Production planning starts with customer demand that needs to be met. Hence, Production plans need to be tightly integrated with the demand planning process. For production planning, one typically needs to determine the variable production costs, including setup related costs, inventory holding costs and any relevant resource acquisition costs.

The objective of production planning is to maintain the flow. It covers all aspects of operations, from workflow activities to product delivery. Production of each SKU is to be guided by a manufacturing strategy. Manufacturing strategy influences the production plan. This includes decisions on Production and inventory quantities. Production planning is done on a rolling periodic basis- typically 3 months. Short term plans (Typically < 4 weeks) are frozen, 5-8 week plans are in slush mode i.e. some change are allowed while >8 week plans are in water mode, i.e. more changes can be accommodated.

SCM Connect uses both heuristics and MILP based optimization models to arrive at the most optimal production plan for the demand to be met. We help organizations design their Master Production schedules which integrate with Material Requirement Planning (MRP) and Distribution Requirement Planning (DRP). We also design Aggregate Planning for our customers which determines Production, Inventory, Workforce, Outsourcing, Capacity levels etc over the planning horizon of 3-18 months in order to maximize organization’s profit.

Production scheduling captures a number of variables from different elements of the organization such as customer demand, capacity, inventory levels, material flows etc. It describes which parts the organization will manufacture and at what frequency.

SCM Connect can work out the optimum plan and schedule to optimize the production costs. Also, Increase your level of control over production by improvement in lead times, inventory levels and customer service through optimal plans.

Proper use of scheduling methods results in enormous benefits for a manufacturing business. Efficient planning and disciplined schedule execution on the shop floor can have impacts of up to 25% or higher on output and on-time delivery.