Production Planning
and Control (PPC)
By Dr. Nitya Khurana
Assistant Professor
IITM, Janak Puri
Production Planning
• Production planning is concerned with deciding in advance what is to
be produced, when to be produced, where to be produced and how
to be produced
• Production planning involves looking ahead, anticipating bottlenecks
and identifying the steps necessary to ensure smooth and
uninterrupted flow of production.
• It establishes exact sequence of operations for each individual item
and lays down the time schedule for its completion
Objectives of Production Planning
• To estimate the kind of resources like men, material, machines,
methods, etc. in proper quantities and qualities
• To estimate where and when these resources will be required so that
the production of desired goods is made most economically
• To make all necessary arrangement so that the production targets as
set in the production budgets and master schedule are reached
While attaining these targets, adjustments are made for the fluctuation
in demand
Information needed to carry of Production Planning
• Engineering data including complete analysis of the product to be
manufactured, operation, processes and methods through which each
product must pass
• Machine analysis giving full information regarding speed of all available
machines, their maximum capacity, rate of output per day/week/month
• Material analysis giving full information on the type, quality and quantity of
RM required for each process
• Characteristics of each job and the degree of skill and qualification of
personnel required
• Information regarding internal transport and material handling
• Information as to the customer’s orders on hand, delivery for customers,
stock in hand
Levels of Production Planning
• Factory planning- This stage primarily deals with plant location and
layout. This may include layout of various department in the plant as
well as layout of machinery and equipment
• Process Planning- Here the sequence of operations required in the
production process are determined. Plans are also made for layout of
work center in each process.
• Operation planning- this is concerned with planning the details of the
methods required to perform each operation i.e. selection of work
centers, designing of tools required for various departments,
sequence of work element in each operation are planned.
Production Control
• According to Henry Fayol production control is the art and science of
ensuring that all which occurs is in accordance with the rules established and
instructions issued
• Production control aims at achieving:-
Production Target
Optimum use of raw material
Increased profit through improved productivity
Better quality goods and services
• An efficient production control system requires:-
Reliable information
High degree of standardization
Sound organizational structure
Trained personnel for implementing PPC
Objectives of production control
• Provision of RM, equipment, machines and labour
• To organize production schedule inconformity with demand forecast
• To ensure efficient use of resources such that cost is minimized, and
delivery date is maintained
• Determination of economic production runs with a view to reduce set
up costs
• Proper co-ordination of operations of various departments
• To ensure regular and timely supply of RM
• To perform inspection of semi-finished and finished goods to make
sure that the goods produced adhere to quality standards
Levels of Production Control
• Programming- controls the output of products for the factory as a
whole
• Ordering- Controls the output of components from the suppliers and
processing department
• Dispatching- Considers each processing department in turn and plans
the output from the machine and work centers so as to complete the
orders by due datw
Production Planning and Control
• Planning and control are interrelated and interdependent. Planning is
meaningless unless control actions is taken to ensure the success of the
plan
• Control provides feedback with the help of which existing plans can be
modified if necessary.
• Similarly control is dependent on planning as the standards of
performance are laid down under planning
• Together planning and control determine in advance the sequence of
operations; exact route of each item, part or assembly; starting and
finishing dates of important items, assembly or finished goods; releasing
necessary orders for RM and initiating required follow up to effectuate
the smooth functioning of the enterprise
Objectives of Planning and Control
Increased
Productivity
Customer Planned
Satisfaction Requirement of
Resources
Continuous
flow of
Production
Evaluation od Co-ordinated
Performance work schedules
Optimum
Inventory
Importance of PPC
Better service to
customer
Low Capital Requirement Fewer Rush Orders
Better control over
Good Public Image
Inventory
Reduced idle time
Scope of PPC
Materials
Methods
Machines and Equipment
Manpower
Estimation
Expediting
Inspection
Cost Control
Advantages of PPC
• It co-ordinates all Phases of production
• It ensures better utilization of resources
• It ensures higher quality products
• It minimizes manufacturing time
• It facilitates faster delivery of goods
• It provides higher customer satisfaction
• It ensures minimum breakdowns
• It ensures minimum investment in inventory
• Its ensures higher productivity
Steps in PPC
Routing Loading
Scheduling
Dispatching
Follow Up and Inspection Corrective Action
