![]() ![]() The work and workloads are part of this stage of production planning and control. Scheduling is when the order of the steps for the work to be completed is decided. Once the core plan is in place, it’s on to the how. If a part is needed, should it be made or sourced? What’s the bill of materials that will be needed for its manufacture? What’s the design? What are the product tolerances? The details will depend on what’s being made and the mode of manufacture/product creation. What are the inputs that will be needed to ensure success? It’s concerned with the path that all components and elements take during the entire production process. Routing answers the questions of how much of a product will be made. Production planning and control can be set up as a series of steps: The need of production planning and control is to provide a schedule for businesses to follow to ensure all elements required for production work together. Production planning is thus a core part of running a successful enterprise. Unless we plan every part of the production process in advance, it’s impossible to deliver on time. Similarly, delays in delivery can cause a poor customer experience. If shipments are backed up, warehouses can grow overcrowded and this is an expensive problem to solve. Managing inventory and shipping schedules are a crucial part of this planning. Only with careful planning through the entire cycle can a business ensure its orders are shipped in time. Production planning is all about optimizing costs and increasing profits. Not only are the costs of all the inputs considered, but production planners also have to weigh these against factors such as revenue, sale price and break-even point. There’s also a cost associated with the disruption of production due to acquiring raw materials, equipment problems and setting up temporary storage capacity. These include labor, materials, equipment, facilities costs and energy costs. Production cost elements are all the factors that go into making a product. Production planning and control can analyze how much of each is required per month as well as if the quantity suffices for meeting demand. While product shortfalls can spell disaster for a brand, surplus can lead to expensive damage and waste.Ī production plan accounts for direct materials, semi-finished goods, finished goods and work-in-process inventory. Keeping enough stock on hand to fulfill demand, but not so much that it becomes expensive to store, is a key part of production planning and control. This data in turn informs the product design, marketing and delivery.īy planning every stage of the production process, managers will know how much stock they’ll need. When we understand current demands and trends, it helps management decide what new products or services are needed. ![]() Production planning aids in decision-making. Within an organization, there are several functions that have a need of production planning and control. Having clarified the production control and design meaning, let’s look at some use cases.
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