ERP Software plays the most important role in handling manufacturing processes. The process behind the production of any items involves a series of complicated tasks to form a final product. This product is not produced as a single one but a huge number of items or goods are being manufactured each and every day against the sale order they receive. Hence obviously there should be a clear planning on what we are producing, how much quantity and what are all the raw materials required. In this blog, let’s discuss what exactly is a Production Planning in Manufacturing ERP.
After getting the sales order the next step would be to set a clear plan to produce the required goods. To define this, let us consider the following simple questions.
Now with all the above questions one might be sure about the operations and delivery date of the product. In order to prevent any bottle neck moments like running out of materials, lack of knowledge on the process flow, breakdown time of machines and other labor related problems a production planning is the most appropriate business solution which can be done effectively using an ERP Software.
Continuous Production Flow :
The Production planning helps ensure that a steady operation is being carried on, preventing any breakdown or interruptions in the process flow. The planning is done utilizing all the resources and making maximum use of machines to provide a continuous supply of goods.
More the inventory then more the investment being idle at the store. It is important to reduce the inventory levels and maintain them to its optimum level. This can be achieved by proper planning that could use inventory at the right time and reduce excess storage.
The production planning is made so as to ensure that each and every resource in terms of raw materials, machines & tools, labors and purchases are all done with maximum utilization thus resulting in lower waste and high returns for the company.
Since the work is planned and operated as per schedule without any interruptions the laborers are able to complete their tasks on time ensuring they have provided with all necessary holidays and week offs. This is a result of a healthy working environment.
Every project, every task and every production obviously results in waste generation. But it is important to keep track of those waste materials and can be used for upcoming processes. Thus monitoring the wastage can help maximum usage of the raw materials further reducing the generation of waste metals.
There are five major types of production planning in the manufacturing industry.
1.Job based Production Method : The job based or project based production planning is something that focuses on producing a single product handled by a small team depending on the customer’s requirement.
2.Batch Production Method : Batch method of production planning is used when producing the goods as a batch of numbers. For example, food processing uses a batch method.
3.Flow Production Method : This method is used when you are manufacturing a collective group of items which are assembled together to form a final product. The flow of tasks will be in sequential order, not interrupted by any means.
4.Mass Production Method : This is very similar to the flow method but here a large number of single items are being manufactured within a short duration.
5.Process Manufacturing Method : The process manufacturing is opposite to a discrete manufacturing type, where the final product quantities are not counted but measured. This type of production planning is used in chemical manufacturing where the final product is liquid, gas or food processing.
Conclusion :
It is so evident that production planning could ease all the complications of a business process especially in a manufacturing sector. This can be achieved by adapting to an ERP system for your company. Choosing a software with the right features is still a challenging task but we could help you in that part. For more queries feel free to contact us.