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Production planning is the key between operations and product delivery

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by: samvega
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Word Count: 339
Date: Sat, 4 Feb 2012 Time: 6:25 AM

In terms of pre-planning, plans should aim at producing items in a consistent and frequent manner taking the broad corporate plan of the company into account. Production planning forms the intermediate business plan for executing work of the operations as well as manufacturing departments. Since customer satisfaction is of paramount importance, the plan has to deliver the product or service within the promised date. While formulating a production plan, one needs to ensure that the production does not overtly stress the manufacturing facilities and infrastructure. A vast information and data source for production planning is available. Tools aid businesses to plan and schedule their production requirements with objectivity and clarity while cutting costs without compromising on results and productivity.

Smart investing for maximum client satisfaction can be achieved only if one optimizes workforce and resources at hand. So production planning will definitely entail a step by step execution of inventory, production rate and equipment management. One needs to gather data for each and every product/ service as assessed over a set time period. Based on this, a sales forecast will be drawn up and aggregate demand is arrived at. This demand estimate is used as a base for planning of staff management, processes, and other production aspects. Essentially, production planning will involve not only the manufacturing but also the purchasing, finance and even the marketing departments.

Businesses can choose their production strategies so to match the rate of production with the order placed, or the demand. This demand chase formula depends on the rate of order placement. In contrast, level production planning engages a fixed workforce lineup and aims to maintain constant production. In case of shortages during any step of the production, such planning models accordingly shift the inventory or go in for ordering of backlogs. Marketing strategies also form part of the production mechanism in this case. In case of mixed strategy writing production planning. will entail a fixed workforce but flexible working hours to cater to fluctuations in demand and supply and even resort to outsourcing.

About the Author

The Author is a professional writer, presently writing demand planning.and microsoft dynamics supply chain.

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