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Why Is Production Planning Important?

Production planning is important for the smooth operation of a company.

Production planning plays a critical role in keeping your business running smoothly. What exactly does this process entail, though, and how can it benefit your business?

In this blog, you’ll learn answers to essential questions like “Why is production planning important?” and What steps are involved in the production planning process?” Discover everything you need to know below.

What Is Production Planning?

Production planning is a highly methodical process that determines how a company will produce its goods. It’s like a roadmap that outlines the entire production process, ensuring everything runs correctly and efficiently.

Why Is Production Planning Important?

Production planning is important in any manufacturing business because it ensures that materials, labour, and other resources are available when needed.

By creating a production plan, businesses can avoid disruptions in their workflow and keep costs down. Furthermore, effective production planning can help businesses forecast demand and manage inventory better. 

Many small businesses, particularly in the device, equipment, and machinery manufacturing sector, have small teams. While this is often fantastic for allowing communication across a business, it can also result in knowledge being concentrated in individual team members. 

This is a risk to many small manufacturers as if that team member is absent that highly specialised knowledge is lost. A thorough production plan takes that knowledge ‘out of your team’s heads’ and puts it down in a process that everyone can access. Reducing the risk to your business and improving multiskilling in your team. 

Benefits of Production Planning

There are various benefits of production planning, including the following: 

  • Reduced lead times: Production planning helps organisations reduce the time it takes to bring a product or service to market. This can be especially beneficial if customer demand is high or if customer demand changes frequently. 
  • Increased efficiency: A well-planned production process can help organisations use their resources more efficiently and avoid unnecessary delays or disruptions. 
  • Improved quality: Organizations can improve the quality of their products and services by identifying potential problems in the production process and addressing them before they occur.
  • Reduced costs: Efficient production lowers costs by reducing waste, which means less money is spent on raw materials and labour. Additionally, with better organisation, companies can keep inventory levels lean, reducing storage costs.
  • Improved Customer Satisfaction: Effective production planning helps ensure that businesses can meet customer demand on time, which translates to happier customers and a stronger reputation.
  • Enhanced Profitability: By reducing costs and improving efficiency, production planning leads to higher profits.
  • Better Decision-Making: The data and insights gained through production planning can inform better decision-making across the organisation. For example, it can help with forecasting demand, managing inventory, and allocating resources.

Production Planning Process

Production planning doesn’t have to be complicated. In fact, the production planning process can be simplified into these three steps:

Step 1: Create a Master Schedule

A master schedule outlines when each product needs to be produced and sets deadlines for each production stage. The master schedule takes into account the lead time for each component of the product and the time necessary for quality control.

Step 2: Create a Materials Plan

A materials plan ensures that all the necessary raw materials are available when needed. It should also include a schedule for when finished products need to be shipped.

Step 3: Create a Resource Schedule

A resource schedule ensures that all the people or machines needed for production are available when needed. 

Step 4: Implement and Monitor

Having a plan is fantastic, but the reality of production on the shop floor (especially in highly specialised high-tech manufacturing) is quite different. It’s important to implement your systems by fully briefing everyone involved and gaining their buy-in. Also, once implemented, ensure you have defined the metrics by which you’ll judge success and monitor your progress towards your goals.

Step 5: Iterate and improve

A production plan can be a living thing that can improve over time based on feedback such as productivity stats, inventory levels, and qualitative feedback from your team. Take the time to review your plan periodically to look for ways to optimise your manufacturing business.

Streamline Your Process with Production Planning Software

Wouldn’t it be great if you had a tool that could help you execute all the steps listed above? You’re in luck. Production planning software is that tool!

Production planning software helps businesses plan and manage their production processes. It can create and manage production schedules, track inventory levels, and monitor production costs. It can also help businesses optimise their production processes by identifying bottlenecks and areas for improvement.

By using production planning software, you can ensure that your company’s products are made efficiently and correctly. In a fast-paced manufacturing environment, it is vital to have a tool that can help keep track of progress and ensure that nothing is missed. 

Enter, Flowlens.

Flowlens offers production planning software that helps businesses track their production goals and objectives. The software provides users with a visual representation of their production process and allows them to track progress and performance.

Flowlens also offers various features that can help businesses improve their production planning process, including the ability to automate stock transactions, streamline RFQ processes and better understand supplier performance. 

Flowlens is custom-built for SME Manufacturers and is highly rated, especially within the high-tech device, machinery, and equipment manufacturing sector. High-tech manufacturers particularly enjoy the multi-level BOMs, enriched integrated job cards, and advanced and easy reporting tools built into Flowlens.


Production planning is essential for a company’s smooth operation. It ensures that the correct amount of products is made to meet customer demand while also considering the company’s resources and capabilities.

Production planning is a complex process that considers many different factors, but the end goal is always to produce the products that customers want when they want them.

Do you need help with your company’s production planning process? If so, Flowlens can help. Sign up for a free trial today.