The existence of an effective and efficient system of production, planning and control is a must for a large sized industrial organization. However, the system for production planning and control should be developed and designed after a thoughtful consideration of some related factors as they are influencing the Design of Planning and Control System. They are discussed below:
Factors Influencing the Design of Planning and Control System
1. Manufacturing process
2. Type of Production System
3. Organization Structure
4. Overall managerial policies
5. Nature of Raw Material
6. Sequence of production operations
7. Capacity, speed and nature of plant & machinery etc.
Information/Records required for efficient Working of an effective Production Planning and Control System :
(i) Nature of Production : First information relates to the nature of raw materials required, nature of finished product to be produced, etc. It may be available from the analysis of the product.
(ii) Availability of materials. The store custodian can tell the details of materials while other details can be had from the purchase department.
(iii) Standard of quality for each unit. Engineering drawing and specifications or from practical experience can depict the standard.
(iv) Machine output or equipment capacity. This can be derived from the analysis of machine capacity and consists of the units of work per hour capable of being handled by each machine or process.
(v) Operation method. It is based on the analysis of the machine capacity and can be derived from technical experience.
(vi) Sequence of operations. This ascertains the best way of doing things and is based on technical experience plus an accurate knowledge of machine layout.
(vii) Job analysis. This indicates the particulars of the work to be done, its conditions and skills needed and personnel type needed.
(viii) Personnel information. This deals with analytical information about the labor available the wage rates and output of workers.
(ix) Operation time allowance for each operation on each unit. This is available from time study, from tables containing the results of machine analysis and from technical experience.
(x) Other information relating to:
(a) Completion time of all previous operations of parts and assemblies.
(b) Power production and consumption, internal transport and materials handling service.
(c) The actual costs of all previous performance.
(d) The customers’ orders on hand and the delivery dates promised.
(e) What immediate production is needed for customers and what for stock purposes.
In the end, it may be observed that a balanced production planning would tend to increase the operating efficiency by stabilizing productive activities, facilitate selling and customer service and help in reducing the production costs. It would promote fuller use of plant, equipment and labor by controlling all time and efforts needful in manufacturing