A lack of structured production planning and control in the manufacturing sector can cause many challenges. Companies face challenges such as production delays, excessive inventory costs, resource wastage, and compromised product quality. These interrupt operational productivity and also affect customer satisfaction and overall profitability. To overcome these challenges, implementing effective production planning and control systems becomes important.
By carefully planning production processes and maintaining strict control over their execution, businesses can optimize resources. In this blog post, we will learn about the difference between production planning and production control and how it operates to improve companies' profits and productivity.
What Is Production Planning and Control?
Production planning and control (PPC) is a tool that coordinates all manufacturing processes in the manufacturing business. PPC allows businesses to plan the production process with details like how, when, and how much production is required.It makes the system reliable and cost-effective and reduces wastage of any kind.
A proper production process is an important factor in a successful business. But, there is some difference between production planning and production control that makes them the different components of the process.
What Is Production Planning?
Production planning is the process of creating a strategy for manufacturing your products in such a way that your manufacturing business runs smoothly, economical and profitable. It is a detailed plan that includes raw materials, workforce, equipment, and steps to make production well-planned and successful.
Production planning also includes how you deliver the goods 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 tracks, 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 achieve high performance in the production line with the proper distribution of resources. Production control also makes sure that quality control and assurance standards are maintained to increase productivity and customer satisfaction.
Production Planning vs Production Control
Production Planning is a proactive process that forecasts, schedules, and decides the production processes in advance. It is related to the ‘what’ and ‘when’ of production. It involves finding the materials, equipment, and labor necessary to meet production goals. It minimizes production time and costs and maintains optimum inventory levels.
On the other hand, Production Control is a reactive process that takes place once production begins. It involves monitoring the production process. Planning and controlling distinguish between that control is about the ‘how’ of production. It coordinates and controls all the activities in the production process.
While production planning sets the stage for what needs to be done, production control makes sure that these plans are executed effectively and efficiently. These factors distinguish between production planning and production control.
Objectives of Production Planning and Control
Despite the difference between production planning and production control, both work together to maintain cost control and balance manufacturing and production operations. They also support customer satisfaction and scheduled delivery of products. The main goal of production planning and control that make the business run smoothly are:
- Optimum Resource utilization
- Consistent production flow
- Making sure better quality and cost control
- Efficient production line with inventory management
- Better warehouse management
- Identifying issues and management
- Better scheduling and production plan
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 maintain production results of appropriate quality and quantity as per the demands. But, there is some difference between production planning and production control when it comes to their benefits. 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 standard 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
Maintaining 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 simplifies 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
Despite the difference between production planning and control, they work hand in hand in the entire production process. The following are the production process steps:
Step 1: Planning
It is the first step in PPC for manufacturing. Here, 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 scheduling, 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
Understanding the difference between production planning and production control is important for any manufacturing business. Production planning is the active process that involves organizing resources for production, while production control is a reactive process that makes sure that the plan is being followed.
TranZact helps businesses improve their production planning and control with efficient and accurate execution of processes. It is specially made for Indian SMEs and maximizes 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 main 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 makes sure 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 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 make sure customer satisfaction and higher profits.
6. What are the three tasks of production planning?
The three tasks of production planning are forecasting demand, capacity planning, and scheduling. These tasks make sure efficient, cost-effective production that meets customer demands.
