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."
PHASES OF PRODUCTION PLANNING AND
CONTROL

• PRE – PLANNING PHASE

• PLANNING PHASE
• CONTROL PHASE
 PRE – PLANNING PHASE
• Micro planning
• Analysis of data
• Out line of basic planning (Demand , Market analysis,
and product design and development)
• Pre planning concern with 4’M’s Material, Machine,
Methods, Manpower
 PRE PLANNING
• Product development and design
• Process design
• Work station design
• Sales forecasting
• Estimating
• Factory outlet and location
• Equipment policy
• Pre – planning production
 PLANNING PHASE
• Analysis of 4’M’s (Material, Machine, Methods,
Manpower) to undertake the above “M”s
• Phase for Planning, Estimating, & Scheduling
• Short-term planning
• Long-term planning
 CONTROL PHASE
• This involves Dispatching, Inspection, Expediting, and
evaluation.
• Control of scrap, control of transportation.
• Feed back information for the corrective actions.
 Production Planning And Control
• PPC is aimed to achieving the efficient utilization
of resources (material, men, facility) in the
manufacturing organizations through planning,
coordinating and control the production
activities that transform the raw materials in to
finished product.
 Objectives Of PPC
• To design the production system to meet with minimum cost
and quality standard
• To ensure maximum utilization of resources
• To ensure production of quality products
• To maintain inventory controls
• To maintain flexibility in manufacturing
• To plan the plant capacities for future requirements
• To establish targets and checking them against performance
• To ensure effective cost reduction and cost 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
what work shall be done, how the work shall be done and
lastly, when the work shall be done.
 OBJECTIVES OF PRODUCTION
PLANNING
• To determine the requirements of men, material and equipment.
• Arranging production schedules according to the needs of marketing demand.
• Arranging various inputs at a right time and in right quantity.
• Making most economical use of various inputs.
• To achieve coordination among various departments relating to production.
• To make all arrangements to remove possible obstacles in the way of smooth
production.
• To achieve economy in production cost and time.
• To operate plant at planned level of efficiency.
• Making efforts to achieve production targets in time.
• Providing for adequate stocks for meeting contingencies.
LEVELS OF PRODUCTION PLANNING
• Factory planning (Availability of machines, buildings, and goods)
• Process planning (Operations involved)
• Operation planning (Tools required)

• FACTORS DETERMINING PRODUCTION PLANNING

• Volume of production
• Nature of production process
• Nature of operations
 PRODUCTION CONTROL
• Production control guides and directs flow of production so
that products are manufactured in the best way as per the
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.
 SCOPE OF PRODUCTION CONTROL
• Control of planning
• Control of tooling
• Control of materials
• Control of activities
• Control of material handling
• Control of information
• Control of quantity
• Control of due dates
• Control of quality
• Control of manufacturing capacity
Steps in Production Planning and Control
• The four stages or steps in production planning and control are:

• Routing,
• Scheduling

• Dispatching
• Follow-up
 Routing
• Routing is the first step in production planning and control.
• Routing can be defined as the process of deciding the path (route) of
work and the sequence of operations.
• Routing fixes in advance:

• The quantity and quality of the product.

• The men, machines, materials, etc. to be used.
• The type, number and sequence of manufacturing operations, and
• The place of production.
• In short, routing determines What, How much, With which, How and
Where to produce.
 Scheduling
Scheduling is the second step in production planning and control. It
comes after routing.
• Scheduling means to:

• Fix the amount of work to do.

• Arrange the different manufacturing operations in order of priority.
• Fix the starting and completing, date and time, for each operation.
Scheduling is also done for materials, parts, machines, etc. So, it is like a
time-table of production. It is similar to the time-table, prepared by the
railways.
 Dispatching
Dispatching includes the following:

• Issue of materials, tools, fixtures, etc., which are necessary for actual
production.
• Issue of orders, instructions, drawings, etc. for starting the work.
• Maintaining proper records of the starting and completing each job
on time.
• Moving the work from one process to another as per the schedule.
• Starting the control procedure.
• Recording the idle time of machines
 Follow-up
• Follow-up or Expediting is the last step in production planning and control.
It is a controlling device. It is concerned with evaluation of the results.
• Follow-up finds out and removes the defects, delays, limitations,
bottlenecks, loopholes, etc. in the production process. It measures the
actual performance and compares it to the expected performance. It
maintains proper records of work, delays and bottlenecks. Such records are
used in future to control production.
• Follow-up is performed by ‘Expediters’ or ‘Stock Chasers’.
• Follow-up is necessary when production decreases even when there is
proper routing and scheduling. Production may be disturbed due to break-
downs of machinery, failure of power, shortage of materials, strikes,
absenteeism, etc.
• Follow-up removes these difficulties and allows a smooth production
LOADING AND SCHEDULING
 SCHEDULING -BENEFITS
• Inventory reduction,
• Process change-over reduction
• leveling
• Reduced scheduling effort
• Increased production efficiency
• Labor load leveling
• Accurate delivery date quotes
• Real time information
 GANTT CHART

•A Gantt chart is a type of bar chart, developed by Henry Gantt, which illustrates
a project schedule.
• Gantt charts illustrate the start and finish dates of the terminal elements and summary
elements of a project.
•Terminal elements and summary elements comprise the work breakdown structure of
the project.
•Some Gantt charts also show the dependency (i.e., precedence network) relationships
between activities. 
Aggregate Production Plan
Aggregate planning is concerned with matching supply and demand
of output over the medium time range, up to approximately 12 months
into the future.
The term “aggregate” implies that the planning is done for a single
overall measure of output.
It determines not only the output levels planned but also the
appropriate resource input mix to be used.
Combines appropriate resources into general terms.
 Aggregate Production Plan

Is concerned with setting production rates by product group or other

broad categories for the intermediate term (2 to 18 months).
The main purpose of the aggregate operations plan is to specify the
optimal combination of production rate, work-force level and inventory on
hand.
• Production rate – refers to the number of units completed per unit of time.
• Workforce level – is the number of workers needed for production.
• Inventory on hand – is unused inventory carried over from the previous
•period.
 Role of Aggregate Planning
Integral to part of the business planning process
 Supports the strategic plan
 Also known as the production plan
Identifies resources required for operations for the next 6 -18 months
Details the aggregate production rate and size of work force required
Aggregate planning has certain pre-requisite
inputs which are inevitable.

They include:
 Information about the resources and the facilities available.
 Demand forecast for the period for which the planning has
to be done.
 Cost of various alternatives and resources. This includes
cost of holding inventory, ordering cost, cost of production
through various production alternatives like subcontracting,
backordering and overtime.
 Organizational policies regarding the usage of above
alternatives.
Aggregate Planning