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Production Planning

Updated on October 29, 2009


Production planning consists of two levels: top management level and operational level. Determining the line of product facilities, the plant, location, and size are plans in the management level, while the day-to-day production and operation to meet the customers' needs are done in the operational level.

There are many advantages of production planning and control. For one, it eases the job to be done from gathering the materials, resources, equipment to be used, the number of orders based on the selling forecast, the number of working hours, tools, designs, specifications and identification of parts and jobs - these things need careful planning. These also include routing that determines the sequence to be followed in manufacturing the product, from one machine to another and from one section to another.

Manufacturing, on the other hand, is the work that goes on in your factory that results to a finished product or a semi-finished one. In retail business, you do not go into the process of manufacturing, but you go into the process of purchasing or arranging and selling the product. In service industries, the process involved is to actually do the work like laundry services, electrical repairs, plumbing activities, shoe repairs and the like. The materials and resources you use in manufacturing the products like machines, money, raw materials, and labor are called inputs. The products or results achieved are called outputs.

Proper allotment of time is also planned under production plan. This means scheduling the time the product is to be finished. In order to meet the job requirements, deadlines must be considered along with the number of orders placed.

All these things could possibly be achieved 100% through the proper supervision of the people who have the knowledge of the following control:

1.   Control of manufacturing

Instructions must be easily understood by the workers.

2.   The purchase and storage of materials

Materials bought should be properly stored to avoid spoilage and deterioration.

3.   Control of the manufacturing process

Checking of day-to-day activities, proper maintenance of machines and equipment, and work motivation should be acted upon.

4.   Lack of skills

Plan and conduct seminars on values redirection to minimize tardiness, absenteeism, and inefficiency.

5.   Control of the finished product

Make sure that you come up with quality products.

6.   Control of measuring and testing instruments

Measuring instruments should be periodically calibrated.


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