In any manufacturing industry, production is the driving force
to which most other functions react. The changing business
environment in which pharmaceutical manufacturers are
acting creates the need for more effective production
processes planning and control methods, which are able to
deal with uncertainties in internal processes and external
deliveries. In this article we have briefly highlighted the
challenges and factors affecting Production Planning and
Control (PPC) and role of Master Production Schedule (MPS).
We will begin this article with the objective of PPC.
The ultimate objective of PPC is to contribute to the profit of
organization accomplished by keeping the customers satisfied
through the meeting of delivery schedules. The specific objective is
to establish routes and schedules for work that will ensure the
optimum utilization of materials, workers and machines and to
provide the means for ensuring operation of the plant in
accordance with these plans.
Challenges in Production Planning and Control
Combining Functions – It is desirable that a minimum changes be
made after schedules are established. This objective can be
approached if the amount of work scheduled for the factory or
department is equal or slightly greater than the production cycle.
Follow-up – When jobs are started and completed on schedule,
there should be very little concern about the meeting of
commitments. Optimum operation of the plant is attained only if
the original plan has been carefully prepared to utilize the
manufacturing facilities fully and effectively.
Re-planning – Often required in manufacturing. Changes in
market conditions, manufacturing methods, etc. affecting the plant
will often indicate that a new manufacturing plan is required.
What Challenges Do You Face the Most in Production
Combining Functions Follow-up
Factors Affecting Production Planning and Control
Market Forecast – It will indicate future trends in demand for
manufactured products. Work shift policies, plans for an increase
or decrease in manufacturing activity are based upon the market
forecast and in turn affect the production planning and control.
Sales Order – It is a rewrite of the customer order specifying what
has been purchased (product, quantity and authorizing shipment
of the goods to the customer). Variation or changes in sales order
will drastically affect production planning and control.
Standard Process Sheet – It is prepared by process engineering
group or process owner and it is the source of basic data which
may include type of machine to be used, time required for
processing, etc. For e.g. if any machine is under breakdown, the
standard process sheet will be disturbed which in turn affect
production planning and control.
Load Charts – These charts are prepared for each workstation or
machine in the plant or may be for groups of machines or
Project Planning Method – The product to be produced are
manufactured in quantities and their total processing time can be
measured. The best known methods are Critical Path Method
(CPM) and Program Evaluation and Review Technique (PERT).
Planning is the process of selecting and sequencing activities such
that they achieve one or more goals and satisfy a set of domain
constraints. Schedules should reflect the temporal relationships
between activities and the capacity limitations of a set of shared
resources. Master Production Schedule is main driver and
information source for further material requirements planning and
accompanying calls or supplies and allows making detailed
production schedules for production system. The high re-planning
frequency in order to overcome the uncertainty induces the system
nervousness. The system nervousness can be defined as – State of
a system when a minor changes in Master Production Schedule
creates significant changes in Materials Requirement Planning
The following critical points can be considered in Master
Frequent changes in MPS result in due-date changes in open
orders, quantity and timing for planned order of end products.
Mentioned changes are translated into gross requirements
changes for products and timing of their delivery.
Unexpected changes in MPS effect that materials, needed for a
particular order may not be available. The availability of materials is
often limited due to the fact that suppliers have similar bottlenecks
and schedules variations transmitted from sub-tier suppliers.
The following questions can be considered while scheduling MPS:
How to make initial MPS that is as feasible as possible?
How to limit the number of re-planning activities?
How to be reactive to disturbances in materials flow?
How to provide planners with accurate information about material
resources available which often lead to bloated inventory and in
accurately promised delivery dates to the customers?
Production planning and control practices will vary widely from
plant to plant/organization to organization. Though no production
control function can be entirely eliminated, the least control that
results in effective operation of the factory is the best control. It
must be remembered that production planning and control
systems should be tools of management. The objective is not an
elaborate and detailed system of controls and records, but rather,
the optimum operation of the plant for maximum profits. PPC
places an emphasis on the control of work-in-process, the system
will be in effect tie together all previous records and forms
developed in all planning for the manufacture of the products.
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1. Learning Objectives
3. Meaning and definition of Production Planning and Control
4. Elements of Production Planning and Control
4. Follow Up or Expediting
5. Techniques of Control
6. Advantages of Production Planning and Control
7. Let Us Sum Up
8. Further Readings
9. Answers To Check Your Progress
10. Possible Questions
After going through this unit, you will be able to:
define Production planning and control
explain the elements of Production planning and control
outline the techniques of Production planning and control
explain the advantages of Production planning and control
This unit will introduce you to the concept of Production planning and
control. Production planning and control (PPC) is most essential for any
organisation. Planning process within an organisation is dynamic and
continuous. In this unit we are going to discuss how production process
is planned and scheduled and ultimately implemented in a production
unit. For production purpose, all the facilities should be arranged and the
factory itself has to be properly set up. PPC involves the planning of
production, a decision on the sequence of operations to achieve what
has been planned , the setting of starting and finishing time for
production, proper dispatching of the material, and follow up action to
check the progress of operations.
MEANING AND DEFINITION OF PRODUCTION
PLANNING AND CONTROL
Planning and control generally involve the planning of manufacturing
process. Especially it consists of the planning of routing, scheduling,
dispatching, inspection, and coordination, control of materials, methods,
machines, tools and operating times etc. The ultimate objective of PPC is
to organize the supply and movement of materials and labour, machines
utilization and related activities, in order to bring about the desired
manufacturing results in terms of quality, quantity, time and place.
Production control regulates and stimulates the orderly show of
materials in the manufacturing process from the beginning to the end.
Production planning may be defined as the technique of foreseeing
every step in a long series of separate operations, each step to be taken
at the right time and in the right place and each operation to be
performed in maximum efficiency.
Planning and control are the two most important and dynamic process
of management. Managers plan for different activities in their
organisation and through control mechanism they take corrective
actions where ever required.
Production planning consists of the evaluation and determination of
production inputs such as labour, machinery and equipment, materials
and utilities to achieve the desired goal. The productivity of an
organisation can be improved by better planning efforts.
Production planning and control can be defined as ―the process of
planning or deciding on the resources the firm will require for its future
manufacturing operations and of allocating and time scheduling these
resources to produce the desired products on time at the least total
Generally PPC is used in manufacturing organisations. But it can also be
used in different non manufacturing units also. For example, we can use
PPC in any restaurant to provide customer service more efficiently.
ELEMENTS OF PRODUCTION PLANNING AND
There are basically four elements in PPC, which are stared as below:
Routing is the planning process, which is undertaken to find the best
possible path for manufacturing a certain product. It determines what
work will be done on a product and how it will be done. It establishes the
operations, their path and sequence, and the proper class of machines
that require performing specific operations. Routing prescribes the flow
of work in the plant and it is related to the considerations of layout,
temporary location for raw materials and components and material
The main aim of routing is to determine the best and cheapest
Production Planning and control
Routing procedure involves the following different activities:
(1) An analysis of the article to determine what to make and what to buy.
(2) To determine the quality and type of material
(3) Determining the manufacturing operations and their sequence.
(4) A determination of lot sizes
(5) Determination of scrap factors
(6) An analysis of cost of the article
The next step after routing is scheduling. Scheduling is the allocation of
resources applying the limiting factors of time and cost to perform a
collection of tasks. It involves the assignment of starting and completion
times for the various operations to be performed. Therefore scheduling
can bring productivity in shop floor by providing a schedule/ routine for
processing a set of jobs. Scheduling finds the total time needed for
manufacturing of a product. It also finds the time required in each
machines to perform each task. The purpose of scheduling is to execute
a customer’s order well in time. For example, if we order for a car, the
manufacturer will estimate the time required for its production and then
will give us the delivery date. Scheduling is that phase of production and
control, which rates the work in order of its priority and then provide for
its release to the plant at the proper time and in correct sequence. Thus,
scheduling is concerned with when the work shall be performed on a
product. Routing and scheduling activities are complementary to each
other. One cannot route properly without having previously designed
schedule and scheduling is impossible without the knowledge of
The essence of scheduling is to make allocation decisions pertaining to
the starting and finishing times for tasks. Scheduling can be classified
into Single machine scheduling, Flow shop scheduling and Job shop
Scheduling is mainly concerns with time element and priorities of a job.
The pattern of scheduling differs from one job to another which is
explained as below:
Production schedule: The main aim is to schedule that amount of work
which can easily be handled by plant and equipment without
Master Schedule: Scheduling usually starts with the preparation of the
master schedule which is weekly or monthly break-down of the
production requirement for each product for a definite time period. This
would enable the production manager to shift the production from one
product to another as per the changed production requirements. This
forms a base for all subsequent scheduling acclivities. A master schedule
is followed by operator schedule which fixes total time required to do a
piece of work with a given machine or which shows the time required to
do each detailed operation of a given job with a given machine or
Best scheduling is not always possible because of the following
· Physical plant facilities of the type required to process the material
· Personnel who possess the desired skill and experience to operate the
equipment and perform the type of work involved and,
· Necessary materials and purchased parts.
While preparing schedules, the types of orders and their promised
delivery dates must be taken into consideration. Some orders may call
for overtime work because they have to be delivered soon. Such rush
orders should receive priority over repeat orders, which can be
scheduled for completion in the normal course.
Dispatching is the transition from planning phase to action phase. In this
phase, the worker is ordered to start manufacturing the product.
Dispatching involves the actual granting of permission to proceed
according to plans already laid down. In dispatching, orders are issued in
terms of their priority.
The dispatch section of the PPC is responsible for the following task:
· Checking the availability of material and then taking appropriate action
to have it transferred from the main stores to the point at which it is
· Ensuring that all production aid is ready when needed and then having
them issued to manufacturing departments.
· Obtaining specific drawings from the drawing office.
· Informing the process section that production is commencing.
· At the conclusion of the manufacturing, ensure that all the drawings,
layout and tools are withdrawn and returned to their correct location.
Dispatching is an important step as it translates production plans into
Follow up or expediting
Once production has been set in motion, it is necessary to check that it is
proceeding according to the plan. Every production programme involves
determination of the progress of work, removing bottlenecks in the flow
of work and ensuring that the productive operations are taking place in
accordance with the plans. It spots delays or deviations from the
production plans. It helps to reveal defects in routing and scheduling,
misunderstanding of orders and instruction, under loading or
overloading of work etc. All problems or deviations are investigated and
remedial measurers are undertaken to ensure the completion of work by
the planned date.
Generally production is assumed to progress as expected. But there may
be differences which may arise due to the following reasons:
· Materials may be delivered late or may not be delivered at all.
· Associated departments may have fallen behind in their own
· There may be excessive absenteeism on the part of the worker.
· The customer may insist on changing the specification or delivery date.
· Machines may break down.
· There may be errors in drawings.
· There may be too many rejections due to poor material quality.
Other things related to production are inspection and corrective actions.
Inspection: This is mainly to ensure the quality of goods. It can be
required as effective agency of production control.
Corrective measures: Corrective action may involve any of those activities
of adjusting the route, rescheduling of work, changing the workloads,
repairs and maintenance of machinery or equipment, control over
inventories, poor performance of the employees. Certain personnel
decisions like training, transfer, demotion etc. may have to be taken.
Alternative methods may be suggested to handle peak loads.
CHECK YOUR PROGRESS
1. Fill in the blanks with appropriate words:
(i) There are ————————— elements in Production
Planning and Control process.
(ii) Routing is the ------------------- activity which determines
the best rout for manufacturing.
(iii) Scheduling involves starting and completion --------------for various operations to be performed.
(iv) ------------- involves actual permission to proceed as per
(v) Follow up is the process of ------------ the activities ,
whether it is going as per the plan or not.
TECHNIQUES OF CONTROL
Production control is the process of planning production in advance of
operations, establishing the exact route of each individual item part or
assembly, setting, starting and finishing for each important item,
assembly or the finishing production and releasing the necessary orders
as well as initiating the necessary follow-up to have the smooth function
of the enterprise. The production control is of complicated nature in
small industries. The production planning and control department can
function at its best in small scale unit only when the work manager, the
purchase manager, the personnel manager and the financial controller
assist in planning production activities. The production controller directly
reports to the works manager but in small scale unit, all the three
functions namely material control, planning and control are often
performed by the entrepreneur himself. Production control starts with
dispatching and ends up with corrective actions.
Production technique is an updating and revising procedure, through
which the requirements of implementation, the labour assignments, the
machine assignments, the job priorities, the production routes etc may
be revised. It is a correcting mechanism which goes on through out the
implementation process of the already drawn out production plan and
schedule. In order to perform the function of PPC properly, managers
require some techniques to control any deviations.
Following are the some of the technical tools used by the managers:
1. Control Charts and Graphs: Gantt chart is an effective control chart
used to gauge the planned and actual progress. Again a simple graph
will be highly useful to compare actual progress with the scheduled
2. Control Boards: A control board is a device for automatically indicating
the progress of the work. Control boards are generally used for repetitive
3. Communication systems: Quick exchange of information and
instructions is highly useful for controlling productions.
4. Quantitative techniques: With the help of quantitative techniques like,
PERT, CPM or linear programming, managers can control production.
ADVANTAGES OF PRODUCTION, PLANNING AND
Following are the advantages of using PPC in any plant:
· PPC forecasts sales orders and makes sales order more economical in
· It co-ordinates the operations of several departments.
· It ensures better service to customers by delivering quality goods within
the specified time period.
· Reduces production costs through orderly scheduling of work activities
and reducing wastages.
· Reduces employee idle time.
· Ensures a better control of material and contributes to efficient buying.
CHECK YOUR PROGRESS
1. What are the techniques used by managers in production
(ii) Write any two advantages of PPC.
LET US SUM UP
In this unit we have discussed how production process is planned and
scheduled and ultimately implemented in a production unit. Production
planning and control (PPC) is most essential for any organisation. PPC
involves the planning of production, a decision on the sequence of
operations to achieve what has been planned , the setting of starting and
finishing time for production, proper dispatching of the material, and
follow up action to check the progress of operations.
Generally PPC is used in manufacturing organisations. Elements of PPC
are Routing, Scheduling, Dispatching and Follow up. There are different
Techniques of production control are used such as Control Charts and
Graphs, Control Boards, Communication systems, Quantitative
techniques etc. Managers can avail lots of benefits by using PPC. PPC
forecasts sales orders and makes sales order more economical in
production. It reduces production costs through orderly scheduling of
work activities. PPC also reduces an employee’s idle time and ensures a
better control of material and contributes to efficient buying.
1. Production Management, by K. Aswathappa, Himalaya Publishing
2. Production and Operations Management, by R. Panneerselvam, PHI
3. Production and Operations Management, by S.N. Chary, Tata Mc Graw
ANSWERS TO CHECK YOUR PROGRESS
Check Your Progress : 1
1. (i) Four, (ii) Planning, (iii) Time, (iv) Dispatching, (v) Checking.
Check Your Progress : 2
1. Control Charts and Graphs, Control Boards, Communication systems,
2. (a) PPC forecasts sales orders and makes sales order more
economical in production,(b) It co-ordinates the operations of
1. What do you mean by Production planning and control?
2. Explain the different elements of PPC.
3. Explain the different techniques used in control process.
4. Do you think the follow up stage is important in any production plan?
If yes, explain your comment.
5. Discuss few advantages of PPC.
Reporting to the VP Operations, the Planning & Production Control
Manager oversees the running of the aircraft maintenance and overhaul
production planning and control booths and man-hour budgets. In this
capacity he/she will manage and lead a group of certified Aircraft
Maintenance Planners and clerical support staff to accomplish
package/job card production and production planning and control to
support large commercial aircraft Maintenance, Repair and Modification
Services, in accordance with the work scope and company/FAA/EASA
Develop production schedules and work statements identifying
detailed facility requirements, manpower requirements, parts and
material lists, tooling lists, third party services and specialized
resources to ensure contractual commitments and production
targets of the company are met.
Prepare the production planning boards, communicating with
internal production and support organizations to manage the plan
in an efficient, effective and customer centric manner.
Support operations departments with optimized production plans,
job cards, drawings, manuals, standards and production
management information systems. Ensure that all required
documentation is supplied with the Task Cards in order to
maximize efficiency in job execution by aircraft mechanics and
Monitor task execution man hours and report in a timely manner
to Leads, Project Managers and Maintenance Manager any
potential threats leading to delays/overages and wastage that will
negatively impact project profitability.
Control paperwork to ensure thorough and accurate completion in
full compliance with OEM MPDs, company/FAA/EASA procedures.
Ensure all data is entered accurately into the company’s
information system in accordance with company’s Work Order
processes and procedures. Make sure that Production Planning
and Control personnel ensure that all required documents are
included in completed work packages prior to copying and filing
records into company’s archives, delivering originals to the
Assist the Business Development department in developing work
scopes, man hour estimates, schedules and production plans in
development of customer contracts.
Directly interface with business development, finance, operations,
purchasing, stores and human resources in the development and
execution of multiple/concurrent projects with diverse contract
Ensure company procedures and processes are followed in
providing finance all necessary supporting information to allow for
accurate and timely preparation and submission of invoices.
Lead, coach and mentor direct reports and their subordinates to
consistently deliver excellence in their undertaking as individuals
and team players. To ensure commitment and accountability at all
levels by maintaining a cohesive organization motivated to meet
and exceed expectations. To hire, discipline and terminate
employees as required.
Provide on-the-job and formal training of department personnel
in the proper performance of their assigned duties.
Strive for continuous process improvements while ensuring
compliance to FAA, safety (OSHA), legal and established corporate
procedures, checks and balances. Drive efficiencies throughout the
department and eliminate waste wherever possible.
Produce regular reports and statistics on a daily, weekly and
monthly basis as required ensuring a smooth running of
operations. Report to operations management any discrepancies
and threats on a timely basis with the objective of resolving any
issues and to avoid aircraft re-delivery delays.
Elaborate annual strategic plans and budgets no later than the last
quarter of the preceding fiscal year.
Establish performance metrics, goals and performance evaluation
processes in line with corporate policy. The individual and
department goals should be aggressive, achievable and in line
with corporate strategy.
Conduct regular meetings, clearly establishing objectives and
resultant actionable items.
Deal with Customers in a cordial, respectful and professional
manner, and to see to it that all personnel behave accordingly.
Collaborate with all other managers in delivering the highest
quality repair station service.
Support the VP Operations with other business activities as
To Lead by example at all times; through professional behavior,
integrity, commitment to the company and compliance with its
All Production booths are managed and controlled by the
Production Planning and Control department. The manning of this
department is necessary for all operations shifts.
The Manager, Production Planning and Control plays a key role as
an internal service provider to the operations of the Company.
He/she has a sense of urgency due to his/her deep appreciation of
the importance of monitoring man hour estimates, tooling
requirements, delivery of parts and materials in order not to
negatively affect an on-time re-delivery of aircraft, job profitability
and the accurate completion and compliance of required
High School Degree/GED and 10 years related experience in
Planning and Production in commercial aircraft MRO environment.
Minimum 5 years in a supervisory or management position.
Strong organization skills.
Strong communications skills.
Bilingual, English/Spanish preferred.
Airframe and Powerplant licenses, preferred.
Ability to work in a fast-paced environment.
Production planning policy and procedure
by ADMIN on MAY 9, 2006
PRODUCTION PLANNING POLICY AND PROCEDURE
The end product of the production planning efforts is the formulation of
production plans. The plans are formulated in the light of the specified
future period. The plans are to be implemented in the light of the
estimated costs and agreed policies. The costs in the case include capital
costs of assets and plant facilities, inventory cost, labor cost and cost of
setting up the operations. The policies are framed in the light of the
planning techniques and strategies which have been developed for the
particular plan. The important steps in production planning are as under:
1. Demand Forecasts: The production planning function is geared to the
estimated demand for the product. The demand forecasting represents
an anticipated level of demand and it also reflects on the pattern of the
demand. If seasonal or other kind of symmetry can be predicted,
production can be planned to take advantage of the predicted pattern of
2. Specification of Production requirement:
Though demand forecasts provide the basis for production planning, it is
not everything in production planning. The demand forecast must be
converted into a specification of production requirements. The forecast
demands are adjusted as under while planning the actual production:
(a) On the basis of available production capacity, the forecast demand is
put on the calendar schedule.
(b) Reasonable allowances are made for possible errors in the forecast
(c) The deficiency of surplus of the existing production capacity
ascertained in term of machine capacity and labor force. On the basis of
the temporary or permanent fluctuations in the demand, the adjustment
in the machine capacity and labor force are planned well in advance.
(d) A schedule, of material requirement is prepared. While deciding the
quantity of material due considerations is given to the seasonal
advantage, cost of excess inventories carrying, cost of stock outs etc. The
above type of production planning is made in the light of the
specification of the product or the customer orders within the prescribe
Setting of Production Rate:
The production requirements are broken into periods and the schedule
of production is prepared. The production at any point of time is the
result of the prescribed rated capacity. In the light of the desired
production, the production rate should be planned on the basis of the
existing production capacity, overtime working, extra shift working or
new additions to the existing production capacity. The inventory levels
should be geared to the production rates. On the basis of the set
production rates, the schedule of the period production and inventory
holding should be prepared. The production rate is set with the help of
The setting of the production rate is relatively difficult in case of the
seasonal demand. However, the adjustment can be made by continuing
the average production throughout the year and by manipulating the
inventories if it releases some costs advantages. Various mathematical
programming methods are used in practice for planning the seasonal
Once the production plan is made and set to operations , is likely that
the actual stocks of the finished goods inventory will fall below or exceed
the planned balances due to the discrepancies in the estimated an actual
sales. The marginal imbalance in the estimated and actual sales is solved
by providing for certain safety level of inventory. The size of the safety
stock depends on the promptness of production adjustment. In any way,
such discrepancies would necessitate the periodic adjustment in the
production with the view to bring the inventories into the line. The
adjustments in the plan are made as under
I. Where only a short span of the planned cycle is over, the revisions I the
original forecast should be made by adjusting the excepted sales
changes to the cumulative forecast for the remainder of the planned
II. Where the planned cycle is on the verge of completion, the forecast
may be extended to cover the next planning cycle.
Production planning strives to set the production targets and plans the
availability of the resources to translate these targets into reality. While
the production control constantly keeps a watchful eye on the
production flow and views of resources along with the location, of any
deviation from the pre-set action and to arrange for the prompt
adjustment so that the productivity may run according to the original
and revised schedules.
Production control (PC) is facilitating service to manufacturing. PC
coordinates all the production operations by collecting the relevant
information about various types of inputs and outputs and by making
necessary adjustment in them. It directs and checks the course and
progress of the work and closes the records on the completion of the
work or order.
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