Production Planning and Control (PPC)
Meaning:
Production
planning and control is an important task of Production Manager. It has to see
that production process is properly decided in advance and it is carried out as
per the plan. Production is related to the conversion of raw materials into
finished goods. This conversion process involves a number of steps such as
deciding what to produce, how to produce, when to produce, etc. These decisions
are a part, of production planning. Merely deciding about the task is not
sufficient.
The whole
process should be carried out in a best possible way and at the lowest cost.
Production Manager will have to see that the things proceed as per the plans.
This is a control function and has to be carried as meticulously as planning.
Both planning and control of production are necessary to produce better quality
goods at reasonable prices and in a most systematic manner.
Production planning is the function of
looking ahead, anticipating difficulties to be faced and the likely remedial
steps to remove them. It may be said to be a technique of forecasting ahead
every step in the long process of production, taking them at a right time and
in the right degree and trying to complete the operations at maximum
efficiency. Production control, on the other hand, 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 see that everything goes as per the plans.
Goldon B. Carson:
“Production planning and control involves
generally the organization and planning of the manufacturing process.
Specifically, it consists of the planning of the routing, scheduling,
dispatching and inspection, co-ordination and the control of materials,
methods, machines, tooling and operating times. The ultimate objective is the
organization of the supply and movement of materials and labour, machine
utilization and related activities, in order to bring about the desired
manufacturing results in terms of quantity, time and place.”
James L. Lundy:
“Basically, the production control
function involves the co-ordination and integration of the factors of
production for optimum efficiency. Overall sales orders or plans must be
translated into specific schedules and assigned so as to occupy all work
centres but overload none. The job can be done formally in which case elaborate
charting and filing techniques are used; or it can be done informally, with
individuals’ thoughts and retention there of supplanting tangible aids.”
Charles A. Koepke:
“Production planning and control is the
coordination of a 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.”
For
efficient, effective and economical operation in a manufacturing unit of an
organization, it is essential to integrate the production planning and control
system. Production planning and subsequent production control follow adaption
of product design and finalization of a production process.
Production
planning and control address a fundamental problem of low productivity,
inventory management and resource utilization.
Production
planning is required for scheduling, dispatch, inspection, quality management,
inventory management, supply management and equipment management. Production
control ensures that production team can achieve required production target,
optimum utilization of resources, quality management and cost savings.
Characteristics of Production Planning and Control:
1. It is the planning and control of
manufacturing process in an enterprise. The questions like—What is to be
manufactured? When it is to be manufactured? How to keep the schedule of
production etc.? —are decided and acted upon for getting good results.
2. All types of inputs like materials,
men, machines are efficiently used for maintaining efficiency of the
manufacturing process.
3. Various factors of production are
integrated to use them efficiently and economically.
4. The manufacturing process is organized
in such a way that none of the work centres is either overworked or under
worked. The division of work is undertaken very carefully so that every
available element is properly utilized.
5. The work is regulated from the first stage of procuring raw materials to the stage of finished goods.
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