What are the constraints and objectives while preparing a production plan ?

A production plan is that portion of your intermediate-range business plan, that your manufacturing / operations department are responsible. The plan states in general terms the total amount of output that the manufacturing department is responsible to produce for each period in the planning horizon. The output is usually expressed in terms of pesos or other units of measurement, for e.g. tons, liters, kgs.  or units of the aggregate product. The production plan is the authorization of your manufacturing department to produce the items at a rate consistent with your company's overall corporate plan. This production plan needs to be translated into a master production schedule  so as to schedule the items for completion promptly, according to promised delivery dates.

Hello Team,

The production schedule is derived from the production plan; it is a plan that authorized the operations function to produce a certain quantity of an item within a specified time frame. In a large firm, the production schedule is drawn in the production planning department, whereas, within a small firm, a production schedule could originate with a lone production scheduler or even a line supervisor.

Production scheduling has three primary goals or objectives. The first involves due dates and avoiding late completion of jobs. The second goal involves throughput times; the firm wants to minimize the time a job spends in the system, from the opening of a shop order until it is closed or completed. The third goal concerns the utilization of work centers. Firms usually want to fully utilize costly equipment and personnel.

Often, there is conflict among the three objectives. Excess capacity makes for better due-date performance and reduces throughput time but wreaks havoc on utilization. Releasing extra jobs to the shop can increase the utilization rate and perhaps improve due-date performance but tends to increase throughput time.

Quite a few sequencing rules (for determining the sequence in which production orders are to be run in the production schedule) have appeared in research and in practice. Some well-known ones adapted from Vollmann, Berry, Whybark and Jacobs (2005) are presented in Operations Scheduling.

Regards,

Saiyid

A carefully developed production plan will allow your company to meet the following objectives:

•  Minimize costs / maximize profits

•  Maximize customer service

•  Minimize inventory investment

•  Minimize changes in production rates

•  Minimize changes in work-force levels

•  Maximize the utilization of plant and equipment

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