Production planning and control
Introduction
PPC forms the two important components of the management process. Planning includes the consideration of all input variables so that the predetermined output goals can be achieved. On the other hand, control means to take a remedial action to prevent the variation of actual output from the desired one.
Production planning
It is concerned with the planning of various inputs ( men, machine, materials, etc) for a given period of time so that the customer could get the right quality of products at right place, price and in time. Production planning may be done as:
Long term planning: Strategic planning-normally more than one year.
Medium term: Aggregate planning- upto a year’s time.
Short term: Routine planning- monthly or weekly.
Production control
However, the process of production control is a complementary activity to the production planning. It measures the actual performance of the production units and taking remedial action called for to see that the production actually achieved is not less than the target or standard set in advance.
Production planning and control
PPC is to set the realization targets in terms of standard output, measure the actual production against the target set in advance and take remedial action as and when necessary.
Objectives of PPC
1. Effectiveness: - Ensure the production of right kind of goods to fulfill the customer requirements.
2. Maximizing output: - Ensures the production of maximum goods and resources with minimum inputs.
3. Quality control: - Ensure that the quality of goods and services meet the quality specifications that are set during the planning phase.
4. Minimizing through out time: - Ensure that the time elapsed in the conversion process of the raw material to finished goods in minimum by reducing delays, waiting time and idle time related to the production process.
5. Capacity utilization: - Ensures that the capacity such as manpower and machine is fully utilized.
6. Minimizing cost: - Ensure that the cost of producing goods or presenting a service is minimum.
7. Minimizing throughout: - Ensure that the optimum level of stocks in the inventory is maintained.
Scope of PPC
Materials: - Planning for procurement of raw materials, components and spare parts in the right quantities and specification at the right time from the right source at the right place.
Methods: - Choosing the best method of processing from several alternatives. It also includes deterring the best sequence of operations and planning for tooling, jigs and fixtures etc.
Manpower: - Planning for manpower having appropriate skills and expertise.
Estimating: - Establishing operation times leading to fixation of performance standards both for workers and machines.
Dispatching: - It gives necessary authority to start a particular work, which is planned under routing and scheduling functions with release of orders and instructions.
Evaluating: - It is done to improve performance of machines, processes and labours.
Cost of control: - Manufacturing cost in controlled by wastage reduction, value analysis, inventory control and efficient utilization of al resources.
Stages in PPC system
1. Planning phase
(a). Preplanning activity: - It involves product planning and development, demand forecasting, resource planning, facilities planning, plant location and plant layout.
(b) Active planning: - It involves planning for quantity, determination of product mix, routing, scheduling, material planning, process planning, capacity planning.
2. Action phase
Implementation phase includes the dispatching and progressing functions.
3. Control phase
It involves status reporting, material control, tool control, inventory control, quality control etc.
Benefits of PPC
1. Faster delivery
2. Better customer services
3. Improve sales turnover
4. Improve market share
5. Improve profitability
6. Lower production cost
7. Higher quality
8. Better utilization of resources
Limitation of PPC
Lack of sound basis
PPC functions are based on certain assumptions of customers demand, plant capacity, power etc. if these assumptions go wrong, PPC become ineffective.
Rigidity in plant working
PPC may be responsible for creating rigidity in the working of the plant. Once the production planning has been completed, any subsequent change may be resisted by the employees.
Time consuming process
It is necessary to carry out scheduling and routing functions for large and complex products consisting of a large number of parts going into the product.
Costly device
Its effective implementation requires services of specialists for performing function of routing, scheduling, loading, dispatching and expediting. Small firms cannot afford to employ specialists for the efficient performance of these functions .
External limitations
PPC becomes extremely difficult due to rapid change of environment factors such as technology, consumer taste due to fashion, government policy and controls, power cuts, and natural calamities.
Introduction
PPC forms the two important components of the management process. Planning includes the consideration of all input variables so that the predetermined output goals can be achieved. On the other hand, control means to take a remedial action to prevent the variation of actual output from the desired one.
Production planning
It is concerned with the planning of various inputs ( men, machine, materials, etc) for a given period of time so that the customer could get the right quality of products at right place, price and in time. Production planning may be done as:
Long term planning: Strategic planning-normally more than one year.
Medium term: Aggregate planning- upto a year’s time.
Short term: Routine planning- monthly or weekly.
Production control
However, the process of production control is a complementary activity to the production planning. It measures the actual performance of the production units and taking remedial action called for to see that the production actually achieved is not less than the target or standard set in advance.
Production planning and control
PPC is to set the realization targets in terms of standard output, measure the actual production against the target set in advance and take remedial action as and when necessary.
Objectives of PPC
1. Effectiveness: - Ensure the production of right kind of goods to fulfill the customer requirements.
2. Maximizing output: - Ensures the production of maximum goods and resources with minimum inputs.
3. Quality control: - Ensure that the quality of goods and services meet the quality specifications that are set during the planning phase.
4. Minimizing through out time: - Ensure that the time elapsed in the conversion process of the raw material to finished goods in minimum by reducing delays, waiting time and idle time related to the production process.
5. Capacity utilization: - Ensures that the capacity such as manpower and machine is fully utilized.
6. Minimizing cost: - Ensure that the cost of producing goods or presenting a service is minimum.
7. Minimizing throughout: - Ensure that the optimum level of stocks in the inventory is maintained.
Scope of PPC
Materials: - Planning for procurement of raw materials, components and spare parts in the right quantities and specification at the right time from the right source at the right place.
Methods: - Choosing the best method of processing from several alternatives. It also includes deterring the best sequence of operations and planning for tooling, jigs and fixtures etc.
Manpower: - Planning for manpower having appropriate skills and expertise.
Estimating: - Establishing operation times leading to fixation of performance standards both for workers and machines.
Dispatching: - It gives necessary authority to start a particular work, which is planned under routing and scheduling functions with release of orders and instructions.
Evaluating: - It is done to improve performance of machines, processes and labours.
Cost of control: - Manufacturing cost in controlled by wastage reduction, value analysis, inventory control and efficient utilization of al resources.
Stages in PPC system
1. Planning phase
(a). Preplanning activity: - It involves product planning and development, demand forecasting, resource planning, facilities planning, plant location and plant layout.
(b) Active planning: - It involves planning for quantity, determination of product mix, routing, scheduling, material planning, process planning, capacity planning.
2. Action phase
Implementation phase includes the dispatching and progressing functions.
3. Control phase
It involves status reporting, material control, tool control, inventory control, quality control etc.
Benefits of PPC
1. Faster delivery
2. Better customer services
3. Improve sales turnover
4. Improve market share
5. Improve profitability
6. Lower production cost
7. Higher quality
8. Better utilization of resources
Limitation of PPC
Lack of sound basis
PPC functions are based on certain assumptions of customers demand, plant capacity, power etc. if these assumptions go wrong, PPC become ineffective.
Rigidity in plant working
PPC may be responsible for creating rigidity in the working of the plant. Once the production planning has been completed, any subsequent change may be resisted by the employees.
Time consuming process
It is necessary to carry out scheduling and routing functions for large and complex products consisting of a large number of parts going into the product.
Costly device
Its effective implementation requires services of specialists for performing function of routing, scheduling, loading, dispatching and expediting. Small firms cannot afford to employ specialists for the efficient performance of these functions .
External limitations
PPC becomes extremely difficult due to rapid change of environment factors such as technology, consumer taste due to fashion, government policy and controls, power cuts, and natural calamities.
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