How does the planning process work?

The production process is very tightly controlled and monitored. The time between orders being placed and the goods leaving the factory is short and planning is essential.

The production lead times for all 70 products (or Stock Kit Units - SKUs) mean that it is impossible to make every meal every day, once the order has been received. Kettleby Foods would not hit the delivery deadlines to Tesco for the next day as there are not enough production hours available, and if a manufacturer tried to set up the factory to do this it would be extremely inefficient. The company, therefore, has to start productions runs before it knows what the order is and use the planner's experience to get the quantities right.

Example: Cottage Pie Planning - Monday Morning

On Monday at 6am there may be 1,000 cases in stock of cottage pies. Today's delivery requirements are 2,500 (which were ordered on Sunday at 6am). The planner would calculate that they need 1,500 to fulfil today's deliveries and this must be completed for 2pm today. They would produce enough to fulfil Tuesday's deliveries of 3,000 (the order was received today at 6am) and leave some stock towards Wednesday's deliveries (the order quantities for this won't be known until 6am tomorrow). The production plan may call for (Monday 2,500-1,000 in stock) + (3,000 for Tuesday) + (1,000 towards Wednesday) = 5,500 cases.

In Stock	Orders	Production
1,000 cases	Placed Sunday 6am - 2,500 cases for delivery today 2pm	1,500 cases to fulfil today's delivery
	Placed today 6am - 3,000 cases for delivery Tuesday 2pm	3,000 cases to fulfil Tuesday's delivery
		1,000 cases to anticipate order to be placed Tuesday 6am for delivery on Wednesday 2pm

If the company plans for too little they may have to set up extra emergency production runs which cost in labour set up times. The product will only have 2 to 3 days from production to when it goes to Tesco. Therefore, if it is over-produced, it will not have enough life to be sent out and will be destroyed.

This process has to be done for all 70 products every day - then the planner has the task of working out how much sauce, potato, etc will be needed to cook in order to fulfil the plan. They will then need to prioritise the plan to make sure there is sufficient machine time for the various ovens and cook pans to make the sauces. The third stage is then to work out how much of the raw ingredients they need to make the volume of sauces required. They will then coordinate with suppliers to arrange the correct quantity and times of delivery.

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