Why is production planning so important? Its simple; "Its where the money is!

" Scrap, rework, overtime and poor quality are all nonvalue-added costs that increased as a function of the famous "Hockey Stick Syndrome". That is, as we delay our production schedule completions toward the end of the month (or worse, to the end of the financial quarter), there is a tremendous pressure put on Manufacturing that produces shop floor chaos that generates significant non-value-added cost. We usually end up making the production plan and financial forecast because the "Knights in shining armor" come through with a last minute, heroic performance. But, at what cost? Some companies actually give up 10 to 20% of their potential profit margins because they have developed and fostered a manufacturing team that perpetuates the "Hockey Stick Syndrome". Turnaround requires the tenuous implementation of seven production planning solutions. Companies that continue to live with the endof-the-quarter "push" will never achieve their full growth and profit potentials. How do you smooth schedules and achieve linear production? The challenge is in how to keep daily pressure on the critical path of schedule achievement. We need to have the visibility of all critical tasks and milestones from day one of the quarter and create team awareness and commitment to their timely achievement. Our manufacturing team must become sensitive and proactive in the execution of early production planning details and they must learn to apply their creativity and energy in a linear style. To be sure, up front planning and execution can yield amazing manufacturing results and lead to profitability beyond expectations.

It forecasts the problems, which may arise in the production process. It tries to remove these problems. It also tries to remove the causes of wastage. Production planning is an activity that is performed before the actual production process takes place. Objective: Providing men, machines, materials etc. of right quality, quantity and also providing them at the right time forms a very important factor. Production plan is crucial to the success of any producing unit; it is an activity which is continues in nature and required to be revised time to time as per the requirements. Production planning is done with the objective of coordination of materials with suppliers, efficient utilization of people and machines, efficient flow of materials, and communication with customers. production planning and control practices has impact on the efficient utilization of the resources, waste reduction, reduce waiting time and processing, thus contributing to the profitability of the industry. New Coke Coca Cola By the early 80s, Coca-Cola was losing ground to Pepsi-Cola. Americans seemed to prefer the sweeter flavor of Pepsi. Coke decided it was time for a taste makeover. In April 1985, New Coke hit the shelves. Its taste was said to be smoother, rounder yet bolder than the original drink. And with the new release, the company halted production of its

original formula. This was the companys biggest mistake. People were outraged they couldnt get their hands on original Coke, and started boycotting the new product. Coke had underestimated the power of its iconic brand, and Americas deep-rooted attachment to it. Months later, they brought back the original formula. New Coke stayed on the shelves until the early 90s. But its only success was in teaching Coca-Cola a valuable lesson in branding. In 1957, Ford debuted the Edsel in what may have been the most elaborate product launch in history. September 4 wasnt just any day: it was E Day, as the new brand was introduced to America. That was followed by The Edsel Show on October 13 and an advertising campaign to sell the country on the charms of car whose name evoked a weasel. Customers, however, werent buying it and Ford ended production of the Edsel in 1960, having lost $350 million on the car. Fords extensive marketing campaign not only didnt save the car, it may have been what killed the Edsel. In the run up to its unveiling, Ford put out rumors that the Edsel would be a revolutionary car that would change the automotive landscape. When the curtain was finally pulled back, though, people saw that it was just another Ford with a different body. Some have speculated that even that body was a hindrance, with the cars grill having a certain anatomical resonance. The Edsel also suffered from larger economic forces. Similar to today, a recession hit and

customers wanted smaller, less expensive and more efficient cars.