A production plan is referred to as a guide for a company's production and manufacturing, which ensures that all the items needed are sufficient and facilities are available for future production. It ensures that there is a sequence of activities that are carried out to achieve the target of the business. The business that is being focused here is that of selling sensory yoga mats by a sports and fitness company known as McGregory. These yoga mats are considered to be the first of a kind to be produced. The mats are capable of; detecting the amount of energy used, detecting the temperature of the person using it and also detecting the amount of pressure exerted on the mat while doing yoga.
Since this is a new product being introduced in the market, McGregory's Company has to put a number of factors into consideration, in order to achieve its production target. Due to a high demand for the mats, an adequate number of employees should be employed and given duties according to their line of production. (Scheer, 1984) This will enable the company to have an idea of the number of mats they will produce at a specific amount of time, in order to meet the demand of the client. For example, if it takes 30 mats to be produced in an hour, and the total production hours that the employees work is 15 hours each day, then in a day the company will estimate that the total number of mats produced will be 450.
Budget planning should also be considered will making a production plan. Budget limitations like the rise of emergencies must be put into consideration. In case of an emergency like that of a laborer getting an injury while on duty, should be put under the company's budget. Additional resources like getting additional employees in case the production rate becomes more due to high demand is also a factor to consider when making a production plan. (Bertrand & Rutten, 1999) The company may also need additional supplies like raw materials.
When making a production plan, it is important to consider the deadline and scheduling of the product according to the customer. For instance, the customers of the yoga mats may place an order and make an agreement with the company that they should be delivered within a week. The company should set goals and ensure that there is sufficient supply of everything in order to accomplish that. Usage occurs continually but production occurs periodically. If on a standard week the company produces 3000 yoga mats working with 100 workers, and the customer needs a supply of 6000 yoga mats, then the company should consider doubling the number of workers to meet the deadline. This also should be put into consideration if the inventory levels of the mats are high. Planned order receipts equal the net requirements. So, if the demand for the yoga mats increases in a specific month like November, the company needs to increase the number of workers to fit the demand levels.
In order to achieve the set goals and targets, McGregory Company needs to have an estimation of their products so that they can prepare adequately for their production to be successful. For an effective production plan, knowledge of future demand is key. The end results are always customer satisfaction. It is important to always plan ahead in a business for it to grow, especially if it a new business in the market like this one of selling sensory yoga mats.
Bertrand, J., & Rutten, M. (1999). Evaluation of Three Planning Procedures for the Use of Recipe Flexibility. European Journal of Operational Research., 79-94.
Scheer, A. W. (1984). Methods and Tools of Computer Integrated Manufacturing. Production Control and Information Systems, 134-167.
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