Types of Production Planning

Types of Production Planning (With Examples, Tips, and Techniques)

By Team TranZact | Published on Jun 5, 2024

Production planning is one of the most important aspects of a manufacturing business. But did you know that there are different types of production planning? They all come with different methods for execution, data recording, collection, etc. It helps businesses to maintain workflow flexibly and carry out manufacturing operations.

In this blog post, you will understand types of production planning, their applications, and how they help modern-day production processes to maintain a high production output. It will also give you an understanding of which method is best for your manufacturing business.

What Is Production Planning?

Production planning is the planning of manufacturing and production operations in a business. Using a planning strategy can help you improve the use of equipment and labor resources. 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 workers and machinery with high work.

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5 Main Types of Production Planning to Choose From

There are many types of production planning methods that help businesses execute production better. Five of the most important ones are:

1. Job-Based Production

Job-Based Production is also known as Project-based production. It focuses on manufacturing a single product handled by a machine or worker. For this, you have to come up with a production plan with a lean workforce and minimal equipment.

2. Batch Manufacturing 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. Hence, the total raw material is used efficiently without wastage.

3. Flow Manufacturing 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 manufacturing daily household items such as televisions or microwaves. It reduces lead times by minimizing the number of work-in-process and finished goods.

4. Mass Production Method

This method is like the flow method. It is a useful technique that helps businesses quickly produce a large amount of goods. It is an automated process. With this, manufacturing is done in an assembly line.

5. Process Manufacturing Method

This type of production planning is a continuous process like mass and flow production. It involves the specific usage of 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 but there are some differences between them.

Production 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 that help your production from beginning to end. The steps are as follows:

1. Setting 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, you should understand the required equipment or workforce. Proper planning helps companies decide which resources are needed to produce and deliver the goods.

3. Forecasting Demand: The production rate depends on demand forecasting. With market demand, production planning can efficiently process production to increase profits.

Example of production planning

Below is an example of one type of production planning to understand it better.

Flow production: Flow production in car manufacturing involves a continuous and streamlined process to efficiently produce large quantities of standardized cars. The manufacturer estimates demand by analyzing historical sales data and market research, using advanced software for accurate demand analysis. The production schedule is set to produce ten cars per week, with resources like raw materials, labor, and machinery allocated efficiently.

The workflow is optimized to minimize downtime and bottlenecks, ensuring each stage of production transitions smoothly to the next. Integrated quality control checks at each stage maintain high standards, and any defects are promptly addressed. Real-time data from the production line allows for continuous monitoring and necessary adjustments to address deviations or unexpected changes in demand.

This method makes sure efficient resource use, consistent quality, and cost-effectiveness. By using production planning tools, the manufacturer can meet customer demand effectively, improving productivity.

5 Steps to Make a Production Plan

The steps to make a production plan include:

  • Forecast product demand
  • Decide production steps and options
  • Select a plan and scheduling the production
  • Monitor each stage
  • Adjust plans due to any problems

Production Planning Techniques

Production planning techniques are strategies used by businesses to optimize resources, reduce costs, and meet customer demand. Let's discuss the production planning techniques to understand it better:

Production Scheduling: This is a plan for individual processes in each period. It's usually linked to manufacturing where the plan indicates when and how much of each product will be produced.

Material Planning: This manages the materials in the manufacturing processes. It makes sure that materials are available for production, and products are available for delivery to customers. It also maintains the lowest possible inventory level.

Just-In-Time (JIT): This technique reduces times within the production system as well as response times from suppliers and customers.

Tips for Production Planning

Production planning is a complex process that requires strategy, accuracy, and understanding of your production line. 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. Assess and find the best tool for the supply chain is to resolve issues on time.

3. Research the Estimates: Research on 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

Production planning is an important factor in a manufacturing business. With the best tips and techniques in hand, you must have come to the conclusion that handling it all manually can be difficult. Making the plan, making sure it is being followed, and following best practices can all be too much for you. Software can do all these tasks altogether.

TranZact is a tool that helps businesses improve production planning with minimum delays and maximum profits. With priority management and effective production line software, manufacturers can plan their strategy to identify and resolve problems. TranZact is an affordable software specifically made for Indian SME manufacturers. 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 plan the flow of operations to support manufacturers in doing the right task at the right time. There are three types of control systems: output, behaviour, 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 chase-level production, 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?

Master Production Scheduling (MPS) 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.

8. What is the technique of production planning?

Production planning technique is the scheduling and organizing of the manufacturing processes of a manufacturing business. It allows a company to track its production, find issues, and deliver products on time.

9. What are the 5 steps to production planning?

The five steps to production planning are:

  • Forecast product demand
  • Map out production steps and options
  • Choose a plan and schedule production
  • Monitor and control
  • Adjust accordingly

10. What are the 3 functions of production planning and control?

The three main functions of production planning and control are:

  • Planning phase
  • Action phase
  • Control phase

11. What is PPC in different types of production systems?

Production Planning and Control (PPC) varies with the type of production system. For example, in a job production system, PPC involves planning for individual orders, while in a process production system, PPC aims to maintain a continuous and uniform flow of work.

12. What are 4 main types of production?

The four main types of production are:

  • Unit or Job type Production
  • Batch Production
  • Mass Production
  • Continuous Production

13. What is an example of a production planning process?

An example of a production planning process is a factory producing handbags. The management of the handbag manufacturer plans the production of a number of bags based on demand forecasts for each design seasonally. Using the right materials and resources, the bags are made in the factory.

14. What are the types of plan in production management?

There are two main types of production management: Intermittent and Continuous. In terms of planning, production management uses many types of production management. They include the Master Production Schedule, Material Requirements Plan, and Capacity Requirements Plan. These plans optimize the production schedule and ensure efficient use of resources.

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