BAE Systems: Eliminating Production Backlogs with RMDB

BAE Systems is one of the world's largest defense contractors. Their Ordnance Systems division manufactures precision defense products where production backlogs are not just operational inconveniences — they are national security concerns. When their ERP system could not deliver the finite capacity scheduling they needed, they turned to Resource Manager DB as an add-on that would solve the problem without replacing their existing technology investment.

Read the full BAE Systems success story.

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The Challenge: ERP Cannot Schedule

BAE Systems Ordnance Systems Inc. had already made a significant investment in an ERP system. The system included Material Requirements Planning (MRP) and Capacity Requirements Planning (CRP) functionality — the standard modules that ERP vendors promise will handle scheduling.

The reality was different.

Infinite Capacity Creates Invisible Problems

The core problem was fundamental: their ERP system used infinite capacity planning. This means the system would accept any master schedule the planner entered, regardless of whether the factory actually had the resources to execute it. There was no warning when the schedule exceeded available capacity, and no visibility into where or when the overload would occur.

As the BAE Systems team described it: "The MRP product allowed us to enter a Master Scheduler that exceeded available capacity and offered little visibility when we did so."

This is not unique to BAE Systems. It is the most common scheduling limitation in ERP systems — and the primary reason manufacturers need dedicated scheduling software.

Consequences of Invisible Overload

When you schedule more work than your facility can handle, the consequences cascade:

• Production backlogs build because the schedule is physically impossible to complete
• Outsourcing costs increase as work gets sent outside to meet deadlines
• Delivery dates become unreliable because they are based on infinite capacity assumptions
• Customer inquiries about delivery cannot be answered accurately

BAE Systems experienced all of these problems. Their ERP investment had solved materials planning and financials, but the scheduling gap was costing them in backlogs and outsourcing expenses.

The Decision: Add-On, Not Replacement

Rather than replacing their entire ERP system — which would have been enormously expensive and disruptive — BAE Systems sought an ERP scheduling add-on that could provide the finite capacity planning their existing system lacked.

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The Solution: Resource Manager DB as ERP Add-On

After a thorough review process that included sending sample data from their ERP system, BAE Systems selected Resource Manager DB from User Solutions.

Marc Phillippi, ERP Systems Manager at BAE Systems, described the evaluation and implementation: "After a review process that included sending sample data from our ERP System, we selected User Solutions' Resource Manager-DB solution. User Solutions has always been highly responsive in addressing our specific needs. In a very short time, we had the majority of our bills of resource, inventory items and work centers loaded."

What RMDB Added

Resource Manager DB filled the specific gaps in BAE Systems' ERP system:

Finite Capacity Visibility — Instead of accepting any schedule regardless of resource availability, RMDB showed exactly where capacity constraints existed. Planners could see overloaded workcenters, competing demands, and resource conflicts before they caused production problems.

Accurate Delivery Date Quoting — With real capacity data driving the schedule, BAE Systems could respond to customer delivery inquiries with dates based on what the factory could actually produce, not infinite capacity assumptions.

What-If Analysis — The ability to test schedule scenarios before committing to them gave planners the confidence to make better scheduling decisions and evaluate the impact of new orders on existing commitments.

Seamless ERP Integration — RMDB worked alongside the existing ERP system, pulling data from MRP and feeding realistic schedule dates back. This preserved the ERP investment while adding the scheduling intelligence it lacked.

Rapid Implementation

The implementation was notably fast. With sample data already flowing between the ERP and RMDB, the team loaded bills of resource, inventory items, and work centers quickly. The system adapted to BAE Systems' existing data structures rather than requiring wholesale data reorganization.

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The Results: A Vital Production Planning Tool

The outcome was transformative for BAE Systems' production planning capabilities. Marc Phillippi stated: "Now, we have a solution that has become a vital tool in our production planning and scheduling activities. We are extremely satisfied with the offering and are pleased to recommend to others looking for a capacity and production planning solution — either integrated with ERP or standalone."

Backlogs Eliminated

With finite capacity visibility, the root cause of production backlogs was addressed. The schedule could no longer silently exceed capacity, which meant backlogs stopped accumulating. When capacity constraints were visible, planners could take action — adjusting priorities, adding overtime, or redistributing work — before backlogs formed.

Outsourcing Costs Reduced

Better scheduling reduced the need for costly outsourcing. When you can see capacity constraints in advance, you can plan around them using internal resources rather than scrambling to outsource work at premium prices. The savings in outsourcing costs alone contributed significantly to the ROI of the scheduling investment.

Customer Delivery Confidence

Responding to customer order delivery inquiries became a data-driven process rather than guesswork. Planners could identify process, equipment, labor, and material limitations systematically, providing customers with delivery dates they could trust.

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Why the ERP Add-On Approach Works

The BAE Systems case study validates the ERP add-on approach to scheduling that is central to how User Solutions serves manufacturers.

Preserve Your ERP Investment

Most manufacturers have invested significant time and money in their ERP system. Replacing it to get better scheduling is rarely justified. Adding a dedicated scheduling layer — as BAE Systems did — delivers the scheduling capability without disrupting everything else the ERP system does well.

ERP Does Materials, RMDB Does Scheduling

ERP systems excel at what they were designed for: managing materials, financials, purchasing, and inventory. They were not designed for finite capacity scheduling. Recognizing this division of responsibility — ERP for materials, RMDB for scheduling — gives manufacturers the best of both worlds.

Defense-Grade Reliability

BAE Systems operates in an environment where scheduling failures have consequences beyond missed revenue targets. The fact that Resource Manager DB has become a "vital tool" in their production planning speaks to the reliability and robustness of the system. Combined with the USS Nimitz deployment, User Solutions has a proven track record in defense and aerospace manufacturing.

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Lessons for Manufacturers with ERP Scheduling Gaps

If your ERP system allows you to create schedules that exceed your actual capacity — and most do — here are the practical takeaways from the BAE Systems experience.

Do not blame your people for schedule failures caused by infinite capacity planning. If the system accepts impossible schedules, the resulting backlogs and late deliveries are a system problem, not a people problem.

Test with your own data. BAE Systems sent sample data from their ERP system during the evaluation process. This is the right approach — see how the scheduling software works with your actual production data before committing.

Expect rapid implementation. Adding a scheduling add-on to an existing ERP is fundamentally simpler than replacing an ERP. BAE Systems loaded their core data "in a very short time." You can expect similar speed.

The ROI is in eliminated backlogs and reduced outsourcing. Quantify your current backlog costs and outsourcing expenses. These are the most immediate sources of ROI from finite capacity scheduling.

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Frequently Asked Questions

Why did BAE Systems need an ERP add-on for scheduling?

BAE Systems had already purchased and implemented an ERP system with MRP and CRP functionality, but were not satisfied with its ability to recognize capacity constraints or meet finite scheduling needs. The ERP allowed them to enter a master schedule that exceeded available capacity with little visibility when they did so.

How did BAE Systems reduce outsourcing costs with scheduling software?

By gaining finite capacity visibility through Resource Manager DB, BAE Systems could see actual capacity constraints and plan around them. This visibility allowed them to optimize internal production scheduling to reduce the need for costly outsourcing that had been required to manage backlogs.

Can scheduling software work alongside an existing ERP system?

Yes. BAE Systems specifically selected Resource Manager DB to work as an add-on to their existing ERP system. The integration preserved their ERP investment while adding the finite capacity scheduling capabilities their ERP lacked. RMDB can be used integrated with ERP or standalone.

How quickly was Resource Manager DB implemented at BAE Systems?

After selecting Resource Manager DB and receiving sample data guidance from User Solutions, BAE Systems had the majority of their bills of resource, inventory items, and work centers loaded in a very short time, enabling rapid deployment of production planning capabilities.

What defense manufacturers use Resource Manager DB?

BAE Systems Ordnance Systems Inc. is one of several defense manufacturers using Resource Manager DB. The software is also used aboard the USS Nimitz aircraft carrier. Resource Manager DB's combination of finite capacity scheduling, ERP integration, and security compliance makes it well-suited for defense manufacturing.

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Fix Your ERP Scheduling Gap

If your ERP system cannot tell you when your schedule exceeds capacity, you have the same problem BAE Systems had. The fix does not require replacing your ERP — it requires adding finite capacity scheduling as a dedicated layer.

Ready to see what RMDB adds to your ERP? Request a free demo and we will show you how Resource Manager DB integrates with your existing system.

Read the full BAE Systems success story and explore all scheduling success stories.