Production Planning
"There is not any company that could limit its work to building work orders schedules with no limited capacity, this would be a suicide in terms of both management and toward customers. It is on this job that Planing department is working, the manager of the production time and capacity. But as usual reality is a little more complex...".
Observations usually made:
> Underestimation from the organization in the need of forecast data to be loaded in production schedules when the sales backlog visibility offers less than the production cycle, or when this backlog is divided beyond the cycle with holes in between.
> Tendency to put pressure on purchases / supplies which themselves could face long lead times on some skus needed to manufacture the finished product.
> Lack of anticipation on subcontractors lead times as well as items to produce in order to supply these subcontractors.
> Lack of regular work orders forecast updates to enable visibility on the items to buy.