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Student Name: Palor IV, Prescilo N.

Institution:
PHINMA University of Pangasinan
(College of Engineering and Architecture)

Subject: ARC 155 CONSTRUCTION MANAGEMENT INTRODUCTION

Instructor: Ar. Kathleen Jerell T. Ramos, uap

PRODUCTION PLAN

A production plan describes in detail how a company’s products and services


will be manufactured. It spells out the production targets, required resources,
processes and overall schedule. The plan also maps all of the operational steps
involved and their dependencies. The goal is to design the most efficient way to
make and deliver the company’s products at the desired level of quality. A well-
designed production plan can help companies increase output and save money by
developing a smoother workflow and reducing waste.

Production planning involves developing a comprehensive strategy for making


the company’s products and services. Initially adopted by large manufacturers,
production planning has since become more popular among small and midsize
businesses in multiple industries — largely because technology has made it easier to
plan and track production processes with less effort. Production planning covers
many different aspects of production, from forecasting demand to determining the
raw materials, workforce, equipment, and steps needed to make the company’s
products.

PRODUCTION PLANNING VS. PRODUCTION SCHEDULING

While production planning provides an overview of what the company plans to


do, production scheduling creates a more detailed view of exactly how the company
will do it. The production schedule describes when each step in the production plan
will occur, as well as the workers, machinery and other specific resources assigned
to the job. Production scheduling can be extremely complex, especially when there
are many interdependent production steps and the company is making multiple
products simultaneously. Production scheduling software can help businesses create
complex schedules, monitor progress in real time and quickly make adjustments
when necessary.
KEY TAKEAWAYS

 Production planning describes in detail how a company’s products and


services will be manufactured.

 A production plan defines the production targets, required resources and


overall schedule, together with all the steps involved in production and their
dependencies.

 A well-designed production plan helps companies deliver products on time,


reduce costs and respond to problems.

 Technology has made it easier for small and midsize companies in multiple
industries to use production planning to optimize operations.

Production planning is a broad discipline that involves much more than a focus
on manufacturing process efficiency. It is intertwined with nearly every other aspect
of the business, including finance, sales, inventory and human resources.

Production planning activities include demand forecasting to determine the right


mix of products to meet customer needs, as well as selecting the optimal approach
to building those products. Production planning also assesses the resources needed
to meet production goals and lays out in detail all the operations in the production
process. Production plans must include the flexibility to make operational
adjustments when problems occur — such as machine breakdowns, staffing
shortages and supply-chain problems.

PRODUCTION PLANNING IMPORTANCE

A well-constructed production plan can help to boost revenue, profit and


customer satisfaction, while a poorly designed plan can cause production problems
and perhaps even sink the company. Specific benefits of production planning
include:

 Knowledge. A production plan provides a framework for understanding the


resources and production steps required to meet customer needs. It also
helps companies understand the potential problems that may occur during
production and how to mitigate them.
 Efficiency. Detailed production planning reduces bottlenecks and helps
minimize costs. It also helps ensure the high quality of a product, and it keeps
expenses on budget.
 Customer satisfaction. Production planning helps ensure that the company
can make and deliver products to customers on time, leading to higher
customer satisfaction and a greater likelihood of repeat business.
TYPES OF PRODUCTION PLANNING
The design of a product plan depends on the production method that the company
uses, as well as other factors, such as product type, equipment capabilities and
order size. Here are three of the main types of production planning:

Batch production planning

Refers to manufacturing identical items in groups rather than one at a time or


in a continuous process. For some businesses, batch production can greatly
increase efficiency. A bakery creating items for sale the next day might first make a
batch of chocolate chip cookies, then move on to oatmeal raisin cookies followed by
loaves of semolina bread. A clothing manufacturer making goods for the summer
might first set up its cutting and sewing machines to make 500 navy-blue T-shirts,
then switch to red fabric and thread to make 400 tank tops. A good production plan
for batch processing should look out for potential bottlenecks or delays when
switching between batches.

Job- or project-based planning

Used by many small- and medium-sized businesses, job production planning


focuses on the creation of a single item by one person or team. Job-based planning
is typically used where the specificity of each client’s requirements means it is
difficult to make products in bulk. Many construction businesses use this method.
Makers of custom jewelry and dresses are other examples of businesses that may
use job production planning.

Flow production planning

In flow production, also known as continuous production, standardized items


are continuously mass-produced on an assembly line. Large manufacturers use this
method to create a constant stream of finished goods. During production, each item
should move seamlessly from one step along the assembly line to the next. Flow
production is most effective at reducing costs and delays when there’s steady
demand for the company’s products. Manufacturers can then readily determine their
needs for equipment, materials and labor at each stage along the assembly line to
help streamline production and avoid delays. The automotive industry and makers of
canned foods and drinks are among the companies that use this method.
BASIC PRINCIPLES OF PRODUCTION PLANNING
Planning is the key process in any manufacturing process. A properly and
precisely planned schedule helps the manufacturers understand the situation in a
better manner and helps them in creating a timely delivery of the orders. Production
planning is a term that covers all the aspects of manufacturing, be it workforce,
requirements of raw materials, costs, time management or any other aspect. Its
purpose is to arrange the resources ingeniously to reach the full potential of the
manufacturing process.

Different companies use different strategies for creating their production plan. But
every production plan has six basic principles that play a pivotal role in the entire
production process. Well, in this article, we are going to discuss these basic
principles and how they can help in bringing out the best of your entire production
process.

There are six basic principles of Production Planning. These are:

1. Customer Demand

Customer demand is the first principle of production planning. One must know
what quantity of the product must be manufactured for the customer. The production
should be planned in a way so that the requirements of the customer are met evenly,
considering the market demand rates.

Also, the manufacturer should be ready to comply with the variations in


demand of the targeted customer and should be able to efficiently manage the
production process during this period. The entire focus of this is to give a forecast to
the manufacturer about the multiple situations that may arise during the production
process.

2. Materials

Raw materials must be available in adequate quantity with the manufacturer to


ensure the timely and complete production of the client’s orders and demands. A
clever and efficient production planner keeps the minimum materials required in his
store as his inventory.

People responsible for designing the entire production plan should be able to
evaluate the amount of materials that will be required in the production of the product
for its timely delivery. Though many times, planners arrange for the precise and
timely delivery of goods, one should design the production process taking into
account that the production might have to be stopped due to unmanageable
circumstances.
3. Equipments

The production planner considers the capabilities of the equipment used to


produce the output. The actual capabilities of the equipment can be predicted by
considering the previous production rates and combining it with the safety factors
that are required. Basic stability of equipment comprising of availability (A),
performance (P) and quality (Q) parameters can be determined by Overall
Equipment Effectiveness (OEE).

In case, the capacity requirements are more than the production capacity of
the machines, the manufacturer must consider the market, either for acquisition or for
the leasing of the required machinery.

4. Manpower

Manpower planning is also the key elements of production planning. The


estimation of the amount of workforce required to complete the production process
on time is one of the most important forecasts the planner must make. It also
includes the requirement of workers to do overtime or laying them off to assure the
variations that might fall upon in the midway of the production process. One must
also keep in mind that the competence of workforce should match the capabilities of
the machinery to achieve the highest efficiency during production. Manpower
planning can make use of previous projects’ data to calculate the capabilities of the
workforce.

5. Processes

Effective production planning makes sure that the processes used for the
output continue to operate efficiently and safely. It takes care of the facts that a new
process does not affect the ongoing production processes. It also keeps a check on
the processes and assists them with any requirements ranging from labor to
resources. Often the normal operation of a process requires occasional testing and
adjustments. This ensures that the new operation has a floor ready to roll when the
process starts.

6. Controls

Including this principle in production, planning is very important. Keeping this


on the list puts controls on various platforms that detects the problems or any
obstacles that might arise at any moment during the manufacturing process.
Verification of inventory, use of qualified suppliers and personnel, standardization
wherever possible and regular tests of products and processes can help the
manufacturer in containing the defects and delays. It also allows the people
responsible for production planning take a holistic approach towards the problems
and deploy precise corrective measures to minimize the damage and bring the
production back on track. Such inclusion of controls can really prove to be beneficial
to the producers.

Production planning process


The production planning process involves the following steps:

• Estimate product demand -- This will a give a rough outline of how many
products should be produced in a given time period. This estimate is generated
by combining analysis of historical production trends with new potentially relevant
trends in the market.
• Weigh production options -- This involves accounting for the resources on
hand and exploring ways to most effectively use them based on projected
demand estimates.

• Choose the most efficient option -- The use of resources that is the least costly
and most time-efficient should be chosen.

• Monitoring and evaluation -- As the plan is carried out, company’s monitor what
is happening compared to what should be happening according to the plan, and
evaluate how well those two match up.

• Adjust plan -- This involves altering the plan so that future production plans meet
customer goals more efficiently and are more successful in their execution.

STAGES OF PRODUCTION PLANNING AND SCHEDULING

The four stages of production scheduling are:

1. 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.

It is a crucial step in production management and scheduling.


Complete production planning involves the accurate tracking of:

 Raw materials

 Team members
 Workstations

 Processes

 Supplies

Knowing measurements and figures is not enough. You need to


understand how each part of your manufacturing process interacts and works
together optimally.

2. Routing

Routing, or routing manufacturing, is the route or path to be followed


during each step of the manufacturing process.

The manufacturing route defines the path from raw materials through to
the production of a finished product. If done correctly, you’ll know at what
stage your item is at and which machine, tool, or work center it needs to travel
to next.

3. Scheduling

Production scheduling is the management of these processes to


ensure they are completed in a timely and economical fashion.

When a huge order comes in, you don’t have to estimate or guess, as
you have “the knowledge” — the recipe for everything your business
produces — at your disposal. This recipe is part of your bill of materials
(BOM) and is a cornerstone of your master production schedule (MPS).

4. Execution

Execution is related to the process of undertaking your production


planning and scheduling. Having already established your production
planning, routing, and scheduling, the next step is the execution stage, when
you issue supporting orders or instructions to enable production.
THE KEY FACTORS TO CONSIDER SCHEDULING
PRODUCTION OF PRODUCTS

Production planning is vital for any manufacturing or craft business. Even


basic products need a clear and defined flow to turn them from raw materials into
quality goods. If this is not followed, your products are sure to drop in quality.
Without a proper process, your standardized practices are sure to be forgotten.

Crew management

Use your team well.

Your people are a valuable asset to your business. They play a key part in
manufacturing process optimization. Make it your business to know your people,
including their strengths and weaknesses.

This way, you can assign each team member to the most suitable tasks and
machines.

If someone is sick or goes on holiday, you have the additional capacity to


make up for the temporary loss.

Effective production planning allows you to get the most out of your people
and machines. Every team member knows the tasks assigned to them and what
their expected output is. Keeping tabs on how this process lets you compensate for
shortfalls and keep up with high demand.

Running at capacity

Even a small bump can cause everything to come to a complete stop. Making
sure your maximal output is a little bit higher than what you are now producing is a
good general rule of thumb. If you do get one or two abnormally large orders, you'll
be glad you were prepared.

Your team can complete their work on schedule since they have all the resources
necessary.

Raw materials

Frequent stalls in production planning mean paying team members and


machines to stand-by waiting. Nowadays, manufacturing process planning software
can integrate MRP. This means you can have the required raw materials available
at all times. You never have to push back production because of supply order
delays or stock outs.
Priority deadlines do not have to be set back due to undersupply.There’s no
need to be always stepping over excess raw materials on your shop floor. If done
right, warehousing and transport costs won’t skyrocket due to oversupply. As a
bonus, every team member always has something to do as they work with the
materials that you do have available.

Workshop logistics

The logistical flow of each part of your manufacturing process also requires
consideration.

This may not seem so important, but you would be surprised. Many production lines
have come grinding to a halt as one weak link has been placed on the wrong stage.
Pushing machines and people to unsuitable locations can harm efficiency.

Sometimes, what seems like common sense could be harmful to your flow. It
takes careful analysis to determine how materials, resources, people, and supplies
travel around your shop floor.

It may be that a more efficient layout or order exists for your business.
Sometimes making a small change can make a world of difference to your
production schedule.

Problem solving

Trial-and-error problem solving costs your business money through each


failed attempt.

Over ordering or overproducing is a Band-Aid solution, as this leads to extra


costs or staff burnout. You need effective production planning software to track your
flow and find production scheduling issues to get to the root of a problem.

Know your manufacturing processes

Understanding production planning and scheduling allow you to oversee your


manufacturing methodically to overcome production issues easily.

Track and manage everything effectively, and everything should work like
clockwork. Effective production scheduling makes it easier to do everything by the
book — it is set out clearly for your whole team and is available 24/7.
REFERENCES:

 Faber (2017) Six Basic Principles of Production Planning:


https://planningtank.com/development-plan/concept-
characteristicspreparatio n-master-plan

 Lutkevich, B. (n.d.) Production planning:


https://www.techtarget.com/searcherp/definition/production -
planning?
fbclid=IwAR2fgPK9zWxPPYjDLitC6SoqtVjRFP1kVfKd7crtfvqyiNfYC
yTNr0ACa2E

 Jenkins, A. (Aug. 2022) What Is Production Planning & Why Is It


Important?:
https://www.netsuite.com/portal/resource/articles/inventory management/
production-
planning.shtml?fbclid=IwAR3dbDGchqxPOa4pXktkGyvrKD2LUTZSjZxzpS
IzKGOfLNtyAZoKsFppZAk

 Katana (2022) Production planning and scheduling for manufacturing:


https://katanamrp.com/blog/production-planning-
scheduling/?fbclid=IwAR3LTqYg4prQfc5VxXSmCj9jcXqiPMer2CITdw1MX
INTozgpky9RKQA1RQc

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