Production Planning (A Comprehensive Guide on the Process)

What is Production Planning and Why Do You Need It? - Factors, Software, Process

Production planning is a process used in production, control, and management. It provides a framework for production that includes the manufacturing processes to be carried out, the sequence of operations, capacity requirements, and the timing of each production stage.

Depending on their purpose, production plans are also known as production schedules or manufacturing schedules.

This blog post will detail what production planning is and how it can help your business!

Production Planning

What is the production planning, and what are its objectives

Production planning is a process that involves the creation of a production plan. The production plan is a document that outlines the production schedule and lists the products produced. The objectives of production planning are to ensure that the correct products are made in the correct quantities and at the right time.

The production process

A few essential steps need to have a smooth production process when producing a product. The first step is acquiring the necessary raw materials. Next, you need to get materials and transform them into a finished product. Finally, once the product is finished, it needs to be packaged and shipped out.

The process can be divided into two main categories: production manufacturing and production processing.

Production manufacturing

Production manufacturing is the process of creating a product from start to finish. This includes obtaining the raw resources, performing any necessary processing, and packaging the product for shipment.

Production processing

Production processing is the transformation of one type of product into another. For example, a production line might take in unprocessed ingredients and produce finished goods, or it might take in finished goods and create another type of product.

Manufacturing process

A manufacturing process is a series of steps followed to make a product. The first step is getting unprocessed materials, and the last step is finishing the product.

There are three main parts of the process:

  1. Collection of raw materials
  2. Manufacturing of the product
  3. Packaging and shipping of the product

Ingredients are collected and brought to the Manufacturing plant. The Manufacturing process begins with the production of the product. The product is then packaged and shipped to the customer.

You can divide the process into two sections:

  1. Inward processing
  2. Outward processing

Inward processing refers to the Manufacturing of products from basic materials. Outward processing refers to the Manufacturing of products from semi-finished products.

Manufacturing can be divided into the following steps:

  1. Receiving and inspection of ingredients
  2. Cutting and shaping of ingredients
  3. Assembling of components
  4. Finishing and testing of products
  5. Packaging and shipping of products

It is a long, complex series of steps followed to create products. Therefore, manufacturing companies have departments dedicated solely to production planning. A good Production Planning process ensures the smooth Manufacturing Process in an organization.

Production scheduling

Production scheduling is organizing and managing the production processes in a factory or other manufacturing environment.

Scheduling involves creating a plan for the factory that lays out the sequence of operations that need to be performed and the necessary resources for each process step.

Production scheduling is essential for ensuring that the factory runs smoothly and produces items efficiently.

When you create a schedule, it is crucial to think about the availability of human and machine resources. In addition, how much time it takes to make each product and what order they should be made should also be considered.

Companies can use production scheduling software to help create and manage a production schedule. This software can automate creating a plan and help track the status of each step in the process. Scheduling software is often used with other manufacturing software, such as quality control or inventory management software.

Production line

A production line is a set of machines, tools, or workers organized to produce a particular good or service.

A Production manager usually oversees it. The Production Manager is responsible for ensuring that it runs smoothly and that the workers produce the desired product.

It can be organized in several ways. The most common type is the Assembly line. In an Assembly line, each worker is responsible for a particular step in the process. This type is very efficient, as it allows the workers to specialize in their tasks and increases production speed.

Another type is the Job shop. Each worker is responsible for the entire production process in a Job shop. This is not as efficient as an Assembly line, but it allows for greater flexibility and creativity.

It can also be divided into two categories: Conventional Production and Lean Production.

Conventional production is when the workers are organized traditionally, with each worker performing a specific task. Lean production is when the workers are arranged in a more flexible way to adapt to changes in the production process.

The Production line is responsible for converting the unprocessed materials into finished products. Therefore, it must be organized to allow for the efficient and effective conversion of raw materials into finished products.

Raw materials

Raw materials are the components that are used to create a product. They can be divided into primary raw materials and secondary raw materials.

Primary are the basic components of a product. These materials are usually extracted from nature, such as minerals, plants, or animals. Primary raw materials are used to make the basic parts of a product. For example, they can use aluminum for the body of a phone.

The secondary is made from primary basic materials. These materials are usually created in a factory or other manufacturing environment. Secondary raw materials are used to create finished products, such as the body of a car or the screen of a phone.

The basic materials must be available in sufficient quantities to allow for finished products’ efficient and effective creation. Therefore, raw materials must be managed carefully so that the production line can always obtain enough resources to allow for production.

Capacity planning

It is the process of assessing and anticipating the number of resources needed to produce the desired output level.

It is important for two reasons: it allows for the smooth operation of the Production line, and it ensures that the company has enough resources to meet customer demand.

Planning begins with an assessment of the current resources of the company. This assessment includes physical resources, such as machines and workers, and financial resources, such as money and materials. The next step in this planning is to identify the desired output level. This level is determined by the number of products that the company needs to produce to meet customer demand.

After the desired output level has been identified, Capacity planning determines how many resources will be needed to meet the level.

It provides three possible outcomes of this determination:

  1. it can identify enough resources,
  2. not enough resources,
  3. or more resources than desired.

Production control

First, production planning and control regulate the production of goods and services to meet the market’s demand.

Production control also includes ensuring that the resources are available when needed, monitoring production to ensure that it meets the schedule, and making changes as required to ensure that production meets the forecasted demand.

Planning process

Production Planning is organizing and managing the production of goods and services to meet customers’ needs. The main goal of production planning is to ensure that the right products are made in the right quantities, at the right time, and at the right price. Production planning involves three key steps:

  1. Planning: In this step, managers determine what products need to be made and identify the necessary resources. They also develop a schedule for producing these products.
  2. Manufacturing: In this step, workers make the products.
  3. Distribution: In this step, managers ensure that the products are delivered on time and at the right price. This step is closely related to supply chain management.

The production planning process is crucial because it helps businesses to:

  • Meet customer demand
  • Control costs
  • Maximize profits
  • Improve quality and efficiency

Outcomes and Outputs of production planning

Outcomes of Production Planning

The outcomes of a better production planning process are:

  • A well-organized and efficient production process
  • Improved quality of the final product
  • Increased productivity and efficiency
  • Reduced manufacturing time
  • Reduced waste and scrap
  • Reduced production costs
  • Increased customer satisfaction and reduced lead time.

These outputs are achieved by an effective Production Planning Process, which is responsible for taking inputs from the various functions involved to accomplish these outputs.

The inputs required include,

  • market requirements
  • competitor analysis
  • product design specifications/drawings & product specifications
  • available resources & production facilities
  • and the schedule for product development

Outputs of a good production planning process are:

  • A well organized and efficient process flow diagram
  • Detailed work instructions/operations manuals to support the process flow diagram
  • Product cost estimation by activity or operation as per BOM (Bill Of Materials)
  • Output schedule comprising the production start date, due dates for all activities, and finished product delivery dates
  • Capacity requirement calculation based on the Output schedule
  • Raw material availability check & purchase plan preparation

Types of production planning and the time horizons

There are three types of production planning: short-term, medium-term, and long-term.

Short-term

It is used to plan and schedule the production of goods for the near future. For example, this type of planning is used when there is a known demand for a product, and the manufacturer needs to ensure that they have enough stock to meet that demand.

Medium-term

It is used to plan and schedule the production of goods for the medium-term. For example, this type of planning is used when an estimated demand for a product is estimated, but it is not yet known how much stock will be needed.

Long-term

It is used to plan and schedule the production of goods for the long term. This type of planning is used when there is an expected demand for a product, but exactly when the need will occur is unknown.

The production plan

The production plan is a document that details the specific steps to produce a product. For example, the production plan includes the production process, manufacturing process, scheduling, line, and production cost.

The production plan ensures that the product is produced according to specification. The production plan is also used to ensure that the product is made on time and low cost.

Types of production plans

Types of Production Plan

A business can use several production plans to optimize its schedule since multiple processes are involved in its operation. The most common types of production plans are as follows:

The production planning department typically creates these plans. However, they can also be delegated to a project manager or line supervisor, depending on the company’s structure and needs.

In some cases, planners could even combine these plans into one document to make it easier for all parties involved to understand what is needed from each section. First, however, it is important to note that each of these plans serves its unique purpose in production.

How to create a production plan

There are a few critical steps in creating a production plan:

1. Establish the goals of the production plan – What is the purpose of the production plan? For example, is it to meet customer demand, reduce manufacturing time, or control costs?

2. Determine the necessary resources for production – What resources are needed to produce the product? This includes human resources, machines, and raw materials.

3. Create a manufacturing process – What steps are needed to produce the product? This process should be detailed and easy to follow.

4. Schedule production – When will the product be produced? What are the due dates for all activities, and when will the finished product be delivered?

5. Control production – How will the process be monitored to ensure it proceeds as planned? What steps need to be taken if there are deviations from the plan?

Type of Production planning tools

  • production planning software is designed to help businesses plan, schedule, and manage their production. It can provide various reports on how the process is proceeding and alerts if there are any deviations from the plan.
  • Production planning templates – A template is a pre-determined format for creating a document. Production planning templates can help ensure that all the necessary information is included in the production plan and that the document is easy to follow.
  • Gantt chart – A Gantt chart is a graphical tool used to schedule and track tasks. For example, it can display the relationship between tasks and their start and finish dates.
  • Production planning tools online provide standard features and let you collaborate with others.
  • Production planning pdf allows you to print and use them as hard copies.
  • production planning excels
  • production scheduling software enables you to track the progress of each step in the process and alerts you if there are any delays.
  • Production line design software allows you to design and simulate the process before producing the product.
  • Raw material inventory management software helps you track how much of each raw material is needed for the process and order more if necessary.

List of production planning software

  • Microsoft Excel – Microsoft Excel is one of the most common and popular software for production planning. Small and medium businesses widely use it because it is easy to use and versatile.
  • Oracle Primavera – Primavera is a production planning software used by larger businesses. It offers more features than Microsoft Excel, such as creating Gantt charts.
  • SureTrak Project Manager – SureTrak is another production planning software used by larger businesses. It has more features than Primavera, such as tracking inventory and costs.
  • Microsoft Project – Microsoft Project is a project management software used for production planning. It has more features than Microsoft Excel, such as creating timelines and tracking costs.
  • Workfront production planning software – Workfront is a cloud-based software that helps businesses manage their production planning. It has features such as the ability to track tasks and costs and to create reports.

Most modern ERP solutions include a production planning module in them.

FAQs

Why is production planning important in supply chain management?

Production planning is essential in supply chain management because it allows for the smooth and efficient flow of goods from the supplier to the customer. Production planning also helps ensure that the correct quantities of goods are produced and produced on time. Production planning also helps to keep costs down and minimizes waste.

How do you plan human resources in production?

When planning human resources as part of manufacturing production planning, it is vital to consider its needs and the available workforce. Some factors to consider when planning human resources include:
– The number of employees needed
– The types of positions needed
– The skills and experience required for the positions
– The geographical location of the employees
– The availability of qualified employees

What is Production Planning and Inventory Control?

Production planning and inventory control (PPIC) is a process that determines the number of products to produce, when to make, and what resources are needed.
PPIC also determines the types and quantities of materials from suppliers and the need for finished goods inventory. As a result, PPIC helps companies ensure they have the right products on hand to meet production orders while minimizing costs.

Conclusion

Production planning is critical for all businesses, whether you produce physical or digital products. By understanding the process and scheduling your production correctly, you can minimize waste, optimize resources, and ensure that your customers are happy with their products.

In this comprehensive guide to production planning, we’ve outlined the steps involved in creating an effective plan and some best practices for streamlining the manufacturing process.