Effective planning hinges on a sound understanding of key activities that entrepreneurs and business managers should apply to the planning process. Here are five examples: Show
1. Forecast market expectationsTo plan effectively, you will need to estimate potential sales with some reliability. Most businesses don't have firm numbers on future sales. However, you can forecast sales based on historical information, market trends and/or established orders. “Field analysis, information gathering and understanding of the results achieved make it possible to establish a more accurate diagnosis and develop a better action strategy,” adds Mr. Frenière. 2. Inventory controlReliable inventory levels feeding the pipeline have to be established, and a sound inventory system should be in place. 3. Availability of equipment and human resourcesAlso known as “available time", this is the period of time allowed between processes so that all orders flow within your production line or service. Production planning helps you manage open time, ensuring it is well-utilized, while being careful not to create delays. Planning should maximize your operational capacity but not exceed it. It's also wise not to plan for full capacity and leave room for the unexpected priorities and changes that may arise. 4. Standardized steps and timeTypically, the most efficient means to determine your production steps is to map processes in the order that they happen and then incorporate the average time it took to complete the work. Remember that all steps don't necessarily happen in sequence, and that many may occur at the same time. After completing a process map, you will understand how long it will take to complete the entire process. Where work is repeated or similar, it is best to standardize the work and time involved. Document similar activities for future use and use them as a baseline to establish future routings and times. This will speed up your planning process significantly. 5. Risk factorsEvaluate these by collecting historical information on similar work experiences, detailing the actual time, materials and failures encountered. Where risks are significant, you should conduct a failure modes and effects analysis (FMEA) and ensure that controls are put in place to eliminate or minimize them. This method allows you to study and determine ways to diminish potential problems within your business operations. This type of analysis is more common in manufacturing and assembly businesses. How to plan workAll other activities are initiated from the production plan, and each area is dependent on the interaction of the activities. Typically, a plan addresses materials, equipment, human resources, training, capacity and the routing or methods to complete the work in a standard time. The production plan initially needs to address specific key elements well in advance of production in order to ensure an uninterrupted flow of work as it unfolds.
The production plan provides a foundation to schedule day-to-day activities. As sales orders come in, you will need to address them individually based on their priority. The importance of the order will determine the work flow and when it should be scheduled. After this, you should evaluate whether or not you are ready for production or to offer the service. You will need to determine:
Communicate the planAfter determining that you have met all the criteria to start production, you will need to communicate the plan to the employees who will implement it. You can plan the production on spreadsheets, databases or software, which usually speeds the process up. However, a visual representation is preferred as a means to communicate operation schedules to floor employees. Some businesses post work orders on boards or use computer monitors to display the floor schedule. Others post work orders in real time on the floor schedule. Consider changeOne of the many challenges of production planning and scheduling is following up with changes to orders. Changes happen every day. You will need to adjust your plan in line with these changes and advise the plant. Dealing with change is not always easy and may take as much effort as creating the original production plan. You will need to follow up with the various departments involved in order to rectify any problems. As well, computer software can be helpful in tracking changes, inventory, employees and equipment. Continuous improvement of processesDeveloping your production plan could highlight sources of waste. You can apply the principles of operational efficiency and value-added production to eliminate waste, shorten processes and improve deliveries and costs. In order to increase your efficiency, it is essential to examine all of your processes. There are symptoms that are easy to decode to review and refine the management of your operations. One example is increasing delivery times and the company losing control of its production. The concrete benefits of having a global view of the efficiency of your processes are:
Is process of changing and improving resources to create goods or services?Chapter 8 Production of Goods Study Guide. What is the process that transforms resources into goods and services?Operations management is systemizing the direction and control of a business process in transforming resources, which are called inputs, into finished goods or services for consumers or clients (outputs).
What is the process of creating and delivering desired goods and services to customers and involves all the activities?Define Marketing? The process of creating and delivering desired goods and services to customers. Involves all of the activities associated with winning and retaining loyal customers.
Which type of processing is changing the form of raw material so they can be consumed or used to make other products?Manufacturing involves the conversion of raw materials, usually supplied in simple or shapeless forms, into finished products with specific shape, structure, and properties that fulfill given requirements.
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