The Planning master-For industrial engineer
This site is all about planning in an organization. Material planning, production planning, KPI and lean
Sometimes the best way to improve the production is to look at the differences between what materials we planned to use ver. what we actually used. It supposes to be the same, but if you have more then 1 material that you can use as a substitute then probably your planned and actual cost per batch are not the same in some cases. That allows you to find places to do a major improvement. This post is not easy but very important.
In today’s organizations we have a lot of acquired items and raw materials. Although most organizations have well organized methods of the flow of material, it is very difficult to find material leakages. They have a direct effect on the bottom line since it is money spend on material that was not taken into consideration during the costing phase. In this post: how to find the leakages and how to reduce their unknown part.