UNIT - II

1. Planning – Choosing the best course of

action among several alternatives.
2. Operations – Execution as per plan
3. Control – Maintaining the performance by
comparing the actual results with
performance standards set and taking
appropriate corrective action if necessary to
reduce variance.
 Production Planning may be said to be a technique of
forecasting ahead 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

In the words of Kimball and Kimball Jr –

“The planning of industrial operations involves four
considerations, namely, what work shall be done, how
the work shall be done and lastly, when the work shall
be done.”
 Production control is the process that keeps a watchful eye on
the production flow and size of resources along with the location,
of any deviation from the present action and to arrange for the
prompt adjustment so that the production may run according to
the original or revised schedule
In the words of Henry Fayol –
“Production control refers to ensuring that all which occurs is
in accordance with the rules established and instructions
issued.”
 Inputs like materials, men and machines are efficiently
used
 Factors of production are integrated to use them

economically
 Division of work is undertaken carefully so that every

available element is properly utilized

 Work is regulated from the first stage of procuring raw

materials to the stage of finished goods

 Questions like what, when and how to be manufactured

are decided
 Determining sequence of operations for continuous
production
 Planning plant capacity for future production
programmes
 Issuing co-ordinated work schedules to concerned
persons
 Maintaining sufficient inventories to support continuous
flow of production
 Evaluating performance of workshops
 Maintaining production schedules to ensure delivery at
proper time
 Preparation of production budget
 Devising manufacturing methods and sequence of

operations
 Deciding type of machines and equipments
 Preparation of operation sheets and instruction cards
 Estimating men, machine and material requirements
 Undertaking time and motion studies
 Preparing master schedules
 Production planning and control is important for the
following reasons -
 For Increasing Production – Main purpose of
production planning is to arrange inputs. Production
control programme minimizes idleness of men and
machines. It thus helps in raising industrial output.
 For co-ordinating plant activity -In planning
production is carried out in a number of processes and
thus activities are synchronized for smooth working.
1. Material – Procurement, storage, inventory
control & issue.
2. Methods – Processes, Operations and their
sequences
3. Machines – Allocation (loading) of jobs &
utilization
4. Manpower- Availability of workers with
appropriate skills.
5. Routing – Flow of work
6. Estimating – Operation times
7. Scheduling – Time table of production,
priority sequencing and machine loading
8. Dispatching – Authorizing the start of
operations
9. Expediting – follow up & keeping record of
progress made.
10. Evaluating – Assessing the performance
effectiveness.
planning Plans

no
control OK? Revise
yes
Stop

PPC Class Notes-Chapter1

 Production planning & control

Production Control
Production Planning
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[Link]/ follow-
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up/ progressing
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corrective action
Strategic Planning

Tactical Planning

Implementation

Operations Control

Evaluation

Re planning
 Sub-dividing the master schedule into manufacturing and
subsidiary orders
 Routing
 Scheduling
 Dispatching
 Expediting
 Tool keeping
 For Cost Control – 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 Rationalization of Production Activities – In

production planning, the process of entering of raw
materials and converting them into finished goods is
planned in such a way that everything is done in
sequence or routine. It regulates flow of inputs to run
production system smoothly
 Following are the limitations faced by production
planning and control –
 Based on Assumptions – Production planning and

control is based on certain assumptions. In case the

assumptions prove correct, the planning and control will
go smoothly. But if they go wrong, process of planning
and control will go weak.

 Rigidity – Under production planning and control, there

is rigidity in the behavior of employees and it may not
help in smoothening flow of work.
 Difficult for small firms – This process is time
consuming and therefore not affordable for small firms

 Costly – It is a costly device as its implementation

requires separate persons to perform functions of
planning, expediting, dispatching etc.

 Dependence on External Factors – External factors like

natural calamities, change in technology, government
controls etc reduce effectiveness of production planning.
 Planning
 Routing
 Scheduling
 Dispatching
 Follow-up and Expediting
 Inspection
It is the first element of production planning and control.
Planning is deciding in advance what is to be done in
future. An organizational set up is created to prepare plans
and policies. Various charts, manuals and production
budgets are also prepared. Planning provides a sound base
for control. A separate department is set up for this work.
 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.

In the words of ALFORD and BEATY –

“Routing is the specification of the flow sequence of
operations and processes to be followed in producing
a particular manufacturing lot.”
 The following steps are taken for completing a routing
procedure –
 Deciding what part to be made or purchased
 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.
In the words of KIMBALL and KIMBALL –
“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.”
 Master Scheduling – It is the breakup of production
requirements. It is the start of scheduling. It is prepared
by keeping in view the order or likely sales order in near
future.
 Manufacturing Scheduling – It is used where production
process is continuous. The order of preference for
manufacture is also mentioned in the schedule for a systematic
production planning.
 Detail Operation Scheduling – It indicates the time
required to perform each and every detailed operations of a
given process
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.
In the words of JOHN A. SHUBIN –
“Dispatches put production in effect by releasing and
guiding manufacturing order in the sequence
previously determined by route sheets and
schedules.”
 Following two procedures may be used for dispatching
–
 Centralized Dispatching – Under this, orders are

directly issued to workmen and machines. It helps in

exercising effective control.
 Decentralized Dispatching – Under this procedure all
work orders are issued to the foreman or dispatch clerk of the
department or section. It suffers from difficulties in achieving
co-ordination among different departments.
“Follow up or expediting is that branch of production
control procedure which regulates the progress of
materials and part through the production process.”

Follow up Procedure –

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.
 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.