Production Management

Objectives of Production Planning and Control | Meaning | Definition | Elements

Manufacturing is an art. There are three important phases in modern manufacturing. They are:

(i) Planning of production.
(ii) Supply of men, machines and materials.
(iii) Controlling of production, quality and processes.

Specialization, standardization, automation etc. have made production process very complicated and complex. The success and growth of any organization mainly depends on planning and control of production. Production planning may be compared to the soul in human body. As such, production, planning determines the degree of control attainable in production quality and manufacturing methods. Well-planned production can be executed with a minimum of control, while poor planning may prove unworkable even the most excellent control of production exists. Production may be expensive and wasteful also in its absence.

Meaning and Definition of Production Planning and Control

It is concerned with two important aspects of production (i) Planning of production and (ii) Control of production.

(i) Planning of production: Production planning is an essential prerequisite to production control. Planning is the function of looking ahead, anticipating difficulties and taking steps to remove the causes before they materialize. Production planning may be defined as the technique of foreseeing or picturing ahead every step in a long series of separate operations, each step to be taken in the right place, of the right degree and at the right time and each operation to be done at maximum efficiency production planning covers a careful and exhaustive study and prearranging of the technique involving a long and complicated series of separate operations so that the required product of the right quality and quantity may be manufactured at the right time and at the most economic cost. It seeks to determine ahead as to what work shall be done, within what time it shall be done, where work shall be done and devises the ways and means of doing it in the most efficient and cheapest method.

Definitions of Production Planning by Gordon B. Carson :

“Production planning and control involves, generally the organization and planning of the manufacturing process. Specifically, it consists of the planning of routing, scheduling, dispatching and inspection, co-ordination and the control of materials, methods, machines, tooling and operating times. The ultimate objectives 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.

Objectives of Production Planning and Control

The principal aims and objectives of production planning are :

(i) To determine, on the basis of sales forecasts, the quantum and quality of men, machines and materials needed to produce the desired goods in the most economical manner.

(ii) To determine as to when these things would be required and make advance preparations for their procurement.

(iii) To make all preparations for manufacturing processes necessary to get the production targets as set by the production budget.

(iv) To operate the plant at a predetermined level of efficiency.

(v) To capture a desired share of the market.

(vi) To utilize the available plant facilities.

(vii) To bring a prescribed level of profit.

In short, production planning is concerned with three considerations, viz., how, when, and where the work is to be carried out.

(ii) Control of production: The other important aspect is control of production. Only planning does not ensure that the production is highlighted by planned activities. it is production control that guides and directs, the flow of production so that products are manufactured in the best and cheapest method,that they conform to the desired quality and that they are ready for sale at the right time. For this purpose, die management marks Out a definite course of production, fixes up the time schedule within which production is to be completed and pursues the production line. The main objective of production control is to facilitate the task of manufacturing and see that everything is done absolutely in accordance with the “plan‘ . It co-ordinates all of the necessary production information and production aids, including methods, times, materials and tools, it directs and checks on the course and progress of work and closes the records when work on an order has been completed. It shall not be out of place to mention here that ‘production control‘ is frequently used synonymously with production planning and control with planning being employed.

Elements of Production Planning and Control

Constituents or Elements or Functions of Production planning and control are given below :

A. Production Planning

  • 1.¬† Demand Sales Forecasting
  • 2. Production budgeting
  • 3. Machinery and equipment planning
  • 4. Manufacturing Method and process planning
  • 5. Plant layout
  • 6. Time and Motion study
  • 7. Man power planning
  • 8. Product planning designing & Development

Production  Control

  • 1. Routing
  • 2. Scheduling
  • 3. Dispatching
  • 4. Expediting follow up

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