Instructor: Ovais VOHRA

ovaisvohra@aydin.edu.tr

• Note 08
• 2021
• Production Plan

• Production System and Production Plan

• Economists describes production as creating benefit, engineers

describes it as, on a physical existence, making changes on it to
create value or turning raw material or half goods to a usable
product. For an entrepreneur economists description is more
correct.
• In the process of transformation of input to output, four
different types of value creating is made. Those are, shape,
place, time and ownership value. Shape value is transforming
real shapes of inputs into more beneficial shape for consumers.
This change of shape can be physical or chemical. Most of the
establishments creates this type of value. For example, metal
steel plates are transformed by molding and turns into cars
hood parts.
• Project type production
• Continuous production
• Discrete production 
• Job shop production 
• In ‘’continous production’’ machine and hardware in
establishment produces significant products in high amounted
levels. According to products high and continous demand,
production amount should be high. This products production is
mostly automatized and as can be seen from its name
sometimes it goes on 24 hour a day. Production starts with
collecting required inputs together and without stopping gets
into different processes and in the end of production it ends up
with the new product.
• In project type production, an unique product is completed in
some time. After production of it, same product is never
produced. In this products production, products properties are
determined by customer and since its an unique product, it
resembles to production according to order. For this type of
production, project management methods are used. A highways
production, cargo planes production, skyscrapers production
can be given as an example to project type production.
• In production plan, it should be explained that now and in future how
the product will be produced, current facilities and needed sources.
Also, below factors should be considered too.
• Production systems explanation in phases.
• - Current facilities (fields and factories).
• - Production capacity now and in future; capacities possibility of
getting larger.
• - Productivity and wastage ratio; factors affecting result and how to
control and follow them.
• - Determining machine needs in order to reach targeted production
and sales level.
• -
• Shift numbers evaluation and employee amounts productivity.
• - Per employee production statistics and employees
productivity.
• - Needed work powers existence in geographic region where
investment will be made and additional education activity
needs.
• - Raw material supplies secureness; creating alternative
sources and determining raw material needs supply whether
from significant establishments or in small amounts from
different establishments.
• Quality control methods.
• - Costs of different production volumes.
• - In case of producing a new product, from prototype to real
production should be explained good and fields which
problems may occur should be determined and try to prevent
problems
• Productıon Planning

• production systems aim production involves inputs coming

together and with relations and interacts with each other having a
transformation and going out as an output. Transformation in
production systems can be physical and chemical, also in
transportation change of place or in communication as
information.

• With planning activity in production, benefits for establishments

are maximized and inconveniences are minimized.
• Road to follow while making production planning can be
summarized as:
• - Determining production plan periods extent.
• - Determining stock level.
• - Making demand estimations.
• - Determining certain orders.
• - Determining beginning period and end of period stock levels.
• - Controlling production capacity.
• - Controlling sources to be used in production.
• - Finding out the required production amount in period.
• While preparing production plan various strategies can be used
• First of it is following demand strategy. Another name of this
strategy is flexible production strategy. In this strategy its
allowed to employ or discharge, overtime working and contract
manufacturing. In establishment, equipment are tried to kept in
low level but when there is high demand, additional
equipment, place and work power might be needed. In low
demand periods not used or less used equipments may become
costly for establishment. In order to prevent that, establishment
may use work power amount by overtime working, or employ
temporary or part time workers..
• This strategies most important advantage is low stock level and
most important disadvantage is productions irregularity. Also,
employees lack of work assurance creates big problems on
their motivation and moral

• As second strategy, stable production rate can be given. In this

strategy during planning time production rate is stable and in
order to meet the demands stocks are used. Differencies
between demand and production is trying to be solved by
stocks. Related to production rates stableness, work power
level stays stable too.
• The last strategy is mix strategy. In this strategy, in order to
balance disadvantages of following demand and stable
production, middle way is being followed. In other words, with
this strategy, following demands unsteadiness of production and
employee amounts changes and stable productions stock
disadvantages are balanced. For example, while following,
• demand follow strategy, keeping a significant amount of stock
production level changes can be balanced. By that, employing
or discharging large amount of employees do not happen. Mix
strategies provides flexibility for managers in unsteady demand
levels and not using a pure strategy may cause usage of wrong
approaches and confuse employees.
• Production planning activities are divided into two main and
seven sub groups

• 1.Pre-planning: Production development and designing,

sales estimations, workplace orders, mean policies and
production pre-planning are made in this phase.
• 2.Planning: In this phase planning sources, preparing
business and employing activities are taken into account.
These are explained below:
• Materials: By analyzing products to be produced all properties are
revealed and informations about materials are given. This materials
can be; raw materials, parts, semi-produced products. This materials
ready for productions all properties, amounts, delivery period,
purchase and controls are important. Because in order to keep
production going, this materials should be ready for production.
• o Methods: Possible methods for establishment should be evaluated
and according to determined conditions and opportunuties the most
appropriate for establishment should be picked. Work made like
above mentioned includes production processes review and
evaluation, application methods properties and detailed development.
• Capacity Planning
• Capacity planning, is the period determining required people,
machine and all physical sources. Capacity shows a systems
best work and capacity planning, scales capacity and sets levels
of production needs in harmony. Capacity should be defined as
mutual unit of production group in establishment (kg-meter-
worker/hour). Some of the factors affecting capacity are under
establishment managements control and some are out of
control. Factors under control of establishment are terrain, work
power, machines, hardwares, daily shift amount, periodical
maintenance amount and time can be given as example.
• Factors which do not have a lot of affect on establishment are
employee continiuty, work power performance, machine
malfunctions and wastage can be given.
• Capacity planning is created by three phases:
• - Source need planning
• - Rough cutting capacity planning
• - Capacity need planning
• On capacity planning, source need plannings aim is
determining levels of main sources meeting production plan.
This plan, determines source need by benefiting current work
power and capacity condition. Work power and capacity
conditions shows capacities of required machine, equipment
and worker-hour needed for producting a unit. Source need
planning is made with wild guesses in general levels.
• Source needs are compared with source capacities and by
matching them process continuous. This process generally goes
on step by step and as a result it may create changes in
production plan or capacities.
• Choosing Establishing Place
• Establishing place is the place where establishment will be
created on and whole its working lifeproduction activities will
be made on that place. While determining establishment
strategy, establishment already decided what kind of product or
service they will produce and in which market they will be
competing. Physical factors affects facilities settlement area
and design and establishments establishing place have
important affects on establishment and capital costs.
• Establishments are generally in three qualification according to
establishing place:
• - Raw material based establishments: Since in production this
establishments use large amount of raw materials,
establishment should be established on or close to raw material
sources. Iron/steel, coal or aluminium establishments can be
given as an example for this type of establishments.

• - Market based establishments: Establishing facility close to

market provides economy in transportation expenses. Pasta,
furniture, detergent facilities can be given as an example for
this type of establishments.
• - Establishments with different establishing places: For
some establishments being close to market or raw material
do not mean anything. For example a fabric facility can be
close to cotton production fields but it can be established in
different place too.
• In decision of facility establishing place, this factors should be
considered:
• 1. Choosing a general region to establish facility: This
region can be a country or a countries significant region.

• 2. Choosing significant place in region: It can be a

significant city or shoreline in region.

• 3. Choosing the field in significant place for establishing

facility.
• What are discrete manufacturing examples?
• Almost every item sold in stores is an example of discrete
manufacturing. What is meant by discrete manufacturing is that the
object being created is a distinct unit. You can divide non-distinct
products, like oil, into any size you want. You cannot divide a teapot
into two halves because it is a distinct unit.
• Examples of discrete manufacturing could include:
● vehicles
● aircraft
● smartphones
● computers
● cookware
● clothing
• It could also include component parts such as:
● nuts
● bolts
● brackets.
These component parts can be individually countable as units,
or identifiable as numbers. Usually once produced, items
cannot be distilled back into original components.
• Job shops are typically small manufacturing systems that
handle job production, that is, custom/bespoke or semi-
custom/bespoke manufacturing processes such as small to
medium-size customer orders or batch jobs. Job
shops typically move on to different jobs (possibly with
different customers) when each job is completed.
• Thanks