What Is Production Planning? Pregnant Definition Objectives

What is Production Planning? Meaning

Production planning agency to ready the production goals together with to justice the resources which are required to attain these goals. It prepares a detailed invention for achieving the production goals economically, efficiently together with 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 these problems. It too tries to take the causes of wastage.

Image Credits © Pietroizzo.

Production planning provides answers for 2 major questions, viz.,

1. What piece of job should hold out done?
2. How much fourth dimension volition hold out taken to perform the work?

So, production planning decides the ways together with agency 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 with the determination, acquisition together with scheme of all facilities necessary for hereafter operations."

Objectives of Production Planning

The need, principal functions or objectives of production planning are equally follows:

Image Credits © Gaurav Akrani.

1. Effective utilization of resources.
2. Steady menstruation of production.
3. Estimate the resources.
4. Ensures optimum inventory.
5. Coordinates activities of departments.
6. Minimize wastage of raw materials.
7. Improves the labour productivity.
8. Helps to capture the market.
9. Provides a improve piece of job environment.
10. Facilitates character improvement.
11. Results inwards consumer satisfaction.
12. Reduces the production costs.

Now let's hash out each objective of production planning i yesteryear one.

1. Effective utilization of resources

Production planning results inwards effective utilization of resources, found capacity together with equipment. This results inwards low-cost together with high returns for the organization.

2. Steady menstruation of production

Production planning ensures a regular together with steady menstruation of production. Here, all the machines are seat to maximum use. This results inwards a regular production, which helps to give a routine render to customers.

3. Estimate the resources

Production planning helps to justice the resources similar men, materials, etc. The justice is made based on sales forecast. So production is planned to run into sales requirements.

4. Ensures optimum inventory

Production planning ensures optimum inventory. It prevents over-stocking together with under-stocking. Necessary stocks are maintained. Stock of raw cloth is maintained at a proper degree inwards guild to run into the production demands. Stock of finished goods is too maintained to run into 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 with production subdivision to sell the goods. This results inwards net turn a profit to the organization.

6. Minimize wastage of raw materials

Production planning minimizes wastage of raw materials. It ensures proper inventory of raw materials together with materials handling. This helps to minimize wastage of raw material. It too ensures production of quality products or goods. This results inwards a minimum rejects. So proper production planning together with command results inwards minimum wastage.

7. Improves the labour productivity

Production planning improves the labour productivity. Here, at that spot is maximum utilization of manpower. Training is provided to the workers. The profits are shared with the workers inwards cast of increased reward together with 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 menstruation of character production. So the companionship tin aspect upwardly contest effectively, together with it tin capture the market.

9. Provides a improve piece of job environment

Production planning provides a improve piece of job surroundings to the workers. Workers larn improved working conditions, proper working hours, larn out together with holidays, increased reward together with other incentives. This is because the companionship is working really efficiently.

10. Facilitates character improvement

Production planning facilitates character improvement because the production is checked regularly. Quality consciousness is developed with the employees through training, proposition schemes, quality circles, etc.

11. Results inwards consumer satisfaction

Production planning helps to give a regular render of goods together with services to the consumers at far prices. It results inwards consumer satisfaction.

12. Reduces the production costs

Production planning makes optimum utilization of resources, together with it minimizes wastage. It too maintains optimum size of inventories. All this reduces the production costs.