Why Manufacturers Lose Millions Every Year: The Illusion of ERP Normatives in Production Planning

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While manufacturing companies lose millions due to static, outdated ERP normatives, Qlector LEAP brings together actual, historical, and normative data in real time to deliver realistic production time predictions and reliable production plans.

When we meet potential users at events or sales presentations, we almost always get the same question: What makes Qlector LEAP truly unique in the sea of AI solutions and buzzwords that often leave companies confused and stuck in FOMO, worried about missing out on opportunities?

This blog aims to explain why Qlector LEAP is a unique solution that continuously compares ERP master data normatives with actual shop floor performance from MES, using these insights to generate realistic production plans for the future.

From Work Orders to Realistic Production Plans

Qlector LEAP tracks execution across work orders and identifies whether production is running at, below, or above the ERP normatives. It considers both historical company data and ERP normatives, then uses advanced machine learning models to capture deviations between planned and actual performance. These deviations are directly incorporated into future production plans, making them more reliable and realistic.

In theory, companies should track actual production times and quantities and compare them against ERP normative data – for example, on a quarterly or semi-annual basis. In practice, this rarely happens, often due to conflicting interests and strategic negotiation dynamics.

Sales Conflicts

The first conflict typically arises with the sales department. Sales performance is closely tied to ERP normatives, which define expected time and material consumption and form the basis for cost calculations and sales prices. If the normatives are unrealistic, then the cost calculations are wrong, which distorts margin reporting and sales performance metrics. For that reason, sales teams are rarely willing to accept changes to ERP normative data unless top management is involved – a negotiation process that is typically slow and complex.

Union Conflicts

The second conflict often comes with labor unions. ERP master data normatives serve as a benchmark for expected worker productivity, defining how many units should be produced in a given time. They form the basis of wage systems, bonuses, and performance evaluations. If normatives are unrealistic, they fuel employee dissatisfaction, union disputes, and undermine fair compensation frameworks.

Why Realistic Plans Matter

With realistic production plans in place, companies can forecast material consumption, plan tool changes more accurately, and rely on actual cycle times and finished volumes. This is critical to maintaining high on-time delivery rates and keeping customers satisfied.

Automated Comparisons for Future Plans

The advantage of Qlector LEAP is that it automatically compares actual performance with ERP normatives and historical data—on a weekly or even daily basis. If production is consistently running above or below normatives, the model recognizes this and incorporates it into future plans, ensuring they are far more realistic.

The Key Differentiator

This is the key differentiator compared to other solutions. We call it the process digital twin of the factory. It is the heart of our solution – a powerful and sophisticated combination of data, machine learning methods, and algorithms. The crucial point is that this self-learning digital twin delivers actionable insights and realistic predictions for planners, instead of lagging deviation analyses that arrive too late to improve current plans and schedules.

Transparency and Visibility

Beyond predictions, Qlector LEAP also addresses the challenge of limited visibility in production planning. By creating a unified view of orders, resources, and constraints, it provides planners and managers with full transparency into what is really happening in production. This eliminates blind spots that cause inefficiencies, miscommunication, and misalignment across teams.

Optimized Work Order Sequencing

In addition, Qlector LEAP ensures that production runs are executed in the most efficient order. Its AI-driven optimization of work order sequences minimizes downtime, reduces unnecessary changeovers, and streamlines workflows. This transforms sequencing from a manual, error-prone task into an automated, intelligent process that significantly boosts on-time delivery and overall equipment effectiveness (OEE).

From Hidden Costs to Millions in Savings

It is difficult to understand why companies continue to rely on the illusion of ERP normatives in production planning—especially when it is clear that realistic predictions, full production transparency, and optimized sequencing provide far greater flexibility and proactive responsiveness to market changes and uncertainties.

At the same time, research and benchmark studies show that manufacturers lose 5–10% of annual revenue due to inefficient planning. Even modest improvements – and the benefits unlocked by Qlector LEAP – can generate millions in savings.

Seamless and Strategic

Since production planners cannot directly change ERP normative data themselves, our solution eliminates the need for exhausting negotiations between management, sales, and unions – seamlessly providing a strategically acceptable solution for all stakeholders.

Calculate Your Hidden Costs

By implementing Qlector LEAP, manufacturers gain an automated, technologically advanced, and strategically sound solution to a problem that has long burdened production planners. To help companies clearly see the financial impact of inefficient planning, we also provide an easy-to-use Hidden Costs Calculator that quantifies hidden losses and highlights the potential savings achievable with Qlector LEAP.

Book Your Free Consultation

If you’d like to find out exactly what hidden costs inefficient planning may be causing in your factory – or if you simply want to explore the opportunities that intelligent production planning can unlock for you – book your free introductory call here.

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Elevate Your SAP with QLECTOR LEAP

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With QLECTOR LEAP, we have digitally mapped every process within our company, revolutionizing our operations. This allows us to swiftly and efficiently formulate our production plan, complete with auxiliary workstations. The true game-changer lies in the plan's automatic updates. Simultaneously, all subsidiary processes remain informed of any modifications

By bidding farewell to a multitude of Excel files once essential for production planning, we not only declutter but also reclaim valuable time. The era of manual updates is now behind us.
I wholeheartedly recommend Qlector Leap to those who have yet to establish a systematic production planning system and still rely on Microsoft programs. The tediousness of handling such files and their susceptibility to errors can now become a thing of the past

Domen Škrbina

Head of Production Logistics at Kovis

Kovis is an internationally innovative company for the development and production of high-quality components for the railway industry and various parts for other industrial sectors. The company has established itself internationally with the production of brake discs for all types of railway vehicles: from locomotives, trams, and metro lines to high-speed trains. In addition to the brake discs, Kovis is also the largest manufacturer of axle boxes for freight wagons in Europe.
Kovis turns good ideas into a safe and sustainable future.

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QLECTOR LEAP has enabled significant progress in production plan optimization, as it learns from historical data, optimizes the plan, and provides more optimal suggestions for planners and production.

The most useful functionalities include real-time inventory overview, scheduling of workers and tool changes, and a user-friendly experience for planners, who receive a Gantt chart and a real-time overview of weekly realization. Any changes made to the plan in SAP by the planner are immediately visible in LEAP, allowing us to see when we will have reconfigurations and reduces tool change time.
The condition for using QLECTOR LEAP is well-organized data. With this condition met, LEAP operates with great precision, which is why I would recommend it to other manufacturing companies.

Marija Golja

Production Planner at Kolektor

Kolektor is a global supplier that boasts a tradition of highly specialized industrial production. In almost 60 years of experience, the company became a global provider of mobility components and systems and has added programs outside the automotive industry in the process of diversification and globalization and has spread to other continents.
Kolektor is a synonym for credibility, trust, quality, and innovative products and services. The programs are managed in three strategic groups: Kolektor Mobility, Kolektor Technologies, and Kolektor Construction.

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Qlector's software optimizes production planning in a simple, intuitive way and opens up new optimization options in a simple form thanks to the AI algorithms and various evaluations and reports. A must for modern production

Ingo Hild

Plant Manager at ams OSRAM Group

ams OSRAM is a global leader in innovative light and sensor solutions, building on over a century of experience. Combining engineering expertise with global manufacturing, the company delivers groundbreaking applications that make the world safer, smarter, and more sustainable. Specializing in high-quality semiconductor-based light emitters, sensors, and software, ams OSRAM continues to push the boundaries in illumination, visualization, and sensing across diverse industries.

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QLECTOR LEAP has enabled the automation of planners' work, faster response to changes in production planning, and management of a larger number of machines.

The results are currently evident in shorter inventory lead times for binding unfinished production and semi-finished goods, where we observe a 10% improvement. I would also highlight the expertise and agility of the Qlector team in terms of understanding and adapting to our production planning peculiarities. Domel follows modern trends in digitization, which is why QLECTOR LEAP seamlessly integrates into the ERP and MES system and is certainly one of the AI integrated APS solutions worth exploring.

Matjaž Roblek

Supply Chain Director at Domel

Domel is a global development supplier of electric motors, vacuum motors, blowers, and components. The company was founded in 1964 and has production facilities in Slovenia, Serbia and China. Their motors power over 300 million appliances in premium and consumer markets worldwide. Domel’s business processes employ high levels of technology, automation and robotisation, which form a basis for building competitiveness and excellence.