Strategies Used in Production Planning and Control (2024)

Utilizing specific strategies within production planning and control can boost efficiency, reduce waste, reduce cost, and ultimately improve the overall production process. This is easier said than done, simply because one of the trickiest and most complex aspects of operating a production plan is accurately determining how much is needed to be produced, when it should be produced, and what supplies need to be ordered and when.

Failure to have products fulfill orders may erode the confidence of buyers, but having too much supply on hand is risky for various reasons. Therefore, it is important to consider the multiple strategies that can be utilized in production planning and control and choose the one that may be the most beneficial to you. Therefore, here are four strategies utilized within production planning and control that you can implement into your manufacturing operation.

Strategies Used in Production Planning and Control

The main strategies used in production planning and control are the chase strategy, level production, make-to-stock, and assemble to order. A more detailed explanation of these is listed below:

• Chase Strategy (Production Matches Demand) - The chase strategy pertains to the process of chasing demand that is set by the market. Production is set to match demand and does not carry any leftover products. This is categorized as a lean production strategy, simply because it saves costs until the demand, or order, is placed. Within this strategy, inventory cost are low and the cost of goods for products sold is kept to a minimum and in a much more timely manner.
• Level Production (Constant Production Over Time) - Level production is a strategy that produces the same number of units equally. This is very common for industries where demand is cyclical and production capabilities are limited.
• Make to Stock (Enough Product to Stock Shelves) - While make-to-stock may increase inventory cost, it is still beneficial to those that specialize in certain areas, such as retail, cars, phones, etc. Products are made and put in inventory so potential consumers can view what is available.
• Assemble to Order (For Perishables) - This strategy pertains to restaurants or other industries that have perishables to consider. For example, a florist may have to make 50 arrangements but will not make an arrangement until the order is placed. This will reduce spoilage and allows for customization and freshness of perishable products.

A software that can aid with these production planning and control strategies include PlanetTogether’s advanced planning and scheduling software (APS). Advanced planning and scheduling software (APS) provides thorough insight into your manufacturing operation through enabling you to generate various schedules and then ultimately allowing you to pick the most advantageous one. PlanetTogether’s APS software has become a necessity for manufacturers around the globe that are seeking to increase efficiency, reduce waste, reduce unwanted costs, and ultimately take production to the next level. APS software has greatly benefited manufacturers across the globe.

Advanced Planning and Scheduling Software

Advanced Planning and Scheduling (APS) software has become a must for modern-day manufacturing operations due to customer demand for increased product mix and fast delivery combined with downward cost pressures. APS can be quickly integrated with a ERP/MRP software to fill gaps where these system lack planning and scheduling flexibility and accuracy. Advanced Planning and Scheduling (APS) helps planners save time while providing greater agility in updating ever-changing priorities, production schedules, and inventory plans.

• Create optimized schedules balancing production efficiency and delivery performance
• Maximize output on bottleneck resources to increase revenue
• Synchronize supply with demand to reduce inventories
• Provide company-wide visibility to capacity
• Enable scenario data-driven decision making

Implementation of Advanced Planning and Scheduling (APS) software will take your manufacturing operations to the next level of production efficiency, taking advantage of the operational data you already have in your ERP.

As someone deeply immersed in the realm of production planning and control, my expertise stems from hands-on experience and a profound understanding of the intricacies involved in optimizing manufacturing processes. Over the years, I have actively engaged with various strategies, tools, and technologies, consistently staying abreast of the latest developments in the field. This wealth of experience positions me to shed light on the specific concepts outlined in the article.

The article delves into the challenges of production planning, emphasizing the critical need for efficient strategies to enhance overall productivity. Let's dissect the key concepts presented:

Strategies Used in Production Planning and Control:

1. Chase Strategy (Production Matches Demand):

   • This strategy involves aligning production with market demand, exemplifying a lean production approach.
   • Noteworthy benefits include low inventory costs and minimized cost of goods sold due to timely production.
   • Emphasizes the importance of adjusting production in response to actual demand.

2. Level Production (Constant Production Over Time):

   • Level production aims to maintain a consistent output of units, often suitable for industries with cyclical demand.
   • Addresses scenarios where production capabilities are limited, promoting stability and efficient resource utilization.

3. Make to Stock (Enough Product to Stock Shelves):

   • This strategy involves producing goods in advance and maintaining an inventory to meet anticipated demand.
   • Commonly used in retail and similar industries, it provides customers with readily available products.

4. Assemble to Order (For Perishables):

   • Suited for industries dealing with perishable goods, such as restaurants or florists.
   • Production is initiated upon receiving an order, reducing spoilage and allowing for customization and freshness.

Advanced Planning and Scheduling (APS) Software:

The article highlights the significance of Advanced Planning and Scheduling (APS) software, with a specific mention of PlanetTogether's solution. The key functionalities and benefits include:

• Optimized Scheduling:

  • Enables the generation of various schedules, empowering users to choose the most advantageous one.
  • Balances production efficiency and delivery performance.

• Bottleneck Resource Maximization:

  • Maximizes output on bottleneck resources, a crucial aspect for increasing overall revenue.

• Supply-Demand Synchronization:

  • Aligns supply with demand to reduce inventories and enhance overall operational efficiency.

• Visibility and Decision-Making:

  • Provides company-wide visibility to capacity, facilitating data-driven decision-making.
  • Enhances agility in updating priorities, production schedules, and inventory plans.

Implementation and Integration:

• Integration with ERP/MRP Software:
  • APS can be seamlessly integrated with ERP/MRP software to address planning and scheduling gaps.
  • Harnesses operational data within the ERP for a comprehensive and cohesive manufacturing strategy.

In essence, the utilization of these production planning and control strategies, coupled with advanced software solutions like APS, represents a holistic approach to addressing the complexities of modern manufacturing. The integration of technology not only streamlines processes but also enhances the adaptability and responsiveness of production systems.