ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Production Plan in Small Business

Updated on February 6, 2010

 

Production Plan

Introduction

Production or manufacturing as it is more commonly called is concerned with the making of things, the creation of form utility. Etymologically, the word "manufacturing" means "making by hand." However, very few articles are now made solely by hand. Even the simplest type of manufacturing necessitates some tools. There are hand tools and machine tools. In addition to tools, various types of equipment are often necessary, depending on the nature of the manufacturing process.

The modern production facility is generally large and complex. Vast amounts of raw materials are used to produce a great variety of industrial and consumer goods. To keep the wheels of industry turning, new manufacturing plants must be built and equipped, raw materials ordered and stored, production plans designed and implemented, and output quality checked. These and the many other tasks needed to run the production facility of today are the responsibility of production management.

Purchasing of Raw Materials

In addition to controlling inventory, the firm must decide what raw materials and capital equipment, such as heavy-duty machinery, need to be purchased. If the company is small and decentralized, these decisions will often be made by the production manager. If the company is large and centralized, the decisions will probably be made by a purchasing manager.

How Purchasing Is Done

The purchasing department is the firm's representative with external vendors. Its job is to purchase the necessary goods and services as efficiently as possible. In addition, the department is responsible for maintaining records on the performance of suppliers and for paying the agreed upon price.

Once goods are received they are often stocked in a storeroom and drawn out as needed. If more than one unit or department will be using them, it is common to find the purchasing department also supervising the disbursement of the materials. In this case, each production unit will present a requisition of the goods it needs, specifying the desired quantities.

Production Scheduling

Most products follow some production sequence. For example, the goods are first manufactured, then treated with a special coating, and then assembled. In order to follow the sequence, the company must have planned out a production schedule.

Scheduling involves determining when work should begin on a particular order and when it should finish. The company would also like to be able to determine the amount of progress that has been made to date. These things are often accomplished through the use of scheduling techniques.

Scheduling Techniques

Most firms rely on one or more scheduling techniques to help them solve their production coordination problems. These techniques can be grouped into two basic categories.

1.      Charts and graphs

2.      Operations research methods

 

Charts and graphs are used for scheduling. Perhaps the best known is the Gantt chart, which gives the numbers of the orders currently being worked on and the quantities of each item that are being manufactured.

Operations research methods is a term used to describe mathematical decision-making techniques. Most of these are far too technical for discussion.

However, the Program Evaluation and Review Technique (PERT) is easier to understand and widely used in scheduling complex jobs that are one-time operations for the firm. The reasons companies like to use PERT on complex projects is that it helps them to:

1.      Identify all the things that have to be done.

2.      Determine how long each will take.

3.     Work out the sequence in which everything must be accomplished.

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)