Production Planning - and Control 8.1 DEFINITION Production planning and control aims at optimum utilization of input resources (men, machines and materials) to produce goods or services and at the same time eco- nomically meet the customer and market demand (quantity, quality, time and price). 8.2 OBJECTIVES OF PRODUCTION PLANNING AND CONTROL ‘The objectives of production planning and control are briefly stafed below: 1, To design a production system to meet delivery date consistent with ‘minimum cost and quality standard, 2. Effective utilization of production facilities. 3. Ensure smooth flow of materials eliminating bottlenecks, if any, in production. Maintain adequate (not excessive) stock of raw materials to meet production requirements. 5. Co-ordinate, labour machines and equipment effectively and economically 6. Determine nature and magnitude of various input factors to manufacture the desired output. 7. To ensure production of right product in right quality and quantity at right time, 8. Tomaintain flexibility in manufacturing operations to meet contingencies and accommodate rush job. 9. To co-ordinate production activities of various departments. 10. Establishing targets and checking them against performance, 11. To provide alternate production strategies in case of emergencies. 12. PPC dept guides production by preparing and issuing manufacturing order which directs use of required men, machines and materials for the production (output) of required quantity having the desired quality 4,80__Industrial Engineering 8.3 FUNCTIONS/STEPS IN PRODUCTION PLANNING AND CONTROL Production planning and control functions can be classified as follows: Forecasing Prior planning ee Order writing Product design Process planning and routing Material contro ‘Action planning |— Toovquipmant control Loading Scheduling 2. ‘Action phase—Dispatching. cata cotecion Progress eporing < ata interpretation 2. Contro phase xpeding CComectve action < Replanving Fig. 8.1. Functions of production planning and control 8.4 RELATION BETWEEN PRODUCTION PLANNING AND PRODUCTION CONTROL Input = Men Production system Material Machines Energy = Information Production Jy. [Comparison contol o[moaity pia] Fig. 8.2 Relationship between production planning and controlProduction Planning and Control _ 81 Public needs Distinctive Business. Competence Sete oe, \ Ans Long-term abjectves (corporate strategy) = ‘7 £ Marketing Finance palcy poly ‘Operations poicy =~ recast , Social, political, Top management Economic, 5 and technology Forecasting Long-term forecast (2-10 yt) [Long-term forecast (2-10 yr) | Medium term forecast Maximum aeemonts yf capecty ++ Production rate [Aggregate planning [+ Seoconcing aie! amelie) | Toros en ‘Scheduling Maintenance oducts, process Short-term forecasting (5 wh) Operations managements Speci. to & ana = 2 g 2 8, Human resources, Natural resources Capital Information Process Physical system ‘Specttic functions of operations management. Fig. 8.3 Interaction of scheduling maintenance and quality controt with other decision areas 8.5. STEPS IN PRODUCTION PLANNING AND CONTROL 1, Forecasting. 2. Order writing, 3. Product design. 4, Routing, 5. Loading and scheduling. 6. Machine loading. 7. Dispatching.