The business plan gives way to the need to create a production plan. When planning to manufacture, or creating the Production Plan, the company develops the manufacturing strategy or Production department methodology that it will follow in support of the business plan.
There are basically two different methods for manufacturing products, i.e., the ‘make-to-order’ and the ‘make-to-stock’ programs. There could also be a ‘hybrid’ plan that would be a combination of these two plans.
Understandably, each of these programs requires a different approach for handling customer orders and production. Next, in line with this, the management team determines the manufacturing plant layout, the type and amount of equipment, and the labor needed to meet the production schedules.
Finally, the Production team reviews the proposed production schedule and identifies machinery, materials, and labor to produce the products.
Manufacturing and Supply Chain Services
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Inventory Management. “Can You Avoid the ‘Deadly Sins’ of Inventory Management?” The purchase and storage of raw materials typically represent the single largest investment for a manufacturing company. To learn more, please follow this link.
Purchasing Requisitions Systems: The ‘EZ Requisition Program.’ Does your company have a purchasing requisitions system that is simple, convenient, and easy to use, yet allows procurement to get the job done quickly? For more on this topic, please follow this link.
Supplier Sourcing. Companies rely on the revenue streams generated by their product lines. The expectation of better than market pricing for these products and services can depend heavily on the development and execution of the company’s supplier sourcing strategies. For more on this topic, please follow this link.