All other activities are initiated from the production plan and each area is dependent on the interaction of the activities.
Planning activities
All other activities are initiated from the
production plan and each area is dependent on the interaction of the
activities. Typically, a plan addresses materials, equipment, human resources,
training, capacity and the routing or methods to complete the work in a
standard time. In order to do a good sales forecast, you should base it on a
history of firm orders.
The production plan initially needs to address
specific key elements well in advance of production in order to ensure an
uninterrupted flow of work as it unfolds.
Material
Ordering
Materials and services that require a long lead
time or are at an extended shipping distance, also known as blanket orders,
should be ordered in advance of production requirements. Suppliers should send
you materials periodically to ensure an uninterrupted pipeline
Equipment
Procurement
Procuring specialized tools and equipment to
initiate the production process may require a longer lead time. Keep in mind
that the equipment may have to be custom made or simply difficult to set up.
This type of equipment may also require special training
Bottlenecks
These are constraints or restrictions in the
process flow and should be assessed in advance so you can plan around them or
eliminate them before you begin production. When you assess possible
bottlenecks, be aware that they may shift to
another area of the process. Dealing with bottlenecks is a continual challenge
for any business
Human Resources Acquisitions and Training
Key or specialized positions may demand extensive
training on specialized equipment, technical processes or regulatory requirements.
These employees should be interviewed thoroughly about their skills. When
hiring them, allow sufficient time for training and be sure that they are
competent in their work before the job begins. This will ensure that your
process or service flows smoothly
The production plan provides a foundation to
schedule the actual work and plan the details of day-to-day activities. As
sales orders come in, you will need to address them individually based on their
priority. The importance of the sales order will determine the work flow and
when it should be scheduled. After this, you should evaluate whether or not you
are ready for production or to offer the service. You will need to determine:
1. If the
inventory is available at the point where work is to start? If not, then the
work needs to be rescheduled when supplies become available. There is no point
in scheduling work that you will not be able to complete
2. Are your
resources available? Do you have the necessary staff to complete the task? Are
the machines being used?
3. Does the
standard time fit within the open time allowed? If not, then the work should be
rescheduled
4. You
should be careful to minimize risk factors; allowing too many what-ifs can
delay delivery and be counter productive
Tags : Operations Management - Introduction to Operations Management
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