To talk about resource management, absorption or production plans, let's remember the process for the elaboration of a production plan, which starts in the Commercial area, with the Sales Plan, which is then passed on to those responsible for the Operation areas. and they, with this information, can start their planning and budgeting for the year or periodic reviews of the existing plan.
Part of the Operational plans include the Production plans and Expenses plan, which will be the resources that the company makes available for the production of products planned by the Commercial area to be sold.
These resources, once negotiated and approved by the company's management and linked to the volume committed to support the sales plan, lead us to calculate the standard costs for each product and the company's expectation that Operations will deliver the production plan without exceeding (preferably below) of the approved spending plan.
These standard costs generated from the production and sales plans are, therefore, provisional and expected, but they are not yet the best possible costs optimized by the improvement actions also expected to be implemented and achieved.
From the starting points above, monthly the production plans are reviewed, the costs analyzed and compared with the approved and it is possible to verify if the resources made available by the company, as mentioned above, are being absorbed correctly, generating unitary costs of the same products. or less than budgeted and that there are no losses and waste that will increase costs in the coming months. We call this analysis the “absorption level”, an indicator that is easy to calculate and highly effective in productivity management.
As a practical example, if the absorption is 80%, it means that 20% of the resources will be lost or wasted and consequently paid or apportioned by the products part of this plan, that is, the unit costs will rise proportionally, exceeding the previously negotiated standard cost. Obviously the company's margins and profitability will also be reduced by this increase in the cost of the products produced.
In stock and sales balance situations, it is not possible to simply add products to production lines to reduce losses or unabsorbed costs and run the risk of later having to throw out expired or unsold products. In addition to looking at absorption, we must analyze high turnover products to manage and define solutions for a situation of low absorption.
Bearing in mind that the unit cost of products, in a competitive market where war on sales prices can make your company win or lose “Market Share”, is a determining factor for success against your competitors and vice versa.
Also before making decisions about inserting more products into the monthly plan to balance absorption, analyzes should be carried out regularly to correct deviations from sales and production plans and better look and plan for the months to come, as we can see that the negative impact absorption, or inventory and working capital levels may spiral out of control!
It is at this point that a good analysis of resources and adjusting them, as well as a good analysis of productivity and cost reduction is necessary and essential. It is also at this point that adequate measurement and analysis tools allow identifying the opportunities, the size/complexity of the necessary corrective measures and the speed with which these corrective and improvement measures need to be incorporated/implemented. Finally, correct decision making requires accurate information in advance to allow enough time to implement them.
A competent management level, which we can call Management Excellence, is directly and proportionally linked to a level of information and agility to identify opportunities and needs for change in advance and accurately.
Consult Simula Farma, our productivity management system, simulation of changes and impacts on results, among other things, this system can help a lot in understanding and identifying opportunities that your factory has and that you may not be exploiting properly, letting go. performance improvement or reduction of possible to be reached due to lack of the adequate tool.
PGI Farma has tools and know-how to implement projects to improve productivity and reduce unit costs in several large companies and offers implementation services to companies that want to improve their performance and optimize their stages of the production process.
Contact us for a technical conversation and to see if we can help with your needs and opportunities.
By Izidoro Vignola and Roberto Darienzo
Una de las mayores presiones sobre el personal de Planificación (PCP) y Cadena d...
→ Leia mais...
Todo proyecto comienza y se basa en un documento muy importante que llamamos "Re...
→ Leia mais...
Para hablar de planes de gestión, absorción o producción de recursos, recordem
→ Leia mais...
Co-Founder PGIFarma and Visus Integrate Formação Acadêmica: Conselheiro de administração pelo Instituto Brasileiro de Governança Corporativa MBA (fechado para Rhone Poulenc) em gestão estratégica, na Cranfield University (Inglaterra) Especialização em Administração Industrial (Vanzolini) Engenheiro Mecânico pela FEI Experiencias (33 anos de experiencia na área industrial): Co- Fundador do Portal de Gestão Industrial Farma Co- Fundador Visus Integrate Consultor há 10 anos Diretor de estratégia e tecnologia industrial na AVENTIS FARMA Diretor de projeto de transferência de fabricas Diretor industrial Gerente de produção Gerente de manutenção Gerente de projetos
→ Veja o Perfil Completo
