PRODUCTION PLANNING AND

CONTROL
 Production
Production is the process by which goods or
services are created.
It is a means of converting raw materials
into finished product by performing a set of
manufacturing operations in a
predetermined sequences that transforms
material from a given to desired form.
Planning
Planning means preparing the scheme in
advance before the actual work is started.
It is predetermination of future course of
action to meet the desired objectives.
Before starting the production it is
necessary to decide in advance what to
produce, how to produce, how much to
produce and where to sell.
 Production Planning
Production planning is the
predetermination of future achievement in
type of products, volume of production,
quality time, manufacturing cost and the
resources required.
It analyses all the problems that may arise
and decides in advance how to address
them.
 Production Planning
Production planning is a technique of
forecasting steps involved in the long run
production process, taking them at the right
time, in the right degree and trying to
complete the operations efficiently.
It considers three fundamental questions
◦ What type of work has to be undertaken?
◦ How this work will be done?
◦ When the work has to completed
 Control
Control means supervision of all the relevant
operations with the help of control
mechanism that feeds back the progress of
the work.
Controlling is made by comparing the actual
performance with the present standards and
deviations, if any, are analysed to take
corrective measures.
 Production control
 It is process to track and control production
flow, amount of resources, and deviations (if
any) from the planned actions.
 It includes arrangements for mid course
correction in case of deviations from the original
plan so that the production can proceed as per
the original plan.
 In nutshell, production control ensures all which
is required to pursue the organizational goal in
accordance with the rules established and
instructions issued.
Production Planning and Control (PPC)

The PPC may be defined as the direction and

coordination of the firms material and physical
facilities towards the accomplishment of
predetermined production goals in the most efficient
and economical manner.
Production Planning and Control (PPC)
 Gordon and Carson observed that production planning
and control involve generally in the organization and
planning of manufacturing process.
 It consists of the planning of routing, scheduling,
dispatching, inspection, and coordination, control of
materials, methods machines, tools and operating
times.
The ultimate objective is the organization of the supply
and movement of materials and labour, machines
utilization and related activities, in order to bring about
the desired manufacturing results in terms of quality,
quantity, time and place.
PPC Contd..

Planning initiates action while control is

an adjusting process, providing corrective
measures for planned development.
 Production control regulates and stimulates
the manufacturing process from the beginning
to the end.
 Benefits of Production Planning & Control

Optimum utilization of capacity

◦ PPC helps the entrepreneur in scheduling the
tasks and production runs, and thereby ensures
that the productive capacity does not remain idle.
◦ PPC eliminates undue queuing up of tasks by
proper allocation of tasks and resources to the
production facilities.
 Benefits of PPC Contd.
 Inventory control
◦ Proper PPC will help the entrepreneur to resort to just- in- time systems
and thereby reduce the overall inventory.
◦ It also ensures that the right supplies are available at the right time.
 Economy in production time
◦ PPC will help the entrepreneur to reduce the cycle time and increase the
turnover via proper scheduling.
 Ensure quality
◦ A good PPC ensures adherence to the quality standards so that quality of
output is ensured.
To sum up we may say that PPC is of immense value to the
entrepreneur in capacity utilization and inventory control. More
importantly it improves his response time and quality. As such
effective PPC contributes to time, quality and cost parameters
of entrepreneurial success.
 Objectives of Production Planning & Control
The ultimate objective of production planning and
control is to contribute to the profits of the
enterprise.
This is accomplished by keeping the customers
satisfied through meeting of delivery schedules.
 Specific objectives of production planning and
control are
 to establish routes and schedules for work that will ensure
the optimum utilization of materials, workers, and
machines and
 to provide the means for ensuring the operation of the
plant in accordance with these plans.
Steps in Production Planning & Control

 Production planning
 Production control planning
 Routing
 Scheduling
 Loading
 Dispatching
 Following up
 Inspection of corrective sequence of operations
and to ensure that this sequence is strictly
followed.
 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.
 The main objective of routing is to determine (fix) the best and
cheapest sequence of operations and to ensure that this sequence is
followed in the factory.
 Different activities in Routing

Routing procedure involves following activities:

 An analysis of the article to determine what to
make and what to buy
 To determine the quality and type of material
 Determining the manufacturing operations
and their sequence
A determination of lot sizes Determination of
scrap factors
 Organization of production control forms
 Loading
 The next step is the execution of the schedule
plan as per the route chalked out which includes
the assignment of the work to the operators at
their machines or work places.
 Gantt Charts are most commonly used in small
industries in order to determine the existing load
and also to foresee how fast a job can be done.
◦ It is a type of bar chart that illustrates project
schedule.
◦ The charts explain the start and finish dates of
terminal elements and summary elements of a
project.
 Scheduling
 Scheduling is the last of the planning functions.
◦ It determines when an operation is to be performed, or
when work is to be completed; the difference lies in the
detail of the scheduling procedure.
 In a centralized control situation - where all
process planning, loading, and scheduling for the
plant are done in a central office- the details of the
schedule may specify the starting and finishing
time for an operation.
◦ On the other hand, the central schedule may simply give
a completion time for the work in a given department.
 Production control
Production control is the process of planning
production in advance of operations, establishing
the exact route of each individual item part
◦ or assembly, setting, starting and finishing for
each important item
◦ or the finishing production and releasing the
necessary orders as well as initiating the
necessary follow-up to have the smooth function
of the enterprise
 Dispatching
Dispatching is release of orders and instructions
for starting of the production of an item as per the
route sheet and schedule chart.
◦ Movement of materials to different workstations
◦ Movement of tools and fixtures necessary for each
operation
◦ Beginning of work on each operation
◦ Recording of time and cost involved in each operation
◦ Movement of work from one operation to another in
accordance with the route sheet
◦ Inspecting or supervision of work
Dispatching is an important step as it translates
production plans into production.
 Follow Up
 Every production programme involves
determination of the progress of work,
removing bottlenecks in the flow of work and
ensuring that the productive operations are
taking place in accordance with the plans.
 Follow up delays or deviations from the
production plans.
 It helps to reveal defects in routing and
scheduling, misunderstanding of orders and
instructions, under loading or overloading of
work etc.
Inspection
 This is mainly to ensure the quality of goods. It can be
required as effective agency of production control.
Corrective measures
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 of the cause of deviation
is the poor performance of the employees. Certain personnel
decisions like training, transfer, demotion etc. may have to be
taken.
Re-planning
 Re-planning is not a corrective action. Re-planning revises
routes, loads, and schedules; a new plan is developed. In
manufacturing this is often required. Changes in market
conditions, manufacturing methods, or many other factors