How Excel is Kills Your Manufacturing Operations
Microsoft Excel began to have costly consequences in manufacturing operations.
It's because manufacturing companies require faster automation and AI-powered integration, such as a reliable and modular ERP solution.
To clarify everything, we’ll highlight the risks of using Excel in manufacturing alongside its more suitable alternatives in 2025.
How Does Excel Affect Manufacturing Operations?
Excel has become a persistent source of distractions, leading to passive losses for manufacturing companies and other businesses.
According to a marketing report by HubSpot:
We even saw users discussing Excel, stating that they couldn’t remember how to operate the program because it's distracting. Frank Marriam from New Jersey shared that he only knows 15-20% of Excel from his 20 years of work experience!
So, you can guess how the loss affects manufacturing operations!
Why is Excel Used in Manufacturing Operations?
Excel has long been the primary tool for managing manufacturing operations.
Microsoft has evolved its Microsoft 365 over the last decade, making Excel accessible to anyone from anywhere through the cloud-based suites.
It remains widely popular in manufacturing for several reasons: its quick setup, familiarity, and low upfront costs.
Besides, you get the following benefits:
These advantages are short-lived when operations require tailored software solutions across divisions and departments for everyday production.
So, manufacturing plants began to experience the negative impacts of Excel!
Negative Impact of Excel on Manufacturing Operations
Businesses may depend on Excel for basic tasks, but they cannot rely on it for mission-critical manufacturing operations. There are several risks in using Microsoft Excel without keen and timely observation:
All the above issues can lead to production delays, inventory mishaps, compliance failures, and ultimately result in lost revenue for a manufacturing plant.
Risks of Using Excel in Manufacturing Operations
Manufacturing operations and spreadsheet problems are tied on a string!
That means Excel may seem convenient, but it introduces several critical risks that can hinder efficiency, accuracy, and scalability simultaneously in large corporations.
1. Human Error & Data Reliability
Manual data entry in Excel is highly prone to typo errors and miscalculations. Even a minor formula error can ripple through production plans, causing costly disruptions.
More importantly, without built-in validation or a smart autofill option, Excel spreadsheets rely heavily on user precision, which is rarely foolproof.
2. Lack of Real-Time Data Integration
Excel doesn’t sync natively with ERP, MES, or machine data. Here, the mismatch means that decisions are often based on outdated information.
As a result, manufacturing plants face inefficiencies in inventory management, scheduling, and resource allocation.
3. Collaboration & Version Control Issues
Two common issues are data conflicts and overwriting that occur when multiple users edit the same file in Excel.
Hereby, Excel lacks robust version history or audit trails, making it difficult to track changes or ensure accountability across teams.
4. Scalability Limitations
Large datasets and complex workflows slow performance and increase the risk of crashes or data loss. It’s not built to handle thousands of rows or intricate interdependencies efficiently.
5. Encryption & Security Risks
The commonly used file types in Excel are: .xlsx, .xlsm, and .xlsb. .xlsx.
These files can be easily copied, shared, or altered without proper access controls in place. There’s no customizable built-in encryption or compliance support.
Moreover, anyone with the link can edit and change files on Microsoft 365. It makes sensitive manufacturing data vulnerable to breaches or misuse.
So, what are the most effective ways to boost productivity without Excel?
In short, transitioning to automated systems, such as ERP or MES, can significantly reduce these risks and enhance operational resilience in manufacturing operations.
How to Boost Manufacturing Operations without Excel?
Method 1: Using ERP Tools
Enterprise Resource Planning (ERP) systems provide a centralized platform for managing manufacturing processes. They integrate departments, automate workflows, and provide real-time insights on a single, intuitive dashboard.
The key features of ERP tools are:
Kolpolok Limited can modify and distribute Oddo ERP for large and small manufacturing plants. It is, so far, the best ERP tool, featuring more than 50 customizable modules.
Method 2: Using Custom Software
For manufacturers with unique workflows, custom software can be tailored to specific needs. These types of software offer the necessary functionality without distractions.
The best characteristics of a custom software are:
Custom software solutions are ideal for businesses that require precise control over their operations and processes. Currently, the cost of custom software development is also affordable for most types of companies.
Odoo ERP: Best Excel Alternative for Manufacturing Operations
Odoo is a modular, open-source ERP platform that’s gaining traction in the manufacturing sector. Here is the overview of the major Odoo features in a table:
Two key factors make Odoo a top choice for small to mid-sized manufacturers seeking to scale efficiently: “flexibility” and “affordability!”
Flexibility: Odoo’s modular programming lets you start small and expand as needed. Customize workflows, add apps, and scale without limits.
Affordability: Odoo delivers enterprise-grade efficiency on a budget that suits small businesses with low setup costs. Only pay for what you use!
Benefits of ERP for Manufacturing Operations
1. Streamlined Production Planning
ERP software integrates data from inventory, sales, and supply chain systems to provide real-time visibility into production needs. This functionality enables manufacturers to:
Overall, you can utilize ERP tools like Odoo to minimize manual errors and accelerate task progress through automation planning.
2. Enhanced Inventory Management
Manufacturers often struggle with losses due to the effects of overstocking. But ERP systems solve this in three simple ways:
This ensures that raw materials and finished goods are available when needed, improving cash flow and reducing waste.
3. Improved Data Accuracy and Reporting
ERP centralizes data from multiple departments, eliminating silos and manual data entry. So, companies can get the results as follows:
Hence, manufacturers can make informed decisions and identify areas for improvement by utilizing an ERP solution.
4. Seamless Integration Across Departments
From procurement to shipping, ERP connects every function within the manufacturing ecosystem. This integration:
Moreover, it creates a unified platform where everyone works from the same source of truth.
5. Better Quality Control and Compliance
ERP systems often include modules for quality assurance and regulatory compliance. These tools help manufacturers in multiple ways:
This not only protects brand reputation but also reduces the risk of costly recalls or penalties.
Verdict
Excel served manufacturing operations well in its early days, but it is outdated now.
The risks of using Excel in manufacturing include human errors, inefficiencies, and security vulnerabilities. So, transitioning to ERP systems can revolutionize your manufacturing operations without severe errors.
Recommendation
We recommend selecting the right ERP consultant, developers, and providers, such as Kolpolok Limited!
FAQs on the Use of Excel in Manufacturing Operations
Why are manufacturers still using Excel?
The manufacturing facility and its team members have a lifelong experience with Excel. Plus, companies can easily download it at a lower cost, despite its errors being a productivity killer.
What steps should a business take to switch from Excel to an ERP?
To transition from Excel to an ERP, businesses should define clear goals, clean their data, establish a migration timeline, and train their staff. Additionally, they could ensure continued alignment through regular reviews.
Is Google Sheets better than Microsoft Excel?
No. Google Sheets is also a spreadsheet program similar to Microsoft Excel. They share the same functionality and formula. An ERP or custom software is better than Google Sheets and Microsoft Excel in terms of manufacturing operations.