PRODUCTION

PLANNING AND
CONROL

Submitted by
Reshma Babu
Roll no.: 42

Content
Production
Production

Planning
Production control
Production Planning and control
Objectives
Importance
Limitation
Elements
Refernces

Production
Production

is concerned with transforming

raw material into finished product with the
help of energy, capital, manpower and
machinery.
The aim of a good production policy is to
achieve maximum output with minimum
input.
Production policies and procedures are
concerned with production planning and
control.

Production objectives

Production Planning
Meaning:
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:
According to Ray Wild, production planning is
defined as follows:
Production Planning is concerned with the
determination, acquisition and arrangement of
all facilities necessary for future operations.

Objectives of Production
Planning
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.

Effective utilization of resources

Steady flow of production
Estimate resources
Ensure optimum inventory
Coordinate activities of departments
Minimize wastage of raw materials
Improper the labor productivity
Help to capture the market
Provide a better work environment
Facilitate quality improvement
Result in consumer satisfaction
Reduce the production costs.

Functions of Production
Planning
Product

selection & design

Process selection & planning
Facility location
Facility layout & materials handling
Capacity planning
Systems & procedures
Estimating quantity/costs of production, men
Routing operation sequence
Job scheduling & loading

Production Control
Meaning:
Production control guides and directs flow of
production so that products are
manufactured in a best way and conform to
a planned schedule and are of the right
quality. Control facilitates the task of
manufacturing and sees that every theme
goes as per the plan.
Definition:
Production control is the art and science of
ensuring that all which occurs is in
accordance with the rules established and
the instructions issued.Henry Fayol

Objectives of Production Control

1.
2.
3.

4.

5.
6.

To ensure that various inputs are available

in required quantity and quality
To organize production schedule in
conformity with the demand forecasts.
Resources used in best possible manner
cost of production is minimized and
delivery date is maintained.
To ensure regular and timely supply of raw
material in prescribed quality and quantity
to avoid delays in production.
To perform inspection and use quality
control techniques.
Proper co-ordination of operation of various
sections/department responsible for

Functions of Production
Control
Inventory

control: MRP; JIT

Time management
Quality control
Maintenance & replacement
Cost reduction & cost control
Dispatch
Expediting/Follow-up/ Progressing

Production Planning and

Control
Meaning:
Production planning and control is
concerned with directing production along
the lines set by the planning department.
Definition:
"Production planning and control is the coordination 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."
-CHARLES A. KOEPKE

Production planning and control 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.
Three stages in Production Planning and
Control function are:
Planning - Choosing the best course of action among several
alternatives.
Operation- Execution as per plan
Control- Maintaining the performance by companies the actual
results with performance standards set and taking appropriate
corrective action if necessary to reduce variance.

Objectives of Production
Planning and Control
1.To

deliver quality goods in required quantities to the

customer in the required delivery schedule to achieve
maximum customer satisfaction and minimum possible
cost.
2.To ensure maximum utilization of all resources
3.To ensure production of quality products
4.To minimize the product through-put time or
production/manufacturing cycle time
5.To maintain optimum inventory levels.
6.To maintain flexibility in manufacturing operation.
7.To coordinate between labor and machines and various
supporting departments
8.To plan for plant capacities for future requirements
9.To remove bottle neck at all stages of production and to
solve problems related to production
10.
To ensure effective cost reduction and cost control.

Requirements for Effective

Production Planning and Control
Sound

organizational structure
Delegation of authority
Reliable, up-to-date feedback
Standardization
Trained people
Flexibility to adapt
Appropriate management policies
Accurate assessment of manufacturing/
procurement lead times
Adequate plant capacity.

Need and Importance of

production planning and control
1.
2.
3.
4.
5.

For increasing production

For co-coordinating plant
activity
For cost control
For rationalization of production
activities
Consumers

Benefits of Production
planning & Control
Higher

quality
Better resource utilization
Reduced inventory
Reduced manufacturing cycle time
Faster delivery
Better customer services
Lower production costs

Benefits(continued)
Lower

capital investment
Higher customer service
Improved sales turnover
Improved market share
Improved profitability
Competitive advantage
Flexibility
Dependability
Lower price.

Limitations of Production
Planning and Control
1.
2.
3.
4.
5.

Based on assumptions
Rigidity
Difficult for small firms
Costly
Dependence on external factors

Techniques or Elements of
Production Planning and Control

Planning
First

and most important element

Refers to deciding in advance what is to
be done in future.
Anticipates possible difficulties
Separate dept- responsible for the
preparation of policies and plans
Control devices also decided in advanceactivities are carried on properly.
If production planning defective, then
control defective.

Routing
Routing

may be defined as the selection of paths

or routes over which each piece is to travel in being
transformed from raw material into finished
product.Kimball and Kimball Jr.

It

determines what work will be done on a product and

how it will be done.
Routing procedure involves the following different
activities:
(1) An analysis of the article to determine what to make
and what to buy.
(2) To determine the quality and type of material
(3) Determining the manufacturing operations and their
sequence.
(4) A determination of lot sizes
(5) Determination of scrap factors
(6) an analysis of cost of the article

Scheduling
Scheduling

is the determining of time and date

when each operation is to be commenced and
completed. It includes the scheduling of
materials, machines and all other requisites of
production.
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 allowance for all factors
concerned.Kimball and Kimball Jr.
Work Scheduling consists of the assignment of
starting and completion times for the various
operations to be performed.James C. Lundy

Types of schedules
Master

scheduling: Scheduling starts with the master

schedule. This schedule is prepared by keeping in view the
order or likely sales order in near future. Master scheduling
is the breakup of production requirements. This may be
prepared for a week, a fortnight, a month etc. No definite
pattern may be suggested for master schedules because
these may differ from industry to industry.
Operation scheduling: Manufacturing or operation
scheduling is used where production process is continuous.
When same product is produced repeatedly or
comparatively small numbers of products are required then
operation schedules are useful. The name and number of
the product and the quantity to be produced in a given
time are required to prepare a manufacturing schedule.
Detail operation scheduling: It indicated the time
required to perform each and every detailed operations of
a given machine or process.

Dispatching
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.
Dispatches put production in effect by
releasing and guiding manufacturing order in
the sequence previously determined by route
sheets and schedules. - John A. Shubin

Procedure or steps followed in

dispatching
1.
2.
3.
4.
5.
6.
7.

Moving of materials from process to

process.
Assigning of work to machines.
Issuing of tools to production departments.
Issuing of job orders.
Recording of time taken.
Ensuring necessary changes.
Having proper liaison with routing

Following up
Follow

up or expediting is that branch of

production control procedure which regulates
the progress of materials and part through
the production process".
The function of follow-up is carried by followup men. These men act as intermediaries
between various departments bringing about
co-ordination between them. Follow-up men
are also referred as expeditors, gobetweens, stock chasers and progressmen etc.

Generally production is assumed to progress

as expected. But there may be
differences which may arise due to the
following reasons:
1. Materials may be delivered late or may
not be delivered at all.
2. Associated departments may have fallen
behind in their own production.
3. There may be excessive absenteeism on
the part of the worker.
4. The customer may insist on changing the
specification or delivery date.
5. Machines may break down.
6. There may be errors in drawings.
7. There may be too many rejections due to
poor material quality.

Inspection
In

the words of Kimball and Kimball Jr. Inspection

is the art of comparing materials, product or
performance with established standards.
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 predetermined quality of products.

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, poor performance
of the employees.
Certain personnel decisions like training,
transfer, demotion etc. may have to be
taken.
Alternative methods may be suggested to
handle peak loads.

Conclusion
Smooth

working process
Sales maximization
Profit maximization
Consumers satisfaction
Continuous flow of production and
distribution

References
1.

2.
3.
4.
5.
6.

7.
8.

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http://www.bms.co.in/objectives-of-production-planning-con
trol/
James B. Dilworth, 1993,production and operations
management manufacturing and services, fifth edition.
Seetharama L. Narasiimhan, Dennis W. McLeavey, Peter J.
Billington, 1995, production planning and inventory
control, second edition.
B. Mahadevan, 1964, operations management theory
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Thank you