PRODUCTION PLANNING

All this work, though, is usually based on much the same core requirements that underlie every decision:

• Can we fulfill customer orders by the customer’s preferred deadline?
• Do we have sufficient production capacity?
• Are there alternative production routes, e.g. outsourcing to a third party?
• Do we have enough stock of raw materials or semi-finished products in the warehouse, or can these be procured in time if required?
• Does production capacity match material availability for scheduling?
• What happens if…? → system simulations.
• What does the actual production process look like? Will everything be ready on time, to the required quality?
• A visual overview linking production orders to their status.

Everyone is unique – and that’s just what makes the difference

The requirements might seem fairly similar, but the basis of corporate success is often hidden in production expertise. It’s often the case, too, that getting processes right in production can give you an essential edge. While some enterprises can manage with just rudimentary planning, other businesses need to draw up sophisticated, detailed plans in advance. In some types of business relationships, you agree months in advance that the same item will be delivered over a horizon of several months. You have plenty of time to identify requirements and draw up appropriate delivery schedules or carry out forecast planning. Other types of company find they have to consider every customer order separately; each one has to be individually checked, supplies procured, and the order scheduled. While some enterprises can create product cost estimates down to the last cent over a horizon of several years, others cost every order separately and use it as a decision basis.