Theme: Production 2 1. Introduction 2. Main part 3. Information about computer networks 4. Conclusion
A production planning system is essential to ensure that a company's processes, machinery, equipment, labour skills and material are organized efficiently for better profitability. There are many factors that need to be considered in the planning system. For example, a firm may require a large number of different components. AIso demand can vary daily in this ever-changing world.
New sales orders corne in. Some get cancelled; there may be breakdowns in the workshop; backlogs build up; there may be late or early delivery from suppliers. It is difficult to keeptrack of all these changes manually. To handle these situations, many companies keep safety stock. However, if a company has an effective production planning system there is no need to keephigh safety stock. The money blocked in the excessive safety stock can be released. At the same time, opportunity costs due to stock-outs can be minimized.
All areas of management require careful planningand organizing.Planning and organizing production is essential for efficient operations.
All areas of management require careful planningand organizing.Planning and organizing production is essential for efficient operations.
There are two principal aims of the Market Needs Analysis Model below:
To identify market needs for your product
To analyse the mar ket potential for new pro duets or services
Market needs
Product performance specifications
Product design
Production system technology
Production cost model
Production system design
Investment decision methods
Production system specifications