What is Process Planning
A process is something in which the forms of material undergo some changes by doing some manual or mechanical work. Lots of steps are involved under a process. Process planning can be defined as a planning of facts of a process before starting that process.
Now let us discuss the number of facts planned under process planning that are given in brief as follows:-
The first thing to anticipate about the process is the time of its completion. It is necessary that the process should be well timed. There should not be any wastage of time. As wastage of time is equivalent to the wastage of money. The work should be allocated to workers in such a way that process should be completed in minimum time. The next thing to analyze is the cost of process. Cost of process includes cost of different factors i.e. material, labor and overheads. An estimate regarding these costs is made while process planning. After deciding a budget about the cost of process, one needs to find the sources from where these financial needs can be fulfilled. The sources of finance must be ones which minimize the cost of finance and also covers risk factors. The main factor which to be anticipated is the profit factor. Now the major questions that are to be answered are whether the process is profitable and if yes, how much profit can be earned by the implementation of the process? Both these factors determine the magnitude of the profit factor. Now as you know, there is always lot of risk factors or uncertainties involved in a process. In a process planning, a plan should be prepared for all such uncertainties and risks involved. A process planning should not be rigid in nature. It should amend with change in circumstances i.e. it should be dynamic rather than static.
Planning of a process is an essential part of a process. It is the blood life of a process as nothing can be controlled without proper planning. Performing a process without adequate planning leads to wastage of labour, material and time that results in increased process costs and decreased profits. Hence we can say that without planning a process, an organization incurs a lot of monetary losses in a business.