Production Planning and Control , Objectives , Steps and Importance / Advantages of Production Planning and Control

-: Production Planning & Control :-

Production planning is defined as - The planning of production and manufacturing modules in a company or industry is known as production planning .

It prepares a detailed plan for achieving the production goals economically , efficiently and in time .

-: Objectives of Production Planning and Control :-

There are following objectives of production planning and control -

1- Effective utilization of resources

2- Steady flow of production

3- Estimate the resources

4- Ensures optimum inventory

5- Co-ordinates activities of departments

6- Minimize wastage of raw materials

7- Improves the labour productivity

8- Reduces the production costs

1- Effective Utilization of Resources :- Production planning results in effective utilization of resources , plant capacity and equipment . This results in low cost and high results for the organisation .

2- Steady Flow of Production :- Production planning ensures a regular and steady flow of production . Here , all the machines are put to maximum use .

3- Estimate the Resources :- Production planning helps to estimate the resources like men , materials etc . The estimate is made based on sales forecasts .

4- Ensures Optimum Inventory :- Production planning ensures optimum inventory . Stock of raw material is maintained at a proper level in order to meet the production demands . Stock of finished goods is also maintained to meet regular demands from customers .

5- Co-ordinates Activities of Departments :- Production planning helps to co-ordinates the activities of different departments .

6-Minimize wastage of raw Material :- Production planning ensures proper inventory of raw materials and materials handling . This help to minimize wastage of raw materials .

7- Improves the Labour Productivity :- There is maximum utilization of manpower . Training is provided to the workers . This results in improved labour efficiency .

8- Reduces the production costs :- Production planning makes optimum utilization of resources and it minimizes wastage . It also maintains optimum size of inventories . All this reduces the production costs .

-: Steps in Production Planning and Control :-

There are following six steps in production planing and control :-

1- Planning

2- Routing

3- Scheduling

4- Dispatching

5- Follow-up

6- Inspection

1-Planning :- For planning of productive operations in detail , the planning department will receive full information from management about the quantity to be produced and the dates when delivery has been promised to customers .
The planning department will also get the necessary engineering and drawing specification from the engineering department .
2- Routing :- The objective of routing is to find out the best and the cheapest sequence of operations .
3- Scheduling :- Scheduling involves the preparation of a time-table , indicating the total time needed for the manufacture of a product as also the time expected to be spent at each machine and process .

4- Dispatching :- It involves the necessary tools , jigs and fixtures etc, before they are actually required by the workmen . Giving workers the necessary work orders , instructions , drawings etc for initiating the work .
5- Follow -up ( Checking the Progress ) :- Follow -up is the control aspect of production planning and control . It involves taking steps to check up whether work proceeds according to plans and how far there are variances from standards and also taking necessary corrective steps to set things in order .
6- Inspection :- Inspection ensures that goods produced are of the right quality . The inspectors may inspect materials , semi-finished and finished products either at the work bench or in special laboratories or testing rooms .