PRODUCTION PLANNING AND

CONTROL

FUNCTIONS OF A PRODUCTION
DEPARTMENT
The activity of production department of an organization can be
stated to
be :
To convert the physical resources of the manufacturing
concern into
saleable goods and services
For achieving the above objective, the Production department
must perform
the following activities:
a)Production of goods at the right time and in sufficient
quantity to meet the demand.
b)Production of goods at minimum possible cost
c)Production of goods of acceptable quality
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PRODUCTION PLANNING AND CONTROL

INTRODUCTION:
1. The efficiency of the production system is its ability to
produce the products with required quantity and
specified quality at a pre-determined cost and preestablished time.
2. Production Planning and Control is a tool available to
achieve the above stated objectives.
3. Production planning starts with the analysis of the given
data, i.e., demand for products, delivery schedule, etc.
4. On the basis of the information available, a scheme of
utilization of firms resources, like machines, materials
and men are worked out to obtain the target in the most
economical way.
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PRODUCTION PLANNING AND CONTROL

INTRODUCTION (cont. ) :
5. Once the plan is prepared, then operations are
performed in line with the details given in the plan.
6. Production planning and control can be
defined as:
direction and co-ordination of firms resources
towards
attaining the pre-fixed goals.

PRODUCTION PLANNING AND CONTROL

1. The three basic functions of Production
Planning and Control Department are:
a) Planning Function
b) Control Function
c) Progress Function
2. The Planning Function is further divided into
the following:
a) Routing activity
b) Scheduling activity
c) Dispatching activity
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ORGANIZATION CHART OF PRODUCTION

CONTROL DEPT
Production Control

Planning Dept

Routing Sect

Scheduling Sect

Dispatching Sect

Control Dept

Progress Dept

1.

PLANNING FUNCTION

1. Production planning is a pre-production activity.

2. It is the pre-determination of manufacturing
requirements, such as :
a) manpower,
b) materials,
c) machines and
d) manufacturing process.

3. Based on the demand for the companys products,

it is going to establish the production programme
to meet the targets using available resources.
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PLANNING FUNCTION (cont. )

4. It is possible that production may deviate from
the actual plan due to innumerable factors ,
such as:
a)
b)
c)
d)
e)

Non availability of materials

Plant, equipment, machine breakdown
Changes in demand and rush orders
Absenteeism of workers
Lack of co-ordination between various functional
areas of business.

4. In case of deviation between actual production and

planned production, the CONTROL FUNCTION
comes into action and tries to take corrective action.

2. CONTROL FUNCTION
1. Control function will be in action when production activity
begins.
2. Control is concerned with checking what is a actually
being done with that what was planned.
3. Control involves in taking corrective steps in case of error
to match actual performance against the planned
performance.
4. Thus production control:
a) reviews the progress of the work, and
b) takes corrective steps in order to ensure that programmed
production takes place.

5. They communicate their information by providing reports,

like out-put reports, productivity, rejection rate, etc.
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3. PROGRESS FUNCTION:
1.Progress is the process of checking that
specific orders for the companys product proceed
through their manufacturing stages in accordance
with the pre-planned time schedule.
2. Ensuring that any difficulties are detected well in
time and are reported to the appropriate
authority so that corrective action can be taken.

MAIN FUNCTIONS OF PPC:

PLANNING SECTION ACTIVITIES:
1. MATERIALS FUNCTION:
Raw materials, finished parts and
bought out components should be made available in required
quantities and at required time to ensure un-interrupted production.
2. MACHINES AND EQUIPMENT: PPC must have a detailed
information of available production facilities, equipment down time,
maintenance policy, procedures and schedule.
Duties include the analysis of facilities and making their
availability with minimum downtime because of break downs.

Cont..

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PLANNING
3. METHODS: SECTION
ConcernedACTIVITIES
with analysis of
alternatives
(cont.
..): and selection of the best method
within the constraints imposed.

4. ROUTING: Routing is selection of the path or

route which the raw material should follow to get
transformed into finished product. The job includes:
a) Fixation of path of travel
b) Breaking down of operations to define each
operation in detail
c) Deciding the set-up time and process time for
each operation.
Cont. ..
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PLANNING SECTION ACTIVITIES

(cont.
...):
5. ESTIMATING: Once the overall method and sequence of
operations is fixed and process sheet for each operation is
available, then the operation times are estimated
Standard times for each operation are established.
6. SCHEDULING (LOADING): Scheduling is concerned with
preparation of machine loads and fixation of starting
and completion dates for each of the operation. Such as:
a) Loading of the machines as per their capability/ capacity.
b) Setting the start and completion times of each operation
c) To coordinate with sales department regarding delivery
schedules

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PLANNING SECTION ACTIVITIES

(cont. ...):

7. DISPATCHING: This is the execution phase of

planning.
a) It is the process of setting production activities in motion
through release of orders and instructions.
b) It authorizes the start of production activities by releasing
materials, components, tools, fixtures, etc., and
instruction
sheets to the operator.
Work includes:
a) To assign definite work to definite machines, work centers, etc.
b) To issue required materials from stores
c) To issue jigs & fixtures and at correct point of use.
d) Issue work orders, job cards to authorize timely start of
operations.
e) To record start and finish time of each job on each machine or
by each man.
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MAIN FUNCTIONS OF PPC:

PROGRESS SECTION ACTIVITIES:
8. EXPEDITING:

a) This concerns keeping a close observation

on the progress of the work.
b) It is a logical step after dispatching, which is
called follow-up or progress, i.e. Follow
up of materials, work-in-progress and
assembly.

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INFORMATION REQUIRED BY PPC FOR

PERFORMING THEIR WORK
1. FOR PRODUCTION PROGRAMME:
a) Quantity to be produced
b) Delivery dates
c) Variety and different models and special features.

2. QUALITY STANDARDS SPECIFICATIONS &

TOLERANCES
3. PRODUCTION MATERIALS:
a)
b)
c)
d)

Type of materials
Quality and quantity
Procurement lead time
Stock position

4. TOOLINGS:
(cont..)
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INFORMATION REQUIRED BY PPC (cont.)

5. OPERATIONAL DETAILS:
a) Sequence of operations
b) Process capability of machines
c) Jigs and Fixtures needed
d) Cutting parameters or process parameters
6. STANDARD TIMES FOR OPERATION & SET UP
TIMES
7. STARTING AND FINISHING DATES
8. PROGRESS OF WORK

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OBJECTIVES OF PRODUCTION PLANNING AND

CONTROL (PPC)
1. Planning of production activities to achieve efficiency in
production.
2. To organize the production facilities like machines, men,
etc. to achieve stated production objectives.
3. Optimum scheduling of resources.
4. Co-ordination with other departments relating to
production.
5. To conform to delivery commitments.
6. Materials planning and control.
7. To be able to make adjustments due to changes in demand
and
rush orders.
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ADVANTAGES OF PRODUCTION
CONTROL
1.
2.

3.
4.
5.
6.
7.
8.

Better services to customers; delivery dates

are met.
Fewer rush orders in the plant and less
overtime compared to industry without
adequate production planning.
Lower inventory of work in progress.
Less finished stock required to give the same
service to customers.
Better control of raw materials inventory
More effective use of equipment
Less loss of time by workers, waiting for
materials.
Improved plant/ workers morale.

End of this lecture

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