The Planning Situations associated with the use of a conversion system.

 

Function of planning of a conversion system starts from the project report preparation. The efficiency, productivity and economy largely depends upon the quality of planning. However, main engineering systems which are required through planning are: Production planning, Product planning, Process planning, Material planning and Manpower planning etc.

Brief description of these systems is given below:

PRODUCTION PLANNING : Production planning involves a system to plan production, cost, quality and time. Planning always begins with the analysis of given data on the basis of which a scheme of the utilization of the firm's services can be obtained so that the desirable target may be most efficiently attained. It establishes the basic relationship among (a) sales forecasts (b) production capacity (c) inventory levels (d) working capital (e) raw material (f) production facilities. 

PRODUCT PLANNING : Product policy decisions and product planning are inter-related activities and decide about product item, product line and product mix. Production planning is done based on facts available from research and operation sheets. 

MATERIAL PLANNING : It involves setting up of consumption standards working out the requirements for all materials for any given manufacturing program, considering all relevant factors i.e. make or buy, specifications, source of supply etc.

MANPOWER PLANNING: It is a process by which management determines how the organisation should move from its current manpower position to its desired manpower position. Planning function helps the management to have the right number and right kind of people at right places at the right time so that it helps receiving maximum long run benefits.

CAPACITY PLANNING : It is concerned with the estimating future capacity needs, existing capacity, developing ways to modify capacity. Product characteristics, econimic factors and processing technology are the important parameters.

FACILITY LOCATION PLANNING : It involves careful consideration of various factors for the selection of an appropriate location for installing production facility.

FACILITY LAYOUT PLANNING : It refers to the selection of particular configuration of departments, work stations and equipment involved in the production system. It relates to choosing a special arrangement of the physical resources. The layout depends on production volume, sequence of operation, material handling system, space utilization economic aspects etc.