6 Tips for SMEs to improve their Production Planning process | TranZact

Jun 16, 2022 in Production



In today's fast-paced and competitive business environment, companies strive to improve their production processes to be more efficient and effective. So many of them are turning to Production Planning (PP) techniques to help them optimize their outputs.

Small and medium-sized businesses (SMBs) face unique challenges when it comes to production planning. As a small or medium-sized business, you may not have the resources of a large corporation, but that doesn't mean you can't benefit from production planning. SMEs just have to be more creative and efficient in their planning activity to overcome these difficulties.

And by having a well-planned and organized production process, SMEs can ensure that their products are of high quality and can meet customer demands on time.

There are a few fundamental tips that SMEs can follow to improve their production planning process. And in this blog, we are trying to help you provide details related to these tips only that will help you improve your production planning process. But before diving into these tips, let's refresh our knowledge again about production planning first.

What is Production Planning?

What is Production Planning

Production Planning is the process of determining the quantity and type of resources needed to produce a given output within a given timeframe.

It is a critical part of any manufacturing or production operation, as it ensures that all necessary resources are available when needed and that production schedules are met.

There are many different Production Planning techniques that companies can choose from, depending on their specific needs and goals. Some popular methods include Capacity Planning, Inventory Planning, Materials Planning, and Scheduling.

Each of these techniques has its own advantages and disadvantages, and choosing the right one for your company will depend on your specific circumstances.

Read more about - Production Planning and Control - Ultimate Guide for SMEs

6 Tips for SMEs to help them with their Production Planning Process.

So, let's end up your wait. Here are six tips for SMBs to improve their production planning process:

1. Define Your Goals.

Production goals

The first step in any production planning process is to define your goals. What do you want to achieve with your production schedule? Do you want to increase efficiency? Reduce costs? Or to Improve quality? Once you know what your goals are. Then you can start developing a plan that will help you achieve them.

2. Know Your Resources.

The second step is to assess your resources. What do you have to work with? What equipment do you have? How many employees do you have? What are their skills?

Once you know your resources, you can start to develop a plan that makes the most of them. And to help you ease out plus streamline this task, you can take the help of an inventory management software solution like TranZact. It will help you get real-time data and insights about your resources. Both in terms of inventories, cash, bank, debtors, and creditors balances in one place.

3. Develop a Schedule.

Production scheduling

The third step is to develop a schedule. This schedule should outline when each task will be completed and who will be responsible for it. This production schedule should be realistic and take into account all of the resources you have available.

The main requirement for this step is that you need all the data related to resources in one place. To help you with it, you can go for a software solution that offers production planning modules. And it will easily aid you in preparing a perfect production schedule taking into account real-time data and deadlines.

4. Communicate the Schedule.

The fourth step is to communicate the schedule to everyone who needs to know about it. This includes employees, suppliers, and customers. Everyone needs to be aware of the production schedule. So that they can plan accordingly.

But the major issue that traditional Indian small businesses face is that they tend to work manually. And the task of communicating a piece of particular information takes a lot of time which in turn sometimes results in a loss for the organization.

So to overcome this difficulty, there is a need for Indian SMEs to digitalize their whole business workflows and activities. This can be done by using automation software like TranZact. With its assistance, the production schedule-related information can easily be communicated between different departments at the click of a button.

5. Monitor the Process.

The fifth step is to monitor the production process. This includes keeping track of deadlines, progress, and changes. It's essential to scrutinize the entire process at regular intervals so that you can make adjustments as needed. That's where tools like TranZact play a vital role. As it provides you with real-time data and developments and with its customized reports option, you can quickly make data-driven decisions whenever needed.

6. Make Adjustments.

The final step is to make adjustments to the production process as required. This could include changing the schedule, adding or removing resources, or changing the way you do things.

The goal here is to constantly improve the production process. So that your company at every time can be as efficient and effective as possible.

Read more about - Best Production Planning software to use in 2022


Now it is time to put these strategies into practice!

The tips above should help SMEs to improve their Production Planning process. They can create a plan that addresses their particular demands and objectives by taking the time to understand the procedure and how it functions.

Additionally, they should consider automating their process to improve efficiency and accuracy. SMEs can accomplish this by using an inventory management system for their business. TranZact is one such tool.

It is a zero-effort digital transformation and inventory management tool that digitizes the entire business process right from sales inquiry to dispatch. TranZact offers a Production Planning module that helps SMEs and manufacturing businesses manage all their production planning and scheduling activities from one place.

Read more about - How Can SMEs Optimize Production Process By Going Digital

Even though there is no one-size-fits-all solution for improving production planning. Some of these additional fundamental tips can help most SMEs. Like it is essential to have a clear understanding of customer demand and lead times. You can use this information to design a production plan that is reasonable and attainable.

Further, it is necessary to consider the capabilities of the production facilities and staff when creating the production plan. By taking these factors into account, SMEs can create a production plan that is more likely to be successful.


TranZact is a team of IIT & IIM graduates who have developed a GST compliant, cloud-based, inventory management software for SME manufacturers. It digitizes your entire business operations, right from customer inquiry to dispatch. This also streamlines your Inventory, Purchase, Sales & Quotation management processes in a hassle-free user-friendly manner. The software is free to signup and gets implemented within a week.