Measuring Production Capability
Oftentimes, production planners are forced to schedule production based on demand alone. This is frustrating for both the planner and the production leaders.
The planner gets a new order from Walmart for 300,000 cases this month. Wakefern wants another 150,000 cases per month. The planner sends his order to the production floor and expects 15,000 cases a day. On day one 16,000 cases are produced. The planner is thrilled. The next day 18,000 are produced. The planner worries that she cannot get orders to sell everything being produced. The next day 10,000 cases are produced. The planner already promised marketing and sales that 15,000 per day will be delivered. The planner demands that the production leader produce more. The production leader explains there were mechanical issues. Everyone is stressed.