How can Manufacturing SMEs benefits from Production Routing | TranZact

May 15, 2022 in Production



In the manufacturing industry, companies are compelled to make use of production routing for the betterment of their own business and for their customers. Production routing has been a great way for manufacturers to lower costs and increase productivity. When in the manufacturing process, the production routing feature gets involved. And it helps in planning and scheduling activities that require manufacturing done in a specific sequence of operations.

This article will help small businesses in manufacturing to see why they should invest in production routing. Small firms can hinge on the production scheduling process, which may cause critical problems like a shortage of raw materials and unplanned absenteeism. Production routing features are specifically developed for small businesses concerning their needs and yet, despite using it for years, some do not take advantage of its full potential.

Also, in this post, we will strive to provide the most comprehensive understanding of what production routing is and how it can assist manufacturing small businesses and production planning. Further, its functions in the cycle of production management, and its importance in increasing efficiency in these plans.

Routing manufacturing maps the journey of your products throughout the manufacturing process.

The Definition of Routing.

Routing is the process of determining the path that each part or component will take from input or raw material to finished product. In simple words, Routing in manufacturing maps the journey of your products throughout the manufacturing process.

What is Manufacturing Routing?

Manufacturing factory

Routing manufacturing sometimes referred to as production routings, is a term that has been developing over the years. It refers to a process that provides information on how procedures work in manufacturing plants but is not always looked upon as a separate function. Nowadays, production routing is considered a separate function that helps in planning and scheduling operations. Production routing should be defined as one of the functions of planning and scheduling processes. It allows you to schedule the operations concerning the uncertainties.

A production order is routed with detailed information on the product to be created, as well as complete specifics about each operation to be performed, the setup time, and the normal time required to complete the work or product.

What’s the purpose of Production Routing?

The goal of routing production is to build the best sequence of processes at the lowest cost and in the shortest time, all while retaining the greatest degree of quality.

Routing is a vital foundation for managing your organization because it sets the manufacturing technique.

  1. Consider the following when planning your routings:
  2. The tasks that must be completed to create a product,
  3. The work centers (locations where production operations are carried out) where these tasks are done,
  4. The sequence in which a product goes through the procedures.

When you're finished, you'll have your routing document, which will be applied to each product you make. This section lists, in chronological order, all production operations and processes that take place to finish the final product.

Routing manufacturing will primarily provide a foundation for scheduling and assessing the capacity of production resources.

Steps involved in manufacturing a Product.

The steps in the direction of product preparation are more or less the same in all manufacturing enterprises and occur as follows: The future product is merely a concept in the inventor's head, and he sketches it out. To generate the drawings, the potential product is thoroughly investigated, examined, and developed. Working drawings, which may contain parts and assembly drawings, are the following step. Blue printouts of the drawings are created, including all relevant technical specifications.

Steps in Production Planning

When a product is standardized and the job is repetitive, the component or part drawings are generated taking into account the following factors: The components' manufacturing procedures and processes. The product's raw ingredient. The manufacturing procedure.

Production scheduling

In such circumstances, the engineering division's completed design, as received by the production control department, will comprise the following:

  1. Parts, assemblies, and subassemblies list
  2. Each component's blueprints. 
  3. Material requirements for each product must be complete.
  4. Each part's limits and tolerances.
  5. The machining procedure by which the part will be manufactured, and 
  6. The order in which the operations will be carried out.
  7. Time allowances for each operation/process (set up and operation time).

Read more - Material Requirement Planning (MRP) - Ultimate Guide for SMEs

Routing Procedure.

The routing procedure consists of six decisions, which are listed below:

1. Make or Buy decision.

The product to be created, as well as the parts required, are thoroughly examined to identify which parts/components are to be manufactured and which are to be purchased in light of the following facts:

  1. Cost comparison for manufacturing and purchasing.
  2. Whether the available workforce can be used for manufacturing within the facility.
  3. Whether or not current idle machinery can be used.
  4. Whether the input materials and machines are available for manufacture in the plant or must be procured.

2. Bill of Materials.

The bill of materials is used to determine the quality and quantity of materials necessary after a thorough examination of the product.

The quantity of material necessary for each part is known from this proforma and can be obtained accordingly. Some businesses create distinct lists for finished components and raw materials. The number of materials in the stores should be known in order to know how much material has to be acquired or procured.

Read more - What is Bill of Materials - Everything you should know about BOM

3. Route sheet preparation.

This is where you'll need to look at operations and pair them with a manufacturing sequence. This creates the procedures required for product processing, listing them on the route or operations sheet in their proper order.

4. Determining a Lot Size.

This is where you determine how much capacity can be produced at a single site. "However, if the product is to be produced to meet the needs of the consumer, the topic of determining the lot size does not arise." This is especially important for companies that use a continuous or repetitive manufacturing workflow.

5. Determination of Scrap Factor.

You must estimate the amount of scrap that will be generated during the production process. "As we all know, not all components manufactured at various workstations satisfy the requisite requirements, and those that do not pass inspection are to be discarded as junk."

Scrap might be generated all at once or gradually over the production process. You must identify these points and take necessary action to deal with the scrap factor buildup. This is usually determined by previous experience, and you'll need to allocate resources to remove scrap to avoid clogging machinery.

6. Provide the necessary forms and information.

Manufacturing and business management, as you are surely aware, may be extremely administrative.

Unfortunately, routing production is no exception. Manufacturing orders, job tickets, inspection tickets, move orders, tool tickets, and equipment tickets are all required. And to help you prepare and maintain these documents tools, like TranZact can be of great help. It is a cloud-based digital automation tool that helps in streamlining all business activities. Further, its Production Routing feature helps in production planning and scheduling plus monitoring and maintaining all related activities.

Advantages of production routing for manufacturing businesses.

  1. Effective utilization of available resources.
  2. Reduction in production costs.
  3. Quality improvement occurs.
  4. The productivity of the system improves.
  5. Provides a basis for loading & scheduling.

As an example of production routing, consider a company that makes customized wooden cabinets. They have their manufacturing routing figured out and it may look something like this in action.

Routing process for Wooden Cabinet manufacturing

Task 1: Design – According to the customer's specifications

Task 2: Material preparation and cutting – Getting everything ready

Task 3: Shaping - Forming the glasses into the required final form.

Task 4: Varnishing ('Y' number of cycles) - Varnishing the cabinets to retain their shape. This must be repeated multiple times.

Task 5: Finishing touches are applied to the cabinets.

Task 6: Packaging - The cabinets have been packaged and are ready for delivery.

Task 7: – The cabinets are shipped to the customer.


From the above examples, you all may understand that production routing is necessary for all manufacturing businesses both SMEs and corporates. And its fullest utilization without any error is only possible with the use of automation techniques and for that, there is a need to use the required tools and technologies. So businesses should tool like TranZact which can help them in this purpose and further manage all their other needs and make the decision on proper analyzing all the prospects of their organization.


TranZact is a team of IIT & IIM graduates who have developed a GST compliant, cloud-based, inventory management software for SME manufacturers. It digitizes your entire business operations, right from customer inquiry to dispatch. This also streamlines your Inventory, Purchase, Sales & Quotation management processes in a hassle-free user-friendly manner. The software is free to signup and gets implemented within a week.