The Critical Difference Between Planning and Scheduling in Business Projects

Planning and scheduling are key parts of the manufacturing and production process and as such are usually inseparable. However, the two terms are very often confused with people often using them interchangeably, then in reality, they are in fact very different.

Often, a company will utilise APS, or Advance Planning and Scheduling formulas to factor in a number of variables to ensure they are using the best form of planning or scheduling for their specific needs and goals.

Because APS is so widely used, it is important to have a basic understanding of the two main aspects of this equation – planning and scheduling.

When the decision makers in a company must choose between planning and scheduling, they will choose planning if they desire to have a demand-based solution. Planning analyses the data and takes into account the demand that will be there for a product. When demand is calculated, it can either be based on the actual and current demand, or it can be a projection of future demands.

After demands are scrutinized, a company can then make decisions regarding what product should be produced, the quantity of the product to be made, the time frame in which the product should be manufactured, and the best place of production for the product.

As soon as these variables are worked out, the planning process is then used to analyse what materials and resources are needed to achieve each of these production goals.

Planning functions best for a set amount of time. It is designed so that it can provide for the demand of a product for this amount of time. With that being said, planning is the simpler of the two methods, and because of this, it is not easily adjustable for real-time data, and therefore, it is not feasible to make adjustments if production does not go as planned.

In the case of scheduling, demand is not a factor, but instead the focus is on the most productive way to create a product.

With scheduling, a plan is derived that takes into account several factors so that production of the product can be efficient. When a schedule is created, it is first decided how to best use the combination of available resources.

Many factors are taken into account in this step of scheduling, including the use of live data so that resources are most accurately utilized.

Because of the use of this data, allowances can be made for malfunctions in the production process, such as mechanical errors with the machines. As production progresses, the company can use these packs of data to oversee, manage, and adjust production so that the products being made have excellent production time and are of good quality.

Scheduling is set up so that it can be maintained over a long, or indefinite period of time, which is the opposite of planning. Because it is designed to be a long-term operations guide using live data, adjustments can be made so that best product can be deliver to consumers.

Scheduling is heavily reliant upon the data of machine sequences. When this data is received, mathematical formulas and charts are used to produce the production sequence so that the product can be made in the timeliest manner.

Sound Complex?

The complexity required in most planning and scheduling processes necessitates the use of complex tools to manage them. Some companies mistaken believe that Post-It notes or a spreadsheet can be used to handle a production plan or schedule, when in reality, that can cause more problems than it solves.

Of course, the development of computer software means complexity can be reduced through the use of visual planning tools, and great advances have been made in this area with visual planning software now being available that can simplify plans and schedules.

By democratising, publishing and making plans and schedules available company-wide, it creates a better environment for collaboration and therefore more likelihood that they will be read, acted upon and delivered.