Increase efficiency & reduce costs
Production controlling is a part of operational controlling focused on monitoring and managing production processes to improve efficiency and profitability. By analyzing production data and implementing optimization measures, it makes a significant contribution to the long-term competitiveness of companies.
Table of contents
What is production controlling?
Why is production controlling important?
How does production controlling work?
What instruments are used in production controlling?
What are the advantages of production controlling?
When is production controlling efficient?
The 10 most common mistakes in production controlling
Case database
Conclusion
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What is production controlling?
Production controlling allows you to manage and monitor the production processes in your company. The classic key performance indicators (KPIs) of production controlling include costs, quality, and logistical measures such as on-time delivery and throughput time. A manufacturing company needs production controlling to measure the success and performance of production, identify bottlenecks, uncover improvement potential, and make well-informed decisions.
Why is production controlling important?
Production controlling plays a key role in ensuring efficient and profitable operations. By systematically monitoring and managing production processes, companies can reduce costs, improve product quality, and shorten delivery times. Furthermore, production controlling enables better utilization of existing resources, thereby strengthening competitiveness. By identifying and addressing potential issues at an early stage, companies can optimize their production workflows and secure long-term profitability.
How does production controlling work?
Production controlling is based on the collection and analysis of production data, such as output quantities, costs, times, and quality. This data is evaluated using controlling tools like key performance indicators (KPIs), budgets, and target/actual comparisons to assess production performance and identify deviations from planned targets. Based on these analyses, targeted measures are developed and implemented to optimize production processes.
We have been active as a management consultancy in the field of process and IT optimization since 1987. Our customers are primarily from the automotive and supplier industry, mechanical and plant engineering and the processing industry.
What instruments are used in production controlling?
Various instruments are used in production controlling to monitor and control production processes. These include cost center accounting, activity-based costing, target costing and capacity planning and control. Modern technologies such as Manufacturing Execution Systems (MES) and Enterprise Resource Planning (ERP) systems also play an important role in production controlling, as they enable automated data collection and analysis.
What are the advantages of production controlling?
The benefits of production controlling are wide-ranging. By effectively managing and monitoring production processes, companies can boost productivity, lower costs, and enhance product quality. Production controlling also supports better planning and utilization of resources, while enabling early detection and resolution of issues. In the long term, it strengthens both competitiveness and profitability.
When is production controlling efficient?
Your production controlling is efficient when it delivers predefined key performance indicators on demand — and when the production controller can focus on deriving actions rather than checking data plausibility or preparing Excel reports. In the age of digitalization, this is handled by a business intelligence–based production cockpit.
The 10 most common mistakes in production controlling
- Production controlling is treated as a mere extension of the finance department
- The production controller lacks any technical understanding
- Production controlling is understood as the preparation of key performance indicators
- The key performance indicators of production controlling are not derived from the company objectives and the production system
- There is no uniform database from which key performance indicators are generated
- Data and KPIs still require manual verification in meetings
- The data sources underlying the KPIs cannot be traced or verified
- The monthly key performance indicator report is only available on the 3rd working day of the following month
- KPI reports depend on a key Excel expert
- You are afraid of bad key performance indicators!
Case database
In this case database, you will find selected publications on the topic of production controlling from our extensive knowledge database.
The publications in the knowledge database are generally only available in German. If you require information in another language, please send us a brief email and we will be happy to assist you.
Conclusion
Overall, production controlling is an indispensable tool for companies to organize their production processes efficiently and be successful in the long term. By systematically monitoring and controlling production processes, companies can reduce costs, improve product quality and strengthen their competitiveness.