Developing, manufacturing and shipping products with ever-changing client needs is challenging. Implementing manufacturing tools like production planning can streamline production while ensuring you deliver high-quality products.

Let’s discuss what production planning and scheduling can do for your business and why you should consider these techniques.

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Key Points

• What Is Production Planning?
  • Overview
  • Methods
  • Benefits
• What Is Production Scheduling?
  • Overview
  • Methods
  • Benefits
• FAQs
• Next Steps

What Is Production Planning?

Overview

Production planning is a manufacturing technique for strategizing workflows by determining the use of facility machinery, resources, customer demand, materials and other factors to complete product development.

Production planning software streamlines operations with order management, MRP, inventory management and other features.

There are several vital factors to consider when creating a production plan, such as:

• Gauging Client Demand: Use business intelligence (BI) or business analytics (BA) tools to review historical information and gather the right product insights for data-driven production decisions.
• Supervising Inventory: Gain real-time inventory notifications and perform solid replenishment actions when running low specific items. Pinpoint materials in any worksite or warehouse.
• Evaluating Resources: Determine which machinery, employees and other vital assets to use when crafting high-quality merchandise.
• Controlling Production: Supervise and measure production floor KPIs for lagging areas.
• Catching Risks and Consistently Improving: Assess and resolve bottlenecks with continuous improvement methods to boost production, customer satisfaction and revenue.

Methods

There are several production planning techniques to implement in your workflows. Here are a few to discuss in more detail.

Batch Production

Develop multiple products in a group. If an error occurs in one batch, you can rectify the problem in the next batch after quarantining the original.

For example, a donut factory uses batch production methods to create numerous pastries. Some batches are dedicated to chocolate glaze, while others may cater to strawberry icing or sprinkles.

Job-Based Production

Job or project-based options mean you’re constructing personalized products or single items.

A jeweler or wristwatch maker is an example of a job-based manufacturer. You may get orders for engravings on your products as birthday or anniversary presents. Or a client may want their watch in platinum or silver instead of gold.

Flow Production

Streamline manufacturing workflows and machinery to create products singularly without customization.

This flow technique is ideal for building cars, laptops, phones and more. Companies gather the correct data to meet specific quotas and quality regulations for streamlined manufacturing.

Mass Production

Still focused on one product, this tactic drives more considerable quantities, more automation and additional production lines for greater efficiency.

For example, developing dolls, action figures or other toys can benefit from this method because you’re setting the same item but in more significant numbers.

Process Production

Process manufacturing offers a centralized creation mode with formulas, recipes or sequential steps. This technique uses heat or chemical conversion to fuse raw materials into the finished product.

For example, creating gases, liquids or chemicals requires process manufacturing with careful supervision of each manufacturing stage. You fuse different raw ingredients to make the final product.

Unlike discrete manufacturing, you can’t revert the final product to its original materials.

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Benefits

There are unique perks to consider when implementing production planning.

Improve Customer Satisfaction

You’re creating ideal goods for your clientele. Implementing a perfect production plan and manufacturing methods leaves room for faster, on-time deliveries and customer feedback opportunities.

You can determine what works well and where to improve to drive better results and profits. Happier clients mean repetitive business and them telling their friends about your business.

Enhance Productivity

Effective production planning simplifies using all the right resources and machinery for specific jobs and tasks to streamline production without sacrificing quality.

You enhance your products by using the best employees, machinery and production techniques for your donut factory. Real-time analytics can also detect bottlenecks for expeditious resolutions.

Strengthen Inventory Control

Gain a real-time snapshot of your stock to understand availability, quantity and when to restock items. Establish minimum quantities and receive notifications when you reach that amount to avoid stockouts.

Save Money

Assess and review the money needed to complete a product at every development and manufacturing stage. Using proper accounting systems simplifies budgeting and provides instant financial statuses to make better economic decisions.

What Is Production Scheduling?

Overview

Production scheduling is a tactic for establishing deadlines for finished manufacturing products and delivery dates for clients or suppliers. Think of this concept as the blueprint for a specific launch date.

Production scheduling software helps you determine better turnaround times without losing quality or quantity.

Methods

There are several ways to perform production scheduling, such as Gantt charts, make-to-order, master production scheduling and more.

Gantt Charts

Think of Gantt charts as a giant graph displaying certain tasks you should achieve in a specific timeframe.

For example, if you’re developing new donut recipes throughout the year or during specific seasons, you’re flavor name would go on the left, and the months would go on top. A barcode will display the duration for a flavor (i.e., sprinkles will last from May to July).

Demand Forecasting and Capacity Planning

Capacity planning and demand forecasting allow you to determine the maximum workload of your company for a specific duration and if it can match up with client demands.

You can also use demand forecasting to determine which products are the most popular during specific intervals. For example, people may crave pumpkin spice donuts in autumn and prefer ice cream-filled donuts in summer.

Master Production Scheduling

Master production scheduling is the art of evaluating production time for finished products. A master production schedule helps you understand what to create, how much time is needed to develop and when to manufacture the product.

If you manufacture winter coats and clothing, your master production schedule will likely tell you when to buy raw materials, how much is needed, when to produce the products and when to sell the goods in a detailed timeframe.

Make-To-Order (MTO)

MTO is when consumers order and tailor products to their needs, and manufacturers follow that order from start to finish.

If you order a dozen donuts with different flavors, the company will follow that order to ensure on-time delivery.

If you customize your winter coat with stripes, a different color, engraved stitching or all three, the company will take time to fulfill that order.

Benefits

Production scheduling also offers numerous perks.

Manage Real-Time Inventory

Maintain inventory in one centralized location. Gain better insight for improved decision-making and stock management.

Allocate Employees as Needed

Like production planning, you can use employees and other resources to complete a job or task during production.

Develop Effective Schedules

Manage all resources, finances, time and other factors to develop better schedules for improved efficiency, profits and customer satisfaction.

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FAQs

What’s production planning?

Production planning is a manufacturing strategy intended to plan workflows and the use of machinery, employees, customer demand and more.

What’s production scheduling?

Production scheduling is the art of defining deadlines to complete manufactured products and when to ship goods to clients or vendors.

Why do I need production planning?

Production planning offers numerous advantages, such as improving client relations, strengthening efficiency, boosting inventory control and saving money.

Why should I do production planning and scheduling?

Merging production planning and scheduling streamlines production times while digesting customer demands across a specified duration.

What are some helpful methods of production planning?

Some ideal production planning methods include:

• Batch production
• Job-Based (aka Project-Based) production
• Flow production
• Mass production
• Process production

What are some helpful methods of production scheduling?

Some ideal methods for the best production scheduling practices include:

• Gantt Charts
• Demand Forecasting and Capacity Planning
• Master Production Scheduling
• Make-To-Order (MTO)

Why do I need production scheduling?

Production scheduling allows you to maintain your inventory in real time, distribute employees and other assets as needed for specific tasks and build better manufacturing schedules.

What are some ideal production planning and scheduling KPIs to track?

Some vital KPIs to track with production planning and scheduling include:

• Downtime
• Production Rate
• Overall Equipment Effectiveness (OEE)
• On-Time Orders
• Rejection Rates
• Takt Time
• Inventory Turns
• Employee Turnover
• Energy Cost Per Unit
• Open Orders
• Percentage Savings in Costs
• And more!

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Next Steps

Whether you’re interested in production planning, production scheduling or both, each helps you streamline workflows and the best way to allocate assets when assembling products.

Not sure about next steps? Look at our in-depth, free comparison report for solutions that align with your manufacturing practices.

How has production planning made a difference for your business? Let us know in the comments!