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Advantages And Disadvantages Of Production Planning

Satisfactory Essays

Generally, the production process is the process of altering raw materials into the desired products using a specified manufacturing system. Often, manufacturing systems are complex; they composed of wide number of components. In order to produce the specified product on the desired time with cost effective manners, these manufacturing systems should be managed effectively. Production planning can be considered as one of the most important functions in manufacturing. Manufacturing planning is often conducted over a specified period of time. It aims to effectively distribute production resources to different production activities, in order to achieve high levels of customer satisfaction. As it well known, the production planning gathers three …show more content…

The workforce working capacity can be varied relying on the number of worked hours per day, week, while keeping a constant amount per year. This strategy is known as flexible working hours. In which the number of working hours per day can be varied over minimum and maximum number of hours. Overtime can be considered when the number of working hours per day is greater than a specified amount. Overtime can be adopted during high demand periods and relaxed during low demand periods. From the economic point of view, adopting over time imposes extra costs, often overtime hourly rate is 1.25 from standard hourly rate. The working law imposes many restrictions on the number of hours worked by day or week.
Subcontracting
Subcontracting means outsourcing of some parts from outside partner in order to overcame the shortage of resources especially equipments. Subcontracting strategy permits firms to increase their manufacturing capability while keeping a suitable capital invested. However, subcontracting has many several drawbacks. It imposes more costs. It affects the development of firms’ core competences. It is hard to have perfect suppliers who satisfy the required specifications and quality levels and deliver items on the agreed due dates.
Part-time

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