Monday 17 December 2018

Functions of Production planning

Functions of Production planning

Product planning is the process of creating the products and follow up until the product is introduced to the market. In addition, the company must have a backup strategy if the product failed in its marketing. Including the extension or improvement of products, distribution, price changes and promotions.

The economic success of a company manufacturing depends on the ability to identify customer needs, then quickly create products that can meet those needs and costs are low. This is not a responsibility of the marketing, manufacturing, parts or part design course, but rather a responsibility that involves many functions that exist in the company.

Product development method based on requests or requirements and specifications of the products by the customer is a pretty good method, because with the desire of the customer-based then it is likely the product is not received by the customer into smaller. From the point of view of investors on the profit-oriented company, product development efforts are said to be successful if the product can be produced and sold for a profit. However, it is often difficult for profits assessed quickly and directly.

There are 5 specific dimensions related to profit and used to assess the performance of the product development efforts, namely:

Product quality

How well the products resulting from the effort of development and can satisfy the needs of customers. The quality of the product will ultimately affect the market share price and determine who would like to get paid by customers.

The cost of Products

Costs for capital equipment and tools as well as the cost of production per unit manufacturing costs of the product is called. The cost of the product to determine how big the profits generated by the company in sales volume and sales prices.

Product development time

Development time will determine the company's ability to compete in,

shows the company's responsiveness to changes in technology and in the end will determine the speed of the company to receive a refund of economically from efforts undertaken development team.

Development costs

Development costs typically is one of the important components of the investment required to achieve profit.

Capability development.

Capability development is an asset that can be used by the company to develop products more effectively and economically in the future.

Design and manufacture of a new product or an existing one is a very large part of all engineering activities. This activity was obtained from perceptions about human needs, then followed by the creation of a concept product, product design, product development and refinement, and ends with the manufacture and distribution of such products.


The purpose of the production plan

  • Minimize costs/maximize profits

  • A maximize customer service

  • The minimize inventory investment

  • To Minimize changes in the value of production

  • A minimize changes in the level of workforce

  • Maximize the utilization of plant and equipment

The function of production plan

The functions of the planning and control of production are:

  • Guarantee plan sales and production plans are consistent against the company's strategic plan

  • performance measurement tool as the process of production planning

  • Ensures consistent production capabilities against a production plan

  • Monitor results against actual production plan and make adjustments.

  • Organize supplies finished products to achieve the target of producing and plan lies

  • Directs the preparation of and the implementation schedule for indium production.

The purpose and function of planning Forecasting product demand expressed in number of products as a function of time. Monitor the actual request, comparing it to the previous demand forecast and do revision of the forecasts in case of irregularities.

Sets the size of the reservation goods economically upon the raw materials will be purchased. Economical inventory system setting, set the production needs and the level of inventory at any given moment. Monitor inventory levels, comparing it to the plan preparation, and do production plan revisions at the time specified. Make production schedule, assignments, as well as the imposition of a machine and a detailed workforce.


The plan identifies the product portfolio of products that are developed and the time of the introduction into the market. The planning process consider product development opportunities, identified by many sources, including marketing, research proposal, customers, product development team and the analysis of superiority of competitors. Product plans need to be updated periodically so that it can accommodate the changes and developments. To develop a product plan and the mission statement of the project need to be 5 (five) stages of the process:

Identify opportunities

Opportunities involving some of the four (4) types of product development projects, namely:

  • new products

  • the derivative of an existing product.

  • improvements to existing products.

  • product that is basically new.

Identification of opportunities can be done by means of:

  1. customer complaints against similar products that already exist.

  2. analysis of the advantages and disadvantages of competitor products.

  3. proposals for customers that is collected automatically.

  4. consideration of the implications of the existence of towards tendency in the style of life, demographics and technology to the category that the product exists and the opportunities the new product category.

Evaluate and Prioritize Projects

Four basic perspectives that are useful in evaluating and prioritizing opportunities for new products in existing product categories are:

Competitive Strategy

The company's competitive strategy is an approach to the market and the fundamental products with attention to the competitors. This strategy is use to select opportunities. In general, the company conduct discussions on the level of management is a competency strategy and assist in competing. A few strategies that may be apply to:

  • Leadership based on the technology.

  • Leadership-based cost efficiency.

  • customer focus.

  • imitation Products.

  • market segmentation

The Division of the market into segments allows companies to consider the actions of competitors and the strength of the company's products are now based on customer group. Mapping products and proprietary competitors in segments will help firms in estimating the opportunity product is causing the weakness of its product line and utilize weaknesses of competitor offerings.

The development of technology

In the intensive nature of the business of technology, main planning decision is the determination of the time to use a new base technology in the product line.

Product platform Planning

The product platform is a set of assets that are divide into a set of products. An effective platform can allow variations of derivative products to be design more quickly and easily. Which gives each product features and functions that are desire by the central market.

The decision regarding the product platform is highly related to the company's product development efforts and to decide about which technologies will be used for new products.

One technique to coordinate technology development with product planning is map line technology. Map of line technology is a way to show the expected availability and future use of the various technologies that are relevant to the products considered.

Evaluation of opportunities new products is fundamentally

Several criteria to evaluate new product opportunities fundamentally is:

  • market size (unit’s/year x the average price).

  • market growth Rates (per cent per year).

  • the intensity of the competition (the number of competitors and strength).

  • Knowledge about the market company.

  • e company) knowledge about technology.

  • compatibility with products of other companies.

  • Conformity with the capabilities of the company.

  • Balancing a portfolio of development projects

Methods of offsetting portfolio will involve mapping the portfolio in accordance with the dimensions that are useful, so the Manager will consider the implications of the decision of the planning. The mapping approach expressed Cooper et al (1998) involve technical risks such as dimension, financial returns, the attractiveness of the market and so on.

Allocation of resources and planning Time

Resource management

Aggregate planning will assist the company in utilizing resources efficiently by taking on projects that provide excuses to be resolve on the basis of budgeted resources.

Timing of projects

The timing and sequence of the project factors to consider:

  • the timing of the introduction of the product.

  • readiness of technology.

  • the readiness of the market.

  • competition in product offerings.

The completion of the Preliminary Project Design

This stage is carry out after the project was approve. But before an important resource use. This activity involves a cross-functional team call core team. At this point the statement more opportunity as soon as possible is write back as a product vision statement.

Objectives defined in the vision statement of products sometimes are very common. To give clear instructions for the product development organization, usually a team formulate a more detailed definition of the target market and the assumptions that underlie the operations of the development team. Decisions on this subject will be find out in a mission statement.

Mission statement

Mission statement include:

  • a concise product Description), including major product benefits for customers however avoid the use of the concept of products specifically.

  • b) primary target business, includes the time, cost and quality.

  • c) target market for the product, identify the main market and the second market to consider in such a development.

  • d) assumptions and limitations, to steer the development effort.

  • e) Stakeholders, to ensure that the many problems of development aimed to register explicitly throughout the stakeholder of the product. The list of stakeholders starting from end users and external customers who make the decisions about the product. The list of stakeholders provides a shadow for the team to the needs of every consumer.

Assumptions and limitations

Assumptions and limitations are necessary in order for the technical development of the product advertising. Problems that need to be considered in the stated assumptions and limitations:

  • manufacturing, consider the ability, capacity, and operational limitations on manufacturing.

  • services, customer service and revenue services largely determine the success of the company, so the company needs to be stated strategic goals for the levels of service quality.

  • environment, the goal is that all components will be manufactured or recycled or both so that there are components that should not be thrown away customers.

  • determination of the staff and other preliminary project planning activities.

Reflect results with process

The last step of the process of planning and strategy, the team should have asked some questions to make it work the quality of the results and the process.

Because the mission statement is the handle to the development team, a reality check must be done before through the development process. This initial step is time for improvement.

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