Production planning refers to the strategy that allows you to gain full control of your manufacturing process and identify bottlenecks, determine points for improvements, stop leakages, and overall increase productivity. It’s an integral part of having an efficient program for your processes, as having great planning rarely misses out on crucial facets of production.
But how does it improve your operations, particularly here is how production planning helps you maximize your production process:
Increased Efficiency
Efficiency is synonymous with having adequate planning and control over your operations. One of the main goals of production planning is to produce a great product or provide an excellent service with fewer resources, investments, and waste. Having a realistic schedule and expected outcome can help you navigate through the process using the minimum requirements to produce maximum output out of your operations.
Stop Wastes and Leakages
Accidents, errors, and other miscalculated events can lead to loss of time, thus loss of profits. This also refers to unmitigated leakages in the process. For example, a maintenance service provider offers an annuity contract to its client, but it fails to identify performed services that are out of the contract’s scope, nor does it keep track of the units covered by the agreement. The company ends up spending its resources on activities and units it has no business with, all because it didn’t establish an ability to identify service requests and entitle units. With the right planning, it could have laid out measures and safeguards to make sure it was working within the boundaries of the agreement and avoided massive losses and leakages.
Proper Allocation of Resources
In relation to efficiency, the optimum usage and proper allocation of resources help in minimizing losses and maximizing output. The last part doesn’t necessarily mean churning out the most number of products, nor servicing the most number of units translates to higher margins. It means you’ll be able to meet the demands in a timely and adequate manner. One example is a bakery, each one of your ingredients has a shelf life. If you’re overstocked with one, two, or all of them, you may end up making too much and would have to sell them at a lower price just to avoid throwing them away. Proper allocation of resources means getting the right amount to do a certain job at a certain time.
Timely Delivery of Service or Products
Because you’ve avoided wastage and inefficiencies, your operation is running smoothly, consequently delivering your service or products at the right time. This applies to every phase in the process as it won’t matter if you’re able to deliver the products on time, but at a great cost in man-hours and logistics. So make sure each process is properly scheduled and executed properly to avoid delays down the road.
You can still find a lot of reasons as to why proper planning can help in your operations across different industries. Today, the size of an operation is irrelevant as to how having full control of the process can help get a competitive edge in the market. Lastly, industrial theories and real-world experience will tell you that careful consideration of each phase of a process is vital to any business venture you’ll enter, so plan out your operations properly, and you’ll see the difference.
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