Basic Stages & Objectives of Planning in Production and Operations Management

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There are two types of basic stage planning:

Strategic planning: identifies the purpose of business, products, design of processes, and manufacturing plant design. In other words, strategic planning involves analyzing all the available organizational and environmental conditions, and planning ahead using these resources. Once all the information is gathered, a critical analysis is carried out followed by detailed planning. Strategic planning helps create a business infrastructure from available products, technology, capacity, and output of the manufacturing plant.

Strategic Planning for Operations:

Strategic Planning for Operations

Detailed planning:

Detailed planning is carried out during operations planning. Detailed planning involves business forecasting, matching supply with demand, analyzing production capacity and ensuring that it runs at optimal level. Detailed planning analyzes the available natural resources or raw materials, then schedules and sequences activities which will result in production of the final product.

Objectives of Planning:

Good planning gives rise to:

a. Product identification: product is identified from other similar products.

b. Process and technology selection: better production.

c. Manufacturing plant design: goods and services produced here.

d. Plant capacity.

e. Forecasting of demand and supply.

Additional Readings:

1. Objectives and Elements of Production and Operations Management
2. Basic Stages and Objectives of Planning in Production and Operations Management
3. Relationship between Process of Planning and External Agencies
4. Selecting a Manufacturing Plant Site
5. Controlling, Total Quality Control, and Deming’s 14 Points
6. Quality and Cost Economics and ASQC Categories of Quality Cost
7. Example of Multiple Activity Chart and Work Measurement
8. Japanese vs American Production and Operations Management
9. Kaizen Framework and Kaizen vs McKinsey
10. Advantages of Automation
11. Concept of Appropriate Technology
12. ‘Just in Time’ Manufacturing
13. Preventive Maintenance
14. Total Quality Management and ISO-9000
15. Inventory Control

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