Production Planning Control Pdf Download

A project report on Production Planning and Control (P.P.C.). This report will help you to learn about:- 1. Meaning of Production Planning and Control 2. Components of Production Planning and Control 3. Objectives 4. Importance 5. Need 6. Functions.

  1. Production Planning And Inventory Control
  2. Examples Of Planning And Control
  3. Production Planning And Control Local Author Book Pdf Download

Production planning and Since less varieties of product are produced for longer control period, the production planning and control activities are inbuilt in the system itself, so the production planning and control activities are not a complex one. 1.5.2 Jo b Shop In the case of Job Shop Production, the products are mostly customized products. Production planning and control in achieving the vision of smart manufacturing 11,13,14. We think that this is a missed opportunity, as the PPC process is analogous to a brain for the production system and is the most critical “smartness” element of a smart factory. Furthermore, addressing the subject. IE6605-PRODUCTION PLANNING AND CONTROL. UNIT I INTRODUCTION. Objectives and benefits of planning and control-Functions of production control-Types of production job- batch and continuous-Product development and design-Marketing aspect – Functional aspects Operational aspect-Durability and dependability aspect aesthetic aspect.


  1. Project Report on the Meaning of Production Planning and Control
  2. Project Report on the Components of Production Planning and Control
  3. Project Report on the Objectives of Production Planning and Control
  4. Project Report on the Importance of Production Planning and Control
  5. Project Report on the Need for Production Planning and Control
  6. Project Report on the Functions of Production Planning and Control

Project Report # 1. Meaning of Production Planning and Control:

Production Planning and Control may be summarily defined as the direction and coordination of the firm’s resources (i.e. materials and physical facilities) towards the achievement of pre-decided production goal in the most efficient available way.


Production planning and control is considered as the brain and the central nervous system of the production programme, is responsible for having available every part and assembly at the right time and the right place in order to ascertain progress of operations according to predetermined time & place schedule.

Thus the principles of production planning and control lies in the statement “First plan your work then work your plan”.

Project Report # 2. Components of Production Planning & Control:

It is important to stress that there is a very strong relation and interdependence between P.P.C and various industrial engineering functions like Plant Layout, Simplification and Standardization; Time and motion study; Inventory Control etc.

These are briefly described as follows:-

(i) Plant Layout:

Once a decision about location of the plant has been taken, next important step before the management is to decide a suitable layout for the plant layout means the disposition of the various facilities i.e. machines/equipment materials, manpower and services involved in transformation process of a product within the area of the plant site selected for the purpose, so as to perform various operations in the most convenient and efficient manner to provide high quality output at minimum cost.

Plant layout begins with the design of the plant building and goes upto the location and movement of work table. Planning the layout of a plant is continuous phenomenon as there are always chances of making improvements in the existing arrangement of facilities specially with the changes in management policies and manufacturing techniques.

Normally there is a little choice between processes, sequence of operation and machines, changes in plant layout must be undertaken in the light of production planning and control requirements in order to achieve a satisfactory work flow.

(ii) Simplification and Standardization:


Production of different products, components and parts lead to requirements for different types of materials and methods of manufacture. Thus at the various stages of fabrication, variety may occur in materials, bought out components/parts, assemblies, sub-assemblies or finished products as well as in processes, methods of manufacture, machines, tools, jigs and fixtures etc.

Simplification of the plant is increased. Most aspects of simplification and standardization are concerned with several departments e.g. the problem of limiting the variety of finished products would involve sales, production and product design and development departments, while the problem relating to product simplification would involve material requirement planning; inventory control and R&D departments. Thus simplification and standardization are the responsibilities of production planning and control department.

(iii) Time and Motion Study:

This field is concerned with effective and efficient utilization of manpower and scheduling problems. It consists of two fields of activity i.e. method study and work measurement.

(a) Method Study:

Method study or operation analysis as the name suggests, consists of selection evaluation and development of an efficient method of manufacturing to perform a given work. Method study is a systematic, objective and critical evaluation of the existing facts and in addition, an imaginative approach when developing improvements.

Method study is concerned with both problems of limited scope like operator’s work place layout, correlation of man-machine activities and over all studies of the process in which all aspects of plant layout, routing and scheduling may play an important role.

(b) Work Measurement:

Work measurement is the application of techniques required to establish the time for a qualified worker to carry out a given specified work at a defined level of performance.


In other words it is the systematic determination of the actual time for the effective accomplishment of a specified task/work carried out by a specified method.

Effective production planning & control, distribution, administration and services cannot be achieved unless they are based on facts. One among these is the time required to complete the job which can be determined by work measurement. From the foregoing remarks it can be concluded that time and motion study is employed both at the planning and the control stages of P.P.C.

(iv) Inventory Control:

In view of the material’s availability at the various stages of manufacturing inventory control and stores organization is a necessity. Inventories at the various stages of manufacturing inventory control and stores organization is a necessity. Inventories and management of stores is the financial burden on the plant.

Inventory control sometimes becomes a very complex function since its policies are not governed by internal factors/needs of organization alone but external factors like availability of input materials transportation problems, vendor’s offers & terms and credit terms etc. So inventory control is an important function affecting the production planning and control.

Project Report # 3. Objectives of P.P.C.:

Production planning and control is mainly concerned with optimization of the manufacturing activities in order to achieve desired profit.

To run an industrial unit effectively whether in private sector or public sector, to stay in business and provide profits plus dynamic growth efficient production planning and control system is essential.

The major objectives of P.P.C. may be stated as follows:

1. To design a system and plan by which production can be achieved to meet promised delivery date of the consumer with minimum cost and quality standard.


2. To ensure efficient utilization of production facilities.

3. To coordinate the production activities of various deptts.

4. To maintain appropriate stock of work in process, raw materials and finished products to meet the production requirements and delivery schedule at the most economical level.

5. To ensure the production of right product, of right quality at right time.

6. To ensure smooth flow of materials by eliminating production bottle necks if any.

7. To coordinate equipment and labour in most effective and economic way.


8. Establishing goals and checking the performance against set targets.

9. To provide alternative production strategies in case of emergent conditions.

10. To find out the magnitude and nature of various inputs for the manufacture of desired output.

Thus in nut shell P.P.C. deptt prepares and issues manufacturing orders for the desired output (i.e. required quality and quantity) by utilization of facilities, materials and labour.

These objectives of production, planning and control may be studied under three heads as mentioned below:

(i) Directing:

All the efforts can be directed to those production areas which will contribute most towards the achievement of set objectives e.g., determining the nature and magnitude of various inputs factors in order to manufacture the desired output of right quality and quantity at right time. All the programmes can be closely geared according to the requirements of the organization.

(ii) Coordination:


All the systems (productive and non-productive) of the plant organization should be so coordinated that the management can quickly provide information to the consumer/customer regarding the execution of order.

The overall expenses can be reduced by arranging all the activities in a systematic manner or coordinating manpower, machines and equipment in the most effective and economic manner along with utilisation of underutilized resources.

(iii) Controlling:

By proper control, the management has to spend less time in analysing the activities and can get information where the corrective action is required. It is a yardstick to the management by which it can measure both progress and effectiveness and can ensure smooth flow of material by eliminating bottle­necks, if any, in production system. Thus more flexibility is obtained to accommodate necessary changes that occur.

Project Report # 4. Importance of Production Planning and Control:

(i) Economic utilisation of resources and minimisation of wastage of materials and supplies leads to reduction of production cost.

(ii) Efficient and balanced utilisation of resources leads to lower investment.

(iii) Promotes employees morale by removing all sorts of bottlenecks.

(iv) Enhances consumer satisfaction and confidence by providing better quality products.

Project Report # 5. Need for Production Planning and Control:

From this discussion it may be concluded that production planning and control is needed to utilize the firm’s materials and physical facilities toward the attainment of pre-specified production goals.

The functions of production planning and control can be considered in following three stages:

(A) Pre-Planning Production

(B) Production Planning

(C) Production Control

(A) Pre-Planning Production:


The production procedure is initiated from the consumer/customer and ends at the consumer. So the customer’s needs regarding quality, quantity and price of the product are of first consideration. Broadly speaking pre-planning production covers an analysis of the data and prepares the basic planning policy based on sales reports, market research, product engineering, design of the product, basic types of process and the operations required for that product.

This stage is also concerned with materials specifications, with sales forecasting and estimating, development of new processes, equipment selection and replacement policy, factory layout and work flow.

Pre-planning production as a production planning and control responsibility is also pre-occupied with collection of data on the “5Ms” (connected with second stage of P.P.C) i.e. on Materials, Methods, Machines/Equipment. Manpower and Money mainly with respect to their specifications and availability (for materials) alternatives and level of skill required, (for methods and manpower; scope and capacity (for equipment and machines).

(B) Production Planning:

In production planning after framing the specifications of the product to be manufactured, a through analysis of “5 Ms” is first undertaken to select the right or appropriate materials, methods of manufacturing, equipment/facilities with which the work can be accomplished and the sources of money required for arranging the “4Ms” discussed before.

This analysis is followed by the various activities of production, planning and control specifically by routing, estimating, loading & scheduling and dispatching. The more realistic and precise the planning, the more will be the conformity to production schedules achieved during manufacturing thus leading to greater plant efficiency. In general, there are two aspects of production planning i.e.

(i) A short term phase.

(ii) A long term phase.

The first one is concerned with immediate production targets/programmes and the long term phase is considered and shaped in view of the future requirements of the plant. Distinguished planning functions are those dealing with simplification and standardisation of methods, materials and finally the products.

(C) Production Control:

This is the third stage of P.P.C. and is effected by means of routing, estimating, loading & scheduling, dispatching and expediting. Control over inventories, analysis of work in process, control of scrap and transportation are essential links of this stage.

Evaluation is the final phase of the production planning and control cycle which gives feedback to pre-planning, planning and the routing, & scheduling stages and functions of P.P.C. so that the concerned departments may take corrective actions if required.

So control functions have important role of providing feedback information. Effective communication systems are the prerequisites to efficient control and hence of great importance for production planning and control.

Project Report # 6. Functions of Production Planning and Control:

“The highest efficiency in production is obtained by manufacturing the required quantity of product, of the required quality, at the required time, by the best and cheapest method.” So the required most important target is to improve the industrial performance. To achieve this goal, the management employs production, planning and control, the tool that coordinates all the production/ manufacturing activities.

So the functions of production planning and control in an industrial unit can easily be compared with the nervous system in a human body/organism. It serves to coordinate the various activities (may be manufacturing activities) of a plant just as the nervous system controls or regulates the muscular movements.

When simple repetitive production operations are performed, the control of these operations is accomplished more or less sub consciously in the same way as that the nervous system automatically controls the breathing mechanism in human body. Whenever less repetitive activities are involved more conscious direction is essential both in the plant and in the human system.

Consumer demands are likely to change with respect to quantities and delivery schedules and therefore this will lead to large fluctuations in production volumes. In order to meet these demand variations it is desirable to have future production planning for

(i) For maintaining inventory levels of finished products for meeting the market demand in future.

(ii) For meeting the lead times involved in procurement of manufacturing inputs with specific reference to industrial raw materials.

(iii) The skilled manpower requirement is the other important factor which necessitates such planning, where time factor involved in training personnel is rather large. Furthermore the socio-political structure in India makes it rather difficult for an Organisation to have varying man-power levels. Thus production planning in order to smooth out the needs for man­power is essential.

(iv) Another reason is to meet the changes in product demand due to trend, cyclical and seasonal factors.

The important functions of production planning and control are:

(i) Materials

(ii) Methods

(iii) Machines and Equipment

(iv) Manpower

(v) Routing

(vi) Estimating

(vii) Loading and Scheduling

(viii) Dispatching

(ix) Expediting

(x) Inspection and Quality Control

(xi) Evaluation.

The eleven functions listed above in order of their operating status are related to the three stages i.e. pre-planning production, production planning and control as shown in Fig. 7.1

(i) Materials:

In order to ensure smooth production operations with respect to time, raw materials as well as standard finished components/parts and semi-finished parts must be available when needed. This demands the framing/preparation of specifications of required materials.

This function includes the determination to quantities, availability, delivery dates, standardization & variety reduction, procurement and inspection of input raw materials. This function also covers the procurement of semi-finished product, finished components and parts from sub-contractors.

(ii) Methods:

In order to select the best possible method of manufacturing the product compatible with a given set of circumstances and conditions/facilities, the various methods of manufacturing are critically examined and analysed.

The analysis is concerned with the general study and selection of production processes for the manufacture of various items involved along with development and detailed specifications to methods of applications.

Such a study results in determination of sequence of operations and division of the product into assemblies and sub-assemblies. Modifications may be incorporated in view of limitations of available/ existing layout and work flow.

(iii) Machines and Equipment:

The methods of manufacturing selected have to be linked with the available production facilities. It is related with a detailed study of machines and equipment, its replacement policy, maintenance policy and possible breakdowns. So all these things need careful consideration since breakdown halts production and is the biggest hurdle in achieving the scheduled production goals.

To avoid these difficulties proper tooling must be arranged in advance so as to have a smooth production cycle. Tools management and problems related with both design and economy of jigs and fixtures are the major duties of the production planning and control section.

(iv) Manpower:

The purpose of this function is to define the various levels of skills of manpower required for the proper functioning of the machines and equipment selected for production cycle. This function also determines the number of persons i.e., skilled, semi-skilled and unskilled taking into consideration the economy of the system and legal requirements to be followed by the Organization/Enterprise.

(v) Routing:

After the materials, machines, overall methods and sequence of operations have been specified, the next step is that each stage in production is broken down to define each operation in detail. After this activity is over, issue of production orders can be planned.

Routing prescribes the flow of work in the plant and its movement depends upon the plant layout, of temporary storage locations for raw materials components & parts and of material handling facilities. Route sheets include list of machine tools that are to be followed. Thus routing is a fundamental production function on which all subsequent planning is based.

(vi) Estimating:

After routing production orders, detailed operation sheets are available with the specifications of feeds and speeds the operation times and production costs for the product can be worked out. This function involves the extensive use of operation analysis together with methods and routing as well as work measurement so as to provide performance standards.

Since the human element figures prominently in work measurement so this function can also help to decide how much work is to be taken from each worker and how much wages should be paid for that work and wage incentive schemes implementable in that regard.

(vii) Loading and Scheduling:

The installed machines and equipment have their inherent capabilities of performing the given task. So all the work in process have to be loaded on these machines according to their capacity of performing the given task. This machine loading is carried out in conjunction with routing and estimating so as to ensure smooth work flow.

So loading ensures the utilization of best prescribed methods being used, specified speed & feeds (as described in estimating). Loading is also important from the effective utilization point of view i.e. it ensures the optimum utilization of “4Ms” i.e. Materials, Methods, Manpower & Machine. Thus loading may be defined as the assignment of work to the facilities.

Scheduling is one of the most important steps in production control perhaps it is the toughest job facing a production manager. Scheduling may be defined as “the general time table of manufacturing in accordance with which fitting of specific jobs as per contracted liability or production requirements is done.”

Or in other words we can say that phase of production control cycle which rates the job/work in order of its priority and provides for its release to the manufacturing unit at proper time and in the correct sequence of operations. Scheduling determines the utilization of manpower and equipment and hence the efficiency of the unit.

Scheduling must ensure that required operation are so nicely dovetailed/planned that semi-finished parts/components arrive at the next work station in time so that assembly work is not delayed in waiting for various items so as to avoid unnecessary physical and financial loading of the plant with work in process.

In order to carry out scheduling, a master schedule is prepared which is listing of the products to be produced, when to be delivered and in what quantities.

Thus using the master production schedule, the product can be sub-divided into parts and components which will help in taking “make or buy” decisions. Thus scheduling requires a careful analysis of process capacities (with respect to infrastructure facilities) so that work flow rates along the various production lines can be suitably coordinated.

During machine loading appropriate allowances (w. r. t. time) for machines set up; process adjustments and repair/maintenance down time have to be taken into consideration. These allowances are vital part of the data constantly used by the scheduling function.

(viii) Dispatching:

The literal meaning of the word dispatching is sending to destination. When applied to production control, it related with the execution of planning function. In other words dispatching is the routine of setting production activities in motion through the release of orders and instruction, in conjunction with previously planned times and sequence of operations as embodied in routing and loading schedules.

This function ensures that the right material is available with right man, at right machine along-with instruction sheets in accordance with route sheets and manufacturing schedules.

In brief “Dispatching” authorises the start of production operations by:

(i) Release of material & components from stores to first process and from process to process.

(ii) Issue of tools, jigs and fixtures in advance of the time at which operation shall start.

(iii) Issue of job orders authorizing operations in accordance with route sheets and machine loading.

(iv) Issue of drawings instruction sheets and time tickets to workers.

Thus dispatching is the most important function of production planning and control wherein the actual work of conversion of input materials to final product starts.

(ix) Expediting:

Even with the best plans & schedules, things go wrong in a production cycle. In order to find out the error and reasons for error, there must be some assessment of the work progress. Therefore after assigning the work to facilities, it is essential to watch the actual progress of the work and if any deviation exists, proper and corrective action is recommended by the expeditor or progress reporter.

So expediting or progress reporting or follow up action as it is sometimes called is the next step after dispatching. It also includes rearranging the sequence in which production orders are to be taken up and completed on a certain machine & giving instructions for shut down or change of product so that the delays in final product could be avoided.

Production Planning And Inventory Control

It can be concluded that dispatching initiates the execution of production plans, whereas expediting maintains them and sees them through to their completion. Expediting has to keep close liaison with scheduling in order to provide efficient feedback and prompt review of goals/production targets and schedules.

(x) Inspection:

Another major function of production planning and control is inspection and quality control. This activity is mostly performed to ensure that the quality of the product meets the required specifications as decided in the product development and design stage.

The findings and criticism of inspection are of supreme importance both in execution of current plans and in the planning stage of future’ products, when limitations of processes methods and manpower are known. These limitations are analysed with the view to improving production methods or indication the cost implications of quality at the initial design stage.

(xi) Evaluation:

This function is a linkage between control and future planning but is mostly neglected. The executive tasks of dispatching and expediting are concerned with the immediate activities of production cycle and the effective measures which will ensure the achievement of set target or objectives.

Valuable information regarding all the problems faced in realizing the product initiating from pre­planning to shipping stage is gathered in this process. The feedback mechanism is rather limited in nature and unless provision is made so that all this accumulated information can be properly analysed and digested otherwise this valuable data may be lost.

This is the situation where evaluation function comes in to provide a feedback mechanism, on a long term basis. The past experience can be assessed in order to improve the utilization of methods and facilities.

Examples Of Planning And Control

Many firms establish “Evaluation” as a separate department in its own right in which wider aspects of production management can be studied using operation research techniques. So evaluations are an integral part of the control function in production planning and control department of an organization.

Production Planning And Control Local Author Book Pdf Download

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by DMEA Mucha · Cited by 1 — Abstract: Production planning and control (PPC) system represents a set of decisions on the acquisition, utilization and allocation of resources with the ultimate ... View PDF
various production systems, production planning of the garment industry, chain and inventory management and various tools to improve the productivity of the ... View PDF
by R NAGI · 2000 · Cited by 50 — In this study, production planning is addressed in a manufacturing facility that typically ... the materials plan is consistent with capacity utilization, (ii) le View PDF
Upon successful completion of this module, students will have … acquired an understanding of the goals and challenges of production planning and control. (PPS) ... View PDF
Understand the demands of our customers today and how they affect the supply chain management. • Be equipped with the latest techniques that will position ... View PDF