What is Production Planning? Meaning
Production planning way to ready the production goals in addition to to gauge the resources which are required to accomplish these goals. It prepares a detailed conception for achieving the production goals economically, efficiently in addition to inwards time. It forecasts each step inwards the production process. It forecasts the problems, which may arise inwards the production process. It tries to take away these problems. It equally good tries to take away the causes of wastage.
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Production planning provides answers for 2 major questions, viz.,
- What piece of occupation should last done?
- How much fourth dimension volition last taken to perform the work?
So, production planning decides the ways in addition to way of production. It shows the direction. It is based on sales forecasting. It is a prerequisite of production control.
Definition of Production Planning
According to Ray Wild, production planning is defined equally follows:
"Production Planning is concerned amongst the determination, acquisition in addition to organisation of all facilities necessary for hereafter operations."
Objectives of Production Planning
The need, primary functions or objectives of production planning are equally follows:
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- Effective utilization of resources.
- Steady menses of production.
- Estimate the resources.
- Ensures optimum inventory.
- Coordinates activities of departments.
- Minimize wastage of raw materials.
- Improves the labour productivity.
- Helps to capture the market.
- Provides a improve piece of occupation environment.
- Facilitates character improvement.
- Results inwards consumer satisfaction.
- Reduces the production costs.
Now let's verbalize over each objective of production planning 1 past times one.
1. Effective utilization of resources
Production planning results inwards effective utilization of resources, found capacity in addition to equipment. This results inwards low-cost in addition to high returns for the organization.
2. Steady menses of production
Production planning ensures a regular in addition to steady menses of production. Here, all the machines are seat to maximum use. This results inwards a regular production, which helps to give a routine furnish to customers.
3. Estimate the resources
Production planning helps to gauge the resources similar men, materials, etc. The gauge is made based on sales forecast. So production is planned to come across sales requirements.
4. Ensures optimum inventory
Production planning ensures optimum inventory. It prevents over-stocking in addition to under-stocking. Necessary stocks are maintained. Stock of raw textile is maintained at a proper grade inwards lodge to come across the production demands. Stock of finished goods is equally good maintained to come across regular demands from customers.
5. Coordinates activities of departments
Production planning helps to coordinate the activities of dissimilar departments. For e.g. the marketing subdivision coordinates amongst production subdivision to sell the goods. This results inwards profits to the organization.
6. Minimize wastage of raw materials
Production planning minimizes wastage of raw materials. It ensures proper inventory of raw materials in addition to materials handling. This helps to minimize wastage of raw material. It equally good ensures production of quality products or goods. This results inwards a minimum rejects. So proper production planning in addition to command results inwards minimum wastage.
7. Improves the labour productivity
Production planning improves the labour productivity. Here, at that topographic point is maximum utilization of manpower. Training is provided to the workers. The profits are shared amongst the workers inwards cast of increased payoff in addition to other incentives. Workers are motivated to perform their best. This results inwards improved labour efficiency.
8. Helps to capture the market
Production planning helps to give delivery of goods to customers inwards time. This is because of regular menses of character production. So the fellowship tin give the sack aspect upwards contest effectively, in addition to it tin give the sack capture the market.
9. Provides a improve piece of occupation environment
Production planning provides a improve piece of occupation environs to the workers. Workers larn improved working conditions, proper working hours, larn out in addition to holidays, increased payoff in addition to other incentives. This is because the fellowship is working real efficiently.
10. Facilitates character improvement
Production planning facilitates character improvement because the production is checked regularly. Quality consciousness is developed amidst the employees through training, proposition schemes, quality circles, etc.
11. Results inwards consumer satisfaction
Production planning helps to give a regular furnish of goods in addition to services to the consumers at far prices. It results inwards consumer satisfaction.
12. Reduces the production costs
Production planning makes optimum utilization of resources, in addition to it minimizes wastage. It equally good maintains optimum size of inventories. All this reduces the production costs.
