What is Strategic Planning for Production? Definition
The definition of strategic planning for production is quoted below.
"Strategic planning for production implies focusing on the alignment of production management within an organization with its corporate and business strategies to gain a strategic advantage."
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Meaning of Strategic Planning for Production
Strategic planning for production is a broad overall planning. It is done before production planning. Strategic planning for production is different from production planning. Strategic planning gives only a broad view whereas production planning gives overall essential details of production.
Strategic planning for production is done after considering the latest objectives of the organization and the current environmental conditions. It is a guide for tomorrow's decisions and results. All other production plans are based on this plan. Strategic planning for production coordinates (brings together) the production plan with the overall (main) plans and strategies of the organization. It also coordinates the production plan with the other department plans like the finance plan, purchasing plan, marketing plan, etc.
So, strategic planning for producing is a broad over view of production. It tells us, how the organization will achieve its production objectives.
The strategic planning for production is useful for:
- Planning the production design.
- Finding out the number of skilled, semi-skilled and unskilled workers required for production.
- Preparing the departmental plans.
Strategic production planning is done to achieve the main objectives of the organization. The prime objective of most organisations is to increase sales and earn a high profit. Both these objectives can be achieved if the consumers are satisfied. So, the planners must try to satisfy the consumers. They must find out and satisfy the needs and expectations of the consumers. They must design and make the products to fulfil the demands of the consumers. They must also consider the engineering and cost aspects of production. That is, they must try to produce better a quality product at the lowest possible cost.
If the strategic planning for production is successful, all consumers will satisfy, and this will increase the sales and profit of the organization.