the term is not clear, many think it was inspired by the book Total Quality Control by quality control expert and businessman Armand V. Feigenbaum and What Is Total Quality Country? The Japanese Way by the organizational theorist Kaoru Ishikawa.

The Role of the U.S. Navy

It was the United States Navy that promoted the idea in 1984 when it asked its civilian researchers to offer recommendations on improving its operational effectiveness. The recommendation was to use the teachings of engineer and statistician W. Edwards Deming, which the U.S. Navy called total quality management in 1985.

The methodology was employed by the U.S. Environmental Protection Agency’s underground storage tanks program in 1985. The private section soon followed as a way to remain competitive against the growing influence of the Japanese.

Key Concepts in Total Quality Management

The key concepts of total quality management developed by the U.S. Navy include:

• Quality is defined by what the customers’ requirements are
• Top-tier management is directly responsible for the improvement in quality
• It is by systemic analysis and using that data to improve work processes, that an increase in quality occurs
• The improvement of quality is a continuous effort and is conducted throughout the entire organization

The U.S. Navy employed certain techniques and tools to achieve those concepts. For example, there’s the Plan Do Check Act or PDCA cycle, which is a four-step management method to control the continuous improvement of processes and products.

Related: How to Implement Business Process Improvement

Quality Control Template

This quality control template is ideal to document any issues that are found when evaluating the quality of your products or project deliverables. It allows you to describe the quality management issue, who’s responsible for fixing it, its status and the expected date of completion.

Free Templates to Help with TQM

Total quality management is best achieved through the use of project management software, which streamlines processes and helps you capture issues fast and resolve them. However, if you’re not using software or are not ready to upgrade to software, ProjectManager has dozens of free project management templates that can help you maintain the quality your customers expect. Here are a few.

Project Dashboard Template
Being able to monitor and track activities in your project is how you make sure you’re meeting your quality expectations. While our real-time dashboard will capture live data, the free project dashboard template for Excel is the next best thing. You have to input the data but then you get the charts and graphs you need to see how your project is performing.

Gap Analysis Template
In order to improve the quality of your product or service, you need to know where you are and where you want to be in the future. This is what a free gap analysis template for Excel can do for you. It captures the current and future stats and then shows the gap percentage you have to close, plus the actions and resources you’ll need to do it.

Issue Tracking Template
When you find issues that are negatively impacting the quality of your project or service our free issue tracking template for Excel can help you monitor your progress in resolving it. The free template has space for you to describe the issue and its impact, add a priority, date and owner and track its status.

Use ProjectManager for Total Quality Management

ProjectManager is cloud-based work and project management software that delivers real-time data to help you make more insightful decisions when monitoring the quality of your work. Then you have features to plan, track and report on your quality management to implement total quality management.

Control Quality With Task Automation

One way to make sure you deliver quality is by removing as much human error as possible. Our workflow automation allows you to create custom workflows that trigger actions to change status, priority, assignee and much more. You can also add task approval settings so only those authorized to close a task can do so, further ensuring you deliver to your quality expectations.

Plan TQM With Interactive Gantt charts

Once you have a total quality management plan, you need to organize all the tasks and get your team assigned. Our online Gantt chart allows you to link task dependencies to avoid delays, set milestones to help with tracking and even filter for the critical path. Then set a baseline so you can measure project variance between what you planned and where you actually are in the schedule to stay on track.

Track Progress and More With One-Click Reports

To help you make sure you’re meeting deadlines and not overspending on your QTM plan, we have everything from status reports to reports on workload, time, cost and more. Generate them with a keystroke, and each report can be filtered to show only the data you want to see. They can also be easily shared to help keep stakeholders updated.

Our multiple project views allow your team to work how they want, on kanban boards, task lists and more. All data is updated together across the tool so you have a single source of truth to keep everyone working on the same page. Our collaborative platform allows team members to share files, comment and get notified of any updates to let them work more productively—all of which leads to more quality work.

As the name says, total quality management is a systemic change to the strategic goals of an organization. It impacts everyone and every department. Therefore, having the right tools to manage and communicate this process throughout an organization is critical. ProjectManager is a cloud-based project management software that gives managers and teams the control to plan, track and report on the progress of this or any methodology. See for yourself by taking this free 30-day trial.

The post Total Quality Management (TQM): What Is It, Principles and Systems appeared first on ProjectManager.

Below, we’ll define what a prototype is, why it’s important to make a product prototype and explore how to make a prototype. Along the way, we’ll offer tips, particularly on how project management software can help you realize your idea and turn a product prototype into a successful product launch.

What Is a Prototype?

A prototype is the physical manifestation of an idea, an important step in product management. That is, it takes the conceptual product and brings it into the real world. There are various ways that a prototype can be created, from a quick sketch to something three-dimensional, depending on the time and effort you want to spend.

Paper sketches are the simplest type of product prototype, but you can also make a digital prototype. These mockups can help further the design, materialize your product vision and get feedback from the engineering team. Of course, you can make physical prototypes as well.

There are four types of product prototypes. High-fidelity user prototypes test usability, live data prototypes test behavior with data, low-fidelity user prototypes test the value proposition and feasibility prototypes test technical limitations.

A product prototype can even go through many stages, starting with a rough to a more functional, almost complete version of the product. It’s through these exercises that design and engineering departments communicate and develop the idea into a working product.

Having a tool that can bridge the gap between design and engineering is essential to product prototyping. ProjectManager is project management software with multiple views that allow departments to work on the tools they prefer without hindering collaboration. Whether it’s a Gantt chart, task list or kanban board, all data updates in real time to always keep everyone working on the most current product prototype. Get started with ProjectManager today for free.

Examples of Projects That Would Require a Prototype

Many projects see significant benefits from prototyping, especially those that involve user interaction, complex designs or new technologies. Here are some examples across industries.

Architecture Prototype Example

In an architectural project, let’s say there’s a modern park pavilion being built. The initial prototype would consist of various architectural sketches of pavilion shapes and layouts on paper. Once the ideal sketch is chosen, a refined 3D digital model is created to help visualize the spatial flow and sunlight patterns. The final prototype would consist of a physical scale model showing the materials and how the pavilion fits within the park’s landscape.

Engineering Prototype Example

Engineering projects, such as creating a new bicycle pedal design, would start with an initial prototype consisting of a rough 3D-printed plastic model that helps test the size and shape. From there, a metal version would be created to test the pedal’s strength and durability. Finally, a working prototype with integrated sensors would be built to collect data to make any adjustments as needed.

Manufacturing Prototype Example

If a new type of kitchen spatula is being created, the initial prototype would consist of a clay model that’s sculpted to test the handle’s grip and shape. After collecting feedback, the next prototype would consist of a 3D-printed plastic version to test the spatula’s heat resistance and flexibility. The final prototype may consist of a small batch of food-grade silicone spatulas. Any user or market feedback will be implemented before the final product is released.

Technology Prototype Example

For this example, let’s say there’s a new mobile app being developed to learn a new language. The first step is to create an interactive wireframe to map out user flows and screen layouts. From there, a clickable mock-up with sample content can help test the app’s core functionality, such as conversation simulations and vocabulary quizzes. Then, a limited yet functional app version will be released to a group of beta testers, where they can submit feedback before the app becomes available.

What Are the Benefits of Making a Product Prototype?

The popularity of product prototyping stems from its importance in product management. The last thing you want to do is launch your product to the market and be inundated with complaints about how this, that or the other thing isn’t working.

One benefit is being able to detect design problems early when they can be resolved cheaply, easily and without damaging your brand.

There’s also the benefit of being able to make more accurate forecasts of the production costs, manufacturing time and the materials you’ll need to make the product. This includes the equipment or machinery you’ll need for production.

It’s also a perfect time to test your product to figure out its usability and durability. Depending on the type of prototype, it could also be shared with customers or end-users to get feedback from them.

The product prototype is a way to determine the function and final design of the product. However, it’s also a useful tool for attracting investors. Showing the product prototype can help you raise the necessary funds to produce and market your product.

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Product Launch Template

Use this free Product Launch Template to manage your projects better.

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Who Should Be Involved in Making a Prototype?

Different project roles will be looped into making a prototype depending on your industry, the project’s stage and its nature. Let’s consider a software project, for example. During the development and creation stages of a software project, UX and UI designers are central to the prototyping process as they create mockups and wireframes.

Developers are also involved as they build functional prototypes and ensure they’re feasible with development constraints. The product manager is involved as they define the prototype’s goals and scope. They can also gather and incorporate feedback from stakeholders throughout these phases.

Once the prototype is built, then comes the reporting phase. Here, roles such as subject matter experts (SMEs) will provide their expertise and ensure the prototype accurately reflects industry standards. End-users will help validate the prototype as well, offering usability testing and real-world feedback. If you work in a different industry, you’ll have other roles interact during the development of a prototype.

How to Make a Prototype in 6 Steps

Now that you see the importance of not jumping into production without first having tested a product prototype, it’s time to learn how to make one. As you might imagine, this is a time-consuming but essential process, it’s not to be overlooked. These six steps will ensure you do a thorough job.

1. Start With a Product Vision

First comes the idea. You have to start somewhere. If you’re not inspired, don’t worry. Most product development doesn’t start with a lightning bolt. It’s best to begin by researching the market and competition. Brainstorming with your team is also a great way to generate ideas. But most of all, your idea should fill an unserved niche or respond to a problem that customers face.

2. Create a Sketch or Use Computer Aided Design (CAD)

Now that you have the idea, you need to get it down on paper. This can be done as a simple sketch, but more common is the use of software such as CAD, which stands for computer-aided design. It can create a 3-D replica of your product idea. That includes dimensions but also shows the product in a virtual simulation, helping you refine the product.

3. Make a Proof of Concept

Once you’ve sketched the idea, you need to create a proof of concept. That’ll show that the product can be developed and how it’ll be developed. It can also be when you test the product and explore its feasibility in a real-world scenario.

4. Make a Physical Product Prototype

Once you’ve done the due diligence and have shown that the product is viable, you’ll want to build a physical product prototype. This should be very close if not exactly like the final product that you’ll market. To do this there are a couple of common approaches. One is 3-D printing, which has become more standard and can even be used in mass production. It’s cost-effective but tends to be fragile and as yet lacks functionality. The other is CNC prototyping, which is a machine that allows for almost perfect, functional copies of a product. However, they’re expensive to install, learn to operate and maintain. A third option would be virtually simulated prototypes, but this doesn’t fit all needs.

5. Test the Prototype

Now that you have a product that you can hold in your hands you have to make sure it does what you created it to do. To validate the design decisions before mass production, you want to have real users try the product and identify issues that might arise. This way changes can be made to build a final product that meets users’ needs and expectations.

6. Create a Production-Ready Prototype

Finally, once you’re certain the product prototype is ready and all the bugs have been worked out, build a production-ready prototype that fits your budget. Figure out the materials and check with reliable vendors to determine costs. At this stage, it’s advisable to create a product roadmap to keep track of any future improvements made to your product.

Product Prototyping Tips

Product prototyping can vary depending on what you’re prototyping, the product you’re manufacturing, etc. Regardless of what or how you use a product prototype, there are a few tips that are universal to the process.

Protect Your Design

Once you’ve designed your prototype and have identified its flaws, you need to protect your intellectual property. The process of filing for a patent should start at least a year before you disclose the work. That helps you avoid plagiarism and other companies copying the design. It’s best to hire a patent lawyer who has expertise and experience. Before filing for a patent, it’s a good idea to have your team, and anyone who is part of the evolution of the design, sign a nondisclosure agreement (NDA).

Use Benchmarking and Competitive Analysis

Benchmarking and competitive analysis are tools that help companies understand the market. Using the ongoing process of benchmarking to measure your product through its development is a way to gather data to improve your product. At the same time, it’s important to understand the market your product will be introduced into and the competitors that your product will need to differentiate itself from. You do this by figuring out their strengths and weaknesses so your product can exploit them.

Consider Costs While Designing Your Product Prototype

Last, but certainly not least, you must always consider cost when product prototyping. There are many stages to making a prototype, from concept to testing and more. Each of these has a related cost and they add up fast. The cost varies depending on the type of product you’re building, but you should research the typical cost for these activities in order not to create a money pit that buries your product under costly expenses.

ProjectManager Helps With Product Prototyping

There’s a lot to manage and track in product development. Just product prototyping alone is a major endeavor. Project management software can help make the process more efficient. ProjectManager is online project management software that helps you plan, manage and track your product prototyping. Our software can also be used throughout the development of your product through manufacturing and marketing.

Manage Time, Cost and Resources

Product prototyping involves the organization of many tasks and stages of development. Manage that work with our robust Gantt charts. Managers can assign tasks, link all four types of dependencies and set milestones on a visual timeline. When you set a baseline, you can benchmark your product against the plan to make sure your actual effort is aligned with your planned effort to help deliver your product on time.

Track Progress in Real Time

To keep to your budget and schedule, you need metrics to measure your progress and the performance of your team. Using our real-time dashboards gives you a high-level view of everything from time on tasks to costs, workload and more. There’s no need to configure the live dashboard as with lightweight products; it’s ready when you are.

If you want to look more closely at the data, it’s easy to generate reports on status, variance, timesheets and more. Every report is customizable to show only the data you want to see. They can also be shared to keep your stakeholders updated and manage their expectations.

ProjectManager is award-winning software that empowers teams to work more productively. Manage, risk, tasks and resources to keep your product on track and deliver success. Join teams at Avis, Nestle and Siemens who use our tool. Get started with ProjectManager today for free.

The post How to Make a Prototype: Product Prototyping Basics appeared first on ProjectManager.

Logistics management is the process of managing the activities that are required to transport goods from its source to the final customer. That process involves a series of logistics activities such as order processing, material handling, packaging, warehousing, transportation and customer service management.

The logistics management process is used for tangible goods such as raw materials, finished products, equipment and machinery to food or other consumable items. A person who works in this field is called a logistician or logistics manager.

Who Is a Logistics Manager?

A logistics manager plays an integral role in overseeing the flow of goods and materials within an organization. Their primary role is to ensure the product gets to the right place, at the right time and most efficiently and cost-effectively.

This role plays a vital link in the supply chain to ensure goods are moving as they should. The logistics manager is deeply involved in the supply chain, from sourcing raw materials to delivering finished products to customers. They also oversee areas such as inventory management, warehousing, optimization and stakeholder coordination.

Logistics Manager Degrees and Certifications

A career as a logistics manager usually involves a mixture of formal education and practical experience. A bachelor’s degree is the standard entry-level requirement in a field of study such as supply chain management, logistics, business administration or industrial engineering. Those seeking advanced or senior-level positions may benefit from a master’s degree in business administration.

Key skills of a supply chain manager include the ability to identify trends, optimize resources, manage supply chains and use data analysis tools. Excellent verbal and written communication skills help interact with suppliers and internal teams while problem-solving skills help resolve challenges quickly.

Logistics manager certifications include Certified Professional Logistician (CPL), Certified in Logistics, Transportation and Distribution (CLTD), Certified Logistics Technician (CLT), Certified Supply Chain Professional (CSCP) or Project Management Professional (PMP).

Logistics Management vs. Supply Chain Management

Logistics management is a subset of the larger supply chain management. Supply chain management plans, implements and controls the efficient flow of storage, goods, services and related information from the point of origin to the point of consumption. This is done for the purpose of meeting the requirements of customers.

Logistics management in business works across industries. It aims to manage the fruition of project life cycles, supply chains and resultant efficiencies. As businesses grow more complex and expand into a global marketplace, business logisticians have evolved into something called supply chain logisticians.

With logistics management in manufacturing, the focus is twofold: inbound logistics for internal functions and outbound logistics for the external flow from the point of origin to the point of consumption. Logisticians focus on inventory management, purchasing, transportation, warehousing, consultation and the organization and mapping of these processes.

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Inventory Template

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Different Types of Logistics Management

Here’s a quick overview of the main types of logistics management, each emphasizing a different aspect of the supply chain management process.

Inbound Logistics Management

Inbound logistics management refers to the logistics activities that are necessary to transport materials, equipment and machinery from a supplier to a production facility.

Production Logistics and Management

Production logistics management manages the transportation of goods during the production process. This involves the staging of materials from production warehouses to the production line at the right time to streamline the production process.

Outbound Logistics Management

Outbound logistics management is the opposite of inbound logistics. It involves the transportation of goods from the production or distribution center to the final customer.

Third-Party Logistics Management

Third-party logistics management refers to the outsourcing of logistics management activities. Third-party logistics management can involve outsourcing inbound or outbound logistic activities.

Supply Management Logistics Management

This involves the planning, procuring and coordinating materials that are needed at a certain time at a particular place for the production of a task. This includes transportation of the materials as well as a place to store them. Additionally, evaluating the level of supply at the different stages of the process is required to ensure the needs of the customer are met, for example delivering materials to a construction site or parts for a manufacturing plant.

Distribution Logistics Management

This takes stored materials and transports them to where they need to go. The issues in this involve moving materials; including loading, unloading and transportation, as well as keeping track of the stock and how it’s used. This type of logistics management controls the movement of supplies from a central warehouse to the stores that sell the product to the public.

Customer Service Logistics Management

Customer service logistics management consists of ensuring products are delivered on time and damage-free to ensure customer satisfaction. To do this, organizations use logistics management tools and techniques to track customer interactions along the logistics management process of order processing, handling, transportation and delivery of goods.

Reverse Logistics Management

This is about the management of reclaiming materials and supplies from the customer back to production. For example, reverse logistics management is concerned with the return of unwanted or unused products from the end customer seeking a refund.

To model, analyze, visualize and optimize this complex logistical puzzle, the use of logistics management software is often used. ProjectManager has planning tools such as Gantt charts, kanban boards, timesheets and real-time dashboards to help you manage the tasks in your logistics management process. Get started for free today.

The Logistics Management Process: Logistics Activities

Logistics management is a process that consists of logistic activities, also referred to as functions that allow organizations to implement the types of logistics management explained above.

1. Warehousing or Warehouse Management

A warehouse is a physical place where goods are stored when they come out of production. However, warehouse management can be strategically used by companies to excel in the market. For example, the location of a warehouse can play a significant role by allowing companies to deliver their products faster than their competitors. Warehousing automation can also help companies cut labor costs.

2. Order Processing & Fulfillment

Order processing and fulfillment is the process of receiving an order, ensuring payment terms have been met, checking the production capacity and availability of stock and preparing the order for transportation. Another important aspect of order processing & fulfillment is to document transactions and make sure the warehouse inventory is updated whenever an order is fulfilled.

3. Material Handling

Materials handling refers to the movement of goods in a warehouse. Companies need to plan their warehouse layouts carefully to help their employees clearly understand where to find the products that are ordered by customers. Some warehouses for big companies can be large, so it’s important to plan carefully to avoid any logistic inefficiencies.

4. Packaging

In logistics management, the packaging doesn’t focus on the aesthetics of the product packaging for the final customers, but instead on how well the product is packaged for transportation in terms of storage space efficiency, breakage prevention, packing cost and ease of handling. If packaging meets these requirements, it can help companies save money and facilitate its logistics management process.

5. Transportation Management

Transportation is the process of delivering products or materials from their warehouse to the final customer. This is the most expensive logistics activity and therefore, is a step that should be planned carefully to minimize manufacturing costs. Logistic managers need to find the most efficient transportation schedule and method of transportation such as rail, truck water and air.

6. Inventory Management

Keeping an inventory of products at the warehouse is costly for businesses and may affect their profitability. For this reason, the goal of inventory control is to gauge customer demand to maintain an inventory level that satisfies it, but without causing overcosts. Some manufacturing methods such as lean manufacturing or just-in-time manufacturing allow businesses to manage their inventory costs.

The Distribution Network of Logistics Management

The various links and points of distribution in a logistics management network include the following:

• Factories that manufacture products
• Warehouses that store products
• Distribution centers to receive and return items for clients
• Transport to deliver the product
• Retail locations, from small to larger stores sell a product

These are the major hubs for the logistics of a product, though there can be vendors and intermediaries operating between these points.

Tips for Smart Logistics Management

Logistics management involves a lot of planning and the more steps, the better. By considering every stage of the product, its distribution and the return of materials and supplies, you’re more likely to increase efficiencies and increase revenues.

The larger the operation, the more complex and difficult the logistics management. Therefore, the more you need a strong logistics management plan. To be prepared and have the best plan possible, follow the below tips.

• Have a strong plan: Like any management, it succeeds or fails on the plan’s strength. The more thorough your plan, the less you’ll have to think on your feet. There will always be issues and only so many potential risks you can anticipate, but planning early and in detail can help mitigate delays and other obstructions to the clear flow of materials and supply.
• Make a plan B: No matter how good your initial plan is, there can always be something that comes along that it cannot manage. That’s why you need a contingency plan for every element of your logistics plans to respond to unforeseen problems that might arise. But it’s important to also know when to give up the original plan and move on to the secondary one.
• Hire a manager: It’s critical that this process has an experienced leader who can work with a variety of different parties, all of whom are involved in the logistics of the materials and supplies. That means interpersonal skills are a must. They should also have strong industry contacts to deal with any last-minute logistics changes in suppliers, etc.
• Automate: It goes without saying that automation is a built-in way to make workflow more efficient. They are so many processes that can be helped through task automation, from tracking to monitoring delivery to fleet and inventory management software.
• Learn from mistakes: This goes for almost everything. You’ll take missteps on your journey of managing logistics. That’s a given. What’s not assured is that you’ll learn from those mistakes, so they don’t happen again. Take time to look back on what you’ve done, where it worked and where it didn’t, and get feedback from your team.

Why Is Logistics Management Important?

The purpose of logistics management is about finding more efficient and effective ways to move resources and products from conception to completion and, finally, to the customer. But the driving force of these actions is to meet customer demand and provide the best service possible to retain customers and maintain their satisfaction by meeting their product requirements.

As customers demand better service, there’s a need to ship faster, more accurately and with a high level of quality. It’s through logistics management that customer satisfaction is achieved.

But that’s not the only benefit. It also helps to create visibility in the business’ supply chain. By analyzing historical data and tracking the real-time movement of goods, logistics managers can better the flow of materials and avoid potential disruptions.

Therefore, logistics management helps drive up revenue. It improves customer service and adds to the company’s good reputation and brand, which in turn creates new and more business. With more visibility into the supply chain, there’s the opportunity to save costs in operations, by controlling inbound funds, keeping inventory at the right level and organizing the reverse flow of goods.

Free Logistics Management & Supply Chain Management Templates

To streamline the logistics management process and improve accuracy, consider using pre-built templates. ProjectManager has a library of project management templates for Excel and Word available to download from our site. Here are a few that help with logistics management.

Inventory Template

Download this free inventory template for Excel to record the level of inventory and track how much is turned over. It provides managers with the details they need to monitor stock, manage reordering and keep inventory costs from skyrocketing.

Payment Schedule Template

This free payment schedule template for Excel offers an organized framework to track payments, due dates and amounts to businesses remain financially accountable. It reduces errors, improves budgeting and ensures timely payments.

Process Map Template

Use this free process map template for Excel to better visualize workflows, identify inefficiencies and optimize processes. It maps out steps, responsibilities and decision points to help organizations ensure consistency and save time.

How ProjectManager Helps Your Logistics Management

Logistics is just planning with literal deliverables. Therefore, successful logistics managers understand the importance of a project management software tool to help them collect, organize and move items from one place to the next efficiently. ProjectManager is award-winning software that’s designed to improve the organization of projects and teams to maximum effect.

Track Progress With Kanban Boards

When you’re dealing with an overwhelming amount of shipping, priorities and deadlines, you need a way to see where those pieces are at any given time. Our kanban tool visualizes the movement of your shipments with cards representing each item and columns that show where it is in your shipping cycle.

Dashboards and Reporting Keep Things Moving Smoothly

Since our software is online, every time there’s a status update, it reflects across the tool. We have dashboard and reporting tools that provide more data and make managing logistics simple. For example, you can get a high-level view of your costs, variance, tasks and more. The data is crunched automatically and displayed in easy-to-read graphs and charts.

Logistics management has many things to track and resources to schedule. As projects go, it’s one of the more complicated. ProjectManager is project management software that gives you the tools to manage logistics more efficiently through automation and real-time monitoring. Kanban boards for visual workflows, online Gantt charts for scheduling and a real-time dashboard to report on progress as it happens. See how it can remove bottlenecks from your supply chain by taking this free 30-day trial today.

The post Logistics Management 101: Types, Degrees and How It Works with Supply Chain Management appeared first on ProjectManager.

Making accurate estimates of construction costs requires an understanding of job costing, knowing what a job cost sheet is and what needs to be included in that costing sheet. We’ll go over all, plus explain when to use job order costing and provide an example of a job cost sheet to make sure the definition is clear.

What Is Job Costing?

Job costing or job order costing, is a type of cost accounting method that helps identify project costs and track them to keep to your project budget. It tracks all costs and revenue associated with a particular project and is commonly used in construction projects, but it can also be found in manufacturing, engineering, retail, logistics, healthcare and more.

When doing job costing for a project, you’ll break down your project costs into three areas: labor, materials and equipment or overhead costs. We’ll get into more detail on that in a moment. The goal is to clearly understand the profit or loss related to each project by looking at the cost of each piece of the project, which allows managers to track the profitability of each.

Using job costing can also help future projects. By looking back at past estimates and comparing them to actual costs, you can make more accurate estimates when planning for a similar project. Job costing can help managers identify inefficiencies and excess costs that can be addressed by automating work or allocating resources better.

Project management software can help you plan, schedule and track your project costs. ProjectManager is award-winning project management software with multiple project views that let you plan costs and resources on Gantt charts, track workflow on kanban boards and allow teams to execute their work on task lists. When a project is planned on a Gantt, set a baseline to capture your planned costs and compare them to actual costs in real time so you can track your expenses and keep to your budget. Get started with ProjectManager today for free.

What Is a Job Cost Sheet?

A costing sheet lists all the component costs for a project. The pricing is done per unit and often shows the cost of that component from a previous project so they can be compared. The costing sheet will then add the final cost of the project.

As noted above, this can be applied to a number of different projects but is also found when manufacturing distinctive products. It’s a good fit for businesses that provide specialized goods or expensive projects, such as computers and automobiles.

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Job Cost Sheet Template

Use this free Job Cost Sheet Template for Excel to manage your projects better.

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Benefits of using a costing sheet include that they show the product’s production cost overall as well as the unit costs. In terms of manufacturing, they can help keep product costs under control. They also help develop product policy and aid in the decision-making on product pricing. And, as noted, helps managers compare costs to past outcomes and benchmark costs.

What Should Be Included in a Job Cost Sheet?

Here are the most important components of a job cost sheet for construction, manufacturing and other similar industries that utilize the job costing method.

1. Job Information

The job cost sheet should include general information about the job, which helps construction firms manage their job cost sheet archives.

• Job number
• Client details
• Job description
• Start and end dates

2. Direct Labor Costs

Direct labor costs are the costs of the salaries of all the employees that are directly related to the execution and management of the job. Labor costs are calculated by multiplying the daily payroll rate for each employee by the number of days they’re working on a specific job.

• Employee hourly pay rate
• Hours worked
• Role description

3. Direct Materials Costs

Direct material costs are generated by all the materials, components and other tangible elements that’ll be used for the execution of the scope of work and can be traced such as wood, concrete, cement or glass. When measuring direct material costs it’s important to include the following details.

• Measurement unit
• Item quantity
• Unit cost

4. Overhead Costs

Overhead costs in manufacturing or consturction are not directly related to the job but refer to costs that allow a business to operate, such as rent, utilities and other business expenses that can’t be considered direct labor or direct materials.

To find them, break down daily operating costs and then attribute the correct proportion to the project. Because this is a difficult figure to discern, companies will often apply an overhead fee to each project of 10 percent of the job.

5. Direct Equipment Costs

Direct equipment costs in job order costing refer to the expenses directly tied to the use of equipment on a specific project. These may include:

• Equipment purchase or lease
• Operating costs such as fuel or maintenance costs
• Wages and benefits paid to the workers who are operating the equipment

6. Subcontractor Costs

Subcontractor costs are those incurred by a general contractor when they hire external companies or individuals to execute certain parts of the construction project. These may include things like labor costs, materials provided to the subcontractor, equipment costs or overhead costs like legal fees or project management fees.

7. Profit Margin

Another part of a job cost sheet is the profit margin. This is the percentage of profit that the company will make on the project. To calculate the profit margin:

• Subtract the total project costs including labor, materials, equipment, overhead, etc. from the total revenue
• Divide the gross profit (revenue minus costs) by the total revenue

The profit margin is essential for determining how profitable a project is and allows the business to make informed decisions moving forward.

8. Planned Costs vs. Actual Costs Comparison

In a construction project, planned costs refer to the expenses that were budgeted for a particular project. These may include labor, equipment, materials, overhead, etc. The actual costs include the real expenses incurred during the project. These may differ from the planned costs due to unexpected issues, changes in scope, market fluctuations or inefficiencies. Be sure to include this information in the job cost sheet.

Job Costing Example

To better understand job costing, let’s move from the abstract to a practical example. We’ll make up a simple construction job, say, Acme Construction, which has been hired to dig a hole and lay the concrete for the foundation of a building.

The first thing is to figure out labor costs. There will be the crew making the foundation pit. That’s five people at $100 a day per person, with a duration of three days to make the hole. Next comes the cement crew. Again, this is a five-person job at $100 per day per person, with a duration of two days. Labor, therefore has a total of $2,500.

Next, we have to look at materials. Concrete will cost $1,000. There’s also the excavator to dig the hole and the cement truck to deliver and dispose of the cement. Rentals for these two machines add up to $1,000. Therefore, material costs are $2,000

To calculate the overhead costs, we’ll spitball the figure at 10 percent of our project total, which is $4,500. That gives us an overhead cost of $450. That means our job will cost $4,950. Here’s what the cost sheet for this simple project should look like.

Job Cost Sheet Template

To streamline a job cost sheet, download our free job cost sheet template. This is a versatile template that provides a structured framework for tracking and managing the expenses tied to a specific project or job.

When to Use Job Costing

As we’ve mentioned, job costing is a cost accounting method that’s used in virtually every industry that manages projects. Therefore, managers use job costing in a variety of disciplines. Let’s look at three of the more commonly used job-costing industries: project management, construction and manufacturing.

Job Costing in Project Management

Project management is a discipline that crosses many fields. It’s a methodology for delivering a project and costs are one of the most important aspects of that management. Job costing is often used to help estimate costs on a project, but also to help track the project to ensure that there’s no overspending. This is done through the job costing technique of comparing the planned costs against the actual costs. If a project is going over budget, then either the scope or the time must be adjusted unless additional funding can be secured.

Construction Job Costing

Job costing is often found in construction where it’s used to accurately track all costs associated with the job. As we’ve noted, that includes labor, material and overhead costs. It starts by getting a detailed breakdown of the entire project, which allows managers to track expenses and calculate future profitability. By quickly identifying expenses that cut into profits, construction contractors can rectify the problem and save their profit margin.

Manufacturing Job Costing

Again, in manufacturing, job costing plays the same important role. It adds the labor, materials and overhead for each job to make sure that production costs are correct. As in construction, this allows the company to measure profitability and hit targets for margin. It also allows them to benchmark themselves against the competition to uncover areas that can be improved and make them more competitive. Using job costing in manufacturing also helps plan budgets and operating expenses over the long term.

Advantages of Job Costing

If you’re on the fence about using a job cost sheet, we’ve provided some advantages to consider below.

Helps Determine the Profitability of a Job or Project

Before a project is considered successful, its profitability needs to be considered. Job costing tracks and analyzes all project costs which helps with accurate cost tracking. As a result, project stakeholders can calculate the total project cost, determine the gross profit and determine the profit margin. It enables businesses to make informed decisions and improve their overall financial performance.

Allows to Detect Cost Overruns

Job cost sheets also identify cost overruns in various ways. For one, it compares the actual costs to the budgeted costs for each cost category. If actual costs are more than the budgeted amounts, it identifies a potential cost overrun. Project managers can detect cost overruns early to take corrective action accordingly.

Facilitates Cost Allocation, Tracking and Control

A final benefit of job order costing is accurate cost allocation, tracking and control. Job costing systems record all project expenses and help prevent cost overruns by comparing actual costs to the budget. In other words, it provides insights into project costs so businesses can improve efficiency, control expenses and improve their profitability.

Disadvantages of Job Costing

While the advantages of job order costing are clear, there are also some disadvantages to consider.

Time-Consuming Process

Job costing requires that all materials, labor hours and overhead for each individual job must be tracked. This means teams are spending time on documenting costs, maintaining records and putting together reports.

Limited Scalability

A job cost sheet is the most impactful for customized, one-off jobs or smaller projects. If a business needs to scale up to mass production or handle many jobs at once, job costing isn’t practical.

Complex Overhead Allocation

Overhead costs such as administrative expenses or rent are shared across jobs and need to be allocated using a predetermined method. It can be difficult to choose and implement the ideal allocation basis such as labor or machine hours. As a result, some jobs may be overburdened or undercharged.

ProjectManager Helps Keep Track of Project Costs

Job costing gets you a figure for the estimated cost of the project and that figure can then be used to track your costs and revenue throughout the project with project management software. ProjectManager is award-winning project management software that lets you plan, manage and track your project costs in real time. Use our Gantt charts to plan your costs and view the whole project on a visual timeline. Link all four dependencies to avoid costly bottlenecks and set the baseline to track costs in real time throughout the software.

Track Labor Costs With Online Timesheets

When teams log their hours in the software, management isn’t only getting secure timesheets that streamline the payroll process but another tool to track time and costs. Our timesheets help managers control labor costs and help with project estimates by looking at timesheets from previous projects. Timesheets can automatically log hours and give managers a window into the percentage of tasks their team has completed in real time. This helps managers spot issues and keep projects on track, both in terms of schedule and cost.

Monitor Budgets With Real-Time Dashboards

Once a baseline is set on the Gantt chart, live data is delivered to the real-time dashboard and six project metrics are displayed in easy-to-read graphs and charts. There’s a cost chart that allows managers to get a high-level view of their budget, including the planned and actual costs so they can respond accordingly if the project is spending beyond what’s been allocated. Unlike other project management tools, there’s no time-consuming setup required with our software. It’s plug-and-play. If you want to get more details toggle over to our customizable status, portfolio and more reports. Filter the report to see only what you want and it’s easy to share to update stakeholders.

There are other features to help you stay on budget, such as resource management tools that allow you to keep your team’s workload balanced so they can work at capacity and stay productive. Risk management features allow you to identify risks and track issues until they’re resolved. There are also task management features, automated workflow with task approvals to ensure quality deliverables and much more.

Alternative Methods to Job Costing

Other cost accounting methods can be used instead of job costing when measuring the cost of jobs and projects. The most commonly used alternatives to job costing are process costing, activity-based costing, batch costing and contract costing. The sections below explain the differences between these approaches.

Job Costing vs. Process Costing

We’ve talked a lot about job costing, but to sum up, it’s an accounting method of tracking all costs and revenue associated with a project. There’s also something called process costing, but it’s a different accounting method and it’s important to understand the difference between the two,

Process costing is also an accounting method, but it’s deployed when there’s mass production of similar products by collecting and assigning manufacturing costs to the units produced. Unlike job costing which is used in customized manufacturing, process costing is used in standardized or mass-produced manufacturing.

With job costing, the cost of each complete job is done. In process costing, the cost is determined by the process and the production budget. The cost calculation for process costing is based on the process, not the job, as in job costing.

Another difference is that costs can’t be transferred in job costing, but that can be across processes in process costing. Also, each job is different in job costing, but process costing is about projects produced in large volumes.

Job Costing vs. Activity-Based Costing

When comparing job costing and activity-based costing, job costing is typically simpler and suitable for many businesses while ABC used a refined approach based on activities. While activity-based coaching is more accurate, it requires more effort to implement and maintain over time.

Job Costing vs. Batch Costing

Job costing is used when each job has unique characteristics and jobs need to be tracked individually. Batch costing, on the other hand, is used when products are made in groups with similar characteristics and the focus is on tracking costs for the batch.

Job Costing vs. Contract Costing

If the project is smaller or shorter-term, job costing is more suitable as costs are tracked for each individual job. If the project is large and long-term, contract costing is preferred as it considers the unique challenges of revenue recognition and potential losses or profits.

ProjectManager is online project management software that connects teams across departments and time zones, allowing them to share files, comment at the task level and more. Our software allows managers to plan, manage and track more than costs but every aspect of their budget. Join teams at companies such as Avis, Nestle and Siemens who are using our tool to succeed. Get started with ProjectManager today for free.

The post What Is Job Costing? How to Make a Job Cost Sheet (Example Included) appeared first on ProjectManager.

The following is a list of the best production scheduling software in descending order. These 10 production scheduling software tools for manufacturing help you manage the production cycle, manufacturing operations, production capacity and much more. If you’re looking for an enterprise resource planning (ERP) system that can also manage your product scheduling, you’ve come to the right place. Before we list the best production scheduling software products, let’s define the term so we’re all on the same page.

What Is Production Scheduling Software?

Production scheduling software is a tool for manufacturers to help them plan and schedule production activities. It assists with resource utilization, managing the availability of raw materials, avoiding bottlenecks and more. There are many types of production scheduling software, from cloud-based to on-premise.

Production scheduling software is the most commonly used term to describe this type of software, but other terms are used as well, such as production planning software, manufacturing scheduling software or production planning and scheduling software. Production scheduling software ensures that delays are minimized by streamlining tasks, creating effective production workflows and allocating and optimizing resources that lead to an efficient production schedule.

What Are the Best Production Scheduling Software Features?

The feature set may vary from one production scheduling solution to another and choosing the right software for you and your team depends on the industry you’re in as well as the methodologies you use to plan, schedule and manage your team’s work. Having said that, here are some key features you should look for when choosing production scheduling software.

• Task & workflow management: In a nutshell, production scheduling is the process of creating a timeline for the execution of the tasks that are needed to manufacture a product. Tools like Gantt charts, kanban boards, to-do lists and calendars help production managers understand the order in which production tasks will be completed, what their due dates are, their completion status and who they’re assigned to.
• Resource management: Allocating resources for the completion of production tasks is an important aspect of production scheduling. For this reason, production scheduling software should include features to facilitate the planning, scheduling and allocation of resources such as people, materials, equipment and machinery. Workload charts are an example of a feature that production scheduling software should include, as they help production managers split the amount of work to be done among employees.
• Project management: The production process can be managed as a project as they share common elements such as timelines, resources, costs and stakeholders. Any production manager should be familiar with basic project management principles.
• Cost tracking and budgeting: A production scheduling software should have features that allow production managers to keep track of the costs of each task. Features such as timesheets and cost dashboards allow them to measure their labor costs accurately throughout the production process.
• Document management: Several documents are needed for managing the production process such as manufacturing orders, bills of materials, purchase orders and more. Choose production scheduling software with features such as unlimited file storage and file sharing.

10 Best Production Scheduling Software for Manufacturing

Now that we understand the meaning and scope of production scheduling software, let’s look at the top 10 options.

1. ProjectManager

ProjectManager is award-winning production scheduling software. It’s cloud-based, which means there’s minimal installation required. The software is well-designed with powerful scheduling features that place it at the top of our list for the best production scheduling software. Manufacturers will appreciate the full suite of tools for production planning, resource management, time tracking and reporting—and there’s a mobile app for managing work from the shop floor.  Plus, there’s a free 30-day trial so you can try out ProjectManager’s production scheduling features for yourself.

Manage Resources and Costs in Real Time

ProjectManager has powerful Gantt charts that are an essential tool for production scheduling. It links all four types of task dependencies to avoid costly production delays and bottlenecks. Both human and nonhuman resources and associated costs are captured in the Gantt chart as well. Once you’ve created a production schedule, the software allows you to set a baseline. This means you can now track the planned schedule against your actual schedule in real time to catch anomalies and reallocate resources to get you back on track.

Automate Production Workflows

Another plus is that ProjectManager can create custom workflows that help move one activity into another and keep the production line moving. To further efficiency, there are automated workflows. You can add as many triggers as you want to automatically change the status, assignee and more.

Of course, quality control is an issue with automated workflows, but ProjectManager has added a task approval setting so that an authorized individual can inspect and approve the work before it moves forward in production. You can view the production workflow on kanban boards. ProjectManager has multiple project views so the schedule made on a Gantt chart reflects across all other views, such as the kanban, list, calendar, etc.

Real-Time Insights into Team Workload and Task Progress

Another differentiating feature of ProjectManager is its built-in, easy-to-use resource management features. See all the tasks your team is working on in one place on the Team page. Filter tasks by team, daily work, weekly work and more. Click into a task to add files, leave a comment or update hours. If you find that one team member has too much work, instantly reassign a task with a simple drag-and-drop. No other production scheduling software seamlessly integrates detailed planning features with resource management.

Those are the features that make ProjectManager the best production scheduling software, but we didn’t even touch on how it excels at task management and risk management, including its time tracking and reporting features. Check out those and more by getting started with ProjectManager today for free.

Verdict: Best Production Scheduling Software for Manufacturing Projects

ProjectManager Pros & Key Features

• Workload charts for accurate resource utilization
• Real-time dashboards and timesheets for cost and time tracking
• Free 30-day trial
• Mobile app for Android and iOS

ProjectManager Cons & Limitations

• Doesn’t have built-in ERP tools, but integrates with Acumatica
• Missing some manufacturing-specific features
• Doesn’t have a free plan

ProjectManager Pricing

• Team plan: $14/user/month
• Business plan: $26/user/month
• Enterprise plan: Contact sales

ProjectManager Reviews

• G2 review: 4.4/5
• Capterra review: 4.1/5

Highlighted User Reviews

• “ProjectManager works very well with both large and small-scale projects. Being able to use this with anything from a project involving only two members of staff, to hundreds, has been invaluable.” Peter W – from Capterra
• “We used to manage our projects, resources, and reporting in different systems. Enter ProjectManager. We have consolidated systems and work more efficiently.” Jeffrey M – from Capterra
• “Having the full scope of activities and who is responsible to do it, plus the time tracking is excellent.” Flavio M – from G2
• “It has an excellent accounting system capable of calculating the time that a person has used to develop a task that was assigned to him, I like being able to collaborate with all my colleagues in the Finance sector through ProjectManager.” Jesus C – from G2
• “The UI of the application is user-friendly, and it helps to identify what we are looking for with minimal effort.” Pavan H – from G2

2. Monday.com

Monday.com promises to increase efficiency and accuracy while making it easier to manage internal and external orders. They have customized workflows that allow users to add and remove steps and add assignees. Workflows can be tailored to meet your production scheduling software requirements.

It allows users to manage all manufacturing processes in one place, adding visibility and notifications. There are features to track production processes, capture customer orders and requests, and even reporting tools and a variety of templates to help you get started.

Monday.com’s cost has been increasing and it’s getting to the point where it might no longer be worth the expense. Onboarding and training are difficult and customer support is distant. This gets worse the larger the project. Even the reporting features are limited. It’s really a task management tool and its automation, which is critical for production scheduling software, is confusing.

Related: Monday.com Gantt Chart: How to Make a Gantt Chart With Monday.com

Verdict: Best Production Scheduling Software for Collaboration

Monday.com Pros & Key Features

• Easy-to-use task management boards
• Workflow tools for manufacturing projects
• Has a 14-day free trial
• Has a mobile project management for Android and iOS

Monday.com Cons & Limitations

• Limited project scheduling features, more geared towards task and workflow management
• Cost-tracking features require a manual-intensive setup
• Project dashboard features are limited

Monday.com Pricing

• Basic: $8/user/month
• Standard: $10/user/month
• Pro: $16/user/month

Monday.com Reviews

• G2 review: 4.7/5
• Capterra review: 4.6/5

Highlighted User Reviews

• “I truly recommend using Monday to small to medium scale enterprises because of its ease of use.” Vikas G – from G2
• “I really like the monday work management interface.” Luiz Fernando J – from G2

3. Wrike

Wrike isn’t necessarily the go-to tool for manufacturers; it’s more of a fit for marketers, digital agencies and professional services. However, it’s a simple, effective and collaborative project management solution that can help with certain aspects of production scheduling. Wrike has a project schedule template that can break down the larger production process into small actionable items. Then you can assign due dates and track progress. Additionally, you can use the built-in chat function, risk protection, and, in terms of production scheduling software, it monitors workloads and activities. It’s also easy to track progress, bill and invoice.

However, Wrike has features, such as its Gantt chart, that aren’t intuitive. The kanban can only view tasks, not projects, and there’s no portfolio-level reporting for manufacturers who are running multiple projects. It mostly leans on its lists, but still requires a lot of time to understand how to use it as a production scheduling software. The automation features are poor, there aren’t many integrations and data and tasks can be hard to find.

Verdict: Best Production Scheduling Software for Risk Protection

Wrike Pros & Key Features

• Monitors workflows and activities
• Helps track the progress of your team
• Free 14-day trial
• Mobile app available for Android and iOS

Wrike Cons & Limitations

• The Gantt chart functionality is not ideal for production scheduling
• Lack of resource management reports
• Limited cost-tracking features

Wrike Pricing

• Team plan: $9.80/user/month (2-user minimum)
• Business plan: $24.80/user/month (5-user minimum)

Wrike Reviews

• G2 review: 4.2/5
• Capterra review: 4.3/5

Highlighted User Reviews

• “Wrike has become essential in my day and keeps me organized and on top of my tasks.” Paige T – from G2
• “Productivity has been enhanced by removing essential but repetitive chores.” Denise S – from G2

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Production Schedule Template

Use this free Production Schedule Template for Excel to manage your projects better.

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4. NetSuite

NetSuite is production scheduling software with a task scheduler that has drag-and-drop scheduling capabilities. You can automatically schedule work orders as they’re created or when they reach a specific status. A manufacturing workbench is a single place to configure work, such as setting up runs, lag and hold time batch configuration, etc.

If you’re a manufacturer who makes products in batches, the tool has batch scheduling. A shop calendar defines when resources are available, but all this comes at a steep price that’s likely outside of what a manufacturer can afford to spend.

Not only is the pricing high, but it’s subject to change and that often happens just as you’re about to renew. For such complicated software, there’s little support. Of course, you can get additional support for an additional cost. If you want to customize reports, that’s not something that you can easily do. It might be all-in-one in terms of production scheduling software, but can you afford or even understand it?

Verdict: Best Production Scheduling Software for Scheduling Tasks

NetSuite Pros & Key Features

• Batch-scheduling features
• Manufacturing workbench configures work
• Offers a free 14-day trial
• Mobile app available for Android and iOS

NetSuite Cons & Limitations

• Designed for large corporations with IT teams
• Difficult to implement, steep learning curve which requires employee training
• It’s an expensive software that requires add-ons to meet the specific requirements of organizations

NetSuite Pricing

• Contact for quote (average $99/month)

NetSuite Reviews

• G2 review: 4/5
• Capterra review: 4.2/5

Highlighted User Reviews

• “The best part about NetSuite is the ease of use for new users across our organization.” Joe W – from G2
• “NetSuite was the easiest ERP Software to learn and use.” Wes P – from Capterra

5. MRPeasy

MRPeasy is production scheduling software with planning and procurement features. It’s built for small to mid-sized manufacturing companies and helps to allocate their resources. The software helps plan costs and production, with administration and bill features. It tracks serial numbers and works well with lean manufacturing.

You can keep track of your customer information, including history and account purchases. It integrates with QuickBooks and Xero, with APIs for third-party applications. There are four pricing tiers, but there’s no free or even affordable option.

The problem is, if you buy the cheapest version of the software, you’ll only be able to do straightforward activities. Even some of those more expensive tools don’t live up to the price tag, such as limited customization on its dashboard, reporting and statistics. You can’t even print the statistic graph if you need it for a presentation.

Verdict: Best Production Scheduling Software for Procurement

MRPeasy Pros & Key Features

• Tracks customer information
• Integrates with QuickBooks and Xero
• Offers a free trial
• Mobile app available for Android and iOS

MRPeasy Cons & Limitations

• Only offers a calendar view for scheduling production processes
• Relies on integrations, which means additional costs for a fully functional version of the software
• Doesn’t have workload management tools

MRPeasy Pricing

• Starter $49/user/month
• Professional $69/user/month
• Enterprise $99/user/month
• Unlimited $149/user/month

MRPeasy Reviews

• G2 review: 4.5/5
• Capterra review: 4.5/5

Highlighted User Reviews

• “It covers all the essential features I need to manage my manufacturing processes, from inventory tracking to order management, without overwhelming me with complexity.” Alice B – from G2
• “It provided a solid foundation for managing manufacturing processes and streamlining operations.” Marek T – from Capterra

6. Katana MRP

Katana MRP is production scheduling software that focuses on materials requirement planning for small and medium-sized manufacturers. It also has inventory management tools. It can automate workflows, prioritize orders and provide visibility into the availability of raw materials and finished goods.

Its dashboard provides a real-time picture of production. It has a shop floor control function that lets users see the manufacturing order and ingredient list for tasks. There’s a visual planning tool that allows you to view supplier prices.

But surprisingly, it doesn’t allow you to track shipping supplies. It’s also not the easiest software to learn how to use, plus you have to create ingredients for each product, which is time-consuming. There are a lot of features, but you’ll be paying top dollar for them. User permissions also need improvement.

Verdict: Best Production Scheduling Software for Materials Requirement Planning

Katana Pros & Key Features

• Automated workflows
• Visibility into the availability of raw materials
• Offers a free 14-day trial

Katana Cons & Limitations

• Limited production planning and scheduling features
• No workload management features
• No project status, cost or health reports
• No mobile app

Katana Pricing

• Essential $99/user/month
• Advanced $299/user/month
• Professional $599/user/month
• Enterprise, contact sales

Quick Facts

• G2 review: 4.4/5
• Capterra review: 4.6/5

Highlighted User Reviews

• “I’ve found Katana to be quite easy to use and operate.” Lucas M – from G2
• “The Excel templates allow for bulk uploads of all of the required data categories which don’t need to be uploaded manually.” Brent T – from Capterra

7. Visual Planning

Visual Planning is production scheduling software for enterprise resource planning. It applies to businesses of all sizes. Included are features for HR, inventory management, supply chain management, manufacturing and more.

It has been used by defense and aerospace industries and has capabilities that include activity management, document management, collaboration, issue tracking, resource management and budgeting. The software is fairly easy to use but expensive.

It takes a long time to set up and isn’t viable for smaller manufacturing businesses. Users have complained about its look, which is old-fashioned and it doesn’t integrate with many third-party apps. There’s also a steep learning curve to get the full impact of the software.

Verdict: Best Production Scheduling Software for Enterprise Resource Planning

Visual Planning Pros & Key Features

• Flexible, customizable and easy to use
• Drag-and-drop features
• Has a mobile app available for Android and iOS

Visual Planning Cons & Limitations

• Gantt charts and project calendars lack important features for both project management and production scheduling
• Limited feature set compared to other software in this list
• Doesn’t offer a free trial

Visual Planning Pricing

• VP Go $15/user/month
• VP Portal $35/user/month
• VP Desk $55/user/month

Visual Planning Reviews

• G2 review: 3.8/5
• Capterra review: 4.6/5

Highlighted User Reviews

• “Scheduling tasks for different employees is very simple, you just click on their box and then click add card.” Benjamin M – from G2
• “Great for keeping up with a fluid production schedule.” Dave O – from Capterra

8. Fishbowl Inventory

Fishbowl Inventory is flexible ERP software that provides users with visibility into warehouse and manufacturing workflows. It integrates with Xero, QuickBooks and Reckon Accounts. The software is essentially made up of two plans, one being Fishbowl Manufacturing, which is used for assembly, disassembly, repair, replacement and other jobs.

Fishbowl Warehouse works to track inventory. It gives stock alerts, reordering, receiving and shipping goods data. This wide range of features is very costly. You have to buy both plans, which cost thousands of dollars.

The high up-front cost is painful enough, then there’s the limited customization. Even the touted shipping features aren’t all they should be. You’d think customer support would fill in these holes, but it’s unreliable. Plus, product costs are averaged from past purchases so there’s no first in, first out (FIFO) or last in, last out (LIFO) support.

Verdict: Best Production Scheduling Software for Warehouse and Manufacturing Workflows

Fishbowl Inventory Pros & Key Features

• Tracks inventory and gives stock alerts
• Has maintenance capabilities
• Offers a 14-day free trial
• Mobile app available for Android and iOS

Fishbowl Inventory Cons & Limitations

• Non-friendly user interface
• Few production scheduling features
• Not ideal for managing manufacturing projects

Fishbowl Inventory Pricing

• Contact for quote (starting at $4,395)

Fishbowl Inventory Reviews

• G2 review: 4/5
• Capterra review: 4.2/5

Highlighted User Reviews

• “We were looking for a platform to help us keep up with our inventory quantities, costs, ordering, and manufacturing.” Bryan W – from G2
• “There is a learning curve but in the end you have what you need.” Rulon C – from Capterra

9. QT9 ERP

QT9 ERP is an automating business primarily for aerospace, food, manufacturing, medical devices, pharmaceuticals and plastics. It helps integrate data from multiple systems, locations, departments and employees. In terms of production scheduling software, you can automate your manufacturing, bill of materials and shop floor management.

Inventory control helps you optimize your inventory. Purchasing management helps with planning, inspections, MRP and supplier management. This can lead to confusion for users and that’s understandable. This is complicated and overwhelming software.

That steep learning curve with an opaque pricing structure will alienate a lot of potential buyers. Then when they find out the price it’s not going to help sweeten the deal. Add to the difficulty of configuring custom reporting and many will pass.

Verdict: Best Production Scheduling Software for Automating

QT9 ERP Pros & Key Features

• Integrates data from multiple sources
• Has shop floor management
• Free 30-day trial

QT9 ERP Cons & Limitations

• Steep learning curve
• Confusing pricing structure
• Custom reporting is difficult to configure
• No mobile app

QT9 ERP Pricing

• Contact for quote (starts at $299/month)

QT9 ERP Reviews

• G2 review: Unavailable, less than 20 reviews
• Capterra review: Unavailable, less than 20 reviews

Highlighted User Reviews

• “QT9’s ERP system has allowed our company to streamline a lot of our processes, primarily shipping and inventory management.” Christopher L – from G2
• “Production scheduling and shipping is so much easier than the pen, paper, and spreadsheet way.” Ryan K – from Capterra

10. M1 ERP

M1 ERP is software for manufacturers that helps them connect business operations in one centralized system. You can share data from sales, inventory, scheduling, production, shipping and more. It’s used primarily at job shops, fabricators and manufacturers who do made-to-order and discrete work.

For those who have to maintain regulatory compliance, the software is compliant with the international traffic in arms regulations (ITAR). That said, customers have complained about poor support.

It’s not user-friendly, with data buried and a lot of clicks and screens to get to it. There’s a quoting module, but it uses estimates, and you can only reconcile accounts on a monthly basis. It’s also difficult to find and correct any mistakes. There’s no customization so this might not be a good fit for everyone.

Verdict: Best Production Scheduling Software for Connecting Business Operations

M1 ERP Pros & Key Features

• Shares data with sales, inventory, shipping and more
• Has regulatory compliance
• Offers a free trial

M1 ERP Cons & Limitations

• Outdated user interface
• The software is hard to navigate
• Limited production scheduling features
• No mobile app

M1 ERP Pricing

• Contact for quote

M1 ERP Reviews

• G2 review: 4.3/5
• Capterra review: 3.8/5

Highlighted User Reviews

• “The database structure makes it easy for everyday users to gather and parse data to make good business decisions.” Cindy S – from G2
• “It takes a lot of figuring out, but it really does put all our information together and keep things organized in a way to produce usable data and reports.” Kyle Y – from Capterra

Not Ready for Software? Try These Free Production Planning Templates

If you’re not ready to committ to a production scheduling software, don’t worry, we have plenty of free Excel templates to help you. These templates will help you organize your manufacturing processes, track progress and, of course, make a production schedule.

Production Schedule Template

This free production schedule template may not be as robust as production scheduling software, but it will help you organize your orders, inventory, ship dates and more. It’s an essential document for staying on top of your production cycle.

Gantt Chart Template

This free Gantt chart template will help you organize your production schedule tasks in a linear, descending order. That way, you’ll be able to stay on top of any dependencies and always understand what needs to come next to get your production done on time for your customer. After all, a Gantt chart is an essential feature for any production scheduling software.

Inventory Management Template

As you product products for your customers, obviously you’re going to have to stay on top of your inventory. This free inventory management template for Excel will help you stay fully stocked and avoid any outages during your production process. This one can even be paired with one of the above production scheduling software for a more comprehensive manufacturing management experience.

Production Flowchart Template

Sometimes you need to just think big picture. Our free flowchart template is prefect for mapping out all the big, important steps in your production process. Once you get that settled, you can go deeper and really build a detailed production schedule. Again, this can be paired with any of the best production scheduling software we identified above. We hope these templates help you on your manufacturing journey!

Related Content

• Best Project Management Software: Rankings, Reviews & Comparisons
• Production Management: A Quick Guide
• Production Planning in Manufacturing: Best Practices
• Production Scheduling Basics
• How to Create a Master Production Schedule (MPS)

ProjectManager is online production scheduling software that empowers everyone to plan, manage and track their production run in real time. It gives manufacturers automated and custom workload, task approval, filtered reports and much more. Get started with ProjectManager today for free.

The post 10 Best Production Scheduling Software for Manufacturing Projects in 2025 appeared first on ProjectManager.

Before getting into how a swimlane flowchart works, we’ll first define it and explain when to use it. Then we’ll list some of the professionals who can benefit from the swim land process map, what should be included in one, and, finally, provide a free download of a swimlane chart.

What Is a Swimlane Diagram?

A swimlane diagram, also known as a swimlane flowchart or swimlane chart, is a type of process flowchart that organizes activities or tasks into lanes to visually distinguish who or what is responsible for each step in a process. The diagram divides the process into horizontal or vertical lanes, where each lane represents a different actor, department or role involved in the process.

This visual tool provides clear accountability. Each lane represents a specific department, team or individual, so it’s easy to see who is responsible for each step. This improves communication by organizing process steps by role or department. This makes it easier for teams to understand their responsibilities and how they interact with others. Swimlane diagrams are excellent for showing how complex processes or workflows move across different areas of a business or organization. By visualizing the process, inefficiencies, bottlenecks or redundant steps can be identified and improved.

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Swimlane Diagram Template

Use this free Swimlane Diagram Template to manage your projects better.

Get the Template

Project managers can use the information gathered by creating a swimlane flowchart to create detailed schedules, but the gold standard for creating dynamic schedules is project management software. ProjectManager is award-winning project and portfolio management software with robust Gantt charts that do more than organize tasks, add milestones and assign tasks to teams.

Our Gantt chart links all four types of task dependencies to avoid cost overruns and delays. Filter for the critical path to identify essential tasks that must be completed to deliver the project successfully. Then set a baseline and capture the project plan to compare it to the actual progress and spending in real time to keep the project on schedule and budget. Get started with ProjectManager today for free.

When Should a Swimlane Diagram Be Utilized?

A swim lane process map can be used in situations where users need to represent a complex process involving multiple participants, departments or roles and where it’s important to show how tasks or activities flow between those different entities. When used, they provide clarity and help to track the flow of tasks across different responsible parties in a visual, organized manner.

For example, cross-functional processes, where multiple departments or teams are involved, benefit by having the swimlane chart differentiate the roles of each participant and show how tasks move between them. It also helps with complex workflows by having sequential steps in a process according to the responsible party. This helps ensure that tasks are assigned correctly and tracked through the process.

All of this improves and optimizes a business or organization’s processes. Use a swimlane diagram when analyzing a process to identify inefficiencies, bottlenecks or areas for improvement by clearly visualizing the flow of tasks between different departments or roles. This also clarifies accountability by defining who is responsible for each step, which prevents confusion.

Other uses include business process mapping for training, compliance or standardization purposes. Also, when designing or reviewing a workflow that is being automated, especially if multiple systems or teams are involved in the process, a swimlane diagram helps identify the handoff points and clarify which parts of the process can be automated and which require human intervention.

This visual tool is especially helpful with project management when coordinating tasks across multiple teams or stakeholders for a project with various phases and dependencies. It shows the sequential steps of a project and how different teams or individuals are involved at each stage, which ensures alignment and accountability.

Who Should Use a Swimlane Diagram?

There is a wide range of professionals across different industries and roles who can use a swimlane flowchart. Here are just a handful of examples.

Project Managers Overseeing Processes

Project managers oversee processes that involve multiple teams or departments. A swimlane diagram helps them visualize workflows, allocate tasks and track progress across different stakeholders.

Business Analysts When Process Mapping

Business analysts are responsible for gathering and analyzing business requirements, and they often document and improve business processes. Swimlane diagrams help visualize the flow of work across different departments and identify areas for improvement.

Operations Managers in Manufacturing

Operations managers often oversee cross-functional workflows that involve multiple teams or departments. Swimlane charts help them visualize and optimize these processes, ensuring that tasks are carried out efficiently and responsibilities are clear.

General Contractors Managing Construction Tasks

General contractors use swimlane diagrams to outline and manage the sequences of tasks and responsibilities in a construction project, ensuring that all teams are aligned and that tasks are completed in the correct order. It can also help architects, designers, subcontractors and regulatory authorities.

Professional Services Firms for Client Engagement

Professional services use swimlane diagrams for client engagement and onboarding to ensure all parties understand their responsibilities and timelines. It also helps with project management and delivery, the internal approval and review process as well as billing and invoicing workflows, client project or service life cycle management, internal process standardization and workflow automation.

What Should Be Included in a Swimlane Diagram?

This type of flowchart organizes the elements of a process into lanes, which represent different categories, roles, teams or departments. It visually distinguishes responsibilities for different participants in a process, clarifying who is responsible for each task at each stage through columns and symbols.

Swimlane Columns or Rows

The primary feature of a swimlane diagram is its lanes, which divide the diagram into horizontal or vertical sections. Each lane represents a specific actor, department, role or participant in the process.

Swimlane Diagram Symbols

In a swimlane diagram, several key symbols represent different types of actions, decisions and processes. These symbols help clarify the flow of activities and responsibilities, making the diagram easier to understand.

• Oval or rounded rectangle (terminator), makes the start or end of a process
• Rectangle represents a task or activity in the process
• Diamond indicates a decision point where a question is asked, leading to different paths based on the answer
• Parallelogram, represents data input into or output from the process, such as documents or reports
• Rectangle with a wavy bottom edge denotes a document created or used within a process
• Cylinder signifies data storage or a database where information is stored and accessed
• Circle, connects parts of the diagram that are separated, either on the same page or across pages, often with letters or numbers for reference
• Arrow, indicates the direction or sequence of steps in the process
• Double-line arrow or fork/join nodes represent simultaneous processes or tasks that can occur in parallel
• Half-circle symbolizes a delay or waiting period in the process

Swimlane Diagram Example

Let’s look at a real-life scenario to illustrate how a swimlane flowchart can help clearly show a complicated process. In this case, it’s the home buyer closing process for new construction. This swimlane has been created by the construction firm, which handles all the processes, as it has mortgage, title and insurance divisions.

There are six swimlanes: sales, escrow/title, quality control, mortgage, title services, insurance services and customer relations. The various processes include a purchase agreement and escrow opening, home inspection and quality assurance, mortgage underwriting and loan approval, title search and insurance, home warranty and insurance, final walkthrough and quality verification, closing day and ownership transfer.

The swimlane diagram illustrates how these processes move forward. It clearly shows the documentation needed, which is ample in an example of this sort. This makes a somewhat complex interaction between the construction firm and the property owner easier to understand.

Swimlane Diagram Template

A swimlane flowchart can be difficult to build without a chart-making tool. Though it can be created by hand, using this free swimlane diagram template for PowerPoint makes the process simple and quick. Just follow the steps listed below.

• To better understand how to use this swimlane diagram template, please review the example in the next slide.
• It shows the process of purchasing a new home from the perspective of the seller, which in this case is a construction firm that manages the entire process thanks to its various functional departments that play a role in the process.
• The horizontal swimlanes indicate which of those functional departments is responsible for executing the activities and producing the documentation that’s represented by the swimlane diagram symbols.
• Then, copy the swimlane diagram symbols and adjust their size so they fit into the horizontal or vertical swimlane diagram matrix to make your swimlane diagram.

More Free Related Templates

There are over 100 free project management templates for Excel and Word that cover all aspects of managing a project across multiple industries and they can be downloaded from our site. Here are a few that can help with process mapping.

Project Flowchart Template

A swimlane diagram is a flowchart. To use a more basic example, download this free project flowchart template for Word. It’s reusable and customizable and creates the structure on which one can build a process.

Kanban Board Template

Another way to illustrate the process is with the free kanban board template for Excel. It consists of a kanban board divided into columns that represent the phases of a process. On these columns are kanban cards that represent the tasks, which move through the process to visualize the workflow.

RACI Chart Template

RACI stands for responsible, accountable, consulted, and informed. This free Excel RACI chart template helps identify and define team members’ roles and responsibilities in relation to project or process tasks.

ProjectManager Helps Manage Tasks, Projects and Workflows

Templates are static documents that can only go so far in managing a dynamic project. They must be manually updated and aren’t collaborative. While a swimlane diagram is useful for illustrating processes, once that has been defined users will want to switch to project management software. ProjectManager is award-winning project and portfolio management software that can create project schedules with online Gantt charts. But that’s only the start of how it can help manage tasks, workflows and projects.

Manage Workflows With Kanban Boards

Kanban boards and cards are a visual way to manage work by organizing it with drag-and-drop kanban cards, crafting kanban workflows and collaborating online. Teams can manage their backlog and collaborate when planning sprints. Meanwhile, managers get visibility into the whole process to identify and resolve bottlenecks before they delay progress or lead to cost overruns. Workflows can also be automated to streamline repetitive tasks, with task approvals to ensure quality control.

Monitor Project Progress, Timelines and Budgets With Real-time Dashboards

Once processes are in progress, project managers have to monitor them to ensure that they’re moving forward as planned. To get a high-level overview of the project’s progress and performance toggle over to the real-time project or portfolio dashboard. Live data is automatically collected and displayed on easy-to-read graphs and charts that show metrics such as time, cost, workload and more. Customizable project or portfolio status reports or reports on variance, timesheets, workload and more get into the weeds for project managers and their teams. They can also provide a general progress report to share with stakeholders and keep them informed. Secure timesheets also provide a window into labor costs to help stay on budget.

Related Content

There’s a lot more to read about business process management, mapping and methodologies. Just follow the half-a-dozen links below and read some of the more recent pieces on the topic.

• Ultimate Guide to Business Process Management (BPM)
• A Quick Guide to Business Process Mapping
• How to Make a Process Improvement Plan (Free Template)
• Business Process Improvement: Steps & Methodologies
• Process Implementation: A Quick Guide
• Business Process Management Software

ProjectManager is online project and portfolio management software that connects teams whether they’re in the office or out in the field. They can share files, comment at the task level and stay updated with email and in-app notifications. Join teams at Avis, Nestle and Siemens who use our software to deliver successful projects. Get started with ProjectManager today for free.

The post Using a Swimlane Diagram for Projects, Manufacturing, Business & More appeared first on ProjectManager.