What Does Production Planning and Control?
For the efficient, effective, and economical operation of a manufacturing unit of an organization, it is essential to integrate the production planning and control system. Production planning and subsequent production control follow the adoption of product design and finalization of a production process. Production planning and control address a fundamental problem of low productivity, inventory management, and resource utilization.
Production planning is required for scheduling, dispatch, inspection, quality management, inventory management, supply management, and equipment management. Production control ensures that the production team can achieve the required production target, optimum utilization of resources, quality management, and cost savings. Planning and control are an essential ingredient for the success of an operation unit.
Production planning is one part of production planning and control dealing with basic concepts of what to produce, when to produce, how much to produce, etc. It involves taking a long-term view of overall production planning. Therefore, the objectives of production planning are as follows:
- To ensure the right quantity and quality of raw material, equipment, etc. are available during times of production.
- To ensure capacity utilization is in tune with forecast demand at all the time.
- The organization can deliver a product in a timely and regular manner.
- The supplier is informed well in advance for the requirement of raw materials.
- It reduces investment in inventory.
- It reduces overall production costs by driving inefficiency.
Does production planning take care of two basic strategies? product planning and process planning. Production planning is done at three different time-dependent levels i.e. long-range planning dealing with facility planning, capital investment, location planning, etc.; medium-range planning deals with demand forecast and capacity planning, and lastly short term planning dealing with day to day operations.
Production control looks to utilize a different type of control techniques to achieve optimum performance out of the production system to achieve overall production planning targets. Therefore, the objectives of production control are as follows:
- Regulate inventory management
- Organize the production schedules
- Optimum utilization of resources and production process
- Ensure a smooth flow of all production processes
- Ensure production cost savings thereby improving the bottom line
- Control wastage of resources
- It maintains the standard of quality through the production life cycle.
- Nature of production ( job oriented, service-oriented, etc.)
- Nature of operation
- Size of operation
- Production planning and control are essential for customer delight and the overall success of an organization