Discuss the components involved in planning the production process.
Planning for production involves three major phases:
- design planning,
- site selection and facilities planning, and
- operational planning.
First, design planning is undertaken to address questions related to the product line, required production capacity, and the use of technology.
Then production facilities, human resources, and plant layout must be considered. Operational planning focuses on the use of production facilities and resources.
The steps for operational planning include
- selecting a planning horizon,
- estimating market demand,
- comparing market demand with capacity, and
- adjusting production of products or services to meet demand.
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