Production planning is a key to companies’ growth and expansion. Proper predictive decisions and having strategies planning will boost the production process and will hence increase the company’s profits.
To learn better about production planning and control let’s go through with this example, Mr. Harry was the owner of a company which produces shoes. His company is very reputed and is amongst the most trusted brand in the market. Mr. Harry’s production was on a boost as some occasions were on the way. Many orders were in the chart, and everyone was in a hurry to complete the orders before time. He had three machines which were operated by three operators and five logistics men who used to deliver the shoes to the market. Now, as there was a peak in demand, he was failing to cope up with the order and was running late. He was unable to manage the rush of the order and the staff. He also had increased the machines and workers but was falling back. Due to this, he was annoyed, and certain five things started to happen such as,
- Low productivity
- Delayed Production
- Unhappy clients and customers
- Unorganized working wastage of time
- Wastage of resources.
One day when he was thinking about all of his problems, one of his friends comes and visits him. He explains his condition to him about all the difficulties he was facing due to this. His friend recommends him proper production techniques in which he guided him to place one machine for one supply chain and the applications and soft wares of CAM. Especially the thing he focused was the inventory planning or the demand planning. Many companies do not focus on the demand planning. What exactly is demand plan?
Demand planning is the actions taken by the company to fill their inventories beforehand entirely depending on their production rate, the demand, and the cost. It is very crucial to fill an inventory beforehand, but quite a delicate issue too. Overloading your inventories will make you build more space for its storage and will add more money and human resources to safeguard it. Overfilling of the stock is very risky. If today you have purchased a commodity or a raw material at around $5 and after ten to fifteen days its price drop to $3, who is in the loss? Always play safe. You should fill your inventory depending on your need and companies demand. If you got an order to the manufacturer, you can fill it but be careful and try to search in the different area before buying one thing. Prices may vary from place to place. Demand planning is a very vast subject and should be studied very seriously while undergoing production cycle.Many such talented individuals especially target the subject of demand planning. Many companies outsource their companiesdemand planning by these qualified individuals. They work with your company and with the help of analytics and their knowledge and their predictive results you never fail. Avinash Gawade,Jonathon karelse, etc. are some of the names of demand planners.