Production planning is crucial for fulfilling timely orders. If you do not perceive your stock levels, job schedules, or availability of workstations, you cannot keep your customers contented. Whether you are a player in the manufacturing industry or a novice, production planning is an utmost interest thing as it ensures optimal resource usage. Here comes the role of ERP solutions.
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With the utilization of ERP, you can create and manage a production plan without much of a stretch. You would require the bill of materials, items, customer orders, routings, and material requests prepared before the creation of a production plan.
Brief about Production Planning
Production planning is considered the planning and allocation of workers, raw materials, and workstations for fulfilling timely manufacturing orders. In a make-to-order environment, work orders or manufacturing orders themselves are formulated once customer orders are received.
An organization following the “make to talk” manufacturing style, can craft work orders timely relying on demands. Production plans generally are set by the production managers supervising the shop floor. An effective production plan makes the best utilization of available resources for delivering orders timely.
Undertaking a few production orders in spreadsheets executes but for large manufacturers, the difficulty immensely escalates. Production planning assists in planning raw material procurements based on the number of finished products to be produced. Also, it imposes impacts on cash flow, inventory, distribution, and sales.
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Preparing the production plan
After prerequisite records are prepared, it is time for the creation of the production plan. Here are some steps you need to follow.
If the products to generate have been requested through material requisitions or customer orders, they can be obtained into the production plan.
You can acquire multiple requests or multiple orders.
If you have ample requests or orders, set filters for narrowing down your search.
Then, you can obtain the products to be produced with the use of the present production plan. You can increase the quantities if you want to account for Stock Keeping Units (SKUs). It is a good idea for keeping extra inventory for products that take a very long time for manufacturing but have fast and predictable demands.
As the bill of materials has been acquired, you know now what products you need to produce. It is time to plan for raw materials.
The creation of a production plan is a section of the planning process. Another is diverse resource scheduling to the production plan. Factors such as the capacity of the workstation, downtime of the machine, and raw materials availability are foreseen when scheduling. Capacity planning is confirmed by default in ERP solutions.
Project management role in production planning
In larger companies having several orders or when you get a huge project from a client for producing thousands of diverse products, project management comes useful. With the use of the project in ERP software Kolkata, you can formulate several work orders against it for monitoring them all from one place.
Production planning is effortlessly accomplished with the right tools. To carefully allocate resources, inventory planning, and ignoring mistakes, you can timely deliver your orders. All can be done with ERP solution Kolkata. Get in touch with us if you want ERP services for your business.