This document discusses production planning and control (PPC). It defines PPC as planning, directing, and controlling material supply and processing activities to produce specified products using available resources. The objectives of PPC are to determine input factors, coordinate resources efficiently, establish and monitor targets, ensure material flow, and produce quality output on time. PPC involves production planning, control, engineering, materials management, inventory control, and shipping/receiving. Factors like interdependence of activities, operations, capacity variations, order size, and manufacturing system nature determine the PPC approach. PPC aims to liase with purchasing and marketing, plan layouts and schedules, ensure quality control, and complete work on schedule. The importance is reducing costs

1. Lecture - 3
Production Planning & Control

2. PRODUCTION PLANNING
+
PRODUCTION CONTROL
=
PRODUCTION PLANNING & CONTROL

3.  Production Planning implies formulation, co-
ordination & determination of activities in a
manufacturing system necessary for the
accomplishment of desired objectives.
 Production Control is the process of
maintaining a balance between various activities
evolved during production planning providing
most effective & efficient utilization of resources.

4. PPC Defined
 “ PPC is the function which plans, directs
& controls
the material supply & processing activities of
a business
so that specified product are produced by
specified methods
to meet an approved sales programme
using the available resources to the best
advantage”.

5. Objectives of PPC
1. Determining the nature & magnitude of various input
factors to manufacture the desired output.
2. To co-ordinate labour, machines & equipment in the
most effective & efficient manner.
3. Establishing targets & checking these against
performance.
4. Ensuring smooth flow of material by eliminating
bottlenecks, if any in production.
5. Utilization of under employed resources.
6. To manufacture the desired output of right quality &
quantity at right time.

6. Structure of PPC
Work Manager
PPC manager
Production
Engineering
Section.
Material
Manager
Inventory
Control
Section
Receiving
&
Shipping
Section

7. Factors determining the nature of
PPC operations in a manufacturing
system
1. The interdependence of various activities
involved in the transformation process.
2. The no. of operations, part & sub assemblies
required to get the final product.
3. The nature & magnitude of variation in the
capacity of different kinds of machines &
equipment.
4. The size of order & the production run.
5. The nature of the manufacturing system.

8. Scope of PPC
 Liason with purchase dept. for efficient & effective procurement of
inputs.
 Liason with marketing dept. to determine the nature & magnitude of
the output.
 To plan the layout of the operations indicating in detail the
places/points in the system where various production activities are
to be performed.
 Establishment of time schedules for various stages/level of
production by setting up necessary standards.
 Ensuring continuous inspection over the quality of good
manufactured.
 Instituting necessary controls to complete the work according to
schedule.

9. Importance of PPC
 Reduces cost of production by minimizing
wastage of material & economic utilization of
resources.
 Leads to lower investment by means of
efficient & balanced utilization of resources.
 Promotes employee morale by avoiding all
sorts of bottlenecks.
 Enhances customer satisfaction & confidence.