Home > Resources > Articles > Manufacturing Production Planning and Control: What, Why, and How?

Manufacturing Production Planning and Control: What, Why, and How?

MANUFACTURING PRODUCTION PLANNING
Production planning and control are critical components of any manufacturing organization. It helps organizations with the regular and timely delivery of their goods. Furthermore, it allows manufacturing businesses to increase their plant’s efficiency and reduce production costs.

Numerous software and tools for production scheduling and planning are available on the market, including Visual Planning, MaxScheduler, and MRPeasy, which assist manufacturing organizations in planning, scheduling, and controlling their production.

According to KBV Research, the manufacturing operations management software market is anticipated to reach $14.6 billion by 2025 globally, expanding at a market growth of 10.2 percent CAGR during the forecast period.
So, what exactly is production planning and control?

Production planning is an administrative process within a manufacturing business. It ensures that sufficient raw materials, personnel, and other necessary items are procured and prepared to produce finished products according to the specified schedule.

Scheduling, dispatch, inspection, quality control, inventory management, supply chain management, and equipment management require production planning. Production control makes sure that the production team meets the required production targets, maximizes resource utilization, manages quality, and saves money.

“Manufacturing is more than just putting parts together. It’s coming up with ideas, testing principles and perfecting the engineering, as well as final assembly.”

– James Dyson

In oversize factories, production planning and control are frequently managed by a production planning department, which comprises production controllers and a production control manager. More significant operations are commonly monitored and controlled from a central location, such as a control room, operations room, or operations control center.

Why Should You Consider Production Planning?

An efficient production process that meets the needs of both customers and the organization can only be achieved through careful planning in the early stages of production. In addition, it streamlines both customer-dependent and customer-independent processes, such as on-time delivery and production cycle time.

A well-designed production plan minimizes lead time, the period between placing an order and its completion and delivery. The definition of lead time varies slightly according to the company and the type of production planning required. For example, in supply chain management, lead time refers to the time required for parts to be shipped from a supplier.

Steps in Production Planning and Control


Routing

The first stage of production planning determines the path that raw materials will take from their source to the finished product. You will use this section to determine the equipment, resources, materials, and sequencing used.

Scheduling

It is necessary to determine when operations will occur during the second stage of production planning. In this case, the objectives may be to increase throughput, reduce lead time, or increase profits, among other things. Numerous strategies can be employed to create the most efficient schedule.

Dispatching

The third and final production control stage begins when the manufacturing process is initiated. When the scheduling plan is implemented, materials and work orders are released, and work is flowing down the production line, the production line is considered to be running smoothly.

Follow-Up

The fourth stage of manufacturing control ascertains whether the process has any bottlenecks or inefficiencies. You can use this stage to compare the predicted run hours and quantities with the actual values reported to see if any improvements can be made to the processes.

Production Planning Example

Though production planning is classified into several categories, including flow, mass production, process, job, and batch, we will look at a batch production planning example here.

Manufacturing products in batches is known as "batch production planning." This method allows for close monitoring at each stage of the process, and quick correction since an error discovered in one batch can be corrected in the next batch. However, batch manufacturing can lead to bottlenecks or delays if some equipment can handle more than others, so it's critical to consider capacity at every stage.

Example
Consider the following example of batch production planning:
Jackson's Baked Goods is in the process of developing a production plan for their new cinnamon bread. To begin with, the head baker determines the batch production time required by the recipe.

He then adjusts the bakery's weekly ingredient orders to include the necessary supplies and schedules the weekly cinnamon bread bake during staff downtime.

Finally, he creates a list of standards for the bakery staff to check at each production stage, allowing them to quickly identify any substandard materials or other batch errors without wasting processing time on subpar cinnamon bread.

Final Words

Running a smooth and problem-free manufacturing operation relies heavily on a precise production planner. Many large manufacturing companies already have a strong focus on streamlining their processes and making the most of every manufacturing operation, but small manufacturing companies still have work to do in this area. As a result, plan, schedule, and control a production that will enable you to run your business in order to meet its objectives.

FAQ


What is the difference between planning and scheduling in production?

Production planning and scheduling are remarkably similar. But, it is critical to note that planning determines what operations need to be done and scheduling determines when and who will do the operations.

What is a production plan?

A product or service's production planning is the process of creating a guide for the design and manufacture of a given product or service. Production planning aims to help organizations make their manufacturing processes as productive as possible.

Spotlight

International Society of Automation

The International Society of Automation (ISA) is a nonprofit professional association that sets the standard for those who apply engineering and technology to improve the management, safety, and cybersecurity of modern automation and control systems used across industry and critical infrastructure.

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The organization needed a user-centric digital transformation solution to optimize its data analytics, technology, and machine learning tools, but this proved difficult. Later, it embraced open-source technology and consolidated its 15 tools onto a user-friendly platform. In ten months, this helped produce 290,000 visits and 2,200,000 page views. Additionally, the company's service center is now managing 30% fewer incidents. 7. Adapt Company for a Change Digital transformation does not demand extensive technical expertise from management and employees; rather, it necessitates a shift in mindset. By embracing this new mindset and leveraging technology solutions to automate processes for both customers and employees, rapid growth can be achieved within the organization as well as in the external market. To facilitate this transformation, it is essential to identify areas that require change, enhance transparency, and foster a culture of collaboration within the organization. By taking these steps, an organization can effectively prepare for the changes brought about by digital transformation. Case Study: Honeywell The Fortune 100 manufacturer operates in industries such as aerospace and building technology. To improve product quality and make it easier to apply digital strategies, it cut its operations from eight markets to six. Early in its transformation journey, it established a digital transformation group in the company that led digital innovations like data-driven product offerings, IoT-connected devices, and advanced industrial process control. Honeywell Intelligent Wearables eliminated the need for expert site visits, empowered workers to continue learning, improved their performance, and effectively shared their knowledge with peers by connecting field workers with remote advice. In 2018, Honeywell's share price grew from $95 to $174, and revenue went from $40 billion to $43 billion. 8. Integrate Digital Transformation into Business Goals Establish a strong connection between the digital transformation journey and the company's goals. Define the specific achievements to accomplish through digitization efforts. By aligning digital transformation initiatives with business objectives, a company can enhance its effectiveness in completing tasks, retaining existing employees, attracting new talent, and successfully overhauling company culture. Case Study: Cummins Cummins, a manufacturer of diesel and alternative fuel engines and generators is an example of a company that has capitalized on the increased demand for environmentally friendly products. Microsoft cloud compliance opportunities boost data security and IP protection. Microsoft has been one of the world's foremost technology companies for decades. Satya Nadella shifted the company's revenue model away from desktops and accelerated the transition to cloud computing. Cummins now uses Microsoft 365 for information management and collaboration to create a new workplace culture. Cummins' 58000 employees work cross-functionally and globally to stay ahead. Cummins relies on Microsoft 365 for strict security, data management and delivery, and compliance. Final Thoughts Successful digital transformation in Industry 4.0 requires a strategic and holistic approach beyond technology adoption. It demands a cultural shift, stakeholder collaboration, and a clear vision of the desired outcomes. To achieve successful digital transformation in Industry 4.0, organizations must adopt best practices that encompass technological, cultural, and strategic dimensions. Data-driven decision-making, agility, continuous learning, and a customer-centric approach are key elements in this transformative journey. By prioritizing these practices, businesses can navigate the complexities of digital transformation, drive innovation, and stay competitive in the dynamic landscape of Industry 4.0.

Read More

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Article | February 11, 2020

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Article | February 11, 2020

Wuhan, the epicenter of the outbreak, is considered a crucial hub in the middle of China, a place of high importance for the production of automobiles, electronics, optics, and fiber optics. Wuhan and surrounding cities in the Hubei province are currently on a government-imposed quarantine at a scale the world has never seen before, some Chinese officials have referred to the situation as warlike.

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Making digitalization work for you requires an understanding of your manufacturing ecosystem. Standards - such as ISA-95 - only guide you on a journey to more deeply comprehend the workings of your unique process for manufacturing your products. A batch manufacturing ecosystem often includes campaign management. Campaign management is not mentioned in ISA-95, which only speaks generally of order processing.

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American Battery Solutions Signs Supply Agreement with NFI Group

American Battery Solutions | October 09, 2023

American Battery Solutions (ABS) has signed a multi-year contract with NFI Group Inc. to provide custom battery packs for New Flyer's battery-electric transit buses, providing clean power. ABS will manufacture the batteries at its plant in Springboro, OH, with the engineering and development center located in Lake Orion, MI. It will supply Li-Ion batteries for NFI's 35-, 40-, and 60-foot battery-electric transit buses. The production is set to begin in the third quarter of 2023, with deliveries starting in the first quarter of 2024. According to CALSTART's annual ‘Zeroing in on ZEBs’ report, the market for electric buses in North America has passed the ‘tipping point,’ with more than 5,480 zero-emission transit buses on the road by the end of 2022. NFI anticipates that 40% of its 2025 production will consist of zero-emission buses, and is spearheading the North American transition to zero-emission public transportation. Paul Soubry, President and CEO at NFI, stated that the demand for battery-electric buses was rising. NFI was at the forefront of driving the transition to zero-emission public transportation in North America. He mentioned that their partnership with ABS would grant NFI the necessary capacity, flexibility, and resilience required as they increased production at their facilities throughout North America. Soubry noted that ABS had made substantial investments in their pack assembly and battery technology, offering NFI cutting-edge solutions within the industry. He expressed anticipation for collaborating with ABS to advance battery technology within the public transportation sector. The scalable custom-designed pack solution is based on the ABS ProLiance Intelligent Battery SeriesTM architecture. It fits within NFI's existing battery enclosure design, providing an alternate supply source for NFI's battery-electric bus contracts and opening the door for potential technology enhancements. ABS has secured the cell supply through strategic alliances with world-class cell manufacturers. These partnerships have ratified long-term supply agreements that guarantee cell supply through the end of the decade, supporting ABS's NFI ramp and other customer programs. NFI's turnkey smart charging services have provided over 410 chargers to NFI's battery and fuel cell-electric buses and coaches, which have travelled over 120 million electric service kilometers. With electric vehicles in over 140 cities in six countries, NFI leads zero-emission mobility. About American Battery Solutions American Battery Solutions (ABS) specializes in designing and producing modular battery solutions, primarily serving the transportation, industrial, and commercial sectors across North America and Europe. The ABS team comprises renowned experts in battery systems, boasting extensive experience in advanced battery systems' design, development, and high-volume manufacturing. They have channeled their expertise into the transportation segments, focusing on module production, pack assembly, and seamless customer integration. Operating from a substantial 120,000 sq. ft. technical center in Michigan and 170,000 sq. ft. state-of-the-art battery manufacturing facility in Ohio, ABS has a robust presence.

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Manufacturing Technology

Rockwell Automation Invests in Momenta Fund for Sustainable Tech

Rockwell Automation | November 08, 2023

Rockwell Automation invests strategically in Momenta's Industry 5.0 Fund, focused on resilient, sustainable, and human-centric industrial operations. The Industry 5.0 Fund promotes a transition from shareholder to stakeholder value, emphasizing sustainability and empowering individuals with technology to make informed decisions. This partnership positions Rockwell Automation to gain early access to innovative technologies that have the potential to disrupt industrial markets and enhance sustainability while supporting startups at the forefront of digital transformation in energy, manufacturing, smart spaces, and supply chains. Rockwell Automation, a global leader in industrial automation and digital transformation, has made a strategic investment in Momenta's Industry 5.0 Fund. The Industry 5.0 Fund, with an initial capital of $100 million, supports startups dedicated to advancing resilient, sustainable, and human-centric industrial operations. Switzerland-based Momenta launched the fund in cooperation with the EU Commission to promote research and innovation in line with the Commission's Industry 5.0 initiative. The fund aims to transition industries to focus on stakeholder value over shareholder value, emphasizing sustainability and empowering people with information and technology for decision-making. Targeting entrepreneurs in Europe and North America who are at the early stages of development and are at the forefront of the digital revolution in energy, manufacturing, smart spaces, and supply chains, the Industry 5.0 Fund will provide them with venture capital funding and direct value creation. Rockwell Automation is an anchor investor in the fund, allowing the company early access to cutting-edge technologies that can disrupt industrial markets and enhance sustainability. The investment aligns with Rockwell's strategy for inorganic growth and provides valuable insights into next-generation technologies driving digital transformation. Cyril Perducat, Senior Vice President and Chief Technology Officer of Rockwell, expressed excitement about partnering with Momenta to support startups poised to disrupt the industry while expanding human potential. He emphasized the intrinsic benefits of adopting technology that benefits all stakeholders. Ken Forster, a founding partner at Momenta, expressed his appreciation for Rockwell Automation's investment in their Industry 5.0 fund. He acknowledged that Rockwell Automation played a defining role in industrial automation and digital transformation within North America. Under the leadership of an impressive team, they had also been extending their global influence. Ken noted that Momenta's primary focus for the past decade had been investing in companies that drive industrial impact. He further mentioned that they couldn't have found a better partner for the Industry 5.0 fund than Rockwell Automation.

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Manufacturing Technology

Stratasys’ Latest Printer Offers Applications with Improved Parameters

Stratasys | November 06, 2023

Stratasys introduces the F3300 3D printer, offering high speed, uptime, and quality for targeting manufacturing industries with high demands. The F3300 empowers manufacturers to accelerate product development and address global supply chain challenges, delivering a strong return on investment. The latest printer will be unveiled during a live event hosted by the company on November 7. Stratasys, a leader in additive manufacturing and polymer 3D printing solutions will showcase its latest F3300 Fused Deposition Modeling (FDM) 3D printer at the Formnext conference, held in Germany from November 7 to 10. This printer offers exceptional value to manufacturing customers with reduced labor, higher part quality and yield, as well as maximized uptime. The solutions provided by Stratasys provide customers a competitive edge at every stage of the product value chain. These solutions include smart and networked 3D printers, polymer materials, a software ecosystem, and components on demand. The most successful companies in the world go to Stratasys to improve health care, provide agility to manufacturing and supply chains, and alter product design. Key Advancements Faster Print Speeds: Increased gantry speeds, speedier extrusion rates, and autocalibration. Higher Part Quality and Yields: Up to 25% improvement in accuracy and repeatability with autocalibration. Maximized Uptime: Machine monitoring, extruder redundancy, and an operator-friendly interface design. Cost Savings: Offers 25-45% savings compared to other Stratasys FDM solutions. Rich Garrity, Stratasys' Chief Industrial Business Unit Officer, remarked that the next-generation AM system empowers customers to scale production and reduce the need to compromise between traditional and additive manufacturing solutions. He added that the conventional capacity limitations, rising global supply chain challenges, and application complexity are incredibly stressful for manufacturing, and F3300 will empower buyers to accelerate product development, allowing faster innovation and maximized ROI. F3300 printer expands the range of production capabilities and provides performance-oriented manufacturers with the most expansive variety of best-in-class FDM printers. The F3300 is the latest addition to the FDM family, which includes the F900, F770, F450mc, and the F123 series. F3300 complements Stratasys’ F900, known for its dependability, use of high-performance materials, and large capacity. Built for manufacturing by the inventors, the F3300 will be the most sophisticated industrial 3D printer in the market. Its advanced features and design will transform how additive manufacturing is used in demanding industries like automotive, government/military, aerospace and service bureaus. The F3300 is expected to be available for shipment from 2024. Stratasys will host a live event on November 7 at 5:30 p.m. CET to uncover the F3300.

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Procurement & Supply Chain

American Battery Solutions Signs Supply Agreement with NFI Group

American Battery Solutions | October 09, 2023

American Battery Solutions (ABS) has signed a multi-year contract with NFI Group Inc. to provide custom battery packs for New Flyer's battery-electric transit buses, providing clean power. ABS will manufacture the batteries at its plant in Springboro, OH, with the engineering and development center located in Lake Orion, MI. It will supply Li-Ion batteries for NFI's 35-, 40-, and 60-foot battery-electric transit buses. The production is set to begin in the third quarter of 2023, with deliveries starting in the first quarter of 2024. According to CALSTART's annual ‘Zeroing in on ZEBs’ report, the market for electric buses in North America has passed the ‘tipping point,’ with more than 5,480 zero-emission transit buses on the road by the end of 2022. NFI anticipates that 40% of its 2025 production will consist of zero-emission buses, and is spearheading the North American transition to zero-emission public transportation. Paul Soubry, President and CEO at NFI, stated that the demand for battery-electric buses was rising. NFI was at the forefront of driving the transition to zero-emission public transportation in North America. He mentioned that their partnership with ABS would grant NFI the necessary capacity, flexibility, and resilience required as they increased production at their facilities throughout North America. Soubry noted that ABS had made substantial investments in their pack assembly and battery technology, offering NFI cutting-edge solutions within the industry. He expressed anticipation for collaborating with ABS to advance battery technology within the public transportation sector. The scalable custom-designed pack solution is based on the ABS ProLiance Intelligent Battery SeriesTM architecture. It fits within NFI's existing battery enclosure design, providing an alternate supply source for NFI's battery-electric bus contracts and opening the door for potential technology enhancements. ABS has secured the cell supply through strategic alliances with world-class cell manufacturers. These partnerships have ratified long-term supply agreements that guarantee cell supply through the end of the decade, supporting ABS's NFI ramp and other customer programs. NFI's turnkey smart charging services have provided over 410 chargers to NFI's battery and fuel cell-electric buses and coaches, which have travelled over 120 million electric service kilometers. With electric vehicles in over 140 cities in six countries, NFI leads zero-emission mobility. About American Battery Solutions American Battery Solutions (ABS) specializes in designing and producing modular battery solutions, primarily serving the transportation, industrial, and commercial sectors across North America and Europe. The ABS team comprises renowned experts in battery systems, boasting extensive experience in advanced battery systems' design, development, and high-volume manufacturing. They have channeled their expertise into the transportation segments, focusing on module production, pack assembly, and seamless customer integration. Operating from a substantial 120,000 sq. ft. technical center in Michigan and 170,000 sq. ft. state-of-the-art battery manufacturing facility in Ohio, ABS has a robust presence.

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