Effective planning hinges on a sound understanding of key activities that entrepreneurs and business managers should apply to the planning process. Here are some examples:
Key factors of a production plan
Effective planning hinges on a sound understanding
of key activities that entrepreneurs and business managers should apply to the
planning process. Here are some examples:
To plan effectively you will need to estimate
potential sales with some reliability. Most businesses don’t have firm sales or
service figures. However, they can forecast sales based on historical
information, market trends and/or established orders.
Reliable inventory levels feeding the pipeline have
to be established and a sound inventory system should be in place.
of Equipment and Human Resources
Also known as open time, this is the period of time
allowed between processes so that all orders flow within your production line
or service. Production planning helps you manage open time, ensuring it is
well-utilized, while being careful not to create delays. Planning should
maximize your operational capacity but not exceed it. It’s also wise not to
plan for full capacity and leave room for the unexpected priorities and changes
that may arise.
Standardized Steps and Time
Typically, the most efficient means to determine
your production steps is to map processes in the order that they happen and
then incorporate the average time it took to complete the work. Remember that
all steps don’t happen in sequence and that many may occur at the same time.
After completing a process map, you will understand
how long it will take to complete the entire process. Where work is repeated or
similar, it is best to standardize the work and time involved. Document similar
activities for future use and use them as a base-line to establish future routings
and times. This will speed up your planning process significantly.
the process map stage, you may identify waste. You can use operational
efficiency/lean manufacturing principles to eliminate waste, shorten the
process and improve deliveries and costs. BDC Consulting can assist businesses
in process mapping and other operational efficiency principles and tools.
Evaluate these by collecting historical information
on similar work experiences, detailing the actual time, materials and failures
encountered. Where risks are significant, you should conduct a failure mode
effect analysis method (FMEA) and ensure that controls are put in place to
eliminate or minimize them. This method allows you to study and determine ways
to diminish potential problems within your business operations. This type of
analysis is more common in manufacturing and assembly businesses.
Tags : Operations Management - Introduction to Operations Management
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