Before we explain the topic in hands, let’s assume that you want to go to your folks for this Christmas and you have to plan the whole trip, can you use your time effectively if you don’t know which route you want to travel on? The answer is a definite no which means if you can’t travel without proper planning, how on earth a company would produce millions of units without a production plan?
Now there is no need to explain the production planning and its importance but you know there is no way a manufacturing unit can function without proper planning. On one hand this planning makes sure that there is no wastage of resources or labor in the company and also that the customers are getting their products on time.
Unlike huge manufacturing units, it is very important for smaller units to develop production plans on regular basis for daily manufacturing plans. It is possible that there is a need to produce 100 units today but tomorrow this number will decrease up to 60 and the day after tomorrow, it will again rise up to 120. This way you can understand that this company can’t work with a permanent or long term production plan but it has to define the planning each day according to the needs and requirements.
Here is preview of a Free Daily Production Plan Template created using MS Word,
Advantages of Daily Production Planning:
It improves process flow
- It reduces the labor by eliminating the irrelevant processes
- It exceeds work in process inventory
- It reduces the costs of buying raw material by decreasing the stock inventory
- It ensures maximum production in the manufacturing unit
- It allows the labor and management to use their full capacity
- It makes sure to work with on-time deliveries
- It improves customer satisfaction by achieving the goals
Factors of a good Daily Production Plan:
- It forecasts market expectations:
It is quite possible for a company that when its production process is completed, market trends are changed or the expectations have arisen which can create a big problem for the company. Production plan makes sure to foresee the upcoming trends in market and future expectations of customers and investors.
- It improves inventory control:
Manufacturing units always keep a huge amount of inventories in order to keep safe side in case of any emergency or shortage of raw material. With a daily production plan, company resource planning department can easily estimate the exact needs of inventory for the production line and this way it is easier to keep only the necessary amount of inventory.
- It improves use of labor and resources:
With production planning, it is easier to use the labor more efficiently and also it ensures higher production level when the employees know the expectations of company from them. It also eliminates the factor that there are more people working on the production line when only a few of them are also enough.
- It ensures to complete production on time:
It is not possible for a company to complete the production on time without a manufacturing strategy and that strategy can’t be planned without production planning. This way the production planning ensures to complete the production process on time and fulfill the expectations of consumers and marketers.