Production planning: principles, methods.

Production planning is an integral part of enterprise management. It can be defined as the ability to anticipate the goals and the results of operations of the economic entity (enterprise) and determine the resources needed to achieve specific goals.

Any production plan must be built on the basis of a number of scientific principles. These principles understand the basic theoretical principles that guide the company, its employees in the planning process. They determine the direction and specific content of the planned work at the company.

The principle need of planning means widespread and mandatory use of when performing any type of work, since its absence is accompanied by incorrect manoeuvre; late change of orientation, which is the reason for the bad condition or failure of the business.

The principle of continuity is that, first, planning for the enterprise should be carried out continuously, without interruption, and, second, what plans should organically come to replace each other. In particular, medium-and long-term plans should be systematically reviewed and adjusted to take account of changed circumstances, and annual plans must be coherent, i.e. flow of medium-term plans.

Principalist notes that planning for the enterprise should be systematic in nature. The concept of system implies the existence of a set of elements, relationships between them, the existence of a single direction of development of the elements of the system, focused on common goals. In other words, the principle of unity involves the development of a master plan for socio-economic development of the enterprise, which is based on individual plans of services and divisions agreed with the General plan.

The principle of flexibility associated with continuous ^1 the activities of the planning is to make plans and the whole planning process of the ability to change its direction in connection with unforeseen changes in internal or external factors (demand fluctuations, change of prices, tariffs.

The principle of accuracy is to ensure that the developed plan should be drafted with such a degree of accuracy that is available for businesses at the moment and which is sufficient to solve problems. The lower the planning level the greater the degree of accuracy.

The principle of participation means that every element of production activities, each business unit becomes a member of the planning regardless of the functions performed, i.e. the planning process attracts all those whom it affects directly.

The principle of the validity of the goals and focus on the end result of activities focuses on the fact that, on the basis of the systematic nature of planning, all members of the enterprise have a common ultimate goal, which is a priority. In this case, the company needs to choose the leading units which have greater influence on the end result, and strive to implement them in the first place.

In planning are widely used General principles such as scientific character, systemacity, complexity, optimality, priority, objectivity, concreteness.

The main methods of plan development include the following.

The normative method, the essence of which is that the enterprise in the planning process applies a uniform system of standards (norms of consumption of raw materials, production, maintenance, complexity, standards number standards of use of machinery and equipment, the standards of the production process, the production cycle, inventories of raw materials and fuel, work in progress, financial regulations etc.

Balansovye method of planning ensures linkages between resource needs and the sources of their coverage by balancing production capacity, working time, material, energy, financial and other, and between the sections of the plan (e.g., balance method links the production program with production capacity of enterprises, the complexity of the production program – with number of employees.

Analytical method is used to calculate the indicators, analyze their dynamics, and factors that provide the necessary quantitative level. In this method is determined the base level of the main indicators of the plan and their changes during the planning period due to the quantitative influence of the main factors are indices of changes planned performance compared to the baseline.

Economic-mathematical methods allows to develop an economic model of the dependence of performance on the basis of detection of changes of their quantitative parameters in comparison with the main factors to prepare several plan options, and choose the best.

Graphic-analytical method allows to depict the results of the economic analysis of the graphic means. With the help of graphs revealed a quantitative relationship between paired variables, for example between the rate of change of capital productivity, capital-labor ratio and labor productivity. Kind of grapho-analytical methods are network diagrams, which simulated the parallel execution of works in time and space for complex objects, such as revamping, development and mastering of new machinery etc.

Software clevage methods help to make a plan in a program, i.e. a set of tasks and activities, United by one (General) target and time-bound. The program is characterized by a focus on achieving outcomes through specific performers who are endowed with the necessary resources.

Generally, when planning at the enterprise are used simultaneously than any single method, and their entire range.

Depending on what horizon (period) of time span the company’s plans, the following types of planning.

Long term planning covers the period from 10 to 25 years and has a problem-targeted. It is formulated economic strategy of the enterprise for a long period, taking into account the extension of the boundaries of existing markets and development of new. The number of indicators in the plan are limited. Goals and objectives long-term plan are concretised in the medium term.

Medium term plans are drawn up in two or three years. Objects of medium-term planning are organizational structure, production capacity, capital investments, funding requirements, research and development, etc.

Short-term plans are drawn up for the year (rarely two years) and include specific ways to use resources in the enterprise. These plans are detailed by quarters, months, decades.

These three types of planning must be consistent with each other and not contradict each other.

Depending on the content and importance of planning in the planned activities there are three types of planning: strategic, tactical and operational.

Strategic planning is a set of procedures and solutions, which developed the strategy that ensure the achievement of its operation. Under the strategy it is understood the plan the most effective allocation of resources to achieve the goals.

The process of strategic planning includes defining the company’s mission, the formulation of goals and objectives of the operations evaluation and analysis of internal and external environment (opportunities and potential of the enterprise), the development and analysis of strategic alternatives (how will the company achieve its objectives), selection of the optimal version of a strategic plan.

In the conditions of uncertainty of external and internal environment strategic planning time is mostly medium– or short-term.

Tactical planning is the process of creation of preconditions for the implementation of new capabilities, i.e. strategic plans. In the tactical plans reflect measures to expand production and to improve technical and economic level, updating and improving the quality of products, the most complete use of achievements of scientific-technical progress. On the basis of these plans sets the links between the structural subdivisions of the company, develop cost estimates to activities and monitoring their use. as a result of tactical planning is the plan for socio-economic development of the enterprise, representing a comprehensive programme for its business and social activities over the relevant period. Tactical planning covers the medium-term and short-term periods.

Operational planning is the process of implementation of tactical planning. It is the final stage in the planning of economic activities. His task is identification of indicators of the tactical plan with the aim of organizing everyday work of the company and its subsidiaries. in the operational planning process defines the execution time of individual operations, the manufacture of individual products, sets out the terms of transfer of products, semi-finished products from one plant to another, or to the buyer; operational preparation of production (delivery of raw materials, tools, workplace, etc.); systematic control, recording, analysis, and control of the production process. Operational planning allows to reduce interruptions in production, to ensure uniformity of loading of the equipment and space to react promptly to deviations in the process and to ensure the efficient operation of the units. Operational planning links all the elements of the enterprise in a single production organism – ranging from technical training to production to sales.

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