PRODUCTION PLANNING & CONTROL : The fundamentals of PPC

What is Production?
PRODUCTION is basically the transformation /value addition of Input Raw Material into Finished Goods which are called as the “PRODUCT”.

What is Planning?
PLANNING is the Decision making process to achieve the End Objective by choosing the best Alternative which consumes the least amount of input resources and gives the maximum Output.

What is the control?
CONTROL is the process of ensuring that the Planned Production is constantly monitored and maintained and any deviation is avoided.

A Production and Planning System has the following functions to perform :

I. PLANNING phase: Prior planning, Active planning

I.a. Prior Planning :
(1.) FORECASTING - Estimation of type, Quantity and Quality of future order.
(2) Order Writing - Giving authority to one more person to undertake a particular job.
(3) Product Design - Collection of Information regarding Specifications, Bill of Materials, Drawings etc.

I.b. Active Planning:
(1) PROCESS PLANNING & ROUTING- Finding the most Optimum and Economical Process of doing the work and deciding where and how the Work will be done
(2) MATERIAL CONTROL - It involves determining the requirement of material and sources of material in terms of right Quality, right Price, right Time and at right Place and control of the material at every stage.
(3) TOOLS & MANUFACTURING AIDS CONTROL - It facilitates availability of right kind of Tools and Manufacturing aids of right Quality, price at right place and right Time and control over the same.
(4) LOADING - It is the systematic distribution of Work to manpower, machinery / Work Stations etc.
(5) SCHEDULING - Scheduling is the Time phase of the Loading . It is the details of What and in What Sequence the work will be done. It determines the Staring as well the Finishing Time of the respective jobs, the gap and sequence between the jobs.

II. ACTION PHASE :
(6) EXECUTION: This is the transition phase from Planning to action phase. In this phase the Team members/workers are instructed to start the actual work and execute it as per the laid down plan.
(7) DISPATCHING - In this phase the Product manufactured is despatched to the stores for storage, segregation , safely packed for onward despatch to customer’s end so as to satisfy the four “P” of Marketing leading to customer satisfaction.

III. CONTROL PHASE : It runs concurrently with the action phase.
( 8) PROGRESS REPORTING : Data regarding the progress of the Job is collected on a predetermined interval and the same is compared with the pre-set level of performance in terms of Time and resources consumed as laid down in the plan.
(9) CORRECTIVE ACTION - The corrective action is resorted to when it is found that the actual performance has a deviation from the Planned performance. Suitable steps are taken by correction, expedition, replanning or rescheduling in terms of resources allocation, time element, work order or purchase order.