Basics of Production Planning
This is the main goal of production planning
What is to produce goods efficiently while meeting demand
This component calculates the materials needed to fulfill production requirements
What is Material Requirements Planning (MRP)?
This strategy focuses on eliminating all forms of waste in production
What is Lean Manufacturing?
This KPI measures the percentage of orders delivered on time.
What is On-Time Delivery (OTD)?
This is what you call the slowest workstation that limits overall production output.
What is a bottleneck?
Production planning ensures these three resources are available at the right time.
What are materials, labor, and equipment?
This component balances stock levels to prevent shortages and excess inventory
What is Inventory Management?
JIT stands for this.
What is Just-In-Time?
The target for First-Pass Yield in most production environments.
What is 98% or higher?
This percentage of capacity should be reserved for rush orders and unplanned downtime.
What is 10 to 15 percent?
This document outlines what to produce, how much, and when.
What is the Master Production Schedule (MPS)
This component uses historical data and market trends to predict future demand.
What is Demand Forecasting?
This theory says you must find and fix the slowest point in your production system.
What is the Theory of Constraints (TOC)?
This KPI measures how efficiently your machines are running.
What is Overall Equipment Effectiveness (OEE)?
This type of capacity planning validates the MPS against key resources before scheduling.
What is Rough-Cut CRP?
This term describes producing only what is needed, when it is needed.
What is Just-In-Time (JIT)
This component compares available production capacity against forecasted demand.
What is Capacity Planning?
This time-phased plan covers 3 to 18 months and syncs production with sales forecasts.
What is the Master Production Schedule (MPS)?
This KPI tells you how many times you sell and replace your stock in a year
What is the Inventory Turnover Ratio?
When demand exceeds capacity, a company should do this to close the gap.
What is increase capacity or reduce demand (overtime, outsourcing, hiring)?
This is the first step in the production planning process.
What is Demand Forecasting?
This component assigns jobs to machines and workers in real time.
What is Shop Floor Scheduling?
These are the 7 types of waste targeted by Lean Manufacturing.
What are overproduction, waiting, transport, excess inventory, motion, defects, and over-processing?
This is the ideal capacity utilization range to maintain a buffer for demand spikes.
What is 75 to 85 percent?
This happens when a company runs above 100% capacity utilization for too long.
What is equipment breakdown, employee burnout, and quality decline?