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5B. Capacity Management

At each level, manufacturing develops priority plans to satisfy demand. However, without the resources to achieve the priority plan, the plan will be unworkable. Capacity management is concerned with supplying the necessary resources.

Product Groups

Group of products derived from a common product platform. These goods or services use similar or same production processes, have similar physical characteristics, and may share customer segments, distribution channels, pricing methods, promotional campaigns, and other elements of the marketing mix. Products comprising a family are usually priced and discounted as a package. Several product families make up a product portfolio. Also called product family or product line.

3B. Production planning

Production planning and control systems refer to the backbone architecture, concept and main driver to plan, schedule and control production activities for a manufacturing enterprise. Effective production planning is of the topmost priority for organizations to surge ahead in this highly competitive environment. Production planning is very complicated procedure and is time consuming.

 A good planning system must answer four important questions :

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