 Production planning and control : Meaning

 Characteristics
 Objectives of PPC
 Scope of PPC
 Role of PPC
 Functions of PPC
 Importance of PPC
 Meaning and objectives of production
planning
 Meaning and objectives of production control
 Production planning and control is a
predetermined process which includes the
use of human resource, raw materials,
machines etc. PPC is the technique to plan
each and every step in a long series of
separate operation. It helps to take the
right decision at the right time and at the
right place to achieve maximum efficiency.
PPC
Production Planning: It is the process of
forecasting ahead every step in the long
process of production, taking them at right
time, in the right degree and completing the
operations at maximum efficiency.

Production Controlling: It is the process of

keeping watchful eye on the production flow
by utilizing different types of control
techniques to achieve optimum performance
out of the production system as to achieve
overall production planning targets.
It is the nervous system of a production
operation.

The primary concern of production ,planning

and control is the delivery of products to
customers or to inventory stocks according to
some predetermined schedule
 Inputs like materials, men and machines are
efficiently used
 Factors of productions are integrated to use
them economically
 Division of work is undertaken carefully so that
every available element is properly utilised
 Work is regulated from the first stage of
procuring raw material to the stage of finished
goods.
 Questions like what, when and how to be
manufactured are decided
What to produce Product Planning & Development including product
design

Material Planning , Process Planning , Tool

How to produce
equipment planning

Where to produce Facilities planning, Capacity planning,

Subcontracting
When to produce
Production scheduling , Machine loading

Who will produce Manpower planning

How much Qty Planning, Economic batch size

to produce
 Optimum utilization of organizational
resources
 Continuous Flow of Production
 Deliver good quality product at minimum cost
 Reduce production cycle time
 Flexibility in production processes
 Coordination between various departments
 Optimum Inventory Levels
 Plan for future requirements
 Remove bottlenecks of production
 Customer Satisfaction
 Production and Employment Stabilization
Production planning and control encompasses the
following areas:
 Material
 Method
 Machine and equipment
 Manpower
 Estimation
 Routing
 Loading and Scheduling
 Dispatching
 Expediting
 Inspection
 Taking orders from marketing division.
 Analyzing the orders & feeling the
requirements of customer.
 Planning for production.
 Cost analysis & lead time.
Production Planning Production Control
Estimating Dispatching
Expediting Routing
Inspection Scheduling
 Evaluation & Control Loading
 Effective utilization of resources
 Minimizing the wastage
 Proper coordination
 Quality products produced
 Provide better environment
 Estimation of resources
 Smooth flow of production
 Increases labour productivity
 Based on assumptions
 Rigidity
 Time consuming
 Costly
 Difficult for small firms
 Dependence on external factors
 Production Planning can be referred to as a
technique of forecasting every step in the
long process of production, taking them at
right time and in the right degree and trying
to complete operations at the maximum
efficiency.
“The planning of industrial operations involves
Three considerations, namely, what work
shall be done, how the work shall be done
and lastly, when the work shall be done.” (by
– Kimball)
 Effective utilization of resources
 Steady flow of production
 Estimate the resources
 Ensures optimum inventory
 Co ordinates the activities of departments
 Minimize the wastages
 Improves the labor productivity
 Reduces the production cost
Production control is the process that keeps a
watchful eye on the production flow, size of
resources along with any deviation from the
planned action. It also includes arrangement for
the prompt remedy or adjustment in case of any
deviation so that the production may run
according to the original or revised schedule.
“Production control refers to ensuring that all
which occurs is in accordance with the rules
established and instructions issued.” (By – Henry
Fayol)
 To prepare production schedule in compliance
with forecasted demand.
 Optimum utilisation of resources to minimize
production costs and timely delivery.
 To reduce setup costs by determining economic
production runs.
 Establishment of better coordination among
various departments.
 To ensure supply of raw materials and when
required to eliminate waiting time.
 To examine work in progress regularly to ensure
quality of product.
 Routing is determining the exact path which
will be followed in production. It is the
selection of the path from where each unit
have to pass before reaching the final stage.
The stages from which goods are to pass are
decided in this process.

 “Routing is the specification of the flow

sequence of operations and processes to be
followed in producing a particular
manufacturing lot.”( Alford & Beatty)
• Deciding what part to be made or purchased
(make or buy)
• Determining Materials required
• Determining Manufacturing Operations and
Sequences
• Determining of Lot Sizes
• Determining of Scrap Factors
• Analysis of Cost of the Product
• Preparation of Production Control Forms
 Scheduling is the determining of time and
date when each operation is to be
commenced or completed. The time and date
of manufacturing each component is fixed in
such a way that assembling for final product
is not delayed in any way.
 “The determination of the time that should be
required to perform each operation and also
the time necessary to perform the entire
series, as routed, making allowances for all
factors concerned.”(Kimball)
 Minimizing delay and interruption in
production process.
 Reducing waiting and cost of production.
 Providing required inventories on right time
at right place.
 Maximising the utilisation of avaliable
resources.
 Balancing the allocation of time among
various work centres , floors and departments
to reduce or eliminate idle capacity.
The next step is Loading which is execution of
the scheduled plan as per the route chalked
out. It includes the assignment of the work to
the operators at their machines or work
places.
So Loading determines who will do the work.
 Balancing work load among processes and
machines.
 Fulfill delivery commitments.
 Continuous mapping of capacity under
utilization.
 Plan new orders if there is spare capacity
available.
 Run feasibility test for production
programmes.
 Maintain consistency in work flow.
 Identify and remove bottlenecks.
 Dispatching refers to the process of actually
ordering the work to be done. It involves
putting the plan into effect by issuing orders.
It is concerned with starting the process and
operation on the basis of route sheets and
schedule charts.
 “Dispatches put production in effect by
releasing and guiding manufacturing order in
the sequence previously determined by route
sheets and schedules.”(John A. Shubin)
 Progress may be assessed with the help of
routine reports or communication with
operating departments. The follow up
procedure is used for expediting and
checking the progress.
 “Follow up or expediting is that branch of
production control procedure which regulates
the progress of materials and part through
the production process.”
• Inspection is the process of ensuring whether
the products manufactured are of requisite
quality or not.
• Inspection is undertaken both of products
and inputs. It is carried on at various levels of
production process so that pre-determined
standards of quality are achieved.
• Inspection ensures the maintenance of pre-
determined quality of products.