Key success factors in production planning | BDC.ca

Principal factors in successful production planning

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There are several key factors that contribute to the success of production planning for a product or a service.

In general, your production planning must align with your overall operations strategy, which in turn must align with your overall corporate strategic objectives. Consider your internal and external environments as well as your company's vision, mission and values. If you make a low-cost product that can be delivered within 72 hours, make sure your operations strategy and production planning processes align.

Your production planning and production processes must be able to deliver key performance objectives, which vary from business to business. But the levels of performance must be defined by your customer. Here are some examples.

  • Quality–Minimize mistakes and provide your customer with the level of product and service quality they require. Quality reduces cost in the long run and increases dependability.
  • Speed–React quickly to customer requirements. Increase the availability of your product to meet your customer's requirements. Speed decreases both inventories and risk.
  • Dependability–Deliver your product or service with the quality required, when and where the customer requires it. Dependability saves your customer time and money and is critical in developing trust with your customers.
  • Flexibility–Adapt to constantly changing customer demands. Make sure your planning and production processes provide flexibility given changing types of product or services and changes to product mix, volume and delivery.
  • Cost–Every customer cares about cost relative to value. You need to develop an efficient and waste-free supply chain to minimize costs. The other performance objectives will affect costs.

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