PRODUCTION

PLANNING and
CONTROL
What is production planning control?

- Production planning and control involves generally

the organization and planning of
the manufacturing process.

- 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.
 OBJECTIVES OF PRODUCTION
PLANNING & CONTROL

1. to ensure safe and economical production process

2. to effectively utilize plant to maximize productivity
3. to maximize efficiency by proper coordination in
production process
4. to ensure proper delivery of goods
5. to place the right man for the right job, at right
time for right wages.
6. to minimize labor turn over
7. to reduce the waiting time
 Traditional Production Planning and Control

- The task of traditional production planning and

control is to plan and produce the products
according to management’s orders and policy.

5 Stages of PPC
1. Master production schedule
2. Material requirement planning
3. Capacity planning
4. Shop floor control
5. Inventory management and control
 Master Production Schedule
 MPS is a plan for individual commodities to be produced in each time
period. It is usually linked to manufacturing where the plan indicates
when and how much of each product will be demanded.
 Material Requirement Planning
MRP
- is a system for calculating the materials and components needed
to manufacture a product. It consists of three primary steps: taking inventory
of the materials and components on hand, identifying which additional ones
are needed and then scheduling their production or purchase.
- One of the first computerized function.
- Joseph Orlicky, George Loss, Oliver Wight stand out as the some of the
principal pioneer in these effort to modernize and computerize the
production management function.
 Capacity Planning
 -CP is the process of determining the production capacity needed by
an organization to meet changing demands for its products. In the context
of capacity planning, design capacity is the maximum amount of work
that an organization is capable of completing in a given period.
 Shop Floor Control
 - SFC is a software system of methods and tools that are used to
track, schedule and report on the progress of work in a manufacturing
plant. Shop Floor Control systems generally evaluate the portion of an
order or operation that has been completed.
Inventory Management and Control
 Inventory management is different from inventory control, and its
important that distributors understand the difference.
 Inventory control regulates the inventory that is already in
a distributor's warehouse.
 Inventory management includes the activities of forecasting and
product replenishment.
Some of these functions are performed by the departments in the firm
other than the production control department.

 Forcasting- is concerned with projecting or predicting the future sales

activity of the firm’s products. Sales forecasts are often classified according
to the time horizon over which they attempt to estimate. Long range (5yrs
or more), Intermediate range (1 to 2 yrs in advanced), Short term range
(3 to 6 months future).
 Production planning- sometime called aggregate production planning
and its objective is to establish general production levels for product
groups over the next year and so on.
 Process planning- involves determining the sequences of manufacturing
operations required to produce a certain product and or it’s components.
 Estimating- for purposes of determining prices, predicting costs, and
preparing schedules, the firm will determine estimates of the
manufacturing lead times and production costs of its product.
 - Master scheduling – it must be translated into master schedule which
specifies how many units of each product are to be delivered and when.
Master schedule must be converted into purchase orders for raw
materials, orders for components from outside vendors, and production
schedule for parts made in the shop.
 Requirements planning- the individual components and subassemblies
that make up each product must be planned. Raw materials must be
ordered to make up each product must be planned.
Problems with Traditional Production Planning and Control
The types of problems commonly encountered in the planning and control of
production are the following:

 1.) Plant capacity problems- production fails behind schedule due to lack of
labor and equipment. This result excessive overtime, delays in meeting,
delivery schedule, customer complaints, backordering, and othe similar
problems.
