Creating a Production Plan

Understanding the Production Plan

A production plan is a set of procedures designed to ensure our product, good, or service meets the objectives defined by the company. Each procedure is a process, and each process should have defined goals to contribute to overall objectives.

Key Objectives of a Production Plan

Some of the basic objectives that should feature in a production plan are:

1. Have the necessary production capacity to meet product sales.
2. Define the methodologies to achieve the objectives.
3. Describe the need for supplies.
4. Achieve the quality expected by customers.
5. Determine the characteristics of the infrastructure required for development activity.
6. Establish personal profiles, define tasks, and account for associated costs.

Estimating Production Volume

Estimating the volume of production involves planning how much goods and services must be produced to meet demand, i.e., to cover expected sales as per the business plan for a certain period of time. In the case of goods, the volume is defined by the units consumed or produced, and for services, by the number of hours paid.

The Production System and Stages

The production system and its stages. This includes knowing what materials and resources will be needed.

Aspects of the Production Process

Bear in mind several aspects in this process:

• Selection of suppliers (evaluation, conditions, prices)
• Storage
• Processing or manufacturing of the product
• Conservation
• Delivery to the customer
• Warranty

Production Control

Quality Control

The management of product quality affects the entire production process, from assessment of suppliers to the provision of training, installation, and warranty, etc.

Production Time

Production time is the period that elapses between the customer order and the effective delivery of the good or service. This period is also associated with product quality and directly affects our profits.

Key Decisions in Production Planning

Therefore, decisions to be taken in the production plan are:

1. Decisions on business location.
2. Design of the production process: physical design of manufacturing, ease of production, reliability, maintenance, conservation, and packing.
3. Design of service provision: how it is delivered, external appearance, appearance and attitude of workers, the time to do the job with quality, customer contact, and self-service.
4. Decisions on the allocation of space.
5. The scheme of production and service provision.
6. Team decisions.
7. Alternatives to the production process.