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Thursday, July 17, 2014

Main Objectives Of Production Planning | PPC (Production Planning and Control)

PPC (Production Planning and Control ) is actually organizing production, fixing route/sequence, scheduling (Timings till starting to end) and follow up. Planning function consist planning, loading, routing, scheduling, process planning, material planning, tool planning, demand forecasting, inventory planning.

Main Objectives Of Production Planning

Production planning is an important tool of Production and Operation Management. Effective us of this tool results in successful usage of resources, place capability as well as of equipment. Effective Utilization of Resources leads in low-priced and maximize returns for the enterprise.

Production planning makes a regular and steady flow in production. All the machines are tend to be put to highest use. Steady flow of production ensures regular production, which will help to offer the routine supply to customers. 

Production planning allow to estimate the resources such as man, money, materials etc. The estimate is created depending on sales forcast.


Production planning ensures optimum inventory. It prevents over-stocking and under-stocking. Necessary stocks are maintained. Stock of raw material is maintained at a proper level in order to meet the production demands. Stock of finished goods is also maintained to meet regular demands from customers.

Production planning prevents over-stocking as well as under-stocking by maintaining sufficient necessary stocks that assures optimum inventory. Stock of raw material is actually preserved at a appropriate level in order to meet the production calls. Inventory associated with finished items is also preserved to fulfill typical demands from consumers.

Production planing allows to co-ordinate the activities of numerous departments for achieving profit to organization. For e.g. marketing section co-ordinates with production division to market the products. 

Production planning improves increase labour productivity by effective utilization of manpower. Workers are motivated by training, profits sharing, increase wages and using different ways in order to execute their utmost.

Production planning minimizes wastage by making optimum utilization of resources . In addition , it keeps ideal size inventories. All this cuts down the production charges and result in low cost for production. 

Production planning ensures regular supply of goods or services to the customers at significantly rates. This leads to customer satisfaction.

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