Effective manufacturing and delivery through
Production Planning Services
Why is production planning so important?
Production planning services are the process of organising how a company makes its products or delivers its services. Its purpose is to ensure things are done efficiently, at the right time, and with the right resources, so the company can meet customer demands and use resources effectively. Successful production planning helps companies work better, reduce waste, retain adequate inventory, and makes customers happy. This leads to higher profits and a strong position in the market.
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What to consider in Production Planning
Demand Forecasting
Determines the required production volume, inventory levels, and production schedules. Historical sales data, market trends, and customer inputs are used for this.
Lead Time Management
Includes lead times for order processing, procurement of raw materials, production setup, and delivery to customers. Reducing lead times can help improve response times and enhance customer service.
Resource Planning
Assessing resources and creating a production schedule are key steps. First, check what resources are available like labour, materials, and machines. Then, make a plan for production based on demand and resource availability, ensuring smooth operations.
Inventory Management
Efficient inventory management ensures that raw materials and finished products are available when needed, reducing the risk of stockouts or carrying unnecessary inventory.
QUALITY CONTROL
Quality control measures are integrated into the production process to meet the desired quality standards. Consistently delivering high-quality products is essential for customer satisfaction and brand reputation.
CAPACITY PLANNING
Determines the maximum production capacity of the manufacturing facility and ensuring that it aligns with the demand forecast. This helps prevent overloading or under utilisation of production resources.
OUR 9 step APPROACH TO production planning Services
Sharing in Growth provide coaching and training in all areas of production planning to help organisations to meet customer demand efficiently, optimise resource utilisation, and improve overall productivity; transferring knowledge of forecasting demand, scheduling production activities, managing resources, ensuring product quality, and integrating with the supply chain. Through effective production planning, companies can enhance their competitiveness, respond to market changes more effectively, and achieve sustainable growth in the long run.
Case studies
SALES AND OPERATIONAL PLANNING (SIOP) BALANCES DEMAND AND SUPPlY
Senior Aerospace Bird Bellows were suffering from little or no co-ordination between key business functions and no long-term understanding of their capacity aligned to potential customer demand. The Commercial team were operating with a zero lead-time, infinite capacity perception and production planning activity was limited to a short-term horizon of 12 weeks.
The Sharing in Growth team provided support with identifying key data sets and measures. Furthermore, were integral in utilising this information for the design, development and implementation of a functioning monthly Sales and Operational Planning routine; deploying both the necessary tools along with coaching on ownership and accountability across all business stakeholders.
The result of this activity took the form of both tangible and intangible benefits. Customer On Time in Full (OTIF) improved from 70% to >90% over the course of nine months with the equivalent Supplier delivery performance rising from 70% to 85% in the same period. Forecasting of inventory subsequently improved to 98% and saw a value reduction of circa 12%. From an intangible perspective the business recognised a stronger coalition of departments and disciplines with far less reactive, silo working.
“With support from Sharing in Growth, the development and deployment of SIOP helped deliver a true understanding of the balance and risk within firm, forecast and assumed demand levels which, in turn, allowed for improved load & capacity planning within operations and the wider disciplines. We observed a clear improvement in collaboration and alignment between departments and a shared view of the strategic direction of travel – short to mid-term growth of Specialised Products (‘business within a business’) and longer-term targeted growth of the aerospace business through development and innovation (products and services).”
SARAH SHENTION
OPERATIONS DIRECTOR
Our production planning Services Team
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