Production Planning - The Supreme Purpose !
In any production organization as well as those in the sphere of services, there are products that are made easier or harder or some with high loss rates (scrap and remedies). In general, it is considered that if we leave Production Planning (PP) to Production, we will only plan products that are easy to make with a small scrap, with a generally high productivity, but to the detriment of those for whom we have demand. On the other hand, PP switched to Logistics can decrease productivity but increase the efficiency of stocks (reductions of stocks in raw materials, optimal stocks of semi-finished and finished products).
The decision of the PP allocation has another component ... a bit more political: the vision and orientation of the superior management of the factory on the business. Higher management can have an orientation towards product and production, and then the basic words, which you hear most often, are "productivity", "waste", "efficiency in production", possibly "OEE" and then PP will be allocated production; or the top management can have a customer orientation and then the basic words will be "customer order", "stocks", "service level", "invoiced products" and then PP will be allocated to Logistics.
There are also companies that have solved the operational conflict between Production and Logistics very simply: PP as a self-employed department. And here we have a trap: PP is the function that processes (all) the information from a factory, its purpose being to generate a planning as close to a pre-established strategy ... but this strategy is defined by another operational function . The risk in this situation is that PP will "do (only) the job" without taking into account the needs of the factory and customers.
How are things arranged in your factories?
Who controls PP?
What business orientation do you have?
Does it in any way influence you that PP was "won" by Production or Logistics?
The decision of the PP allocation has another component ... a bit more political: the vision and orientation of the superior management of the factory on the business. Higher management can have an orientation towards product and production, and then the basic words, which you hear most often, are "productivity", "waste", "efficiency in production", possibly "OEE" and then PP will be allocated production; or the top management can have a customer orientation and then the basic words will be "customer order", "stocks", "service level", "invoiced products" and then PP will be allocated to Logistics.
There are also companies that have solved the operational conflict between Production and Logistics very simply: PP as a self-employed department. And here we have a trap: PP is the function that processes (all) the information from a factory, its purpose being to generate a planning as close to a pre-established strategy ... but this strategy is defined by another operational function . The risk in this situation is that PP will "do (only) the job" without taking into account the needs of the factory and customers.
How are things arranged in your factories?
Who controls PP?
What business orientation do you have?
Does it in any way influence you that PP was "won" by Production or Logistics?
