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Production Planning & Control. Production planning and control is the organization and planning of the manufacturing process.
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Production Planning & Control Production planning and control is the organization and planning of the manufacturing process. It co-ordinates supply and movement of materials and labor, ensures economic and balanced utilization of machines and equipment as well as other activities related with production to achieve the desired manufacturing results in terms of quantity, quality, time and place.
Production Planning & Control There are three stages in PPC Planning : The choice from several alternatives of the best utilizing the available resources to achieve the desired objective . Operations: Performance in accordance with details set out in production plan. Control: The monitoring of performance through a feed back by comparing the results achieved with planned targets so that performance can be improved. .
Objective of PPC • To deliver goods in required quantities to customers in required delivery schedule.ion • 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 labour and machines and various supporting departments
Functions of PPC • Routing • Estimating • Scheduling • Loading • Dispatching • Expediting • Evaluating • Inventory Control
Levels of PPC • Strategic Planning(Long range): It is process of thinking though the organizations current mission and environment and setting a guide for future decisions and results. e.g. Technology forecasting and choice of appropriate technology for the long range time horizon. • Tactical Planning(Intermediate Range): It is done over an intermediate term or medium range time horizon by middle level management. These plans focus on aggregate products rather than individual products. • Operational Planning(Short Range ): It is done over a short range time span developed by junior level management. It is concern with utilization of existing facilities rather than creation of new facilities.
Benefits of PPC • PPC coordinates all the phases of production / Operating system • An efficient plan results in higher quality ,better utilization of resources, reduced inventories, better customer services. • An efficient plan enable the firm to improve its sales turnover , market share and profitability.
Limitations of PPC • PPC function is based on certain assumptions or forecasts of customer’s demand, Plant capacity, availability of materials etc • Employee may resist change in production levels set as per production plans. • This process is time consuming when we need to carry out routing and scheduling function for large products. • This function become difficult when environmental factors changes rapidly.