If you work in the trading and distribution business and you’re struggling with the process of planning and controlling your production line. You’re not alone. At this time, there are so many companies in the trading and distribution industry facing similar challenges as well. The good news is that there is one effective solution out there to help you streamline your production process and optimise your production line.
And do you really understand the term “production planning and control”? What does it mean, and how can it help your business? In this blog post, we’ll answer these questions and more, providing an overview of the objectives of production planning and control as well as an effective solution.
Table of Content
- What is Production Planning and Controlling?
- What are the Benefits of Production Planning and Control?
- What are the Objectives of Production Planning and Control?
- How does ERP Software Help Manufacturers with Production Planning and Control?
What is Production Planning and Control?
Imagine you’re baking cookies. You need to plan how many cookies you want and ensure you have all the ingredients. Production planning is like making that plan. Now, control is when you check to make sure the cookies are not burning in the oven. It’s like having super senses to catch any problems.
So, we can conclude that production planning and production control are interdependent components that are interrelated to each other. This means that one needs the other to work. Planning is only valid with a production control process to take action and ensure that the plan is executed successfully. Production control provides feedback on the accuracy of the production plan, which helps modify existing plans and create future plans. On its end, control depends on planning as the performance standards are laid out during the planning process.
What are the Benefits of Production Planning and Control?
The benefits of production planning and control are:
- Enhanced coordination to ensure timely and consistent delivery
- Improved supplier relations for the purchase of raw materials
- Decreased inventory investment
- Reduced production cost by increasing efficiency
- Smooth flow of all production processes
- Reduced resource wastage
- Savings on production costs that boost profitability
What are the Objectives of Production Planning and Control?
To achieve these benefits, setting production planning and control objectives is very important. So, let’s unpack the objectives of production planning and control.
Continuous Flow of Production
One of the primary objectives of production planning and control is the continuous production flow through the production facility. Continuous flow and process improvement is one of the integral concepts of lean manufacturing and overall production enhancement. Production planning and control will attempt to achieve a smooth and continuous production process by eliminating bottlenecks and waste from your facility, which allows you to take your production to the next level in terms of productivity.
Read more: Lean Manufacturing: 5 Principles to Apply
Optimal Inventory Levels
Inventory can be wasteful and costly in manufacturing operations due to high inventory-related costs. Companies must reduce inventory levels through efficient production planning and control techniques, moving towards JIT manufacturing for a consistent flow of production. This allows minimisation of inventory levels, reducing costs in operations.
Production planning and control serves another important objective – increasing productivity at an optimal cost. This means enhancing efficiency and using existing production and labor resources effectively, minimising material wastage and spoilage. Productivity is improved by streamlining these processes, ultimately driving profitability while reducing costs.
Ensured Quality Standards
Production planning and control is critical to maintaining quality control in the production process. By ensuring that materials are being utilised correctly, equipment is maintained and calibrated, and all quality standards are followed, businesses can more effectively produce consistent and high-quality products, which leads to better customer satisfaction.
All companies aim to increase customer satisfaction because customers drive demand for products and services. Additionally, satisfied customers lead to more future business. Defective products and delayed shipments can cause serious losses to a business. Production planning and control focuses on completing orders on time and reducing lead times to ensure that orders are fulfilled within a short time frame, ultimately improving customer satisfaction with the company.
As I mentioned, planning and controlling your production line has always been a big challenge for producers. That is also why they are always looking for practical solutions to overcome that complex problem so that they can streamline the production process as well as run their business successfully. The effective solution for them is ERP Software. Yes, it is. It’s a solution that can help you stay ahead in today’s competitive trading and distribution industry.
How does ERP Software Help Manufacturers with Production Planning and Control?
With ERP, you can:
- Create optimised schedules that balance production efficiency and delivery performance
- Maximise throughput on bottleneck resources to increase revenue
- Synchronise supply with demand to reduce inventories
- Provide company-wide visibility to resource capacity
- Enable scenario data-driven decision-making
The use of ERP software will increase the production efficiency of your manufacturing processes by utilising the operational data you already have. ERP is a step in the right direction of efficiency and lean manufacturing production enhancement.
In conclusion, production planning and control is a vital component of the production process within the trading and distribution industry. It enables you to optimise your production line and increase your business efficiency. Ultimately, investing in an ERP system with a production planning and control module can bring significant benefits to your organisation, including cost savings, improved efficiency, and better customer satisfaction.
With more than 30 years of experience in the manufacturing sector, Synergix Technologies is a reliable partner that guarantees you won’t waste time looking through a lot of unsuitable options.
Eligible businesses that implement Synergix ERP software can get funding up to 50% of the qualifying cost since the vendor has been pre-approved by IMDA. Get in touch with us right now to take advantage of our complimentary demo!