Production Planning and Control System (PPC)
Planning takes a great place in successful peoples lives. Most of the people prepare for the future that they expect and when it comes they see that things aren’t working out as they planned. Like humans, companies and organizations create plans to conduct operations. Without having a well established production planning and control system, organizations can not mantain their lives. Therefore, 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 period and budget.
There are two components that form the Production Planning and Control (PPC) System which are;
- Production Planning
- Production Control
In this article we will discuss production planning and control and it’s benefits to the organizations.
What is Production Planning ?
Production is the conversion of raw materials into finished products or final products. The whole task which involves a number of steps and processes, should be carried out according to a proper plan.
Production planning is the planning of production and manufacturing system of a plant, organization or an industry. It optimizes the resource assignment of activities of employees, materials and manufacturing capacity to serve various customers. Basically, production planning can be done at three different time periods which are short term, mid term and long term.
Short term planning can be done for day to day operations. Mid term planning can be done for demand forecast and capacity planning. Long term planning can be done for capital investment, location and facility planning.
Simply put, production planning focuses on what to produce, when to produce, how much to produce in a given time period. Therefore production planning ensures that the materials and equipments which meet quality specifications are available during the production process.
Main functions of production planning are;
Production planning deals with product planning and process planning.
What is Production Control ?
Production control is the business of monitoring and controlling any production activity. Production control activity is mostly conducted by the help of a specific control room or operations room within a production plant. Inventory control, quality control and production control are essential for a successful 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
Planning and control are essential for the success of any operation unit. However production control systems may vary from one organization to another. Because production control is dependent upon the nature of production, nature of operation and size of operation.
Benefits of Production Planning and Control (PPC)
Production planning and control provides many benefits to the organization. Below are a few of them;
Effective production planning and control;
- Informs suppliers for the requirement of raw materials. Thus it ensures that the raw materials are available during the production.
- Ensures uninterrupted flow of materials through production line
- Helps to reduce investment in inventory
- Encourages decision making
- Helps to optimize the work force
- Helps to monitor and control the performance
- Helps to reduce the wastes and controls the wastes of resources
- Decreases operating costs
- Increases productivity
- Helps to keep the inventory level at optimum levels
- Optimizes production period and helps to keep the production time at optimum level
- Increases the product quality and mantains the quality of final product
- Helps to reduce the idle time and over use with proper scheduling of the machines
- Ensures that optimum utilization of manufacturing capacity is achieved
- Organizes the production schedules
Limitations of Production Planning and Control (PPC)
Production planning and control has some limitations. Below are some of them;
- 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.
Production planning and control seeks to solve problems related with low productivity, inventory management and resource utilization within a production system. Production control ensures that the production team can achieve the production goals and optimize the resource usage by meeting the quality requirements .
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 to ensure more economic benefits for investors.
In this article we discuss production planning, production control, their key benefits and limitations. Note that production planning and control are important for customer satisfaction and success of a organization. We hope that it will be useful for the candidates who seek to build up a career in the field of production and manufacturing or as a product manager.