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Aggregate production planning | Free template

Aggregate production planning is a free template to at an aggregate level determine how much to be produced and when production should take place during a future period of between 3 and 18 months.

Aggregate production planning and scheduling makes no difference to individual products, but it is the total volume for the entire manufacturing plant to be planned and scheduled. If we imagine a car manufacturer, so is the aggregate production plan, a planning of the number of cars to be produced at different times regardless of the different models and colors. The aggregate production plan, then break down or disaggregated to a production schedule indicating how much to produce of each product at different time periods. This production schedule is then the starting point for material requirement planning (MRP).

Aggregate production planning is based on the overall sales forecast and seeks to minimize costs during the planning period. Besides low cost, other strategies influence how planning is done, such as steady employment levels, small inventory levels or short delivery times. On the basis of opening inventory level and demand in each month shall the person responsible for the aggregated planning specify how much to be produced each month during normal time, overtime and by outsourcing production or sub-contracting.

The aggregate planning is done at medium-term and must be within the scope of the long-term planning and follow the strategies that have been formulated in the company. For manufacturing companies, the aggregate planning is to link strategies to the production schedules and for service companies, the aggregate planning is to link the strategies to work schedules.

In order to do an aggregate plan this is required:
1. a logical overall unit for measuring sales and production, for example cars, boats, beer and computers.
2. A sales forecast in aggregate terms per month for the entire planning period.
3. A method for determining cost per aggregate unit.
4. A model that combines sales forecasting, production quantity and costs.

The aggregate production plan is about to use the capacity in terms of personnel, machinery and materials available in the company and to increase or decrease the capacity to produce the required volume needed to meet demand. In this template there are also costs to produce one unit during normal time, overtime and by outsourcing production to sub-contractors. This template also provides cost per unit for holding inventory, for stock outs, to increase production and to reduce production.

The aggregate production planning involves determining how much should be produced, how it is produced and when it should be produced to keep costs at a minimum and to comply with other strategies.

You can use this template to make an aggregate production planning in your company if you are not using software for production planning, such as an ERP, MPS or MRP software.
Updated: 01-01-2015 | Created by All-templates.biz

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Tags: production planning resource planning capacity planning operations management