Production Planning
TermiKnowledge - Supply Chain, Procurement and Inventory Terminologies
Production Planning is the act of coming up with a blueprint for the production and design of a product or service within a company. Production planning helps companies make the production process as economical as possible. It also enables organizations to maximize the productive capacities of their assets and manpower. In short, it aims at maximising the output of any product or service and minimising the input cost.
There are several factors which are considered for production planning, the foremost being the identification of the resources required for production and the allocation of these resources according to the nature of the product involved. Other considerations for production planning include scheduling, cost control, productivity, quality control, waste management, etc. Among these, scheduling is perhaps the most important since it influences all other aspects of the production process. For example, a production schedule laid down before the production planning process will determine when each department should be scheduled, and the sequence in which these departments should proceed during the production phase.
Other significant factors for production planning are quality control and waste management. The level of quality control determines whether or not the company is able to meet its customer's demands. Waste management decides how much material and money is generated in the manufacturing process, while quality control ensures that the products and services offered by the company pass the quality inspection before they are released into the market. Thus, it is essential for any company in the manufacturing process to establish a proper production plan in order to achieve its objectives in the shortest time possible.
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