The organization of any production process depends on many of its constituent factors. In the conditions of the market economy, each enterprise independently develops plans. On their basis, the release of goods.
Production planning is based on projected sales and finished product output. These indicators are determined in the process of marketing research of consumer demand, taking into account government orders. Based on the analysis, a production program is compiled , which includes three sections. The first two consist of plans for output in kind and in value terms. The elements of the third section are forecast indicators expressing the estimated sales volumes in quantitative and also in cash terms.
Planning for production in physical terms consists of a task, the implementation of which requires the release of a certain amount of goods included in the nomenclature list. Products must also be of appropriate quality.
Planning for the production and sale of finished products in physical units allows you to determine the volume of output of a particular product. The sale of these products must satisfy the needs of the market. The value expression of forecast indicators is developed taking into account gross income, as well as sales and marketable products.
Production planning is carried out in order to balance the estimated costs of the business entity with its financial resources. For this, it is necessary to analyze the estimated cost of goods. Planning production costs is a prerequisite for identifying and using reserves to achieve their maximum reduction. This, in turn, will allow for an increase in on-farm savings.
Cost planning should be based on progressive forms of remuneration, the use of production equipment and the consumption of material and energy resources. It should also take into account the best practices of other organizations. Only in the case when the cost planning is based on scientifically sound rationing, it is possible to determine and use the existing reserves, which will reduce the cost of production.
Production planning is carried out taking into account local forecasts of individual workshops and departments, as well as teams. A large enterprise may have several hundred of them. The target setting, which allows you to connect the work of the team and technology into a single technological rhythm, serves as a guide for combining these plans. Priority tasks of both the entire enterprise and its structural divisions are determined. Usually, the main goal of a company’s activities is to achieve indicators that arise from the production program of the main marketable products and the financial plan.
The chief economist is engaged in the direct development of the forecast indicators of the enterprise. Together with the director, who provides general management, he determines:
- the relationship and the degree of participation of structural units included in the management apparatus of the enterprise and workshops in the analysis of the organization, as well as in the long-term and current planning;
- the timing and methodology of the work on the compilation of forecast indicators and their analysis;
- a form for summarizing the indicators obtained as a result of the analysis and calculations for various sections of the plan;
- the timing, methodology and form of operational control measures for the implementation of the plan.