Production Planning Basics for Small Manufacturers

What is Production Planning?

Production planning is the process of deciding what to produce, how much to produce, and when to produce. It involves coordinating raw materials, machines, labor, and time to meet customer orders efficiently.

Good production planning helps you:

• Deliver orders on time
• Reduce idle machine time
• Optimize material usage
• Avoid overproduction or underproduction
• Balance workload across shifts

Key Steps in Production Planning

1. Demand Forecasting

Start by understanding customer demand. Review past orders, check seasonal trends, and communicate with your sales team to predict future requirements. Even rough estimates help you prepare better.

2. Capacity Planning

Assess your production capacity—how much your machines and workers can produce in a given time. Consider machine hours, labor availability, and shift patterns. If demand exceeds capacity, plan for overtime, additional shifts, or outsourcing.

3. Material Requirement Planning (MRP)

Calculate the raw materials needed for production. Use a Bill of Materials (BOM) to list all components required per unit. Ensure materials are available before production starts to avoid delays.

4. Production Scheduling

Create a production schedule that allocates jobs to machines and assigns tasks to workers. Prioritize orders based on delivery dates, material availability, and machine capacity. A visual schedule (like a Gantt chart) helps track progress.

5. Monitoring & Adjustment

Production plans rarely go exactly as planned. Monitor daily progress, track delays, and adjust the schedule as needed. Regular shop floor reviews help identify bottlenecks early.

Common Production Planning Mistakes

• Ignoring lead times: Not accounting for material procurement or machine setup time
• Overloading machines: Scheduling more work than capacity allows
• Poor documentation: Relying on memory instead of written plans
• No buffer time: Not planning for machine breakdowns or delays

Tools for Production Planning

Small manufacturers often start with Excel sheets or manual registers. While these work initially, they become error-prone as order volume grows. Consider using:

• Work order templates to track jobs
• Production scheduling boards (physical or digital)
• Manufacturing ERP software like Karygar for automated planning

Next Steps

Start simple. Create a weekly production plan, track actual vs. planned output, and refine your process over time. Even basic planning improves efficiency significantly.