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Production planning refers to the set of operations aimed at organizing production resources to optimize their use and maximize service levels for customers in terms of speed, flexibility, and on-time delivery. It plays a crucial role in ensuring that resources are used efficiently while considering constraints and limitations. Key activities include sales forecasting, order management, material procurement scheduling, production tracking, issue identification, and delivery timeline control.

• Quick receipt of sales forecasts
• Processing of sales orders;
• Planning the procurement of materials, semi-finished products, and outsourced work;
• Monitoring production progress against scheduling;
• Supervising the production department and identifying potential issues;
• Ensuring compliance with scheduled delivery dates;

The environmental impact of the Supply Chain is measured through various indicators, including greenhouse gas emissions (CO2e), energy consumption, the use of natural resources (such as water and raw materials), and waste production. These data are collected and analyzed using tools such as Life Cycle Assessment (LCA), which evaluates the environmental impact at every stage of the process, from production to distribution, and disposal. These measurements help identify areas for improvement to reduce the overall ecological footprint of the Supply Chain.

 

Advanced software solutions can support the monitoring and reduction of the ecological footprint.

Lead time literally means ‘throughput time,’ which refers to the time that elapses between the start and the end of a production process (consisting of one or more processing stages), including any time required to procure raw materials and purchased components. In its broader sense, it refers to the response time that a company takes to fulfill a customer’s request. Lead time is an element that measures a company’s competitiveness, as, in addition to the ability to meet customer needs, it must constantly work to reduce the time between the purchase of a product and its delivery.

The term MES (Manufacturing Execution System) refers to a computerized system whose main function is to manage and control the production function of a company. Specifically, an MES supports the collection of information in production (e.g., manual recordings and signal acquisition from any type of plant), ensuring full and real-time control of the factory through the monitoring of key performance indicators (KPIs). Through a configurable interface, it can facilitate the operations of factory personnel and also allows integration with third-party contractors for effective and timely information sharing. The MES is a comprehensive system that supports Operations professionals, allowing real-time management of the production process.

1. Know the actual progress status of production orders
2. Support quality control
3. Manage product and process traceability.

A MES software allows you to solve some monitoring and control issues in production. At any given moment, through the use of the software and the data collected in the factory, it is possible to know:

• The actual progress status of production orders
• Support quality control
• Manage product and process traceability
• The maintenance of equipment and all operational activities.

The analysis and processing of the collected data allow for quick and objective determination of the performance of the production system (KPIs) through advanced, easily configurable graphical dashboards.

The MPS – Master Production Schedule – represents the ways in which the company responds to market demand (forecast and customer orders) in the medium to long term. Essentially, it defines the quantities of products to be ‘released’ for production.

 

The MPS is developed based on demand forecasts and customer orders, taking into account inventory levels and ongoing production orders, as well as the planning policies for each item.

MRP stands for Material Requirements Planning, which is the planning of material requirements for production.

It essentially represents a control system for inventory and production planning.

 

It is the production management process that uses multiple sources of information to coordinate, as efficiently and appropriately as possible, the flow of materials and the allocation of production times for resources, interacting on one side with suppliers and on the other with customers.

The ‘Bill of Materials‘ (BOM), or ‘Distinta Base’ (DiBa) in Italian, is the hierarchical list of all assemblies, components, semi-finished products, and raw materials needed to produce a specific finished product. This term is used in industries characterized by ‘make-to-part’ production, meaning that the various components that make up the finished product are produced separately, or in some cases, at different times and then assembled later. Here are some key elements related to a Bill of Materials:

• Identification of components: A Bill of Materials lists all the components, materials, parts, and sub-assemblies needed to assemble a specific product. Each item is uniquely identified and may include codes, descriptions, and quantities.
• Hierarchical structure: The BOM can be organized in a hierarchical structure that shows how components assemble to create the final product. This helps visualize the production sequence and the relationships between the various components
• Required quantity: Each component listed in the BOM is associated with a specific quantity needed for the production of the final product. These quantities may vary based on the complexity of the product and the production specifications.
• Change management: The Bill of Materials must be carefully managed to track any changes made to components or product specifications over time. This is essential to ensure that production is carried out consistently and that changes are properly documented.
• Use in planning: Bill of Materials are used for production planning, to calculate material requirements, generate purchase orders, and manage inventory.

The person responsible for production planning is the Planning Manager or Production Planner. In the past, this role involved manually planning operations using spreadsheets. Today, they have access to innovative and powerful digital tools that provide valuable support for the structured management of planning activities.