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Operations Management - Introduction to Operations Management

Characteristics of a good production plan - Introduction to Operations Management

   Posted On :  22.06.2018 07:19 am

Any manufacturing or service company success and higher productivity highly depend upon an effective and efficient production plan. Effective planning is fundamental in any business; however, making a plan is not an easy task.

Characteristics of a good production plan
 
 
Any manufacturing or service company success and higher productivity highly depend upon an effective and efficient production plan. Effective planning is fundamental in any business; however, making a plan is not an easy task. It is a complex process that covers a wide range of diverse activities, which relate and link materials, equipment and human resources available in the organisation and complete the work. Production planning is like a roadmap to reach destination set by the top management. It helps you know where you are going and how long it will take you to get there.
 
Advantages of an effective production plan and scheduling:
 
1.      Reduces labour by eliminating wasted time and improving process flow
 
2.      Reduces inventory costs by reducing the need for safety stocks and excessive work-in-process inventories
 
3.      Optimizes equipment usage and maximizes capacity

 4.      Utilizes human resources to their full potential
 
5.      Improves on-time deliveries of products and services 
Tags : Operations Management - Introduction to Operations Management
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