The document discusses production planning and control. It defines production planning as matching production capacity to market demand in the most feasible way. Production control helps determine organizational performance by following other functions. The objectives, functions, techniques, benefits and organizational structure of production planning and control are described. Key goals include meeting demand effectively, optimizing resource use, and maintaining predetermined efficiency levels.

1. DR. MAHADEO GHADGE

2. PRODUCTION PANNING
Production planning is a
pre-production function
performed to match the
production capacity with
the essential market
demand in the most
feasible manner.
It consist of 1-Production
& 2- Planning

3. PRODUCTION CONTROL
Production control
is follows other
functions & helps
determine the
performance of an
organization.

4. OBJECTIVES OF PRODUCTION PLANNING
To meet the demand of the product effectively &
maintain the balance between different production
activities.
The best possible utilization of available resources.
To operate the plant at a predetermined level of
efficiency.
To utilize production facilities to the maximum for getting
the minimum operating costs & meeting delivery
schedules.
To assist workers engaged in production activities for
making right & greater earnings.
To equip management for tackling any difficulty, which
may arise later on in the achieving of production target.

5. FUNCTION OF PRODUCTION
PLANNING
Production selection & design – this helps to
selection of most suitable product that fulfills
market demand. It also ensures that design of the
product is according to customer requirements.
Process selection & planning – this helps to
choose right technology, equipments, machines,
material handling systems, automation involved in
production of product.
Facility location – this helps to minimize the costs
such as production & distribution costs.
Facility location & materials handling – this helps
to material transfer & processing of product in the
most efficient manner through the shortest
possible distance with minimum time wages.
Capacity planning – decides about how much
resource should be kept to meet current market
demand.
Procedure planning – specifies production
procedure to be practiced for obtaining the desire
output at optimum cost.

6. STEPS INVOLVED IN PP
 Determination of target
(past experience / budget / manpower/ production capacity)
 Collection & interpretation of information
(raw material availability / new technology / regulations)
 Developing plan
( deciding batch size / procedure/process/ lead time)
 Putting plan into operations
(execution )
 Follow up action
 (controlling to correct deviation if any.

7. PRODUCTIION PLANNING hierarchy
Long Term (Capacity Planning
Capital Intensive in nature
- This deals with Strategic and business issue. In the
long term we deal with those issue which help us to
create demand for our products and generating
sufficient revenue for the company.
- Reflect in process choice and equipment selection.
Since selection of equipment and facilities require
lot of investment and decision is irreversible, one
should pay utmost care keeping in mind customer
requirements.
Medium Term (Aggregate Planning)
- How demand can be met from existing facilities
and resources. Here we are trying to utilizing our
existing resources (manpower, machine, facilities
etc) to satisfy the market demand

8. Short Term (operational Planning)
- In short term we monitoring the production activities on day to
day basis and compare the output against the plan and take
corrective action.
Master Production Schedule (MPS) - Is a statement of how
many finished items are to be produced and when they are to be
produced.
Material Requirement Planning (MRP) - System that uses net
demand from the MPS and explodes it using the bill of materials
(BOM).

9. Organizational structure of PPC
department
• It differ from organization to organization
• FACTORY HEAD
• PRODUCTION MANAGER
• PRODUCTION SUPERVISOR SKILLED
WORKER
• QC/QA MANAGER
• MAINTAINANCE MANAGER
9

10. Production Control
To execute the Production plans & to attain
the company objectives production manager
needs to check the work progress & correct the
deviations between actual performance &
planned standards or requirements of
customers.
Controlling is the process that measures the
existing performance of an organization &
guides it towards predetermined objectives.
It means Production Control is essentially the
control of quantity in manufacturing of the
required quality.

11. OBJECTIVES OF PRODUCTION CONTROL
To make essential arrangements for the
production of goods & services according to
predetermined demand.
To organize require raw materials, machines,
equipments, tools & workers for production.
To maintain inventory of RM at optimum level,
which calls minimum capital investment & prodn
obstacles.
To maximize use of production facilities –
buildings, plant, men, material etc.
To coordinate the activities of different
departments related to prodn.

12. CONT-----
To make the plan for product development
& design.
To arrange the activities of quality control &
inspection so that goods may be produced
according to specifications & standards.
To provide RM to the plant at proper place
& in proper quality so that delays in prodn
may be eliminated.
To evaluate production progress from time
to time & to arrange proper guidance &
control.

13. FUNCTIONS OF PRODN CONTROL
Inventory control – Helps determine the
optimal inventory levels of RM, components,
parts, tools FG, spares in order to ensure their
availability with minimum capital investment.
(JIT)
Time management – Helps to ensure whether
the manufacturing of product is according to
schedule.
Quality control – Helps ensures that the
services & products produced by company
meet the declared quality standards with
minimum cost.

14. FUNCTIONS OF PRODN CONTROL
Cont…..
Maintenance & replacement – Helps select the
optimal maintenance policy to ensure or
availability of equipments& machines, includes
– preventive inspection, planned lubrication,
periodic cleaning, planned replacement of
parts etc.
• Cost reduction & cost control
• Dispatching – Moving of RM among various
operations, collecting fixtures & tools from

15. ADVANTAGES OF PRODN
CONTROL TO MANAGEMENT
Prodn control aims to make right quantity &
quality of product, accessible to customers at
right time & at minimum cost.
Investment in inventories & finished stock can
be kept minimum.
The firm can capture market share by producing
goods at lowest cost & best quality & may result
in large amount of sales.
The amount of profit will be higher.
The firm can compete in the market with low
cost prodn & higher profits.

16. Techniques of production
planning & control

17.  Routing – is selection of path or route over which each piece
is to travel in being transformed from RM into FG.
 Scheduling – It involves establishing the amount of work to be
done & the time when each element of work will start.
 Determine most feasible sequence of operations.
 Dispatching – is concerned with the issue of orders to shop
floor, instructions, tools are provided, job cards & work force.
 Guiding & controlling the material & operations in processing
on the basis of route sheet & shedule
 Follow up – to see whether the work is being carried on
according to planning & orders & instructions issued.
 Inspection – To check the process or quality
 Correction – Making correction or initiating necessary action
to ensure desired output.

18. OBJECTIVES OF PRODN PLANNING &
CONTROL
Effectiveness – ensures right kind of goods to fulfill the
customer requirement.
Maximizing output – ensures the prodn of maximum goods
& resources in minimum output.
Quality control – ensures quality of goods/services meet the
quality specification.
Minimizing the output time – ensures reducing delays,
waiting time & ideal time.
Capacity utilization – ensures manpower/machine is fully
utilized.
Maintain inventory level – ensures optimal level of stock.
Flexibility – ensure that flexibility maintain for all operations.

19. OBJECTIVES OF PRODN PLANNING &
CONTROL
Cont…..
 Better coordination – between machine & labour.
 Reducing bottlenecks – ensures that all the
bottlenecks are removed from all stages of
operations.
 Maintaining performance – ensures the proper
standards are maintained by comparing actual
result with planned result.
 Prepare production schedules – ensures that
timely production is made according to the
schedule.

20. BENEFITS OF OF PRODN
PLANNING & CONTROL
Higher quality,
Better utilization of resources,
Reduced inventories,
Reduced manufacturing cycle time,
Faster delivery,
Better customer services,
Lower production costs,
Lower capital investments,
Higher customer services,
Improve sales turnover,

21. BENEFITS OF OF PRODN PLANNING
& CONTROL
Improve market share,
Improve profitability,
Flexibility,
Lower prices,
Competitive advantage for firm due to
balance inventory levels & higher quality.