Benefits of Project Management Software for Manufacturing Companies

Benefits of Project Management Software for Manufacturing Companies-feature image
June 15, 2023 Reviewed By : Varun Kalra .7 Min read

Summary: Project Management Software can streamline manufacturing operations. It helps you track the production progress and track all the subparts in real time. Read more to learn how Project Management Software can help your manufacturing company optimize its output.

Every large or small manufacturing work requires multiple small components to come together in perfect harmony. If you were to build a dam, you would require materials to be delivered on time, and workers to work throughout the day. You require optimal weather, scope to expand budget, and more. Every major manufacturing you see requires precise planning and execution for a smooth and timely delivery.

This is where Project Management Software for manufacturing companies comes as a lifesaver. It includes features like Kanban boards, workflow automation, project portfolios, real-time data and key insights. It doesn’t matter if your manufacturing plant supports 5 people or 5,000, it is vital that organizations have Project Management Software in place for smooth operations.

Challenges Faced by Manufacturing Companies

Project lifecycle project management software for manufacturing
17% People believe that the long wait time in getting a quote is the biggest hurdle in manufacturing industry 
43% Industry leaders feel that long lead times plague the manufacturing industry the most 
21% Users face lousy customer support when dealing with manufacturing industry 

Be it building a small object or a complex project, manufacturing units have defined roles and responsibilities for efficient workflow.

However, as technology gets infused into manufacturing and the focus shifts to maximum speed, companies need to optimize their business functions for better results and improved profits.

There are challenges that plague the manufacturing industry as they try to streamline their project management:

  • Throwing Projects Over the Wall

For many manufacturers, projects change hands multiple times before coming to the manufacturing unit. Once the sales team has won the project, it will hand it over to the project management in software engineering department. They will then complete the detailed designs which will then end up at the manufacturing table.

The major problem with this approach is that delays are only allowed in the beginning phase of the project, often during customer instigation. The end of the project is burdened with limited time, which leads to expeditions, escalated costs, and late delivery.

  • Lack of Standardization

Companies often create a product for a wider audience base. However, during the inception phase, engineers are free to design every project uniquely. This gets further escalated during the time of manufacturing as the company lacks a proper supplier group to choose from. This leads to a lack of standard procedure for creating a product, which means some projects take longer than usual, with extra budget.

Manufacturing companies should try to standardize their manufacturing with clear engineering standards, usage of standard materials from limited supplier groups, a standard production and assembly unit, and a customized “plug and play” option. This reduces the company’s cost, lead time, design risks, and complexity.

  • Material Shortage

COVID-induced material shortage exasperated the already burdened material shortage, and the impact is still evident. Manufacturing companies spend a lot of time expediting materials from multiple sources. Also, there are sourcing and delivery delays that can derail the overall project timeline.

  • Inadequate Information Shared with the Production Team

So often, the production team is expected to know everything about the project. Even if a piece of incomplete drawing or design is presented to the production team, they are expected to know what to do with it. This often leads to misunderstandings, production errors, or project delays.

  • Lack of Production Flow

Ford Motors was the pioneer of assembly manufacturing where every worker assembled one part and pushed the vehicle forward in the assembly line. This flow of manufacturing saved time and space and streamlined the entire process.

However, many companies to date lack a production flow and workers have to navigate between products based on the availability of parts or workers’ preferences. This approach is space-hungry and delays production.

  • Starting Projects that Can’t be Completed

Companies are always tempted to start a project before they have every piece of the set. However, this can cause more harm than good. If you don’t have all the information and drawings before you begin production, you give up your ability to adapt to changes or make last-minute improvements. Rather than focusing on early production, companies need to create a “good to go” process.

Suggested Read: A Comprehensive Guide to Choosing Right Project Management Software

Benefits of Project Management Software for Manufacturing Companies

Client The client was a leading threat detection and screening technologies provider for US Military, transportation, and Homeland Security 
Challenge The company needed to consolidate operations and relocate their US headquarters. It meant closing the existing headquarters and retaining crucial employees. The company wanted to save operating costs and enhance opportunities for customer service and scientific collaboration. 
Solution A collaborative team implemented a Project Management Software. The company made progress by defining the workflow for all the departments and team members of the software and PMS functions to provide the necessary facilities at the new location.   
Results The relocation project was completed on schedule and within the $3 million budget. 

Manufacturing companies rely on multiple individual tasks running simultaneously in harmony. If you are manufacturing a plane, you need every component supplier to deliver on time so the product can be assembled and shipped without any delay. A Project Management Solution helps you track all the projects and their subparts in real time to make informed and timely decisions. Not only that, but they also help your team communicate effectively, identify gaps in your production flow, run multiple projects at the same time, and more.

  • Realistic Project Timeline

The biggest advantage of having a Project Management System in place is that manufacturing companies can now easily create a project timeline that is communicated with all the relevant stakeholders. Companies can leverage the tool to create a realistic delivery timeline.

  • Track the Project Progress

With a robust PMS, manufacturing companies can track the progress of the project as it proceeds from the first stage to the final stage. Project Management System shows the progress of all the projects that are ongoing for managers to run multiple projects smoothly.

  • Optimize Resource Utilization

One reason why manufacturers love Project Management System is that it shows all available resources within the company. Manufacturing companies are often plagued with the challenge of overutilization and underutilization.

Managers sometimes are not aware of which resource is overworked and which resource can be assigned more tasks. PMS helps managers overcome this hurdle as they can gauge the availability of resources and take necessary actions.

  • Stronger Internal Communications

In a complex manufacturing setup, internal communication between teams becomes even more vital. The design team needs to be constantly communicating with the sales team as well as the production team to ensure that everyone is on the same page. A robust PMS software enables a clear communication channel between all the stakeholders.

  • Better Risk Management

An important aspect of Project Management is risk management. Every experienced project manager knows that even after careful planning, an unforeseen event can derail the entire project. Manufacturing includes many processes built upon one another, a small inconsistency can throw the manufacturing schedule off.

Risk management identifies all the risk associated, assesses areas where the risk is high, provides a plan to avoid or eliminate the risk, and enables risk status monitoring.

Suggested Read: 20 Open Source and Free Project Management Software


Manufacturing companies have come a long way from their inception. From everything being hand built to automation and robotics handling most of the production, the process of manufacturing has become more complex.

The need of the hour is effective management of the project so companies can deliver on time. Project Management Tools are the biggest ally of project managers giving them complete visibility and control over the project so they are equipped to tackle any hurdle that comes their way. Does your manufacturing company have robust Project Management Software?

Related Categories: Workflow Management Software | Task Management Software | Product Management Software | Product Information Management (PIM) Software

Written by Ashwini Kumar Singh

An experienced Content Developer with a demonstrated history of working in the computer software industry. Skilled in Writing, Content Marketing, SEO, Blogging, and Content Development, he is adding creativity to tech writing. The skills acquired as a Philosophy graduate help him in addressing the pain points of businesses... Read more

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