Production Planning and Control
It is vital to establish the production planning and control system for efficient, productive and systematic operation in a manufacturing unit of an organization. Production system is generally related with taking inputs of labor, capital, order and using them to transform material to achieve the objectives. Without planning and control, no activity can be completed within the required time and budget.
There are two components that form the Production Planning and Control (PPC) System
– Production Planning
– Production Control
Production planning is the planning of production and manufacturing modules in a company or industry. It utilizes the resource allocation of activities of employees, materials and production capacity, in order to serve different customers.
Basically, production planning focuses on what to produce, when to produce, how much to produce in a given period. Objectives of production planning are providing right quantity and quality of resources available during production process and ensuring capacity usage is in tune with forecast demand at all the time.
Main functions of production planning are;
Production control is the activity of monitoring and controlling any particular production or operation. Production control is often run from a specific control room or operations room. With inventory control and quality control, production control is one of the key functions of operations management.
Once the production plan is implemented, production control phase comes. Aim of production control is to keep the processes under check. Production control uses several control methods that enable the production unit to achieve the optimum level of performance that an organization desires.
Main functions of Production control are;
– Follow Up
Benefits of Production Planning and Control (PPC)
– Product quality is increased
– Productivity is increased
– Operating costs are decreased
– Wastes are reduced
– Performance can be monitored
– Utilization of machinery and the workforce is encouraged
– Decision Making is encouraged
Limitations of Production planning and Control (PPC)
– It is difficult to implement a proper Production planning and Control system in a small scaled organization.
– Production planning and Control system is time consuming
– Initial setup cost is high
– Production planning and Control system is Dependent on external factors such as technological updates, government rules and regulations.
In an organization, production planning and control system coordinates the activities of engineering, procurement, production and selling departments to increase the productivity and quality. A well established production planning and control system helps in ensuring more economic benefits for investors.