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Key factors of a production plan - Introduction to Operations Management
Operations Management - Introduction to Operations Management
Key factors of a production plan - Introduction to Operations Management
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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.
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.
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.
During 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.
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:
Forecast Market Expectations
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.
Inventory Control
Reliable inventory levels feeding the pipeline have to be established and a sound inventory system should be in place.
Availability 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.
During 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.
Risk Factors
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.
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