PRODUCTION PLANNING

AND CONTROL
• Production planning and control can be
defined as
– “The direction and coordination of firms’ resources towards
attaining the prefixed goals.”

• It is also know as operation planning and

control.
• Involves the organization and planning of
manufacture process.
• Assures efficient and economical production.
Objectives Of Production Planning
And Control
 To deliver goods in required quantities to
customers in required delivery schedule.

To ensure maximum utilization of all resources

To ensure production quality products

To minimize the product throughput time

To maintain optimum level inventory

To maintain flexibility in manufacturing

operations

Coordinate between labor and machines and

various supporting departments
Benefit Of production planning and
control
 Optimum
utilization.

Ensures Inventory
quality. control.

Economy in
production time.
Role Of Production Planning
And Control
In Operation Management
 Procurement And Sale
Inventory Control Distribution

Design and Product Planning And Manufacturing and

Development Control Assembly

Report Work Study

Maintenance And
Quality control
And Industrial
Replacement Engineering
Production
Planning
 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.
“Production Planning is concerned with the
determination, acquisition and arrangement of all
facilities necessary for future operations.”
………Ray Wild
Benefits
Organization can deliver a product in a
timely and regular manner.

Supplier are informed will in advance for

the requirement of raw materials.

It reduces investment in inventory.

It reduces overall production cost by

driving in efficiency
Levels
 Strategic
level

Tactical
level
Levels of
production planning Operational
level
Factors
Nature of product

Quantity to be produced

Available technology to produce that product

Possible enhancement in technology

Nature of production process

Available space for operation

Type of layout
Production Control
 Production control.
• Production control involves the use of various
control techniques to achieve production
performance as per plans. Coordinating
different resources are the task of production
control.
Objectives Of Production
Control.
 Organization of
Provision of raw
production
material, Best possible Determination
schedule in
equipment, use of of economic
conformity with
machines and resources. production.
the demand
labour.
forecast.
 Benefits Of
Production Control.
 Smoothens the flow of production
system.
Reduces direct and indirect cost.

Reduces scrap and waste.

Ensure proper utilization of resources.

Assure regular and timely supply of raw

materials.
Reliable and assured delivery.
 Levels Of
Production Control.
 Dispatching
Ordering
Programming
 Elements of production control.
• It controls the quality and quantity of materials.
• It smoothens the flow of information and
material
• It controls the production of different items for
timely delivery on due date.
• It reduces material handling to reduce breakage
and spoilage.
• It controls the available capacity of labour,
equipment, and machinery
Functions
 Estimating

Routing

Production planning
functions Scheduling

Loading

Functions of P.P.C
sequencing

Dispatching

Follow-up
Production control
function
Inspection

Evaluating and corrective

action
 Estimating

• Estimating involves deciding the quantity of

products to be produced and cost involved in
it on the basis of sales forecast.
• Estimating man power, machine capacity and
materials required to meet the planned
production targets are key activities before
budgeting for resources.
 Routing
• “Routing may be defined as the selection of paths or routes
over which each piece is to travel in being transformed
from raw material into finished product”.—Kimball and
Kimball Jr.
• It determines what work will be done on a product and
how it will be done.
– Routing procedure involves the following different activities:
(1) An analysis of the article to determine what to make and
what to buy.
(2) To determine the quality and type of material
(3) Determining the manufacturing operations and their
sequence.
(4) A determination of lot sizes
(5) Determination of scrap factors
(6) an analysis of cost of the article
 Scheduling

• “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 allowance for all factors
concerned.”—Kimball and Kimball Jr
• 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.
 Loading
• Loading is the execution of the schedule plan
as per the route chalked out.
• The assignment of the work to the operators
at their machine or work place.
 Sequencing

• Is concerned with determining the order in

which jobs are processed.
• The order of processing is important with
respect to the cost of waiting and the cost idle
time.
 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
 Follow Up
• Follow up or expediting is that branch of
production control procedure which regulates the
progress of materials and part through the
production process".
• The function of follow-up is carried by ‘follow-up
men’. These men act as intermediaries between
various departments bringing about co-
ordination between them. ‘Follow-up men’ are
also referred as expeditors, ‘go-betweens’, ‘stock
chasers’ and ‘progress-men’ etc.
 Inspection
• In the words of Kimball and Kimball Jr.
“Inspection is the art of comparing materials,
product or performance with established
standards.”
• Inspection is the process of ensuring whether
the products manufactured are of requisite
quality or not.
• Inspection is undertaken both of products and
inputs.
 Corrective Actions
• Corrective action may involve any of those
activities of adjusting the route, rescheduling of
work, changing the workloads, repairs and
maintenance of machinery or equipment, control
over inventories, poor performance of the
employees.
• Certain personnel decisions like training, transfer,
demotion etc. may have to be taken.
• Alternative methods may be suggested to handle
peak loads
STAGES IN PRODUCTION PLANNING
AND CONTROL FUNTION
MONITORING
MONITORING
STAGE
STAGE

ACTION
STAGE

PLANNING
STAGE

PRE-PLANNING PLANNING
STAGE STAGE
Procedure
Forecast

Prepare

Design

Specify

Requirement

Schedule

Ascertain

Precaution

Rate and scale

is setup
Element Of Effective Production
Planning Control
 Organization
structure

Right person at
Standardization
right place

Produce new Management

products Decision

Capacity to Flexible
produce Production

MIS Estimation
 Factors.

Magnitude
Nature of Nature of
of
production. operations.
operations.
 Utility and benefits of PPC.
• Last hour rush is avoided
• Problem areas of bottlenecks get reduced
• Cost reduction
• Optimum utilization of resources
• Better coordination of plant activities
• Benefits to workers
• Improved services to customers.
 Constraints of PPC.
• PPC is time taking activity, particularly for
complex product because of difficulty in
carrying out routing, scheduling and loading.
• PPC generally works on certain given
conditions.
• Plans, checks and controls provided by PPC
are generally resisted by workers and even
supervisors.
• Production capacity, quality, availability of
materials are main constraints of PPC.
• Business environment makes very difficult
situations for working of PPC.