Page 256 - DMGT206_PRODUCTION_AND_OPERATIONS_MANAGEMENT

Unit 13: Production Planning and Control

its profitability through productivity i.e. by employing various inputs (Men, Machines, Materials, Notes
Money & Management) effectively so as to bring about the desired manufacturing results in
terms of quality, time and place.

13.1 Production Planning and Control Defined

Production Management is concerned with basically the two important functions of Production:
1. Production Planning

2. Production Control
Production Planning: It is concerned with the planning of various inputs (Men, Machines,
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.

Notes Production Planning may be done as:

(a) Long Term Planning: Strategic Planning – normally more than an year’s time.
(b) Medium Term Planning: Aggregate Planning – up to an year’s time.
(c) Short Term Planning: Routine Planning – monthly/weekly.

Production Control: 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.

!
Caution Production Planning alone is not sufficient to achieve the objective of any
organisation.

Thus Production Planning and Control is to set the realisation targets in terms of Standard
Output, measure the actual production performance against the target set in advance and take
remedial action as and when necessary.

13.1.1 Main Functions of Production Planning and Control

Following are the main functions performed by a PPC department:
1. Order Preparation: Once an order, through the sales department, is received for execution,
activities like preparation of the work-order, converting the same into shop-order and
then releasing the same to various departments for planning action at their end for their
concerned activities get started.
2. Materials Planning: Material Requirement Planning (MRP) is based on the orders on
hand, the inventory position of the finished goods & raw materials; the expected demand
from marketing/sales department, the capacity of various production shops and bills of
materials, the lead time and constantly following up of the status with purchase and stores
departments against specific shop orders is done.
3. Routing (or Process Planning): Process Planning means fixing the process of
manufacturing/sequence of operations, the tools, and fixtures required and also the

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