What is the Function of Production Planning? Here, the explanation!
Rancakmedia.com – A brief review of the production planning function which we will explain thoroughly starting from the definition to the types, so that you get the information you should refer to the article below.
The importance of production planning in modern business has grown because its meaning to business has changed significantly over the last few decades. There are many aspects of modern life that were once inconceivable but are now indispensable. For better or for worse, things that were once dominant are quickly becoming relics of the past.
Not everyone can keep up with the times, which is why many companies still stick to the 1900s-era production schedule. In those days, only individuals who were actively involved in production planning could hope to manage a significant enterprise with a substantial workforce and demanding tasks.
The misconception that only large companies need or are able to manage production planning is probably still prevalent in today's industry. This kind of thinking eliminates implementation opportunities in low or medium volume production, which puts you at a competitive disadvantage.
Definition of Production Planning
Production planning, in a broad sense, is every plan made in connection with the manufacture of something. Both are related to the theme, shape, taste and quantity of the product.
Production planning is any plan that is made with respect to making something and can be used to refer to any kind of plan that is developed. All of that relates to the concept, shape, taste, and quantity of the product as a whole.
Within organizations, this kind of planning is known as “operational planning.” Therefore, the grid must be legible so that it can be used as a basis for standardized product-related choices and rules.
Definition of Production Planning According to Experts
The term production planning has been given various interpretations by various fields of study. This is the definition
experts say, namely:
Agus Ahyari stated that production planning is product planning with what scope and how many items to produce. Given that this is a plan, the focus is on the end product.
Nasution has a different view on production planning. Production planning, in his view, is nothing more than an impromptu planning activity whose main objective is to match product demand with available company resources.
Production Planning Objectives
After knowing the meaning of production planning, we must also know its purpose, as follows:
Forecasting Product Demand
Predicting product demand is the first step in the production planning process. What this indicates is that the corporation is making preparations to take into account the demand level of potential customers.
Having access to these formulas or equations makes it much simpler for businesses to mass produce goods. because the quantity only needs to be modified to meet the market demand.
Determine the number of orders for raw materials
Identifying the required quantity of raw materials is the next objective. which may be a nerve-wracking challenge if this isn't prearranged.
An example is placing an order for a certain quantity of raw materials needed. However, when the final product is produced, the number of units is even less than what the customer buys.
Or it might be the other way around, with too many raw materials procured, leading to an over-ordered finished product.
The third goal is to strike a balance between requests and the methods used to fulfill orders. Losses are a possibility, it is thought, because the books are out of balance.
To maintain a healthy balance between the two requires careful planning. This plan is where the distribution strategy and the customer's wishes for the goods spread across the sweet spot meet.
Production Planning Function
Production planning has several objectives besides production planning also has several functions to achieve implementation.
Ensure product production and marketing plans
With a well-thought-out production plan, businesses will have easier planning in selling goods to customers and meeting their targets.
Measuring Production Capacity Consistent Against Production Plans
The capacity to manufacture goods within a certain period of time can be estimated accurately with the help of production planning.
Tools for Monitoring Production Results
When it comes to supervising or assessing the success of a product, the first step is always to plan the production process.
This is due to the fact that goal setting is an integral part of any plan. The success of a production process can be evaluated on the basis of how closely it follows the plan that has been formulated.
Mechanism of Production Planning
Production planning must be done carefully. If you want your planning to work, you need to activate a few key processes. The mechanism in question is described below.
Routing is the process of figuring out the order in which tasks must be performed. Raw material quality, product quality and quantity, human resources, and operating equipment all need to be planned in advance in this process.
Routing is the process of planning what, how much, and where a product will be produced. If the product is produced according to plan, then, and only then, will strategic choices become available.
When everything is scheduled, a date and time is set to start the product or to start repairing the damaged product. This implies that all operating schedules are adequately planned and coordinated under this method.
It's just a matter of ensuring that products and products run smoothly. to get products into the hands of customers as soon as possible so that they can be put to good use.
After that, the shipment will start. It's time to implement the plan at this level. in the sense that the production strategy mentioned above must be implemented by the company.
There can be no production without the necessary machinery. Furthermore, the CEO had issued an urgent order to start production.
Scheduling involves selecting a time and date to start the product or to fix a product that is not working. This indicates that all operating schedules under this mechanism are adequately planned and coordinated.
The main objective is to continue the product as usual regarding product and distribution. For efficient use, it is important that the product reaches the customer as soon as possible.
Next is to have excellent demand forecasting skills. Why? Because this is raw data that will be used in the next planning stage.
It would be ideal if demand estimates were based on reliable information. because we can improve our production plan.
Tips for Executing Production Planning
Assuming you are familiar with the definitions, functions, objectives, and methods of production planning, the following will provide guidance on how to implement that production into a plan. Please read on for some helpful pointers:
Quickly Predict Consumer Demand
The first piece of advice is to have very good demand forecasting skills. Why? Because this is raw data that will be used in the next planning stage.
It would be ideal if demand estimates were based on reliable information. Because we can perfect our production plan.
Manage Resources Well
The ability to plan production effectively is based on good resource management. This includes things like energy, labor, and equipment.
Assuming an effective allocation of resources, the plan would naturally only concentrate on operational tactics.
This implies that the transformation of raw materials into final products takes less time and produces higher quality results.
Creating Friendly Communication Spaces
Next, make sure there is a friendly environment to talk to one another. Breaking down barriers between lower and top management should be high on the planning team's priority list.
Since it's impossible to know whose ideas were the best and brightest, everyone had to contribute.
The responsibility of a leader in event planning is to give everyone a voice. As soon as the production plan is implemented, nothing else needs to be done except the plan. This signals the start of the actual production operation.
Types of Planning in Production
The following details the five different production and planning strategies currently in use:
Job Based Planning
By Task or Project Production is a product to make certain goods, and can be done by individuals or teams.
This form of production planning can be used for tasks of a simple scale, such as the manufacture of one-of-a-kind jewelry. Building a bespoke home is an example of a more extensive and complicated production venture.
Planning production for low-volume tasks that do not require specialist tools is easy
Adding these features allows manufacturers to tailor their goods to individual consumers, and can usually be included at any point in the production cycle with minimal interruption.
Batching Based Method
When it is more efficient than individual or continuous production to make a large number of products at once, batch production is used.
For example, cookies are mass-produced in batches, which means that each cookie goes through its entire production time simultaneously.
To ensure that all the cookies in a batch are made at the same time, you have to measure all the ingredients at once, mix them all, and then bake them all at the same time.
Batch Production Planning can be difficult if you don't consider the constraints at each stage of the process to maximize your resources without going overboard.
There may be a bottleneck in production if, for a time, you can only bake 300 cakes at a time but your dough mixer can hold 100 cakes.
Iterative Flow Based Methods
The Flow Method is a demand-based manufacturing technique defined by a constant flow of products moving through an assembly line.
This method is often used in the assembly of TVs and other home appliances, which are made through coordinated production activities where components are transferred seamlessly from one moment to the next.
By using the production flow method, businesses can reduce WIP stock and completed items, as well as the costs and lead times of producing new orders.
Process Manufacturing Method
The manufacturing process is also present in Mass Production. In the context of mass production of similar products, this time is of the essence. As a result of automation, labor costs per unit of production are significantly reduced in this production.
Having different assembly lines for different products in a production line can speed up turnaround times and increase output. As production costs are lowered, companies can increase their profits.
Question and answer sentences regarding the production planning function, as follows:
What Happens If a Company Can't Carry Out Production Planning Properly?
If the company is not proficient in carrying out production planning, it will cause supply delays and expensive costs.
What Problems Often Appear in Production Planning?
Problems that often arise in production planning, including:
- production rate.
- There should be enough space for production.
- Finished product stock
Production planning nothing more than quick planning actions whose main purpose is to come up with policies or decisions regarding product demand that are tailored to the available business resources.
That's the information we can convey about the production planning function, I hope the above information can be useful for all of you.