Production Planning in Manufacturing: Best Practices for Production Plans (2023)

As the creation of products and services has become more extensive and varied, the manufacturing industry has become more competitive. There are many things to keep an eye on such as material requirements planning, supply chain management and inventory control. Operations continue to become more complex, and this means manufacturing companies require more thorough production planning.

A production plan is the best way to guarantee you deliver high-quality products/services as efficiently as possible.

What Is Production Planning?

Production planning is the process of deciding how a product or service will be manufactured before the manufacturing process begins. In other words, it is how you plan to manage your supply chain, raw materials, employees and the physical space where the manufacturing process takes place.

Production planning is very important for manufacturers as it affects other important aspects of their business such as:

  • Supply chain management
  • Production scheduling
  • Material requirements planning
  • Production lead time
  • Capacity planning

ProjectManager is a project management software that helps manufacturers cover every aspect of production planning. Plan with Gantt charts, execute with kanban boards and manage your resources along the way. No other software offers sophisticated project and resource management features in one intuitive package. Get started today for free.

Why Is Production Planning Important?

If a manufacturing operation wishes to expand, that evolution demands careful production planning and production scheduling. Someone must take on the responsibility of managing resources and deciding how they will be allocated. This process is a big part of capacity planning—how much can be made in a certain period of time, with the available resources?

Without production planning, it is easy to use too much of a resource for one product and not leave enough for another, or fail to schedule your resources properly, which results in delays that affect your production scheduling. It’s just as easy to let resources go to waste. These issues indicate a lack of efficiency in your production planning process.

No matter the product or service or the size of the operation, production planning is the best way to ensure resources are used appropriately, products and services are high-quality and nothing goes over budget.

Types of Production Planning

Every operation is unique, and the same production plan isn’t right for everyone. In order to get the most from project planning, you need to decide which method is best for your manufacturing process. That said, here’s a quick intro to the different types of production planning.

Job Method

The job method is often used when manufacturing a single product, for which a unique production plan is created. This production planning method is generally used in smaller-scale productions, but it can also be applied to larger manufacturing facilities. The job method is especially advantageous when a product or service requires specific customizations.

(Video) Best Practices for Production of Guidelines and Plans

Batch Production Method

Batch production consists in manufacturing goods in groups, instead of being produced individually or through continuous production. This method is useful when manufacturing products on a large scale.

Flow Method

The flow method is a demand-based manufacturing model that minimizes the production lead time by speeding up the production line. The manufacturing process starts based on work orders, and once it starts, it doesn’t stop until all finished goods are produced. This is called continuous production and it’s achieved by using machinery and little intervention to minimize waiting time.

Process Method

The process method is more or less what most people picture when they think about production—an assembly line. With the process method, there will generally be different types of machinery completing separate tasks to put together the finished goods.

Related: 10 Free Manufacturing Templates for Excel

Mass Production Method

The mass production method is primarily focused on creating a continuous flow of identical products. It’s similar to the flow method, but at a much bigger scale, which cuts production costs. When uniformity is just as critical as efficiency, you need to use “standardized processes” to guarantee all products look exactly the same.

What Is a Production Plan?

A production plan is a document that describes how production processes will be executed, and it’s the final outcome of the production planning process. It describes the human resources, raw materials and equipment that will be needed and the production schedule that will be followed.

The person responsible for production planning must also be very familiar with the operation’s inner workings, resources and the products/services they produce. This usually entails collaborating with people on the floor, in the field or in different departments to create products and deliver services.

How to Make a Production Plan

When you set out to create a production plan, make sure to follow these 5 steps to make it as robust as possible.

1. Estimate/Forecast Product Demand

Understanding product demand planning is the best way to decide which product planning method is the best choice for your operation. From here, you’ll be able to estimate which resources are required and how they’ll be used in the manufacturing process.

(Video) Manufacturing Planning and Control | Supply Chain Management Principles

2. Access Inventory

Accessing inventory is about more than simply taking stock: you should make an inventory management plan so that you don’t experience shortages or let things go to waste. For this step, focus on the inventory control and inventory management techniques you can use to handle inventory in the most efficient way possible.

3. Resource Planning

A successful production plan requires you to be familiar with the resource planning details of the manufacturing process. Note the minimum number of people and raw material requirements necessary to create a product or execute a service. You need to also consider what machines and systems are essential for executing your production plan.

Related: Free Resource Plan Template for Excel

4. Monitor Production

As production takes place, monitor how the results compare to the production schedule and resource management projections. This is something that should continually take place and be documented during the production process. Monitoring production is especially important for the fifth step in the production planning process.

5. Adjust the Plan to Make Production More Efficient in the Future

The final step of production planning is to reflect on the information you gained in step four and strategize what can be done to make the production plan run more smoothly in the future. Production planning is about manufacturing a product or service, yes, but it should also be a learning experience for creating even better production plans for next time.

Common Production Planning Mistakes

As you go through the production planning process, you must stay vigilant of common missteps. Here are three mistakes often made during production planning. Luckily, they can be prevented.

Not Expecting the Unexpected

This means having risk management strategies in place if things go awry. The goal is to never have to employ them, of course, but it’s better to have them and not need them. Production planning is not complete if it doesn’t anticipate risks, issues and changes. When you plan for them, you’re ready to problem solve if and when they happen.

Getting Stuck Behind the Desk

You should work with intelligent production planning tools, but that doesn’t mean you should only rely on an enterprise resource planning software for production planning and not oversee resources and operations in person. When production planning is only done from behind a screen, the end result will not be as informed as it could be. The best production planning is active and collaborative.

Neglecting Equipment

Regardless of the product or service, manufacturing means using tech. In order to get the most from your equipment, you need to take care of it. This means tracking usage and keeping up with regular maintenance. This looks different depending on the industry and product or service, but the principle is the same: continually take care of your equipment before it becomes a problem that will slow down production.

(Video) manufacturing production schedule template excel

Production Planning Best Practices

No matter what product or service is being manufactured, there are many tried-and-true best practices that set your operation up for success. When creating a production plan, keep these two in mind.

Make Accurate Forecasts

When you don’t properly estimate the demand for your product or service, it is impossible to create a detailed production plan. Demand planning is never static. You need to consider buying trends from previous years, changes in demographics, changes in resource availability and many other factors. These demand planning forecasts are the foundation of skillful production planning.

Know Your Capacity

Capacity planning means knowing the maximum capacity your operation can manage—the absolute most of a product or service it can offer during a period of time. This is the only way to anticipate how much of each resource you will need in order to create X amount of products. When you don’t know the production capacity, your production planning is like taking a shot in the dark.

Use ProjectManager for Production Planning and Scheduling

As the nature of manufacturing goods and services changes, you need modern tools to plan production and make schedules. ProjectManager is an award-winning project management software that offers all the tools you need for excellent production planning and scheduling. With it, you can plan projects, create schedules, manage resources and track changes with one tool.

Plan with Gantt Charts

Manage your product manufacturing across a timeline with our Gantt chart view. With it, you can view your resources (such as raw materials) tracked by cost to make sure you’re never overspending. You can then link any dependent tasks to avoid bottlenecks in your manufacturing.

Get a Birds-Eye-View

To keep your production plan on track, you need to have a high-level view so that you can pinpoint setbacks before or as they occur. Our real-time dashboard collects your data and converts it into colorful graphs and charts that give you at-a-glance analytics.

Easily Measure and Report Your Progress

Any operation will have stakeholders, and they want to be kept in the loop. ProjectManager’s project status reports make it easy to share key data points. They can be generated in a single click, making it simple to generate them before important meetings.

Manage every detail of your operation with ProjectManager’s powerful cloud-based project management tools. Our suite of tools is trusted by tens of thousands of teams, from NASA to Volvo, to aid them in the planning, scheduling, tracking and reporting on the progress and performance of their production plans. Our software makes lets you get out from behind your desk and make adjustments on the go. Try it for yourself for free for 30 days!

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FAQs

What are the 6 principles of production planning? ›

6 Basic Principles of Production Planning
  • 6 Principles of Production Planning:
  • Customer Demand. Before you can plan to assign resources, you have to know how much to produce. ...
  • Materials. To fulfill your production target, the materials availability needed to produce should be ensured. ...
  • Equipments. ...
  • Manpower. ...
  • Processes. ...
  • Controls.
Nov 25, 2014

What are the key practices that should be applied in production planning? ›

Good production planning tunes your manufacturing process to maximum efficiency. Among the things you have to consider are the quality of your output, the dependability of your suppliers, your team's skills and how much product your factory or workshop can turn out in a given time.

What are the seven 7 steps of the planning process? ›

How to Strategic Plan in 7 Steps
  1. Step 1: Environmental Scan. ...
  2. Step 2: Internal Analysis. ...
  3. Step 3: Strategic Direction. ...
  4. Step 4: Develop Goals and Objectives. ...
  5. Step 5: Define Metrics, Set Timelines, and Track Progress. ...
  6. Step 6: Write and Publish a Strategic Plan. ...
  7. Step 7: Plan for Implementation and the Future.
Apr 26, 2022

What are the 5 M's of production? ›

Lean is an all-encompassing philosophy that takes the 5 M's (Man, Material, Machines, Methods, and Money) and harmonizes or helps orchestrate them together for the best possible outcome in your manufacturing operations.

What are the 4 M's of production management? ›

By implementing best practices that address the 4Ms of Machines, Manpower, Methods, and Material.

What are the 8 steps by step process in the production plan? ›

To create and sell a new product, businesses typically follow these eight steps:
  • Generate an idea. ...
  • Research your idea. ...
  • Plan out the product. ...
  • Create a prototype. ...
  • Establish a production process. ...
  • Calculate your costs. ...
  • Determine a distribution plan. ...
  • Launch the product.
Sep 15, 2021

What are the 10 rules of lean production? ›

The ten rules of lean production (AO1)
  • Eliminate waste.
  • Minimise inventory.
  • Maximise flow.
  • Pull production from customer demand.
  • Meet customer requirements.
  • Do it right the first time.
  • Empower workers.
  • Design for rapid changeover.

What are the three basic production planning strategies? ›

The main strategies used in production planning and control are the chase strategy, level production, make-to-stock, and assemble to order.

What are the 3 activities of production planning? ›

Production planning activities can be divided into three main areas: Develop a production process and strategy; gather the resources needed, from raw materials to machinery and personnel; and select and train the necessary people.

What are the 4 manufacturing strategies? ›

Four primary strategies were found: waste minimisation; material efficiency; resource efficiency; and eco‐efficiency. The literature was analysed to determine the key characteristics of these sustainable manufacturing strategies and 17 characteristics were found.

What are 4 ways to improve production? ›

6 ways to improve productivity
  1. Upskill employees. A skilled workforce is a productive one. ...
  2. Invest in maintenance. ...
  3. Review workflow. ...
  4. Target waste. ...
  5. Improve communication. ...
  6. Monitor utilization.
May 27, 2020

What are the 4 components of production scheduling? ›

The four stages of production scheduling are:
  • Production planning. Production planning is the process in manufacturing that ensures you have sufficient raw materials, labor, and resources in order to produce finished products to schedule. ...
  • Routing. ...
  • Scheduling. ...
  • Execution.
Nov 29, 2022

What are the 14 principles of planning? ›

Basic Principles of Planning:
  • Principle of Commitment: ...
  • Principle of the Limiting Factor: ...
  • Principle of Reflective Thinking: ...
  • Principle of Flexibility: ...
  • Principle of Contribution to Enterprise Objectives: ...
  • Principle of Efficiency: ...
  • Principle of Selection of Alternatives: ...
  • Principle of Planning Premises:

What are the 8 elements of planning? ›

Here is a list of standard strategic planning elements to help you structure your own plan:
  • Vision statement. ...
  • Mission statement. ...
  • Goals and objectives. ...
  • SWOT analysis. ...
  • Action plan. ...
  • KPIs.
Nov 12, 2020

What are 5 P's of production management explain? ›

The 5 Ps are: 1) Plan, 2) Process, 3) People, 4) Possessions, and 5) Profits. Plan. Planning is the key to the success of an organization. It is necessary because businesses operate amid uncertainty and risk, and the managers do not have the opportunity of making decisions under a background of certainty.

What are 5 m in Six Sigma? ›

Man (in the generic sense), Machine, Material, Method, Measurement, Mother Nature are the categories/the components of variation that contribute to the production of some desired result.

What are the 4 and or 5 factors of production? ›

The factors of production are resources that are the building blocks of the economy; they are what people use to produce goods and services. Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship.

What are the 4 Ms of a fishbone diagram? ›

The "causes" of variation in this characteristic are categorized into six main factors: measurement, people, environment, machines, methods and materials. These six factors are often referred to as the “4Ms, a P and an E.” Each of these main factors is divided into detailed causes.

What are the four functions of production management? ›

Functions of production mangement
  • Selection of product and design. Production management helps the organisation select the right product for production and also choose a relevant design for the product. ...
  • Production planning and control. ...
  • Machine maintenance and replacement.

What are the four 4 basic management processes? ›

Over the years, Fayol's functions were combined and reduced to the following four main functions of management: planning, organizing, leading, and controlling.

What are the 11 steps of the project planning process? ›

Project planning steps
  1. Create and Analyze Business Case.
  2. Identify and Meet Stakeholders for Approval.
  3. Define Project Scope.
  4. Set Project Goals and Objectives.
  5. Determine Project Deliverables.
  6. Create Project Schedule and Milestones.
  7. Assignment of Tasks.
  8. Carry Out Risk Assessment.
Jul 7, 2021

What is optimal production plan? ›

Definition of Optimal Production Level:

Short-term profits are maximized at the optimal production level. It is the output where the marginal revenue derived from the last unit sold equals the marginal cost to produce it.

What are the 7 steps to plan a product? ›

Although the product development process differs by industry, it can essentially be broken down into seven stages: ideation, research, planning, prototyping, sourcing, costing, and commercialization.

What are the 3 C's in lean? ›

The 3C ´s stand for Concern, Cause and Countermeasure and encourage employees to think about the definitions of each of these steps. The owner and the date the countermeasure should be implemented are also documented.

What are the 3 M's of lean production? ›

Muda, Mura, and Muri are terms often used together in the Toyota Production System (and called the Three Ms) that collectively describe wasteful practices to be eliminated.

What are the 5 S's of lean processing? ›

The 5S pillars, Sort (Seiri), Set in Order (Seiton), Shine (Seiso), Standardize (Seiketsu), and Sustain (Shitsuke), provide a methodology for organizing, cleaning, developing, and sustaining a productive work environment.

What are examples of best practices? ›

An everyday example of this type of best practice is to look both ways before crossing the street. It isn't a law to look, and people may find some success if they don't do it. But this often-repeated piece of advice produces the best results in the long run if followed.

What are elements of best practice? ›

Management best practice involves:
  • the communication of a clear mission and strategy.
  • leadership by example.
  • the setting of demanding but realistic targets.
  • an open and communicative management style.
  • clear and careful strategic planning.

What are the types of best practices? ›

When it comes to management best practices, we can identify five distinct areas where the best practices can be applied.
  • 1 - Communication. ...
  • 2 - Leading by Example. ...
  • 3 - Setting and Demanding Realistic Goals. ...
  • 4 - Open Management Style. ...
  • 5 - Strategic Planning. ...
  • Benchmarking. ...
  • Forecasting. ...
  • Performance Monitoring.

What is production planning model? ›

Production planning is the planning of production and manufacturing modules in a company or industry. It utilizes the resource allocation of activities of employees, materials and production capacity, in order to serve different customers.

What are the 7 factors of manufacturing? ›

The 7 factors which influence the decision of establishing an industry are: availability of raw materials, labour, capital, access to markets, availability of abundant power supply, modes of transportation like railways, roadways for transportation of finished goods, and raw materials; and availability of land.

What are the 7 main areas to do with the management of operations in the manufacturing and service sectors of the economy? ›

Similarly, there are seven functions of operations management.
  • Operational planning.
  • Finance.
  • Product design.
  • Quality control.
  • Forecasting.
  • Strategy.
  • Supply chain management.
Oct 17, 2022

How can the production planning process be improved? ›

How to improve the efficiency of your production planning and...
  1. Testing and defining workflow. ...
  2. Establish a strategy for ordering materials. ...
  3. Spot potential bottlenecks. ...
  4. Implement regular personnel training. ...
  5. Improving production efficiencies via automation. ...
  6. Keep your company data safe and under your control.
Mar 24, 2022

What are the 4 factors that increased productivity? ›

“Positive attitude and involvement of management,” “Proactive employees,” “Good working conditions,” “Tools and equipment to raise productivity,” and “Availability of water, power and other input supplies” have been ranked as top five factors.

How does Kaizen improve productivity? ›

Kaizen is about decreasing waste by eliminating overproduction, improving quality, being more efficient, having less idle time, and reducing unnecessary activities. All these translate to cost savings, and can turn potential losses into profits.

What is the most important element when planning production? ›

(a) Planning:

This is the first and the most important element of production planning and control. Planning refers to deciding in advance what is to be done in future.

Which of the 6 stages of production is most important? ›

The first stage of creating a production schedule is planning, which is often the most important step.

What are the 5 main types of scheduling? ›

Here are 8 of the most common appointment booking types are:
  • Time-slot scheduling.
  • Wave scheduling.
  • Wave and walk-in appointment scheduling.
  • Open appointment scheduling.
  • Double scheduling.
  • Cluster scheduling.
  • Matrix scheduling.
  • 40/20 scheduling.
May 16, 2022

What are the 6 principles? ›

There are 6 Principles of the US Constitution. These principals are Popular Sovereignty, Limited Government, Federalism, Checks and Balances, Separation of Powers, and Republicanism.

What do the 6 principles mean? ›

They are popular sovereignty, limited government, separation of powers, federalism, checks and balances, republicanism, and individual rights. Popular Sovereignty The framers of the Constitution lived at a time when monarchs claimed that their power came from God.

What are the 6 principles of management? ›

The fourteen principles of management created by Henri Fayol are explained below.
  • Division of Work- ...
  • Authority and Responsibility- ...
  • Discipline- ...
  • Unity of Command- ...
  • Unity of Direction- ...
  • Subordination of Individual Interest- ...
  • Remuneration- ...
  • Centralization-

What are the 7 key principles? ›

The UK GDPR sets out seven key principles:
  • Lawfulness, fairness and transparency.
  • Purpose limitation.
  • Data minimisation.
  • Accuracy.
  • Storage limitation.
  • Integrity and confidentiality (security)
  • Accountability.

What are the 7 fundamental principles? ›

Humanity, impartiality, neutrality, independence, voluntary service, unity and universality: these seven Fundamental Principles sum up the Movement's ethics and are at the core of its approach to helping people in need during armed conflict, natural disasters and other emergencies.

What are the 4 general principles? ›

The four general principles of the UN Convention on the Rights of the Child are that all children and young people: shouldn't be discriminated against (Article 2) should have their best interests accounted for as a primary consideration (Article 3) have the right to survive and develop (Article 6)

What is guiding principle 5? ›

Guiding Principle 5: Students bring strengths and experiences to learning. Every student learns.

What are the 6 ways of influence? ›

The 'six weapons of influence'
  • Reciprocity.
  • Scarcity.
  • Authority.
  • Consistency.
  • Liking.
  • Social proof.

Which of following 6 basic principles is rule by the people? ›

Popular Sovereignty:

Popular sovereignty means rule by the people.

What are the 3 P's of production? ›

These elements are the famous “3 p's of manufacturing”: people, processes, and products.

What are the objectives of production planning? ›

The overall objectives of production planning and control are to:
  • Optimize resources and the scheduling of resources to meet production demand.
  • Ensure an efficient schedule.
  • Have resources ready when needed.
  • Keep inventory at optimal levels.

What are the 5 E's of management? ›

These are known collectively as the "5 Es": Education, Encouragement, Engineering, Enforcement, and Evaluation. Education: Teach students and community members about walking and biking safely.

What are the 10 M's of management? ›

This research consisted of quantitative, qualitative and review methods. The aim of this research was to identify a set of 10 effective factors referred to as the 10 Ms: management, manpower, machine, material, method, money, minutes, measurement, market and ministry.

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