Step 1: Know your real capacity
For each machine or line, record practical output per shift: not the nameplate figure, but what is actually achieved on a normal day including changeovers and small stops. Identify the bottleneck, the machine or process that limits total output. Your whole plan should be built around keeping the bottleneck running.
Step 2: Keep one order book
Every confirmed order goes into a single list with product, quantity, promised date and customer priority. Not in five WhatsApp chats and a diary. This is the input to planning.
Step 3: Plan a day ahead
| Machine / line | Product | Quantity | Shift | Material ready? | Order ref |
|---|---|---|---|---|---|
| Line 1 | A | Yes / No | |||
| Line 2 | A |
The plan for tomorrow is made by the afternoon of today, by the production planner with the store and the supervisor, so material shortages are found before the shift starts, not during it.
Step 4: Check material before you commit
For every planned job, the store confirms raw material, packing material and consumables. If something is short, the plan changes today, not tomorrow morning at the machine.
Step 5: Sequence to reduce changeovers
Group similar products, colours, sizes or dies together. Fewer changeovers mean more output from the same capacity. See cost reduction ideas for cutting changeover time.
Step 6: Review plan vs actual every evening
A 15-minute evening review: what was planned, what was achieved, and why the gap happened (breakdown, absenteeism, material, quality). Record the reason. After a month, the reasons show you exactly what to fix.
Step 7: Promise dates using capacity, not hope
Before sales confirms a delivery date, check the plan: is there capacity on the bottleneck, is material available? A shared view between sales and production prevents most late deliveries.
Key numbers to track
| Metric | Meaning |
|---|---|
| Plan adherence % | Achieved ÷ planned quantity |
| On-time delivery % | Orders delivered by the promised date |
| Bottleneck utilisation | Productive hours on the limiting machine |
| Changeover time | Average minutes per changeover |
| Downtime by reason | Breakdown, material, manpower, quality |
Put the headline numbers into your daily MIS report so you see production performance every morning without visiting the floor.
TBS installs production planning, MIS and capacity systems for factories. See manufacturing and production planning consulting.
Want this built for your business?
TBS installs these systems inside MSMEs and stays until your team runs them without you. Start with a 45-minute strategy session with the founder, or take the 20-minute Business Depth Assessment to see where you stand.
Frequently asked questions
What is production planning in a small factory?
Deciding what to produce, on which machine, in what quantity and in which shift, based on confirmed orders, real capacity and material availability, usually one day ahead.
How do I calculate production capacity?
Measure practical output per shift for each machine or line on normal days, including changeovers and small stops, then identify the bottleneck that limits total output.
Do I need ERP software for production planning?
Not to start. A daily plan in Excel or Google Sheets, with a material check and an evening plan-vs-actual review, delivers most of the benefit. ERP helps once the routine is stable.
Munishh Latawa is the founder of The Business Studio, an execution-first MSME consulting firm in Ludhiana that builds sales, operations, HR and costing systems for manufacturers, traders and service businesses across North India. About TBS