Role and Scope of PPC in Operations Management

Production planning and control (PPC) is an important task of Production Manager. It has to see that production process is properly decided in advance and it is carried out as per the plan. Production is related to the conversion of raw materials into finished goods. This conversion process involves a number of steps such as deciding what to produce, how to produce, when to produce, etc. These decisions are a part, of production planning. Merely deciding about the task is not sufficient.

Goldon B. Carson – “Production planning and control involves generally the organization and planning of the manufacturing process. Specifically, it consists of the planning of the routing, scheduling, dispatching and inspection, co-ordination and the control of materials, methods, machines, tooling and operating times. The ultimate objective is the organization of the supply and movement of materials and labour, machine utilization and related activities, in order to bring about the desired manufacturing results in terms of quantity, time and place.”

James L. Lundy – “Basically, the production control function involves the co-ordination and integration of the factors of production for optimum efficiency. Overall sales orders or plans must be translated into specific schedules and assigned so as to occupy all work centres but overload none. The job can be done formally in which case elaborate charting and filing techniques are used ; or it can be done informally, with individuals’ thoughts and retention there of supplanting tangible aids.”

Charles A. Koepke – “Production planning and control is the coordination of a series of functions according to a plan which will economically utilize the plant facilities and regulate the orderly movement of goods through the entire manufacturing cycle, from the procurement of all materials to the shipping of finished goods at a predetermined rate.”

Characteristics of Production Planning and Control (PPC)

The forgoing discussion brings out the following traits of production planning and control:

1. It is the planning and control of manufacturing process in an enterprise. The questions like—What is to be manufactured? When it is to be manufactured? How to keep the schedule of production etc.? —are decided and acted upon for getting good results.
2. All types of inputs like materials, men, machines are efficiently used for maintaining efficiency of the manufacturing process.
3. Various factors of production are integrated to use them efficiently and economically.
4. The manufacturing process is organized in such a way that none of the work centres is either overworked or under worked. The division of work is undertaken very carefully so that every available element is properly utilized.
5. The work is regulated from the first stage of procuring raw materials to the stage of finished goods.

Objectives of Production Planning and Control (PPC)

Planning of production precedes control. Whatever is planned needs to be controlled. The ultimate objective of both planning and control is to use various inputs in an efficient way and to have a proper control over various targets and schedules fixed earlier.

The following details will bring out the objectives of production planning and production control:

Production Planning:

1. To determine the requirements for men, materials and equipment.
2. Production of various inputs at a right time and in right quantity.
3. Making most economical use of various inputs.
4. Arranging production schedules according to the needs of marketing department.
5. Providing for adequate stocks for meeting contingencies.
6. Keeping up-to-date information processes.

Production Control:

1. Making efforts to adhere to the production schedules.
2. Issuing necessary instructions to the staff for making the plans realistic.
3. To ensure that goods produced according to the prescribed standards and quality norms.
4. To ensure that various inputs are made available in right quantity and at proper time.
5. To ensure that work progresses according to the predecided plans.

Role and Scope of PPC in Operations Management

1. Materials

We need to plan the purchase of components, spare parts and raw materials in the right quantities. Planning for specifications at the right price, time and from the right price is also required. Some other activities related to materials are storage, variety reduction, purchasing, value analysis, standardization, inventory control and inspection.

2. Methods

Selecting the most appropriate method of processing from several options available is also the role and scope of production planning and control.

3. Machines and equipment

Manufacturing methods include production facilities like utilization and allocation of machines, plant and equipment, capacity planning etc.

4. Manpower

Planning is also required for the managerial, labor, and supervisory levels to possess proper skills and expertise.

5. Routing

Role and scope of production, planning and control also includes determination of workflow, processing steps or operations sequence and material handling in the plant.

6. Estimating

Setting up operation times resulting in performance standards fixation for both machines and workers is also the role and scope of production, planning and control.

7. Loading and scheduling

Loading refers to allocation of jobs to machines in combination with routing while giving importance to priority jobs and machines capacity for maximum utilization of machines. Scheduling makes sure that sub-assemblies, finished products and parts are finished according to the needed delivery dates.

8. Dispatching

This refers to the discharge of instructions and orders for beginning production as per schedule charts and route sheets.

9. Expediting

This refers to follow up which is conducted after the dispatching function.

10. Inspection

This refers to quality maintenance in production, efficiency evaluation of the labor, processes and methods so that quality standards can be met by making improvements.

11. Evaluating

Evaluation is necessary for improvement of performance. Labor, machines and processes’ performances are assessed to make improvements.

12. Cost Control

Role and scope of production, planning and control is also required for controlling efficient utilization of all resources, value analysis, waste reduction and inventory control.