PRODUCTION PLANNING &

CONTROL
PRODUCTION PLANNING

• Production planning involves management decisions on the resources

that the firm will require for its manufacturing operations and the
selection of these resources to produce the desired goods at the
appropriate time and at the least possible cost.
Definition

• The planning of industrial operations involves following

considerations,

• what work shall be done,

• how the work shall be done
• when the work shall be done
OBJECTIVES OF PRODUCTION PLANNING
• To determine the requirements of • To make all arrangements to remove
men, material and equipment. possible obstacles in the way of
• Arranging production schedules smooth production.
according to the needs of marketing • To achieve economy in production
demand. cost and time.
• Arranging various inputs at a right • To operate plant at planned level of
time and in right quantity. efficiency.
• Making most economical use of • Making efforts to achieve production
various inputs. targets in time.
• To achieve coordination among • Providing for adequate stocks for
various departments relating to meeting contingencies.
production.
PRODUCTION CONTROL

• Production control guides and directs flow of production so that

products are manufactured in a best way and conform to a planned
schedule and are of the right quality.

• Control facilitates the task of manufacturing and see that every thing
goes as per the plan.
Definition

• Production control refers to ensuring that all which occurs is in

accordance with the rules established and instructions issued.
-HENRY FAYOL
OBJECTIVES OF PRODUCTION CONTROL
• To implement production plans by issuing orders to those who are
supposed to implement them.
• To ensure that various inputs like men, machine, materials etc. are available
in the required quantity and quality.
• Making efforts to adhere to the production schedules.
• To ensure that goods are produced according to the prescribed standards
and quality norms.
• To undertake the best and most economic production policies.
• To introduce a proper system of quality control.
• To ensure rapid turnover of production and minimizing of inventories of
raw materials and finished products.
PRODUCTION PLANNING AND CONTROL
• Production planning and control is concerned with directing
production along the lines set by the planning department.

• Definition
• Production planning and control is the co-ordination of series of functions
according to a plan which will economically utilize the plant facilities and
regulate the orderly movement of goods through the entire manufacturing
cycle from the procurement of all materials to the shipping of finished goods
at a predetermined rate." -CHARLES A. KOEPKE
Functions of PPC
CHARACTERISTICS OF
PRODUCTION PLANNING AND CONTROL
CHARACTERISTICS OF
PRODUCTION PLANNING AND CONTROL
• It is the planning and control of manufacturing process in an enterprise.
• Questions like-what is to be manufactured? when it is to be
manufactured? etc.
• All types of inputs like materials, men, machines are efficiently used for
maintaining efficiency of manufacturing process.
• Various factors of production are integrated to use them efficiently and
economically.
• The manufacturing process is organised in such a way that none of the
work centres is either overworked or under worked.
• The work is regulated from the first stage of procuring raw materials to the
stage of finished goods.
Need/Importance of
Production Planning and Control
• For Increasing Production

• The main purpose of production planning, function is to arrange various

inputs like men, materials and machines and integrating them for making
their best use. When various factors of production are economically used
then production will certainly go up.
• Efforts are made to avoid production stoppages for want of various inputs. A
production control Programme will minimize the idleness of men and
machines.
• For Co-ordinating Plant Activity

• Production planning helps in controlling plant activities.

• Production targets are set on the basis of sales forecasts.
• The raw materials, men and equipment are arranged by keeping in view
production plans.
• Different production activities are adjusted as per the plans.
• If production is carried out in a number of processes then their activities are
synchronized for smooth working.
• For Cost Control

• It helps in controlling various costs.

• In the absence of a proper production plan, the idleness of men, material and
equipment may not be noticed.
• Whenever performance is below standards then corrective measures are
taken to rectify it.
• A properly planned system of production will help in controlling costs by not
only making full utilization of various inputs but also by increasing output and
lowering overhead expenses per unit.
• For Rationalisation of Production Activities

• An important objective of production planning and control is also to regulate

the flow of various inputs into the production system for running it smoothly.
• The system is planned in such a way that everything is done automatically.
• The supply of materials and men follows the demand for goods.
• The quality standards are followed in routine and sub-standard products are
discarded in the processes.
• The process of entering of raw materials and converting them into finished
• Consumers

• The consumer is ensured good quality goods.

• The process will help in raising quality standards of products.
• The supply of goods is also prompt and consumer has not to wait for them.
• Production schedules are prepared by keeping in mind the requirements of
consumers.
• The supplies are regulated for meeting the demand for goods.
• The increase in production also helps the consumer in getting sufficient
supply of goods.
Limitations of
Production Planning and Control
• Based on Assumptions
Production planning and control is based on certain assumptions. In case the
assumptions prove correct then the planning and control will go smoothly,
otherwise it may not.
The assumptions generally are about plant capacity, orders, availability of raw
materials and power etc. if these assumptions go wrong then the process of
planning and control will go weak.

• Rigidity
Under production planning and control the things are pre-decided and fixed.
There is rigidity in the behaviour of employees and it may not help in
smoothening the flow of work.
• Difficult for Small Firms
This process is time consuming and small firms may not be able to make use of
production planning and control.

• Costly
It is a costly device as its implementation requires separate persons to perform
the functions of planning, dispatching, expediting etc. Small firms cannot use
the services of specialists due to cost factor.

• Dependence on External Factors

The external factors sometimes reduce the effectiveness of production planning
and control. The factors like natural calamities, change in technology, change in
fashion, breakdown of power, government controls etc. limit the use of
production planning and control.
Techniques or Elements of
Production Planning and Control

1. Planning 4. Dispatching
2. Routing 5. Follow-up and Expediting
3. Scheduling 6. Inspection
PLANNING

• Planning is deciding in advance what is to done in future.

• Control devices are also decided in advance so that all activities are
carried on properly.
• An organizational set up is created to prepare plans and policies.
• Various charts, manuals and production budgets are also prepared.
• If production planning is defective then control will also be defective.
Planning provides a sound base for control.
ROUTING

• It is determining the exact path or routing which will be followed in

production.
• The stages from which goods are to pass are decided after a proper
thought.
• It is the selection of the path from where each unit has to pass before
reaching the final stage.
• The path must have the best and cheapest sequence of operations.
SCHEDULING

• Scheduling is the determining of time and date when each operation

is to be commenced and completed.
• It includes the scheduling of materials, machines and all other
requisites of production.

• Scheduling means" fitting specific jobs into a general time table so

that order may be manufactured in accordance with contracted
liability or in mass production, so that each component may arrive at
and enter into assembly in the order and as is required."
DESPATCHING

• The term 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 schedule.”
FOLLOW UP AND EXPDITING

• Follow up or expediting is that branch of production control

procedure which regulates the progress of materials and part through
the production process.

• PROCEDURE
1. Progress should be checked
2. Causes of differences should be ascertained
3. Helping in removing the deviations
4. Report with departments supplying materials.
INSPECTION

• The purpose of inspection is to see whether the products

manufactured are of requisite quality or not.
• It is carried on at various levels of production process so that
pre-determined standards of quality are achieved.
• Inspection is undertaken both of products and inputs.