Production planning and control manages and schedules resources, raw materials, and equipment and controls the production line for better output. It helps to make an accurate and detailed production plan to produce higher-quality products. This helps to fulfill demand and satisfy customers.
In this article, you will learn about the difference between production planning and production control and how it operates to improve companies' profits and productivity. With better understanding and planning procedures, businesses can achieve target goals in minimum lead times.
What Is Production Planning and Control?
Production planning and control(PPC) is a tool that coordinates the entire manufacturing activities in the manufacturing industry. PPC allows businesses to plan the production process with details about raw materials, how, when, and how much production is required.
With the right plan, businesses can achieve target production goals and fulfill demands in minimum productiontime. It makes the system dependable and cost-effective. It minimizes wastage of any kind. The right plan is the right step towards a successful business.
What Is Production Planning?
Production planning is the process that involves creating a strategy to make a company more economical and profitable. A detailed and accurate plan must include raw materials, workforce, equipment, and steps to make the production well-planned and successful.
Production planning includes how the production will deliver the goods and services on time. It consists of all data related to manufacturing operations and the effectiveness of production processes.
What Is Production Control?
Production control is the process that monitors, manages, and controls the production process and helps businesses fulfill the target demand on time. With the proper techniques, production control can guarantee that all the resources and workforce are used best.
It helps businesses to achieve high performance in the production line with the proper distribution of resources. Production control also makes sure a quality control and assurance standard is maintained to increase productivity and customer satisfaction.
Objectives of Production Planning and Control
Despite having differences in production planning and production control, it maintains cost control and balances manufacturing and production operations by maintaining communication between various departments. It also supports customer satisfaction and scheduled delivery of products.
The main objectives of production planning and control that make the business run smoothly are:
- Optimum Resource utilization
- Consistent production flow
- Ensure better quality and cost control
- Efficient production line with inventory management
- Better warehouse management
- Identifying issues and management
- Better scheduling and production plan
- Reduce free time
Benefits of Production Planning and Control
The main goal for quality control and assurance is maximizing the materials, workforce, and productivity. With this technique, managers aim to maintain production results of appropriate quality and quantity as per the demands.
Here are the benefits of production planning and control:
1. Improved Communication
It helps businesses maintain better communication with suppliers and third-party vendors. It helps to keep a standardized source of materials and allocate the right resources to provide the best quality product.
2. Improved Production Time
Better production time management helps businesses stay on time and successfully manage delays. It keeps business ahead of schedule to meet product demands and avoid blockage in the production line.
3. Reduced Production Costs
With a well-designed and well-executed plan, businesses can majorly reduce production costs. It will maintain the quality of products and result in lesser expense, and no damage is done to the product level.
4. Streamlined Production Process
Maining inventory and planning processes can help businesses to streamline and guide their strategies. It will guarantee that the product prediction is suitable to fulfill product demand.
5. Reduced Resource Wastage
With proper planning, the production line avoids overstocking of products. It helps prevent spoilage to wastage that can cause delays or blockage.
Importance of Production Planning and Control In the Manufacturing Industry
Production planning and control are important in the manufacturing industry.
- It helps to reduce any extra or unnecessary costs by using correct planning and estimation.
- It helps plan the best route to increase customer satisfaction and reorder products.
- PPC helps in the reduction of inventory and warehouse management costs.
- It helps allocate resources and utilizes the right equipment in the proper process.
- It reduces the wastage of resources or products.
- It smoothes the production line using proper planning and execution methods.
- It increases coordination between management and operators with better communication.
Steps in Production Planning and Control
The following are the steps involved in the planning and control:
Step 1: Planning
It is the first step in PPC; managers create production plans and operations. These plans cover all production activities and include all details about the supply chain.
Step 2: Routing
The next step is the path on which the plan moves forward. It determines the area, operator, and equipment for the task.
Step 3: Scheduling
The third step is the scheduling part, in which managers will determine the order quantity and duration of production. These plans include master schedules, operation schedules, and detailed data about how and when about the product.
Step 4: Dispatching
This step is when products will be shipped to the distributor on schedule via the finalized route.
Step 5: Follow Up
The last step is to follow up on the total procedure. This step helps to identify all delays and issues in the production line and what steps to take to resolve them.
Improve Production Planning And Control With TranZact
TranZact helps businesses improve their production planning and control with efficient and accurate execution of processes. With the right strategy, companies can maximize production while minimizing costs, problems, and complications related to the production process.
With TranZact, Indian manufacturing SMEs can improve relations with suppliers and distribution centers and meet production demands.
FAQs on Production Planning And Control
1. What is the main difference between production planning and production control?
The key difference between production planning and production control is that production planning is required for scheduling, dispatch, and inventory management. But, production control makes sure production is on target, with reasonable quality control and cost savings.
2. What does PPC stand for?
PPC stands for Production planning and control. It ensures a regular check on an operation to maintain a time frame and check everything goes as per the time frame scheduled.
3. What does OEE stand for?
OEE stands for overall equipment effectiveness. It is equal to value when quality is multiplied by performance and availability.
4. What is the critical difference between production planning and production control?
The critical difference between production planning and production control is that production planning is the sequence of activities done for producing goods, and the management of costs, labor, and equipment is done by production control.
5. What is the main benefit of production planning?
Production planning is the strategy that makes the manufacturing process easier and provides details about the product to fulfill demand according to customer needs. It also ensures customer satisfaction and higher profits.
6. What are the three tasks of production planning?
Production planning tasks are divided into three main areas. These tasks are the reason that makes production planning an efficient and accurate technique. It includes developing a production process and strategy, collecting resources from raw materials to equipment and workers, and training the workers to work efficiently.
