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o maximize productivity, every company needs a sound production plan. However, effective planning is a complex process that covers a wide variety of activities to ensure that materials, equipment and human resources are available when and where they are needed. Production planning is like a roadmap: It helps you know where you are going and how long it will take you to get there.
Here are some advantages of an effective production plan and scheduling.
Effective planning hinges on a sound understanding of key activities that entrepreneurs and business managers should apply to the planning process. Here are some examples:
To plan effectively, you will need to estimate potential sales with some reliability. Most businesses don't have firm numbers on future sales. However, you can forecast sales based on historical information, market trends and/or established orders.
Reliable inventory levels feeding the pipeline have to be established and a sound inventory system should be in place.
Also known as open time, this is the period of time allowed between processes so that all orders flow within your production line or service. Production planning helps you manage open time, ensuring it is well-utilized, while being careful not to create delays. Planning should maximize your operational capacity but not exceed it. It's also wise not to plan for full capacity and leave room for the unexpected priorities and changes that may arise.
Typically, the most efficient means to determine your production steps is to map processes in the order that they happen and then incorporate the average time it took to complete the work. Remember that all steps don't happen in sequence and that many may occur at the same time.
After completing a process map, you will understand how long it will take to complete the entire process. Where work is repeated or similar, it is best to standardize the work and time involved. Document similar activities for future use and use them as a base-line to establish future routings and times. This will speed up your planning process significantly.
During the process map stage, you may identify waste. You can use operational efficiency/lean manufacturing principles to eliminate waste, shorten the process and improve deliveries and costs.
Evaluate these by collecting historical information on similar work experiences, detailing the actual time, materials and failures encountered. Where risks are significant, you should conduct a failure mode effect analysis method (FMEA) and ensure that controls are put in place to eliminate or minimize them. This method allows you to study and determine ways to diminish potential problems within your business operations. This type of analysis is more common in manufacturing and assembly businesses.
All other activities are initiated from the production plan and each area is dependent on the interaction of the activities. Typically, a plan addresses materials, equipment, human resources, training, capacity and the routing or methods to complete the work in a standard time. In order to do a good sales forecast, you should base it on a history of firm orders.
The production plan initially needs to address specific key elements well in advance of production in order to ensure an uninterrupted flow of work as it unfolds.
The production plan provides a foundation to schedule the actual work and plan the details of day-to-day activities. As sales orders come in, you will need to address them individually based on their priority. The importance of the sales order will determine the work flow and when it should be scheduled. After this, you should evaluate whether or not you are ready for production or to offer the service. You will need to determine:
After you have determined that you have met the criteria to start production, you will need to communicate the plan to the employees who will implement it. You can plan the production on spreadsheets, databases or software, which usually speeds the process up. However, a visual representation is preferred as a means to communicate operation schedules to floor employees. Some businesses post work orders on boards or use computer monitors to display the floor schedule. The schedule also needs to be available to employees ahead of time and kept up to date.
One of the many challenges of production planning and scheduling is following up with changes to orders. Changes happen every day. You will need to adjust your plan in line with these changes and advise the plant. Dealing with change is not always easy and may take as much effort as creating the original production plan. You will need to follow up with the various departments involved in order to rectify any problems. As well, computer software can be helpful in tracking changes, inventory, employees and equipment.
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