Production planning

The organization of any production process depends on many of its constituent factors. In the conditions of the market economy, each enterprise carries out independent development of plans. On their basis, the goods are produced.

Production planning is based on projected volumes of sales and output of the finished product. These indicators are determined in the process of marketing research of consumer demand, taking into account government orders. Based on the analysis, a production program is compiled , which includes three sections. The first two consist of plans to produce products in kind and in value terms. Elements of the third section are forecast indicators that express the expected volumes of sales in quantitative, as well as in monetary terms.

The planning of production in physical terms consists of a task, the implementation of which requires the release of a certain volume of goods included in the nomenclature. Products must also be of appropriate quality.

Planning the production and sale of finished products in physical units allows you to determine the volume of output of a particular product. The sale of this product must satisfy the needs of the market. The cost expression of the forecast indicators is developed taking into account gross income, as well as sales and marketable products.

Production planning is carried out in order to balance the estimated costs of the business entity with its financial resources. For this, it is necessary to analyze the estimated cost of goods. Planning production costs is a prerequisite for the identification and use of reserves to achieve their maximum reduction. This, in turn, will allow increasing intraeconomic savings.

Cost planning should be based on progressive forms of payment, use of production equipment and the use of material and energy resources. It must also take into account the best practices of other organizations. Only when cost planning is based on scientifically based valuation, it is possible to identify and use existing reserves that will reduce the cost of producing goods.

Production planning is carried out taking into account local forecasts of individual workshops and departments, as well as brigades. A large enterprise can have several hundred of them. The goal setting, which allows you to link the work of the team and technology into a single technological rhythm, serves as a guide for combining these plans. The priority tasks of the enterprise as a whole and its structural divisions are determined. Usually, the main goal of the company's activity is to achieve the indicators that flow from the program of production of the main commodity output and financial plan.

The chief economist is engaged in direct development of the forecasted indicators of the enterprise. Together with the director, who exercises overall leadership, he determines:

- the relationship and the degree of participation of the structural divisions included in the management apparatus of the enterprise and workshops, in analyzing the activities of the organization, as well as in prospective and current planning;

- the timing and methodology of the work on compilation of forecast indicators and their analysis;

- a form of generalization of the indicators obtained as a result of the analysis and calculations for various sections of the plan;

- the timing, methodology and forms of operational control measures for the implementation of the plan.