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6 Basic Principles of Production Planning

production_planThe planning for any organization forms the backbone of production process. Planning of productions helps organizations to understand the situation at the Gemba better. Effective planning facilitates to book the entire capacity and also assists in committing accurate delivery time frames to the customers.

At its core, production planning represents the beating heart of any manufacturing process. Its purpose is to minimise production time and costs, efficiently organise the use of resources and maximise efficiency in the workplace.

Production planning incorporates a multiplicity of production elements, ranging from the everyday activities of staff to the ability to realise accurate delivery times for the customer. With an effective production planning operation at its nucleus, any form of manufacturing process has the capability to exploit its full potential.

6 Principles of Production Planning:

Customer Demand

Before you can plan to assign resources, you have to know how much to produce. Production planning focuses on the principle of meeting the targeted customer demand rate in the most efficient way possible while keeping open the capability to respond to variations in demand.

Materials

To fulfill your production target, the materials availability needed to produce should be ensured. The most efficient production planning keeps the minimum materials as standard inventory. Planners should evaluate how much material the company needs, the lead times for orders, the delivery times for suppliers and the reliability of the supply.

Equipments

The production planner takes into account the capabilities of the equipment used to produce the output. Basic stability of equipment comprising of availability (A), performance (P) and quality (Q) parameters can be determined by Overall Equipment Effectiveness (OEE).

Manpower

Manpower planning requires accurately estimating the number of employees required to do the work. The capacity of the workforce has to match the capabilities of the equipment to plan for the highest efficiency.

Processes

Effective production planning makes sure that the processes used for the output continue to operate efficiently and safely. Often the normal operation of a process requires occasional testing and adjustments.

Controls

A final production planning principle puts in place controls that detect problems as soon as they occur. Verification of inventory, use of qualified suppliers and personnel, standardization where possible. When controls are in place, it enables to take possible corrective actions to minimize the effects and return production to the required levels.

After the analysis of each aspect at the client place, the modular kitchen manufacturer, the overall plant capacity was ascertained.

The next step was to assist the client with a proper production plan. The Faber Infinite team worked over best possible alternatives to provide the client with an user friendly, simple yet powerful module which will cater to all the basic requirements and also keeping room for the surprise elements.

The solution module was developed encompassing order receipt process, capacity booking, production to dispatchs and even installations at the client sites. Making it a comprehensive solution. It also consisted of provision to calculate the delivery performance by measuring OnTime InFull ratio (OTIF) and also highlighting the reasons for failure, if any.

The production planning solution was designed to cater all the issues related to production and hiccups in planning process. The overall benefit to the client can be summarized as captured below

case 1

1. Overall production planning made simpler and easy to manage
2. Proper, logical and achievable delivery date can be promised to customer
3. No back logs in order
4. No delay in delivery leading to customer WOW! 

Written & Adapted by: Anand Bhattad & Aakash Borse

Check other consulting services on Faber Infinite:

Operational Excellence ConsultingStrategic Excellence ConsultingDesign Thinking & Excellence Consulting

One COMMENTS

  1. RANJITHA
    Reply

    excellent view

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