Introduction:
The planning process is the road map of the sequence of events a product needs to go through from the idea to the execution and follow-up.
The planning process is a requirement for the new products and services introduced by the organization.
Yes, Re-planning is required for the follow-up of the whole process or with the change in the market conditions, technological advancement and any other change that could affect the demand of the product but to have an idea for the new product planning process is the most reliable pathway.
Process planning helps to create the complete layout of how to carry out the production of the product like the premise of the factory, machinery requirement, personal requirement, and other factors which are directly or indirectly creating an impact on the product line following the process.
Factors affecting process-design decision are:
Nature of Demand:
The organization’s motive is to create a product that suits their targeted audience. customers tend to demand certain products per their needs.
An organization with a plan to survive and to earn want their product to meet the customer requirements.
Customer demand shows no pattern as it changes with certain factors like seasonality, taste and preferences, price of substitute goods, and many more.
For instance, demand for raincoats will be higher in the rainy seasons than in summers.
One of the prominent factors for customers’ demand is price.
Price and demand are inversely related to each other.
The more the price is, is less likely it is that a large audience will buy the product. Companies should consider the price sensitivity e of their targeted audience before pricing their product.
Vertical Integration:
The organizations give the utmost significance to vertical integration while preparing the production process.
Vertical integration is the procedure of taking ownership of every step of the product from production to distribution.
It helps the organization To have control over everything and not to rely on others.
For example, a mobile manufacturing company is producing every component of the mobile in their factory rather than purchasing the parts from different distributors and assembling them in the factory.
It helps the companies to take over the responsibility e of the quality of the product and may reduce the extra cost of purchasing the component from third-party sellers.
The degree of vertical integration is an industry-oriented activity.
Vertical integration suitable for one organization may not necessarily be apt for the other.
Organizations need to have an overlook on to which extent they can integrate for their product line.
Flexibility:
Flexibility plays a significant role in providing the best possible product to their customers.
Flexibility helps to cater to the audience for their satisfaction.
It helps the organization to increase their market share to earn profits and future-proof their business.
Flexibility could be mainly of two types:
Production-Based Flexibility:
Production-Based flexibility is the process of shifting the production of goods from one product to another.
It can be helpful for the business to produce different products in small batches.
For Example, A bakery business catering to different products like cakes, biscuits, donuts, and related products needs certain flexibility.
Their bakery can get the demand for different products from different customers even within a day.
Volume-Based Flexibility:
Volume-Based flexibility states that an organization must know how to increase and decrease its volume of production as per the market condition.
It is not cost-effective to produce a higher volume of product, whose demand fluctuates with time. Organizations having these kinds of products need to have their resources flexible.
Customer Interaction:
Customer interaction works as feedback to the product.
Customers are using this product, and having a say on the product reaching out to customers helps maintain a relationship with the customer, and it helps to improve the product where it is required.
Maintenance of Quality Levels:
An organization wants to put the best possible product in front of its customers.
They thrive at making a product not only better from their competitors but from what they have produced in the past.
Feasibility Analysis:
Technical Feasibility:
The duties assigned to the employees have a structure to keep the workload managed.
The workload should resonate with the skill and efficiency levels of the employees.
As we have discussed, Man, Now it’s time to talk about the non-human aspect.
Managers should know the availability and requirements of the types of equipment required to have proper functioning at the workplace.
The organization should provide the required pieces of equipment to their employees.
Economic Feasibility:
Every organization is running because of the motive to earn profits.
To attain their goal, they need to cut their expenses without going harsh on the quality of their product.
There are some costs which the manager can have a check on to reduce the extra cost.
Some of the expenses an organization may incur are(Cost highly depends upon the nature of the organization. Below are some of the generic cost a business may incur):
A) Raw Materials
B) Maintainance of Stocks
C) Remuneration to employees
D) Cost of equipment
E) Rent(if applicable)/Bills of the premise
All the expenses should be cost-effective at the level of production.
Behavioral Feasibility:
The nature of the duties reflects the perception employees have of themselves and others.
Challenges bring the best out of employees. It makes them more dedicated to the task.
Crucial responsibility is given to the workers and hence is the self-confidence and motivates them to work hard on the designated job.
The manager should focus on the behavioral aspect of the employees as these behavioral traits of employees have a significant role in the effectiveness of the organization.
