Planning For Production


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What does production planning involve? The production plan covers supply chain management, scheduling, and maximization of production processes and deliverables. Understanding these processes can help you quickly and efficiently for the maximum long-term profit. We review critical metrics for the five stages of a production plan, list types and subsets of production planning, and describe the benefits and disadvantages. Interiors.

Do you want to learn more about production planning?

Production planning is a process that covers supply chain management, production scheduling, and maximization of production processes and deliverables. Understanding these processes can help you quickly and efficiently for the maximum long-term profit. We review critical metrics for the five stages of a production plan, list types and subsets of production planning, and describe the benefits and disadvantages. Interiors.

You will get insights on how to improve your business with our guide on understanding this important topic! Our guide will give you an overview of what it entails to appreciate its importance in your company's operations. It also provides tips on implementing it into your business model so that it becomes easier for everyone involved! With this information at hand, we hope to maximize profits while minimizing costs! This way, both parties benefit from each other's expertise in their respective fields, which leads us all towards success! Let's make sure we do not miss out on any opportunities by taking advantage of every single one available to us now! So let's start learning today with Geolance!

Types of production planning

The first step of production planning is to ensure you correct information on your raw materials like volume, lead time, and availability. After this, you need to know what machinery will be required for making these products. The major decisions taken during this stage are the supplier of machinery and where to manufacture it. Accessing financial resources or credit can be difficult during production planning unless your business is large enough with a good market share and earnings history. Mainly if external finance is involved in purchasing equipment, it is sensible to delay entering into a facility contract until its use has been decided, at least in general terms rather than when finance has been secured from banks or when heavy down payments have been made towards construction cost. Allocation of Production Budgets.

The high-level production plan should be updated every year, and the detailed plans updated quarterly. At this point, you can set realistic budgets for human resources, equipment, raw materials, etc. For example, if your budget is $25K per month to produce 1000 units, $1K will be allocated for labour cost, $2K for material cost, and so on. The basic idea behind the equipment expenditure is 'you get what you pay for, which means if one can afford higher quality machinery, it makes sense to invest in it because the long-term benefits outweigh the initial costs involved. Also, ensure that you have a minimum level of redundancies built into these budgets (i.e., spare parts available). Production Scheduling Techniques

Scheduling is the process of arranging tasks in such a way as to minimize costs and maximize production. Scheduling problems are complex because, besides technical considerations, they must consider organizational, environmental, and operational constraints. This includes making resources available at the right time, having work performed by competent staff, and avoiding bottlenecks or slowdowns in one part of the manufacturing operation that critically affects other parts of the system.

Schedule generation starts with setting up logical links between activities. The generated schedule represents all resources used during the planning horizon - usually 1 to 4 weeks for most projects. Resources can be people or machines performing required tasks on designated dates at specific times. It is sometimes necessary to generate alternative schedules with many different start and finish dates for various activities.

The following are some standard scheduling techniques used in production planning:

MRP II is a computerized information system that manages the entire life-cycle of an item from its initial design through production, marketing, delivery, service, and disposal. It provides users with up-to-the-minute information the instant they need it to plan, schedule, track orders or even have available options/alternatives. In addition, MRP II supports managers' decision-making by providing accurate demand forecasts using actual sales figures instead of trends or averages. The system also continuously tracks progress toward short-term goals so planners can be aware of potential problems before they arise.

Master Production Scheduling (MPS), also known as MPS II, is an advanced planning and scheduling application developed by General Electric in the 1970s to improve manufacturing productivity. It is a means of managing and tracking your production department's workflow and purchase orders.

The critical elements in any Master Production Schedule are:

Forecasting: Allows you to take into consideration future events/trends when scheduling;

Scheduling: Plans or schedules production based on periods;

Dispatching: Assigns work orders to specific employees for production; and

Tracking & Reporting: Monitors progress throughout the entire process.

MRP vs PS Explained And How They Work

1. MRP and Production Scheduling (PS) are two different terminologies for the same function of planning and scheduling production in the manufacturing business. They improve efficiency, save time, reduce costs and minimize errors by giving real-time availability of forecasts, orders, capacity requirements, and inventory status to all users in an organization. The objective is to produce products with minimal wasted resources

2. MRP or MPS works on top of the Master Data Management System that contains accurate information about every detail needed for the manufacturing process like Bill Of Material (BOM), Routings, Operating Instructions, etc. This is managed by a Manufacturing execution system (MES).

3. the essential difference between PS and MRP is that MRP is a forecasting and scheduling process for material and capacity requirements. In contrast, PS is a planning and scheduling tool for both product and resources to create metal prototypes.

Production Scheduling Techniques

Dynamic Scheduling: This approach allows changes to the final schedule throughout the production period. This method uses available information as actual progress unfolds to modify or update earlier estimates, such as expected completion dates or individual task duration estimates. It helps you respond quickly to changing circumstances.

The techniques of dynamic scheduling include

Critical Path Method (CPM): A time management technique used in project management identifies the minimum total time required for completion, thus allowing project managers to determine when specific parts of their projects can be completed to meet deadlines and to complete engineering validation testing.

Critical chain project management (CCPM): A methodology that considers task interdependencies, time-to-market pressures, resource constraints, and other variables to manage projects.

Mixed-integer programming (MIP): A mathematical optimization method that enables the simultaneous selection of multiple objectives in varying degrees.

Expert Systems: These are computer programs used to handle problems with no existing "off the shelf" software package. They are employed by managers who need solutions tailored to their specific issues or situations. First, the user provides input data relevant to a problem. Then, after processing it through the knowledge base, rules engine(s), inference engines, etc., the system returns an answer using one or more algorithms.

Decision Support System (DSS): These combine software and hardware for collecting and presenting data and provide recommendations based on those data.

Markov Chain: This is a decision-making system that uses statistical analysis to determine the potential outcome of an event. It can help you understand, for example, how changes in sales might affect production requirements as well as identify the major factors that influence such conditions.

Network Analysis: This provides insight into complex problems by identifying the critical relationships between events and/or tasks through graphs or diagrams showing cause and effect relationships.

Object-Oriented Programming (OOP): This is a programming language that allows programmers to create programs that combine both logic (procedural) and data (structured) features together in one language.

Robotics: Use robots to perform welding painting: handling, and assembly.

Cellular manufacturing: This is a specialized form of flexible manufacturing where similar manufacturing cells are dedicated to producing a single product or family of products. This results in a faster setup time for changing product models and lower inventory costs by minimizing warehouse stocks and finished goods in shops that produce several different electronic components or models.

What is Manufacturing Planning?

Planning and Scheduling in Manufacturing refer to the process that determines how much to make and when to make it (by when we mean at what time). The result of this process can be thought of in terms of an overall plan or schedule for producing specific quantities during specific periods. It can also result in the allocation of the needed resources to accomplish the production plan.

In Manufacturing, planning starts with a forecast that defines how much you think you will sell and at what price you think you can sell it. The forecast helps determine how many products must be built for a particular period. When the forecast changes, so do the plan.

How is Planning Different from Scheduling?

Scheduling refers to determining when work should start and finish. But scheduling has no regard for explaining why or how long something takes - jusSo, for her. For example, if a resource only works 9 hours per day, then that's all that is allocated regardless of whether it takes 8 hours or 12 hours to complete a task. In other words, scheduling allocates resources without regard to how much time it takes for each worker to meet their assignment, on the different planning hand, is based upon estimates of duration or has attached an estimated "unit time" (e.g., hours, days, weeks) to every operation so schedule dates can be adjusted up or down as required to achieve the desired production output. This data is then used in conjunction with the projected availability of resources and identified requirements for external services to develop a workable production plan.

Tools Used in Manufacturing Planning

What are some common tools used? The most popular are MRP - Material Requirements Planning Systems JIT - Just In Time, which reduces inventory levels by delivering parts only are needed at the exact time required.

There are also MRP II - Manufacturing Resource Planning Systems that manage the supply chain; ERP - Enterprise Resource Planning Systems (which include all aspects of internal and external functions in one system); PERT- Program Evaluation Review Technique (a technique used to estimate the time it will take for a project to be completed) and Capacity Requirements Planning (CRP) which is mainly concerned with how much capacity an individual department or production cell has available. These tools are often combined, allowing planners to monitor forecasts, schedules, inventory levels, and other factors influencing manufacturing output.

The software involved can range from stand-alone systems designed for a particular company's needs to modular programs that allow inter with existing systems. Some of these systems are very 'industrial strength' and are often the largest single investment a company makes.

Overview of Manufacturing Planning Process

Manufacturing planning is the process of how to get from "here" to "there." The two most important factors in planning are time and material.

It is not enough to know how much you have sold or think that you will sell or have forecasted that you need to build. You must also determine when you want it available for sale, production, etc. - including lead time required for external services such as delivery, installation, commissioning, training .etc. And then how much does it cost? These key factors are often called the ma, manufacturing, plan or master schedule.

The planning process consists of forecasting, master scheduling, short-term scheduling, materials planning/MRP, capacity requirements planning (CRP), and financial planning.


This is the most difficult step in manufacturing planning because it determines everything that happens after it - namely how much to make, when to make it and what resources are needed. Forecasts can be done by historical measurements or by market research methods. Although many companies still rely on market research information obtained from discussions with customers, competitors, or paid agencies, historical measurements are the most. The best forecast is one where all parties agree upon what will happen in future periods based upon the sound methodology which includes an accurate understanding of present conditions along with what each party reasonably believes will happen in the future.

Although many companies still rely on market research information from discussions with customers, competitors, or paid agencies, historical measurements are the most. Therefore, the best forecast is one where all parties agree upon what will happen in future periods based upon the sound methodology which includes an accurate understanding of present conditions along with what each party reasonably believes will happen in the future.

Master Scheduling

This additive prototyping process defines on a day-to-day level how long each operation on each machine, on each cell, will take to complete once started. It is done by dividing up time into units called 'standard times' for every operation performed by every worker. Since standard times are averages it's no surprise that some workers can make parts faster than expected while others take longer. This means period a worker may complete more or fewer in a given period part than the number assigned to him/her. Such variances from standard need to be identified and managed, resulting in production being "on target" for the per-period achievement of the forecasted output.

Short-term scheduling

This step assigns work orders to workers by considering which job needs to be done next based on priority rules established by management, capacity limitations of machines and cells, and work in progress inventory available at each machine. It also takes into account anticipated production requirements that will arise over the next few hours due to due dates for customer orders or deliveries or other commitments. Thus this step ties what is currently being made with what is planned to be made in the future.


While short-term scheduling involves primarily the plant floor, capacity requirements planning includes both plant and warehouse because it determines what products can be done by machines on the plant floor based upon what inventory is available at the warehouses. The resultant schedule shows how many products are needed where at which time over weeks or months. It also takes into account events that will affect schedules such as requests for quotations, delivery schedule changes, requests for material allocations, customer order commitments, etc. Thus CRP ties together all aspects of demand with supply to produce an integrated view of the company's overall objectives. Financial planning

This step translates manufacturing plans into financial terms showing only how much revenue/profit will be earned in the future and the costs associated with that revenue/profit. If CRP has been done correctly then this step should cause no surprises since the overall requirements for resources (people, machines, materials) are already known.


Finally, work orders are assigned to specific times during which they need to be completed by considering all constraints involved in accomplishing each order including key dates such as deadlines for delivery and event. In addition, states. It takes into account all other products that may depend upon or could be affected by the given product along with any circumstances that may affect schedules such as requests for quotations, delivery schedule changes, requests for material allocations, etc. This is where real-time scheduling takes place - assigning jobs overtime to get the right number of products done at exactly the right time.


When all is said and done this step monitors progress against the committed schedule, taking into account variances from standard times as well as those that occur because of events or milestones as new information becomes available. In addition, it takes into account any changes made to what was previously planned such as product mix, resources assigned, delivery schedules, etc. It provides formal feedback to make new plans on a more informed basis in the future. Throughput Accounting

This approach measures production quantities based upon economic value rather than simply counting units moved - it assigns a dollar value to each operation performed by every worker so that quantity is measured not just in terms of total units produced but also in terms of total revenue generated.

Economic Order Quantity (EOQ)

This is the quantity level at which the cost of placing an order and the carrying costs of inventory are balanced against the cost of not having enough on hand when needed. Determining this value for a given company requires taking into account operating expenses, purchase prices, number of setups per order, delivery time/costs, etc. It is a function of how many units need to be produced and delivered over time - it has to consider more than just what happens on the factory floor. The EOQ formula is:

EOQ = C * SQRT(2 x P x D) Where: C = cost per item P = purchase price per unit D = annual demand

Reorder Point

This is the amount up to which you can let inventory get out of control without having to add any re-stocking costs such as overtime or expedited shipment. As with EOQ, it has to take into account more than just how many may be needed - it must also consider the timing and delivery requirements. This becomes a balancing act between spending money on expediting and saving money by not expending resources when there is no rush in getting things done. The formula for ROP is:

ROP = (Z x L) + I Where: Z = safety stock level determined by actual consumption over time L = leadtime (from purchase to receipt) I = average order size

Abandon Rate

This is the percentage of total units produced that were abandoned or scrapped due to problems - anything from rework to machines malfunctioning. Abandonment may be caused by problems with suppliers, defective materials, incorrect procedures, etc. Therefore it requires accurate information about what was done in conjunction with what should have been done based upon plans and specifications. There are 3 common reasons for the abandoned product:

Customer returns Quality rejects Non-conformance rejects

Therefore there are 3 rates associated with this condition which could be applied as a single number or spread out over each one as appropriate to how it has been determined: Rejects due to customer complaints Rejects required by quality standards Rejects due to non-conformance

Total Cost of Ownership (TCO)

This is the total of all costs associated with designing, making, and marketing a given product or service. It takes into account acquisition costs, development kits costs, operating expenses, required return on investment (ROI), etc. The sum of these factors can range from almost nothing in terms of equipment and materials to astronomical in terms of time and effort - every business owner must determine how much is "worth it" given what he/she has to work with.

Design for Manufacturability / Assembly

This step ensures that design specifications are compatible with manufacturing processes. They do not require expensive or time-consuming rework which could weaken or even ruin the new electronic hardware product. It requires good communication among all personnel and a thorough understanding of how product and process together will provide for accomplishing overall objectives, including:

assembly repeatability delivery timing customer needs inventory control material usage reduction rejection rate rework costs safety/ergonomics scrap reduction

This presents an opportunity for individuals involved in producing early prototypes to bring up potential problems early, which could save time and money and avoid creating additional headaches at later stages of PCB prototype production.

Tell me the importance of production planning?

Production line planning is the process of forecasting demand, capacity, and cost required to achieve desired profit when the professional prototype company plans concerning product designs and budgets for facilities and equipment needed to produce or market products.

What are the characteristics of good production planning?

The most important characteristic is accuracy in terms of future demand predictions, which can be accomplished through market research. Accessibility of resources such as facilities, equipment, and materials also needs to be considered so that necessary resources will not become a bottleneck in any part of the production. In addition, factors such as security and safety need careful consideration so that the work environment remains conducive to efficient production. Also, costs involved with supervision should be included in any budgeting process.

How does "budgeting" relate to production planning?

Budgeting is the process of setting financial goals, primarily in terms of revenue and expenses, for a specified period. These goals become benchmarks to determine how well an organization will perform against its objectives. Budgets are broken into categories such as manufacturing, marketing/sales, human resources, information technology (IT), etc. with further specificity possible depending upon the needs of a particular enterprise. All business enterprises have some form of comparison process relative to their overall operations because it provides a means by which they can evaluate productivity through correlating total costs being incurred with the value being produced from those efforts.

What kinds of questions do people ask when beginning production planning?

Initial questions concern product type and design that all necessary steps can be taken to ensure an efficient and cost-effective production process. Questions such as whether or not the product is worth producing, how much revenue can be expected from it, along any associated expenses must all be considered to determine if a particular enterprise's objectives are feasible.

Who works in the area of production planning?

Individuals involved include manufacturers/producers/operators who are directly responsible for managing the manufacturing side of things; planners/schedulers who manage the flow of material through different phases according to the capacity available at each phase; quality control engineers to make sure that products meet customer expectations; accountants who work on budgeting and forecasting, including maintaining financial records which are drawn upon by supervisors for managerial decisions.

What are some examples of the different kinds of plans involved with production planning?

The most pe of the plan is a master production which breaks down the longer-term into shorter periods, usually days, weeks, or months depending upon a particular enterprise's product design life-cycle. These smaller pieces are then further divided into work orders that indicate which resources to use and how much capacity should be used for each. This information drives the flow through the process from beginning to end as characterized by materials management effects such as inventory control, human resource planning including organization hierarchies and supervision, and overall quality planning throughout all phases of development.

To whom do those involve in the production planning report?

Production planners/schedulers generally report to someone responsible for managing a particular part of the factory or production environment, whether human resources, transport, logistics, IT, material management, etc., depending on what each planner/scheduler is responsible for.

What functionality is needed for good production planning?

In the case of electronic design production, a means for estimating time and materials expenditures in terms of costs incurred due to depreciation, transportation fees, overhead, etc., is needed. In other words, the planner/scheduler must have a way to estimate labor costs at different levels of responsibility from skilled workers down to unskilled laborers. This involves knowing how to assign a given person-hours worked at a particular rate per hour where that salary will come from or what source it will be drawn from whether that is an enterprise's budget, its revenue stream through sales, outside contracts it may have with suppliers who provide these services on its behalf or from employees themselves paying into company-sponsored savings programs such as stock matching or 401k retirement plans.

The right tool

To use for electronic production quality prototype boards development provides the necessary functionality to build upon the design as it evolves through all of its stages. This includes hardware and software components that integrate with the right amount of easily navigable features singable so that managers can focus on their primary duties rather than spending unnecessary time trying to learn how to use the tool itself.

What features should be considered when selecting a production planning tool?

There are some basic functions any production planning tool will need to have included, such as resource allocation among different work orders, visualizing progress in terms of milestones reached along each step of the way, an intuitive interface accessible via desktop or mobile device (the latter particularly relevant for engineers who work on-site at customers' locations across the country), and ease of sharing information among different parties, whether they are co-workers in the same department or colleagues across the hall.

When is it advisable to upgrade a production planning tool?

As technology evolves, so too should the tools used by planners/schedulers to maximize their capabilities. Whenever one particular phase of the hardware development cycle comes to an end, meaning that there are no more enhancements being made to that particular design's hardware features, then it would be time for an upgrade if the organization has been utilizing a piece of software all along that does not have any new functionality available at that time. This may cost money but it is necessary to avoid stagnation with technological innovation within most manufacturing operations.

What is the primary benefit of using an electronic prototype production planning tool?

By having access to specific information, planners/schedulers can make more educated decisions about how they are going to allocate resources to accomplish various tasks related to production without having everything done manually. This means that they can perform their duties with greater efficiency which translates into less time wasted on administrative chores and more time spent doing what they were hired for. That said, there are some third-party software solutions available in the market today if you want a better way of managing your entire design process from A to Z. If you feel your current solution is not working well for you or it is no longer serving its purpose, then maybe it's time to look around for something new that you can benefit from.

Key performance indicators (KPIs)

Electronic prototype development is a key part of any hardware design injection molding process, conceptualizing new electronic gadgets or creating upgrades to existing equipment. At some point in this cycle, whether it's during the prototyping stage of production itself, your organization is going to have to think about labor costs which are an important element within mass production planning and scheduling as they will play a role in what resources need to be allocated where and when. There are software tools available today that can help you with such responsibilities as long as they meet the minimum required work progress every step of the way. How these tools integrate into your workflow makes a difference because if you're too dis, it will be counterproductive to what you are trying to accomplish.

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