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Important Factors In Creating A Production Schedule

Creating A Production Schedule

Planning of production schedule is done jointly by Production Planning and Inventory Control (PPIC) Division, Sales Marketing Department, Supply Chain Department and Operation Department (including production division, PD, Engineering and maintenance) in A shared meeting forum. The Sales Marketing department submitted a sales forecast next month, to be discussed in the meeting.

PPIC as a division in charge of planning and manufacturing of production schedule will require a lot of data related to production activities. The data will then be in the sport, resulting in appropriate planning.

As for the data which are important factors in the manufacturing of production schedule, among others:
  • Production Line capacity Data.
  • Sales Forecast Data.
  • Latest Sales Order Data.
  • Product specification Data to be sold

Production Line capacity is the number of goods produced by a production machine during one working day. By knowing the capacity data of this production line then PPIC can know how long the production process time needed to create a certain type of product. The capacity of this production line is in the department of Engineering.


Sales Forecast is an approximate number of sales that will come in either for one month or three months ahead. With this sales Forecast data then PPIC can fulfill customer demand precisely and estimate what quantity safety stock finish goods should be allocated. This sales Forecast Data is got from the Sales Marketing department.


Sales Order (SO) is a customer request to the finish goods products offered by Sales Marketing either in the form of regular products that are contained in production and product that is a special order (Custom). 

From the incoming Sales Order data, PPIC can schedule a production plan until the product is delivered following the lead times that have been specified and requested by the customer.

Data Sales Order


Product specifications are issued based on the test results of the product development (PD) Division of the product until the product is eligible for sale to the Customer. 

In the specification data, there are details of raw materials and supporters that will be used to make the product with a description of material use or percentage. Then based on the data specification that PPIC can take into account how many materials needed for the production needs.

In addition to these data, PPIC should also know other things that also need to be noticed in making production schedules, as follows:
  • PPIC should know the production process of goods.
  • PPIC should know the quality of products in production.
  • PPIC should know the capacity of the warehouse (space warehouse).
  • PPIC should know the lead times purchase of raw material materials and supporting materials.
  • PPIC should know the minimum order quantity from the Supplier.
  • PPIC should know the alternative raw material (substitute).
  • PPIC should know the freight capacity of the expedition.
  • PPIC should know the lead time delivery of goods to the customer.
  • PPIC should know the safety stock (buffer stock) raw material and finish goods.
Production Process

The production process for each product differs from its treatment. Therefore, PPIC should know the process stage for each product so that it can estimate how long it will require a product from the beginning of the process until completion. 

There is already a cycle time data that is found from the Engineering Division, but PPIC needs to know each stage of the process, to know also the constraints and potential problems that will arise.

Quality Of Products In Production

According to the procedures of the Division authorized to verify the outgoing product whether following existing provisions or not is the division of Quality Control (QC). 

If the quality of products produced under the specifications specified then, PPIC should communicate with the Sales Marketing division whether it can be received or not, of course with the approval of the customer. If not can then the product is forced to rework, in repair or scrap.

Warehouse Capacity 

Warehouse capacity will be related to the arrival of raw materials from customers who in the message for production purposes. PPIC should communicate this with the raw material Warehouse division to schedule the arrival time of raw materials appropriately and not make the warehouse into overcapacity. 

LeadTime Purchase Of Raw Materials

LeadTime purchase of raw materials obtained from the Purchasing Division where the Purchasing division gets following the negotiations with the supplier and calculation of documents that must be processed internally in its division. 

With the Leadtime purchase of this raw material then PPIC can count the purchase of raw materials to be more effective and efficient so as not to interfere with the company's cash flow.

Minimum Order Quantity 

Minimum Order quantity is the minimum quantity of goods that can be ordered from suppliers. Usually, a supplier takes into account the cost of shipping and production costs in determining the minimum quantity of a product or material. 

If there is a minimum quantity that is done by the supplier then inevitably want to buy several such quantities even with the risk will be a stock in the warehouse later.

Alternative Raw Materials (Substitutes)

Alternative raw materials are usually recommended by the Product Development division, where when there are constraints with the production of the main raw materials in internal suppliers then production can buy and use the alternative raw materials so that the process Production can continue to run smoothly.

Freight Forwarding Capacity

The capacity of this expedition is obtained from the distribution division where this information is used to account for the delivery of goods that can be sent to the customer. 

By knowing the capacity of this expedition then PPIC can determine the delivery of goods that must be shipped (the amount and its type) following the sales order already received by PPIC.

LeadTime Delivery Of Goods To Customer

LeadTime delivery of goods to Customers is in getting from the decision that has been in the previous review by the Director of Marketing with related departments relating to shipping or distribution. 

With the Leadtimes delivery This then can PPIC can ensure to the customer when the goods are ordered can get to their place. Also, PPIC can also take into account when should the customer order should be run on the production line.

Safety Stock 

Safety stock, both of Raw Material and Finish Goods are indispensable for a company because, with this, the need for RAW materials for the needs of the production process will always be awake and will not suffer the shortage of When the production process will run. 

Thus, the fulfillment of Customer needs for Finish Goods will always be safe and when the Customer issued a request of the order or urgent then the goods will always be available. What needs to be a concern is that the buffer stock should be in a careful factor so that later even burden the company.

Thus an article about Important Factors In Creating A Production Schedule. I hope this article could be useful to be your reference in production planning.

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