Production planning, or production scheduling, is a term provides planning of production in all aspects, from workforce activities to product delivery. Production planning is almost exclusively seen in manufacturing environments; however Production planning is primarily concerned with the efficient and effective use of resources it may be used in service oriented organization. Production planning sometimes refers to as operation planning, the main characteristic is that production planning is focused on the actual production, whereas operations planning looks at the operation as a whole.
Objective of production planning:
A main goal of production planning is to ensure that production processes are to be completed with in the schedule, as a means determine the most efficient start and end times for each production activity. Additional capacity must utilize as required in accordance with the past experience
Minimize Production costs:
Supply Chain Scheduling (SCS) is another component of production planning Systems. It synchronizes to reduce materials costs. Apply appropriate manufacturing method as required upon the nature of the materials. The principles of lean manufacturing are very popular, and rely heavily on Just-in-Time inventory methods that in turn rely heavily on interaction with suppliers and transparency throughout the supply chain.
Use Resources Efficiently:
Ensure that each production department has exactly the right materials at the right time. the principles of Supply Chain Scheduling mentioned that there are always enough raw materials for production processes, Capacity Requirements Planning ensures that there is never too much raw materials inventory on hand, and reduces costs associated with the misallocation of resources.
The prime objective of Production planning is to ensure a customer satisfaction. By creating a cost efficient production system, organization will be able to minimize defects, reduce prices, and quicken throughput, making more reliable products at lower prices available more quickly to your customers.
The production schedule is derived from the production plan; it is a plan that authorized the operations function to produce a certain quantity of an item within a specified time frame. The production schedule is drawn in the production planning department
Production scheduling has three primary goals or objectives:
- The first involves due dates and avoiding late completion of jobs;
- The second goal involves throughput times;
- The third goal concerns the utilization of work centers.
Production scheduling involves due dates and avoiding late completion of jobs. The firm wants to minimize the time a job spends in the system, from the opening of a shop order until it is closed or completed. It Concerns the utilization of work centers. Firms usually want to fully utilize costly equipment and personnel.
An inventory is a stock or store of goods. Keeping an optimal amount of raw materials in stock is a crucial component of any production-oriented organization. Before a product can be manufactured, the raw materials must be in stock and in good quality.
Inventory control is a crucial part of the production system. Essentially inventory control is concerned with production planning. It determines inventory of a finished product or inventory of materials used in making such products. Inventory control is affected by changes in customer demand, holding costs, ordering costs and back order costs. Improper inventory control hampers operations, diminish customer’s satisfaction and increase cost of production.