Leader:Chryztyn Tibule

Members:Mark Francis Eisma

Chastine Shanne Pintang
Kiara Bianca Siapno

____________________________________________________________
PRODUCTION PLANNING AND CONTROL
Production planning and control (PPC) can be defined as the process of planning or deciding on
the resources the firm will require for its future manufacturing operations and of allocating and
time scheduling these resources to produce the desired products on time at the least total cost.
Generally PPC is used in manufacturing organizations. But it can also be used in different nonmanufacturing units also.
PPC involves the planning of production, a decision on the sequence of operations to achieve
what has been planned , the setting of starting and finishing time for production, proper
dispatching of the material, and follow up action to check the progress of operations. The
ultimate objective of PPC is to organize the supply and movement of materials and labor,
machines utilization and related activities, in order to bring about the desired manufacturing
results in terms of quality, quantity, time and place.

Benefits of Production Planning and Control

It ensures that optimum utilization of production capacity is achieved, by proper

scheduling of the machine items which reduces the idle time as well as over use.

It ensures that inventory levels are maintained at optimum levels at all time, i.e. there is
no over-stocking or under-stocking.

It also ensures that production time is kept at optimum level and thereby increasing the
turnover time.

Since it overlooks all aspects of production, quality of final product is always maintained.

Production planning
Production planning may be defined as the technique of foreseeing every step in a long series
of separate operations, each step to be taken at the right time and in the right place and each
operation to be performed in maximum efficiency. It consists of the evaluation and
determination of production inputs such as labor, machinery and equipment, materials and
utilities to achieve the desired goal.
Objectives of Production Planning:
Page | 1

To ensure right quantity and quality of raw material, equipment, etc. are available during
times of production.

To ensure capacity utilization is in tune with forecast demand at all the time.

Benefits of a Well Thought Production Process:

Organization can deliver a product in a timely and regular manner.

Suppliers 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.

Production planning is done at three different time dependent levels i.e. long-range planning
dealing with facility planning, capital investment, location planning, etc.; medium-range planning
deals with demand forecast and capacity planning and lastly short term planning dealing with
day to day operations.

Production Control
Production control regulates and stimulates the orderly show of materials in the manufacturing
process from the beginning to the end. It is the use of different type of control techniques to
achieve optimum performance out of the production system as to achieve overall production
planning targets.
Objectives of Production Control:

Regulate inventory management

Organize the production schedules

Optimum utilization of resources and production process

Advantages of Robust Production Control:

Ensure a smooth flow of all production processes

Ensure production cost savings thereby improving the bottom line

Control wastage of resources

It maintains standard of quality through the production life cycle.

Factors Affecting Production Control:

Page | 2

Nature of production (job oriented, service oriented, etc.)

Nature of operation

Size of operation

FOUR STEPS IN PRODUCTION PLANNING AND CONTROL PROCESS

1. Routing
Routing is the planning process, which is undertaken to find the best possible path for
manufacturing a certain product. The main aim of routing is to determine the best and cheapest
Production Planning and control. Routing determines, What, How much, With which, How,
and Where to produce.

2. Scheduling
Scheduling is the allocation of resources applying the limiting factors of time and cost to perform
a collection of tasks. It involves the assignment of starting and completion times for the various
operations to be performed. Scheduling is mainly concern with time element and priorities of a
job. There are different types of schedules; namely, Master schedule, Operation schedule and
Detail Operation schedule. It is essential in a factory, where many products are produced at the
same time.
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.

Page | 3

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.

3. Dispatching
Dispatching is the transition from planning phase to action phase. In this phase, the worker is
ordered to start manufacturing the product. Dispatching may be either centralized or
decentralized:
Centralized Dispatching-orders are issued directly by a centralized authority.
Decentralized Dispatching- orders are issued by the concerned department.

4. Follow up or Expediting
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.

Page | 4