Most of the time, huge or international manufacturing companies prepare production plans for the annually. This means they only prepare a production plan for the next entire year and the new plan will be implemented after 12 months or 48 weeks. This makes it important for the company to have the exact production strategy and planning that they need to fulfill the requirements of the market and the satisfaction of customers.
Here are the principles to create a Yearly Production Plan:
- Material ordering:
When a company is defining a production plan for the next entire year, the most important element is the material or raw resources without which, the process can’t continue. The company must order the right and exact amount of raw material to store enough inventory for the next whole year eliminating the chance of taking care of more than enough or extra inventory which would cost more to the company. - Equipment procurement:
You know that it is not possible to manufacture the products without essential equipment and necessary machinery. This is why while planning the production of a company, it is also very important to define what kind of equipment is necessary and if the company owns it or needs to buy or rent it for production purposes. This way company also allocates the resources to buy or rent the equipment and it is also possible to have standby equipment ready all the time so that there is no delay in the production process. - Defining the hurdles and future issues:
We have talked about the material and necessary equipment but there is another thing that is also very important to discuss and that is defining the problems and hurdles that the company with encounter in the future. The company may have prepared a flawless production plan but there is no way to forecast the exact future situations and that’s why a company must enlist all the problems and issues that could arise in the future and plan for them in time. Also, it is very important to understand that the solution is to get passed the problems not to shift them to another part of the production line. - Human resource training and acquisition:
Now remains the training of human resources i.e. managers, supervisors, project in charge, directors, and most importantly manual labor. These are the people who will be responsible for conducting the process for the entire year once you have allocated the resources, equipment, and necessary materials. By training the manual labor, you allow them some room to improve their performance and you let them understand what you expect from them. Also, this training is crucial to enable them to get past the problems with the production process and avoid any kind of unusual situations.
Executing the production plan:
When all the above elements are fulfilled, there is only one thing remaining which is; executing the production planning. With this step, the actual production process starts and it’s time to sit back and see if the strategies and planning are working if there is a change required.
Here is a preview of a Free Printable Yearly Production Plan Template created using MS Word,
Here is the download link for this Free Yearly Production Plan Template,