How to make a production plan in a factory

The production capacity is the measurement of manufacturing production during a given period of time. Production capacity planning will focus on capacity utilization, measuring how much of our available capacity we are actually using. The calculation and the use of planning capacity is very important, because it allows us to take measures today to resolve conflicts in the future. In this way, operations can keep costs low while taking care of the customer.

You will need to:
  • Production programs
  • Manufacturing routers
  • Calculator
Steps to follow:


Start by calculating the available capacity. To calculate the available production capacity per shift of 8 hours use the following formula. standard production rate per hour x rate of return x rate of efficiency x 8 (hours per shift) Each of these values ​​can be found in the manufacturing router.


Calculate the necessary production capacity. While the available production capacity is fixed in how much they are capable of producing, the required production capacity, often called "load", refers to the number of hours we really need. To calculate our load it is necessary to have information about open schedules and scheduled times. Open schedules are the schemes that have been written and released to production. Open schedules can also be named, such as company schedules. The programmed ones refer to future schedules, recommended by the planning system that have not yet been put into production. When combined with the opening hours, we have a vision of our total production needs in production units. To convert the needs of production units to hours, use the following formula: (units of planned schedule + open hours units) / (standard production rate x performance x efficiency) The following is an example of calculating the capacity load of production. planned time = 5000 units, in the week of April 18 Open time = 2500 units, in the week starting on April 18 Standard Production Speed ​​= 300 units per hour Performance = 95% Efficiency = 95% Load = (5, 000 units + 2, 500 units) / (300 units / hr x 0.95 x 0.95) = 27.7 required hours


Calculate the utilization of production. Continuing with the example calculated above: assuming that we have 40 production hours available (8 hours per day x 5 days) our production utilization would be calculated as follows: Utilization = load (in hours) / Schedule Available = 27.7 hours / 40 hours = 69% utilization This utilization rate of 69% indicates that we are using slightly more than two thirds of our available capacity. If you change the scenario to show that you have open schedules and scheduled hours in a total of 12, 000 units in the same period, the necessary hours goes up to 44.3 and your usage increases to 111%.


The final step of the process is the ability to resolve conflicts. Now that we have calculated the necessary capacity and utilization, you can begin to take the necessary steps to solve the problems. In the first scenario in which the utilization of 69% was planned, it would have a couple of available options.


One option would be to reduce the number of hours worked to meet our needs (27.7 hours). This basically means that the manufacturing would send the home to any employee for hours after the schedules were finished. This would happen somewhere around noon on Thursday. This option maintains a constant inventory, but will probably have a negative impact on operating costs and a negative impact for employees whose salary will be reduced.


Another option would be to bring schedules for future weeks to fill the work week. This can be a good option when there are future weeks, when the utilization exceeds 100%. This approach is called load level, or smoothing production, because it keeps production at a steady pace, even when the needs go up and down.


In the scenario where utilization is measured in 111% of options to resolve the conflict are: the programming of overtime, carrying out some programs the following week at a load level, or operations could lead to improvements in performance and efficiency to compensate for the capacity deficit.


Regardless of which solution is developed, the planning of production capacity allows the organization to anticipate programming conflicts and adopt measures to resolve the conflict before it can adversely affect the company, its employees or customers.

  • - Capacity planning should be done at regular intervals (once a week or once a month) to ensure that any future conflict is identified and resolved before it becomes a problem.
  • - A similar approach is used to plan capacity in a service industry. Calculate the available and necessary capacities to generate the load, and then work through appropriate personnel solutions.
  • - Manufacturing Routers are usually maintained by engineering, operations, or accounting. To get help in extracting information and understanding the router, identify who owns the information and work through that person.
  • - It is possible that manufacturing routers are difficult to obtain and difficult to understand. If so, do not be afraid to ask questions until you understand the data you are working with.