Challenges - Production Planning
Production Planning matches well-aligned mid-term production plans to real order inflow
Today’s manufacturing companies struggle with the gap between forecasted sales plans and actual customer orders. Sales orders are often created from past production figures and are not often planned well enough in advance to allow for enhanced utilization of production capacities or to provide planners and managers with a comprehensive view of the current mid-term planning horizon. This often results in an information gap that could lead to greater alignment costs or even holistic replanning activities to create a better alignment between sales plans and real customer orders.
Manufacturing companies often deploy a number of strategies to combat these challenges; however these solutions often don’t provide the coverage necessary to bridge the gap between planning and actual orders. Manual tools and inputs are not collaborative or viable in today’s connected manufacturing landscape. And intervention in production plans are often performed without fully understanding the impact on ATP rates and revenues.
What’s a manufacturing company to do to close the gap between sales plans and real-life customer orders? How can companies resolve the conflicts between keeping sales promises and balancing planned production orders?