Knowing about different types of production planning is one of the most important tools for fixing the manufacturing plan. It provides information for its execution, data recording, collection, etc. It helps businesses to maintain workflow flexibly and carry out manufacturing operations.
In this article, you will understand types of production planning, their applications, and how they help modern-day production processes to maintain a high production output.
What Is Production Planning?
Production planning is the planning of manufacturing and production operations in a business. The creation of production planning contains many stages of the production line. With the right strategy, companies can use all equipment and labor more wisely.
Production planning also helps businesses manage the available inventory and decide reorder points. It helps identify all delays and their causes quickly. The production plan makes sure you are not overloading your operators and machinery with unequal division of work.
5 Main Types of Production Planning to Choose From
The following types of production planning methods help businesses execute production better. These are:
1. Job-Based
It is also known as Project-based production and focuses on manufacturing a single product handled by a machine or worker. For example, building customized houses is a complex project that can come under this category. In this case, a production plan involving fewer workers and equipment to fulfill smaller products is more advisable.
2. Batch Method
Batch manufacturing is used for those businesses that produce items in batches instead of individually. The main benefit of batch production is avoiding blockages so the total raw material is used efficiently without wastage. By keeping the same procedure applied once, total batch production is done.
3. Flow Method
Flow manufacturing is a demand-based method that helps the production of items only when an order is placed. This technique is used in daily household items such as televisions or microwaves. It allows businesses to reduce lead times significantly by minimizing the number of work-in-process and finished goods.
4. Mass Production Method
This method is similar to the flow method. It is a useful technique that helps businesses quickly produce a large amount of goods. It is an automated process. In this method, manufacturing is done in an assembly line. With minimum production changes, companies can increase production rates.
5. Process Manufacturing Method
This type of production planning is a continuous process similar to mass and flow production. It involves the specific usage of sophisticated machinery at each step of operations. It is common to have by-products or waste from this type of manufacturing.
Production Planning vs. Production Scheduling
Production planning and production scheduling are important methods of manufacturing.
Planning is a strategy companies use to fulfill demands by following instructions. The production planning works with the orders planned as per MRP and fixed orders. These orders are scheduled by the master production schedule (MPS) other than the lead time.
Production scheduling is the process of increasing output by minimizing stockouts and balancing all inputs and outputs in the supply chain. The production line is balanced with the help of planning, routing, scheduling, and dispatching.
Production Planning Process
The production planning process includes many steps. The steps are as follows:
1. Setting Targets
The first step in the production process is to set targets. Understanding which production stage needs attention or which method results in delays. By setting priorities, businesses can quickly identify issues and resolve them in time.
2. Production Capacity
Once targets are set, a business must understand the required equipment or workforce. It is important to understand that businesses need the right resources to plan production properly. Proper planning helps companies decide which resources are needed to produce and deliver the goods.
3. Forecasting Demand for Products
Once the target is set and resources are allocated, the final step is deciding the production rate. It depends on demand forecasting. With market demand, production planning can efficiently process production to increase profits.
Below is an example of production planning of a bakery to understand the types of production planning.
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The company is creating a new production plan to produce its gluten-free bread. The baker calculates batch production and time for the recipe. The baker also orders raw materials and supplies for a week's batch. The baker checks each set and whether the production line of this bread is smooth and straightforward. The whole bread batch will be affected if there is any issue with the recipe. It is an example of batch production.
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Suppose a baker produces a special order according to a particular order and pays full attention to one perfect execution of each order. In that case, the business will receive maximum satisfaction and create a sense of brand loyalty. It is a type of Job-based production.
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If any business has a production process filled with too many problems and stoppages, the production head might replace the whole operation procedure. The head of production will identify the delays and take measures to make the process more efficient. It is a type of process production.
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A baker who produces an essential product in such a large amount for the masses is called mass production. The production is basic and straightforward to make the maximum product at minimum type and cost. Most bakeries produce vanilla and pineapple pastries, making them have simple execution and minimum raw material.
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For example, in flow production, a car manufacturer produces ten cars per week per the demand. The number of vehicles sold is estimated by previous data and market research. Also, many software and production planning applications are available for better demand analysis.
5 Steps to Make a Production Plan
The steps to make a production plan include:
- Forecastingproduct demand
- Deciding production steps and options
- Selecting a plan and scheduling the production
- Monitoring each stage
- Adjusting plans due to any problems
Tips for Production Planning
Here are some tips for efficient and profitable production planning.
1. Check the Process
Monitoring production processes is a key step for better supply chain operations. With guidance and identification of issues, it can help make employees and machinery contribute better to the production line.
2. Select the Right Tool
The most valuable asset in the production line is the software and systems that help make everything run smoothly. To assess the best tool for the supply chain is to face their issue and resolve it on time.
3. Research for Correct Estimates
Research also plays a major part in planning procedures for any product. The study also includes the costs, time taken by each stage, and which equipment is necessary for better execution of the operation.
4. Consider Employees
The overburden and overloading of work can affect your production line. With efficient workload management and regular interaction, equipment and the employees can work for a more extended time that is safe for the business.
5. Hire for Skill
Training and experience are skills that help businesses to increase productivity and performance. However, if skilled employees are hired, they will need less training as they have more experience and exposure to handle the production line better.
Boost Your Production Planning With TranZact
TranZact helps businesses improve production planning with minimum delays and maximum profits. With priority management and effective production line software, companies can plan their strategy to identify and resolve problems.
TranZact can simplify the production line and make the supply chain deliver finished goods on time.
FAQs on Production Planning
1. What are the types of production planning and control systems?
Production planning and control systems are a system that plans the flow of operations to support manufacturers in doing the right task at the right time. There are three types of control systems including output, behavior, and clan control.
2. What are the types of production planning strategies?
Types of Production planning strategies include chase, level production, make-to-stock, and assemble-to-order.
- In the chase, the production depends on demand, while the products are the same quantity in level production.
- Make-to-stock is a type of planning in which a business produces enough products for inventory.
- In assemble-to-order, the order business only arranges the products into finished goods after placing the order.
3. What does MPS stand for?
MPS stands for Master Production Scheduling. It is the process by which the manufacturer finds products and their quantities. It links sales with production capacity.
4. What does MRP stand for?
MRP stands for Material Requirement Planning. It accelerates the manufacturing production process with the bill of materials and demand.
5. What do you mean by demand forecasting?
Demand forecasting is a process of using data analysis to predict future customer's demand for any product. For example, raincoats and umbrellas will have higher demand before rainy seasons than jackets.
6. What does PPC stand for?
PPC stands for production planning and control, and it is a management system that helps in production processes for manufacturing businesses.
7. What are the three stages of PPC?
The three stages of PPC are planning, action, and control. It is a work process to utilize all resources efficiently to obtain better results.
