Production planning and control is a predetermined process that plans, manages, and controls the allocation of human resources, raw material, and machinery to achieve maximum efficiency.
Production planning is a sequence of steps that empower manufacturers to work smarter and optimize their production process in the best possible manner. This helps manufacturers work smarter by efficiently managing internal resources to meet customer demand.
Objectives of Production Planning and Control (PPC)
Having reliable Production Planning and Control software in your company makes it easy to:
- Ensure a cost-efficient production process
- Promote timely delivery of goods
- Minimize production time
- Improve customer satisfaction
- Coordinate with departments about production to ensure everyone is on the same page
- Ensure the right person is assigned the right work
Production planning is the core of any manufacturing unit. It includes material forecasting, master production scheduling, long-term planning, demand management, and more. The PPC process kicks off with demand forecasting of a product and then designing the production plan according to the demand to move it forward.
Production planning is a strategy to plan a chain of operations that supports manufacturers to be at the right place, at the right time so they can achieve the maximum efficiency from their resources.
Now, let’s talk about the steps involved in Production Planning and Control. As per the British Standards Institute, there are four stages or essential elements in the process of production planning and control. These are as follows:
Routing determines the path from which the raw materials flow within the factory. Once the sequence is followed, raw materials are transformed into finished goods.
Setting up time for every step is important to measure the overall duration of the production process. Routing throws light on the quantity and quality of materials to be used, resources involved (people, machinery, and material), the series of operations, and place of production.
Routing manages “How”, “What”, “How much”, and “Where” to produce in a manufacturing company. It systematizes the process and nurtures optimum utilization of resources to get the best results.
Scheduling is the second step that emphasizes “When” the operation will be completed. It aims to make the most of the time given for the completion of the operation.
As per Kimball and Kimball, scheduling is defined as –
“The determination of the time that should be required to perform the entire series as routed, making allowance for all factors concerned.”
Organizations use different types of schedules to manage the time element. These include Master Schedule, Operation Schedule, Daily Schedule, and more.
The third step ensures that operations are done successfully and everything is loaded on the software. Dispatching includes the release of orders, following the scheduled charts.
Here are the points that encapsulate “Dispatching”
- Issue materials or fixtures that are important for the production
- Issue orders or drawings for initiating the work
- Maintain the records from start to end
- Initiate the control procedure
- Cascade the work from one process to another
Also known as expediting, follow-up is the final step that finds faults or defects, bottlenecks, and loopholes in the entire production process. In this step, the team measures the actual performance from start till the end and then compares it with the expected performance.
Expediters or stock chasers are responsible for performing the follow-up process. It is quite obvious that any of the processes may undergo breakdowns or machine failure. Follow-up promotes smooth production by eliminating these defects.
How can OptiProERP help manufacturers with Production Planning and Control?
OptiProERP with SAP Business One helps you convert auto-generated production proposals into work orders with a single click. Get a complete view of resource capacity, backlogs and bottlenecks, plant floor data, and inventory demand on a single screen.
Plant floor workers can update the status of their tasks, and managers can issue change orders, check schedules, check capacity, and manage BOMs with real-time dashboards. Work on the go with OptiProERP.