Production Planning and Control

Meaning of Production Planning and Control

‘Production Planning and Control’ combines two concepts: ‘ Production Planning’ and ‘Production Control’.

Production Planning determines what would be the production function, the time of production, where it would happen, and what would be the best and most economical methods to do it. All, the activities related to production are studied under it, so that, production of the best quality and in appropriate quantity, can be done in time at minimum cost. But production cannot be done according to a predetermined plan, only with the help of ‘Production Planning’. ‘Control’ is also necessary along with ‘Planning’. Control means to direct, prevent, or regulate the activities. So, production control means to regulate or manage production-related activities.

No plan of Production Control can be succeeded until it is not ‘controlled’ and no activity of ‘Control’ cannot be succeeded until standards of work are set with the help of ‘Planning’.

In simple words, Production Planning and Control means determining when, what, how, and which methods are to be used in the factory and supervising whether actual production, which is manufacturing in the factory, is according to this plan or not.

If it is not in that accordance, then try to control it.

Objectives

1. Optimum use and best utilization of machines.
2. Control over the quality and flow of production.
3. To remove all the hurdles of the production process in a planned manner.
4. To control and forecast the production cost.
5. To make appropriate planning, and direction, and take control over the activities of employees.
6. Appropriate purchase of raw material, its storage, use, and its control.
7. To manage the situation in which an established plant can run at its optimum capacity.

Importance of Production Planning and Control

Following are the advantages and importance of Production Planning and Control

1. To Manage the Production Hurdles

   Production can be regulated if planning is done beforehand. Due to planning, inefficiencies or hurdles due to any season can be removed.

2. Proper Utilisation of Equipment

   Appropriate and best use of machines by workers also comes under Production Control, activities of the organization are planned such that the available machinery can be used effectively at optimum level.

3. Advantages of Inventory Control

   Production Control helps the managers in determining and controlling the quantity of raw material, to be stored in godowns. If raw material is purchased according to the production plan, then it is not necessary to invest in raw material, unnecessarily. By doing this, an amount of capital can be saved and can be utilized somewhere else.

4. Increase in Sales

   By controlling. the cost of the quality of manufacturing goods and supplying goods to customers according to their demand, the sales and profit both increase of the organization.

5. Efficient Service to Customers

   By using the techniques of Production Planning and Control, organizations can give the best services to their customers and can supply their orders on time.

6. Good Industrial Relations

   It improves relations between employees and employers. It develops good industrial relations. Stability in employment, safety, mutual understanding, and cooperation increases.

7. Other Advantages

   Consumers, employees, investors, the nation, and society all benefit from Production Planning and Control. Due to this, consumers get the best quality goods at reasonable prices and also on time. Employees get good working conditions, high salaries, and maximum work satisfaction. Investors get the best returns on their investments and economic stability increases in society.

Elements of Production Planning and Control

Production planning determines what the production function would be, the time of production, where it would happen, and what the best and most economical methods would be to do it. All, the activities related to production are studied under it, so that, production of the best quality and in appropriate quantity, can be done in time at minimum cost.

Techniques of Production Planning and Control

Techniques of Production Planning and Control (PPC) are essential for optimizing manufacturing processes. Key techniques include planning, which involves setting production goals and determining necessary resources; routing, which defines the path materials take through the production process; scheduling, which allocates time for each task; dispatching, which initiates production activities; follow-up, which monitors progress and ensures adherence to the plan; and inspection, which ensures quality control¹. These techniques collectively enhance efficiency, reduce waste, and ensure timely delivery of products.