Introduction
The allocation of human resources, raw materials, work centers, machinery, and production processes is managed and scheduled by production planning and control. It determines the most effective method for producing finished goods with the necessary lead times to satisfy production demand. For orders to be fulfilled on time, production planning is crucial. You won’t be able to satisfy your clients if you don’t know about your job schedules, workstation availability, or stock levels.
Production planning is a must, whether you’re a new manufacturer oiling machinery for the first time or a seasoned manufacturer shipping thousands of items. Production plans make sure that resources are used to their full potential, just like scrums and monthly plans keep operations running smoothly.
In this blog, we’ll learn about the fundamental terms used in production planning and production control, how they work, their objectives, benefits, types and more.
What is production planning?
By effectively managing internal resources to meet customer orders or demand, production planning enables manufacturers to work more effectively. What, when, and how much to produce are all solved by it. It determines the raw materials, bill of materials, or alternate bill of materials required to satisfy demand and establishes production capacity. After that, it creates a production plan that can be used.
How does production control work?
Production control provides visibility and reports by measuring performance and monitoring production. The necessary corrective measures are taken. In order to attain the highest possible production performance levels, it incorporates various control methods.
What are the Production Planning and Control objectives?
The following are the overarching goals of production planning and control:
- Increase the productivity of internal resources (humans, work centers, machines, tooling, etc.) by optimizing resources and their scheduling to meet production demand.
- Ensure an effective schedule.
- Keep inventory at optimal levels.
- Enhance customer satisfaction.
- Coordinate with other departments (such as sales, customer service, purchasing, and so on) to ensure that the right person is assigned to particular processes.
Any manufacturing unit’s foundation is the planning and control of production. Material forecasting, master production scheduling, long-term planning, demand management, and other aspects are all included. Forecasting a product’s demand is the first step in the planning process. The production plan is created using the forecast data and internal resources that are available.
Production Planning and Control is a method for planning a chain of operations that helps manufacturers get where they need to be when they need to be there. It enables them to make the most use of their resources. It also includes the work of other departments like procurement, marketing, and sales.
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What are the benefits of production planning and control?
Planning and controlling production has numerous advantages, including:
Optimized manufacturing capacity ensures that both employees and machines operate to full capacity. This reduces expenses, boosts productivity, and boosts profitability. Planning for growth and locating areas for improvement both benefit from it.
Allows manufacturers to only hold the necessary inventory, resulting in lower inventory costs. The software has a Just-in-Time scheduling strategy and can predict demand. Costs are kept low because there isn’t enough inventory.
On-time deliveries contribute to the optimization of production and prompt delivery. Customers are more satisfied when products arrive on time. That boosts referrals and customer retention.
Improved material procurement identifies when materials should be purchased for production. Knowing when to order and what is required to meet customer and production demand is made easier with this information. Procurement can buy in advance and find the best deal by knowing when to order. Additionally, this improves supplier relationships and saves money.
Smoothed out creation processes – guarantees that materials and inner assets for creation are prepared when required and what limit is free, and when. This ensures the smooth operation of production. Employee satisfaction is also improved because production and workflow interruptions are eliminated.
The elimination of material shortages or surpluses results in less resource waste. Employee time is saved as a result. Inventory that is not used is not a drain on capital. Because delays that cause materials to be discarded are eliminated, production waste is reduced.
In manufacturing, what role do production planning and control play?
Control and planning of production make sure that production resources are available when they are needed. In order to maintain optimal production, materials, equipment, and workers need to be available at the right time. It is the core of a manufacturing company. PPC becomes increasingly important to a business’s efficiency as it grows in size.
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Five types of production planning
Workflows like “make to order” and “make to stock” will affect how your production plan is created. Your manufacturing procedures will have an impact on your plan as well. The five primary methods of production that you can incorporate into your company are as follows:
1. Job method
When custom material processing is required for a single product, the job method, also known as job shop manufacturing, is frequently used. Your production plan will change from one product to the next for bespoke manufacturing or any other type of production that allows for customization. This approach is usually used by small and medium-sized manufacturers, but it can also be used by larger businesses.
2. Batch production method
Method of batch production Also known as batch manufacturing, this method produces finished goods in large quantities rather than individually or through continuous production. Manufacturers or managers can keep a close eye on each stage of production using this production method to make quick adjustments and monitor efficiency. Producing food or other products on a large scale can benefit greatly from this method.
3. Discipline manufacturing
It is also known as the flow method, is a demand-based manufacturing strategy in which materials “flow” from one machine to another until they become finished goods with little human interaction. This way to deal with assembling requires a normalized work process and expanded quality control to guarantee the ceaselessly delivered things aren’t imperfect. Manufacturers who need to produce a uniform set of items one at a time will benefit greatly from this approach.
4. Process technique
Process technique, or monotonous assembling, is the cliché thought individuals have of assembling – your sequential construction systems. By going through various machines and processes, this production plan will produce finished goods. excellent for businesses that need to produce a lot of similar products.
5. Mass Production Method
The mass production method, also known as continuous manufacturing, is essentially the same as the flow method on a much larger scale. If uniformity is important, manufacturers use this method, which uses a standard procedure to ensure that all products look the same. Manufacturers are able to produce a large number of products in a short amount of time by employing the mass production technique.
How are production planning and control carried out?
1. Planning
It is the process of deciding what, who, and how will be produced. It concocts the strategy for work, hardware, work focuses, and material necessities required for creation.
A production plan can be developed with the help of relevant data from various sources. Take, for instance, information from sales regarding order quantities and anticipated delivery dates. The engineering department’s product specifications may also be required. The planning step aids in maintaining a streamlined production approach.
2. Routing
The factory’s flow of raw materials is determined by routing. The sequence is used to transform raw materials into finished goods.
To measure the duration of the production process, it is essential to schedule each step and coordinate each production process. Directing shows the amount and nature of materials and assets required. It also demonstrates the location of production and the procedures used.
The “How,” “What,” “How much,” and “Where” of production are managed by routing. It organizes the process and makes the most of the resources to get the best results.
3. Scheduling
The process of scheduling places an emphasis on “when” the operation will be finished. The goal is to make the most of the time allotted for the operation to be finished.
“The determination of the time that should be required to perform the entire series as routed, making allowance for all factors concerned” is the definition of schedule, according to Kimball and Kimball.
Time management is managed by a variety of schedules utilized by organizations. Master Schedule, Operation Schedule, Daily Schedule, and others are examples of these.
4. Loading
Loading looks at how much work is put on machines or on people. In addition to the work already scheduled for the machine or workstation, the total time needed to complete the new work is added.
More orders can compensate for the underload if a machine or workstation has the capacity to handle them. Preventative measures can stop bottlenecks from occurring if there is an overload of capacity. It’s possible to use a subcontractor, request overtime, hire operators from another shop, or add a shift.
5. Dispatching
Orders and their instructions are released during dispatching. It adheres to the directions for scheduling and routing. This step makes sure that everything is set up so that the employees can do their jobs.
Here are the focuses that are essential for “Dispatching”:
Start the control procedure and move the work from one process to another by issuing orders or drawings for the materials or fixtures that are necessary for production. Keep records from start to finish.
6. Follow-up
It is also referred to as expediting, identifies production process bottlenecks, flaws, and faults. The team measures the actual performance from the beginning to the end and then compares it to the expected performance during this step.
Problematic regions must be addressed. The goal of follow-up is to get to the bottom of the problem and contribute to its resolution. For instance, is it unusual that schedules are not adhered to? Or is it something that requires modification? To fix the problem, the production manager might have to change the targets, loads, or schedules for production.
What is the significance of it in operations management?
Operations management relies heavily on production planning and control to ensure that products are produced in an effective manner and that quality standards are met.
A well-functioning production planning and control system has numerous advantages.
Most importantly, it may contribute to increasing the manufacturing process’s overall efficiency. Production planning can make adjustments that help to keep the manufacturing process running smoothly by better understanding production schedules and being able to anticipate potential issues.
Additionally, production planning and control can assist in ensuring that goods are produced in accordance with the intended specifications. Not only is this essential for meeting customer expectations, but it also helps to avoid costly manufacturing errors. Production planning can save the business money and time by catching errors early.
Lastly, production planning and control can help improve communication among the organization’s various departments. Everyone involved can be on the same page and working toward the same objective if they have a clear understanding of the manufacturing process. As a result, the operation may be more well-organized and productive.
Conclusion
In conclusion, an essential component of operations management is production planning and control. It aids in ensuring that quality standards are met and products are produced effectively.
Businesses can enhance their overall operations and better satisfy their customers by employing production planning and control strategies.
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