{"id":582,"date":"2016-11-13T09:02:24","date_gmt":"2016-11-13T09:02:24","guid":{"rendered":"https:\/\/www.mrpeasy.com\/blog\/?p=582"},"modified":"2020-12-02T11:14:37","modified_gmt":"2020-12-02T11:14:37","slug":"production-planning","status":"publish","type":"post","link":"https:\/\/www.mrpeasy.com\/blog\/production-planning\/","title":{"rendered":"Practical Production Planning"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img loading=\"lazy\" decoding=\"async\" width=\"499\" height=\"270\" src=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2016\/11\/balance-inventory.jpg\" alt=\"production planning\" class=\"wp-image-585\" srcset=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2016\/11\/balance-inventory.jpg 499w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2016\/11\/balance-inventory-300x162.jpg 300w\" sizes=\"auto, (max-width: 499px) 100vw, 499px\" \/><\/figure><\/div>\n\n\n\n<p>In one of our previous posts, we have already talked about what kind of information goes into <a rel=\"noreferrer noopener\" aria-label=\"production planning (opens in a new tab)\" href=\"https:\/\/www.mrpeasy.com\/production-planning\/\" target=\"_blank\">production planning<\/a> (you can find it here: <a rel=\"noreferrer noopener\" aria-label=\"Manufacturing Production Planning \u2014 what is it? (opens in a new tab)\" href=\"https:\/\/www.mrpeasy.com\/blog\/manufacturing-production-planning\/\" target=\"_blank\">Manufacturing Production Planning \u2014 what is it?<\/a>). Today we are going to dive into the practical side of it, how to put operations into the schedule in different situations.<\/p>\n\n\n\n<!--more-->\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #343333;color:#343333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #343333;color:#343333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.mrpeasy.com\/blog\/production-planning\/#Some_assumptions\" >Some assumptions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.mrpeasy.com\/blog\/production-planning\/#Single-level_production_planning\" >Single-level production planning<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.mrpeasy.com\/blog\/production-planning\/#Multi-level_production_planning\" >Multi-level production planning<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.mrpeasy.com\/blog\/production-planning\/#Scenario_1\" >Scenario 1.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.mrpeasy.com\/blog\/production-planning\/#Scenario_2\" >Scenario 2.<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.mrpeasy.com\/blog\/production-planning\/#Some_final_notes\" >Some final notes<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Some_assumptions\"><\/span>Some assumptions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>The <a href=\"https:\/\/www.mrpeasy.com\/production-planning-software\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">production planning software<\/a> used can plan production according to raw material or sub-assembly lead times even if these have not been purchased, or produced, or even planned yet.<\/li><li>The software helps planning the production of sub-assemblies (or half-products) in a multi-level product.<\/li><li>The software helps plan purchases.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Single-level_production_planning\"><\/span>Single-level production planning<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This means that you are planning the production where the product is directly put together from raw materials, there are no sub-assemblies or half-products needed in the making of the product. Parts go in from one end, and a product comes out from the other.<\/p>\n\n\n\n<p>This is a simpler scenario for production planning, the task is straightforward:<\/p>\n\n\n\n<p><em>See by when you can have all materials in stock; list the operations and needed time on different machines, and find suitable time-slots&nbsp;for the job and voil\u00e0. You\u2019re done.<\/em><\/p>\n\n\n\n<p>This is exactly what <a href=\"https:\/\/www.mrpeasy.com\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">MRPeasy<\/a> does in under a second:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Using the BOM it checks the stock levels and lead times for all materials required.<\/li><li>Using the routing and the production calendar, it finds suitable times for all operations required.<\/li><li>Sums up the material requirements, and helps you create purchase orders.<\/li><\/ul>\n\n\n\n<p>Thus, what you have to do the job planned:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Create a manufacturing order.<\/li><li>Plan purchases, if needed.<\/li><\/ul>\n\n\n\n<p>There could also be some limits, such as a time from which the job can start the earliest or a time when it has to be finished. Thus, forward planning from the first available time or backward planning to finish just in time for delivery can be utilized. See more on this here: <a rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\" href=\"https:\/\/www.mrpeasy.com\/blog\/backward-scheduling\/\" target=\"_blank\">Production planning: forward or backward scheduling?<\/a><\/p>\n\n\n\n<p>Now, let\u2019s move forward to something more complex.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Multi-level_production_planning\"><\/span>Multi-level production planning<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You have multi-level bills of materials and thus multi-level manufacturing. The final product is put together of different sub-assemblies or half-products which have their own bills of materials and routings.<\/p>\n\n\n\n<p>These half-products could be made to stock independent of the current demand for the end products. Or these half-products could be made only when there is a demand for the end products. There are different ways how to approach scheduling, depending on the specific scenario:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Scenario_1\"><\/span>Scenario 1. <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Only build sub-assemblies when these are needed for the end product. There is no standing stock of sub-assemblies at any given time. <\/strong><\/p>\n\n\n\n<p>Solution 1A. Top-down scheduling<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Create a manufacturing order for the end-product.<\/li><li>Create manufacturing orders for sub-assemblies.<\/li><li>Plan material purchases, if needed.<\/li><\/ul>\n\n\n\n<p>Each sub-assembly has a separate manufacturing order, thus the production of the end product is broken into smaller orders, which can be easier to handle individually.<\/p>\n\n\n\n<p>Solution 1B. Top-down scheduling<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Create a manufacturing order for the end-product. Have it include all the production operations and materials for the sub-assemblies. (It\u2019s a multi-level manufacturing order.)<\/li><li>Plan material purchases, if needed.<\/li><\/ul>\n\n\n\n<p>In scenario 1A there were many manufacturing orders for different items associated with one end product. Now, there is only one order, which makes it easier to see the general progress and grasp the whole production calendar, which consists of bigger chunks.<\/p>\n\n\n\n<p>This solution has effectively reduced the production planning complexity to single-level production planning.<\/p>\n\n\n\n<p>It might make sense to consider merging the multi-level BOMs and routings into one single level, thus reducing the difficulties of stock and document management. You wouldn\u2019t have the sub-assemblies as SKUs, but since these items are only built on a need-to-have basis, it might be simpler if you cannot see these individually tracked any longer in the MRP system.<\/p>\n\n\n\n<p>Solution 1C. Bottom-up scheduling<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Create a manufacturing order for the sub-assemblies.<\/li><li>Create a manufacturing order for the end product.<\/li><li>Plan material purchases, if needed.<\/li><\/ul>\n\n\n\n<p>With bottom-up scheduling, the software does not know how many end products, if at all, would be manufactured, thus it cannot help suggesting the production quantities of higher-level items. Thus, in this scenario, this is not an effective solution.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Scenario_2\"><\/span>Scenario 2. <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Build sub-assemblies when these are needed for the end product, or make to stock so these could be used in production right when needed. <\/strong><\/p>\n\n\n\n<p>Solution 2A. Top-down scheduling<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Create a manufacturing order for the end-product.<\/li><li>Create manufacturing orders for sub-assemblies.<\/li><li>Plan material purchases, if needed.<\/li><\/ul>\n\n\n\n<p>Solution 2B. Bottom-up scheduling<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Create a manufacturing order for the sub-assemblies.<\/li><li>Create a manufacturing order for the end product.<\/li><li>Plan material purchases, if needed.<\/li><\/ul>\n\n\n\n<p>Both of these solutions (and also solution 1A) give the flexibility to overproduce some parts and store these in stock. Each sub-assembly has a separate manufacturing order, thus the production of the end product is broken into smaller orders, which can be easier to comprehend.<\/p>\n\n\n\n<p>With top-down scheduling, the software can help calculate the material requirements when you move deeper, and it plans top-level orders so that the lower-level items have time to be produced (even if these have not been planned yet).<\/p>\n\n\n\n<p>With bottom-up planning, the software does not know how many end products, if at all, would be manufactured, thus it cannot help suggesting the production quantities of higher-level items. But, this is the way to go, if you make to stock the sub-assemblies &#8211; once orders are placed for the end products, the sub-assemblies are just pulled from inventory.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Some_final_notes\"><\/span>Some final notes<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>These scenarios are very general, but every situation always comes down to one of these approaches. It is always up to the person to understand the business, the product, and to choose the best approach for the situation being.<\/p>\n\n\n\n<p>It\u2019s important to note that these solutions are possible only when the assumptions presented at the beginning of the post are filled &#8211; you are using a modern and comprehensive MRP solution. MRPeasy is designed for this, and it will help you with planning in any way.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In one of our previous posts, we have already talked about what kind of information goes into production planning (you can find it here: Manufacturing Production Planning \u2014 what is it?). Today we are going to dive into the practical side of it, how to put operations into the schedule in different situations.<\/p>\n","protected":false},"author":1,"featured_media":586,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[94],"tags":[4,18],"class_list":["post-582","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tips","tag-manufacturing-software","tag-production-planning"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Practical Production Planning - Blog for Manufacturers and Distributors<\/title>\n<meta name=\"description\" content=\"Let&#039;s dig into the practical side of production planning. How does scheduling work in different situations and how to plan effectively.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.mrpeasy.com\/blog\/production-planning\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Practical Production Planning - Blog for Manufacturers and Distributors\" \/>\n<meta property=\"og:description\" content=\"Let&#039;s dig into the practical side of production planning. How does scheduling work in different situations and how to plan effectively.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.mrpeasy.com\/blog\/production-planning\/\" \/>\n<meta property=\"og:site_name\" content=\"Blog for Manufacturers and Distributors\" \/>\n<meta property=\"article:published_time\" content=\"2016-11-13T09:02:24+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-12-02T11:14:37+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2016\/11\/process-optimisation.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"444\" \/>\n\t<meta property=\"og:image:height\" content=\"250\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"MRPeasy Team\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"MRPeasy Team\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.mrpeasy.com\/blog\/production-planning\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.mrpeasy.com\/blog\/production-planning\/\"},\"author\":{\"name\":\"MRPeasy Team\",\"@id\":\"https:\/\/www.mrpeasy.com\/blog\/#\/schema\/person\/d8f81e364d9eb5f4cfd957434932be37\"},\"headline\":\"Practical Production Planning\",\"datePublished\":\"2016-11-13T09:02:24+00:00\",\"dateModified\":\"2020-12-02T11:14:37+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.mrpeasy.com\/blog\/production-planning\/\"},\"wordCount\":996,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.mrpeasy.com\/blog\/production-planning\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2016\/11\/process-optimisation.jpg\",\"keywords\":[\"manufacturing software\",\"production planning\"],\"articleSection\":[\"Manufacturing Tips\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.mrpeasy.com\/blog\/production-planning\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.mrpeasy.com\/blog\/production-planning\/\",\"url\":\"https:\/\/www.mrpeasy.com\/blog\/production-planning\/\",\"name\":\"Practical Production Planning - Blog for Manufacturers and Distributors\",\"isPartOf\":{\"@id\":\"https:\/\/www.mrpeasy.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.mrpeasy.com\/blog\/production-planning\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.mrpeasy.com\/blog\/production-planning\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2016\/11\/process-optimisation.jpg\",\"datePublished\":\"2016-11-13T09:02:24+00:00\",\"dateModified\":\"2020-12-02T11:14:37+00:00\",\"author\":{\"@id\":\"https:\/\/www.mrpeasy.com\/blog\/#\/schema\/person\/d8f81e364d9eb5f4cfd957434932be37\"},\"description\":\"Let's dig into the practical side of production planning. 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