PRODUCTION

PLANNING and
CONTROL
What is production planning control?

 Production planning and control involves

generally the organization and planning of
the manufacturing process.

 PPC is the technique to plan each and

every step in a long series of separate
operation. It helps to take the right
decision at the right time and at the right
place to achieve maximum efficiency.
 OBJECTIVES OF PRODUCTION PLANNING & CONTROL

1. to ensure safe and economical production

process
2. to effectively utilize plant to maximize
productivity
3. to maximize efficiency by proper coordination in
production process
4. to ensure proper delivery of goods
5. to place the right man for the right job, at right
time for right wages.
6. to minimize labor turn over
7. to reduce the waiting time
 Traditional Production Planning and
Control

 The task of traditional production

planning and control is to plan and
produce the products according to
management’s orders and policy.
5 Stages of PPC
1. Master production schedule
2. Material requirement planning
3. Capacity planning
4. Shop floor control
5. Inventory management and control
 Master Production Schedule

 MPS is a plan for individual commodities to be

produced in each time period. It is usually linked
to manufacturing where the plan indicates when and how
much of each product will be demanded.
 Material Requirement
Planning
 - MRP is a system for calculating the materials and components
needed to manufacture a product. It consists of three primary steps:
taking inventory of the materials and components on hand, identifying
which additional ones are needed and then scheduling their production or
purchase.
 One of the first computerized function.
 Joseph Orlicky, George Loss, Oliver Wight stand out as the some of the
principal pioneer in these effort to modernize and computerize the
production management function.
 Capacity Planning


CP
 - is the process of determining the production capacity needed
by an organization to meet changing demands for its products. In the
context of capacity planning, design capacity is the maximum
amount of work that an organization is capable of completing in a
given period.
 Shop Floor Control

- SFC is a software system of methods and tools that

are used to track, schedule and report on the progress of
work in a manufacturing plant. Shop Floor
Control systems generally evaluate the portion of an order
or operation that has been completed.
 Inventory Management and Control

 Inventory management is different from inventory
control, and its important that distributors understand
the difference. 
 Inventory control regulates the inventory that is already in
a distributor's warehouse.
 Inventory management includes the activities of forecasting
and product replenishment.
 Some of these functions are performed by the
departments in the firm other than the production
control department.
 Forcasting- is concerned with projecting or predicting the
future sales activity of the firm’s products. Sales forecasts are
often classified according to the time horizon over which they
attempt to estimate. Long range (5yrs or more), Intermediate
range (1 to 2 yrs in advanced), Short term range (3 to 6
months future).
 Production planning- sometime called aggregate production
planning and its objective is to establish general production
levels for product groups over the next year and so on.
 Process planning- involves determining the sequences of
manufacturing operations required to produce a certain
product and or it’s components.
 Estimating- for purposes of determining prices, predicting
costs, and preparing schedules, the firm will determine
estimates of the manufacturing lead times and production
costs of its product.
 - Master scheduling – it must be translated into master
schedule which specifies how many units of each product
are to be delivered and when. Master schedule must be
converted into purchase orders for raw materials, orders for
components from outside vendors, and production schedule
for parts made in the shop.
 Requirements planning- the individual components and
subassemblies that make up each product must be planned.
Raw materials must be ordered to make up each product
must be planned.
Problems with Traditional Production Planning and
Control
The types of problems commonly encountered in the planning
and control of production are the following:

 1.) Plant capacity problems- production fails behind

schedule due to lack of labor and equipment. This result
excessive overtime, delays in meeting, delivery schedule,
customer complaints, backordering, and othe similar
problems.
