Example of production planning in production and operation management
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Production planning is a plan for the future production, in which the facilities needed are determined and arranged.[2] A production plan is made periodically for a specific time period, called the planning horizon. It can comprise the following activities:
Determination of the required product mix and factory load to satisfy customers needs.[3]
Matching the required level of production to the existing resources.[4]
Scheduling and choosing the actual work to be started in the manufacturing facility"[1]
Setting up and delivering production orders to production facilities.[5]
In order to develop production plans, the production planner or production planning department needs to work closely together with the marketing department and sales department. They can provide sales forecasts, or a listing of customer orders."[6] The "work is usually selected from a variety of product types which may require different resources and serve different customers. Therefore, the selection must optimize customer-independent performance measures such as cycle time and customer-dependent performance measures such as on-time delivery."[1]
A critical factor in production planning is "the accurate estimation of the productive capacity of available resources, yet this is one of the most difficult tasks to perform well".[7] Production planning should always take "into account material availability, resource availability and knowledge of future demand".[5]
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Determination of the required product mix and factory load to satisfy customers needs.[3]
Matching the required level of production to the existing resources.[4]
Scheduling and choosing the actual work to be started in the manufacturing facility"[1]
Setting up and delivering production orders to production facilities.[5]
In order to develop production plans, the production planner or production planning department needs to work closely together with the marketing department and sales department. They can provide sales forecasts, or a listing of customer orders."[6] The "work is usually selected from a variety of product types which may require different resources and serve different customers. Therefore, the selection must optimize customer-independent performance measures such as cycle time and customer-dependent performance measures such as on-time delivery."[1]
A critical factor in production planning is "the accurate estimation of the productive capacity of available resources, yet this is one of the most difficult tasks to perform well".[7] Production planning should always take "into account material availability, resource availability and knowledge of future demand".[5]
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