Production Planning
1.6 Production Planning
Production planning refers to the process of organizing resources, schedules, and workflows to ensure efficient production. It ensures goods are produced at the right time, in the right quantity, and at the lowest possible cost.
Capacity Planning
Maximum output a business can produce in a given period. Strategies: Lead strategy (increase capacity before demand rises), Lag strategy (increase capacity after demand increases), Match strategy (capacity increases gradually as demand grows).
Inventory Management
Managing stock of raw materials, work-in-progress goods, and finished products. Too much inventory leads to higher storage costs; too little inventory may stop production. JIT helps minimize inventory levels.
Scheduling
Determines when tasks should be completed in the production process. Proper scheduling improves efficiency and ensures deadlines are met.