In the production segment, strategic decisions about production planning, including plant location and machine capacity, are directly linked to tactical decisions about the use of these resources. The most common segment in which I have been helping clients in recent years has been how to ensure sufficient capacities (human, production, and logistical) for increased demand after the reopening of the economy, which was closed due to the pandemic. Most often, the problem is not that there was a lack of capacity, but that processes are clogged with artificial bottlenecks, the organization is not aligned with the company’s strategy and goals, and there is no proper planning.
These organizational deficits and tactical decisions that need to be made directly affect procurement decisions and the “downstream” supply chain and are the main drivers of overall efficiency. Therefore, the supply chain model that we want to design should have tools to link strategic and tactical decisions with operational results in the supply chain.
Determining the optimal batch size gives us the optimal relationship between the costs of production preparation and inventory costs.
“The most common area in which I help clients in recent years is – how to ensure adequate capacity (human, production and logistical) for increased demand.“
– LOGIKO TIM
Proper material requirements planning is the heart of production planning, which affects the exact needs for semi-finished products, raw materials, packaging and quantities in warehouses and production halls, saving on stock and increasing efficiency.
If we know how to plan and schedule capacities well, we will reduce waiting times and create savings in production costs, become more operational, efficient and productive, and identify bottlenecks and eliminate the dangers they pose.