If you work in a manufacturing plant as a supervisor you have heard the words “production planning” many times. This is the procedure that they use to decide just how many goods to manufacture. For the company to be successful efficiency is important. They do not want to over produce products and then have them just sit in the warehouse. That is profits down the drain, so to speak. A company wants to make sure that they are producing enough products to meet the demands. There are many different forms of production planning that goes under various titles in the world of business. There are three main types that many businesses use.
Batch production planning
This type of production planning involves producing many identical individual products from the same batch of raw material. For example, a seamstress would take some cloth and produce five individual identical dresses. In a manufacturing plant that produces many different products this can advance the efficiency of the employees and machines to produce one large batch of an individual product at the same time. In a factory, for example, the machines may be set up to produce a group of peas in cans, followed by a group corn in cans. Setting up the machines to follow this schedule is more efficient than changing the machines to produce a can one at a time as they are needed.
Job-or project-based production planning
This type is generally used in smaller businesses where one team or one person does the production of services or goods. A jewelry maker that makes custom engagement and wedding rings is an example of this type of production planning. Film production is a team so this is the type of planning they would use. Job-and project planning is very customizable to meet the requirements of the business and the customer. It should not be used if you are creating a flow of production that is consistent.
Continuous or mass production planning
This one is used often to create products that are massed-produced and generally used by large factories to produce a steady flow of products. For this process to be cost-efficient, a demand for this product must be regular. The production services must also be streamlined. This is so the products go from one-step of the making the product to the next step effortlessly. This requires demanding pre-planning of production flow and layout.
In production planning, determining the right method for a business will normally depend on mathematical calculations and market forecasting. Some companies will use production planning software to capitalize on the company’s production capacity and to measure planning strategies cost-effectiveness. Through control, the methods of planning are often made to make the most of on the company’s potential.