Production Planning and Control – the Concept and Definition

Production Planning is one of the integral parts of any manufacturing unit. The process complexities vary in degree depending upon the number of processes involved in the production of desired product. With the globalization the sourcing process has become complex as international boundaries are not a deterrent in conducting the business. 

Production planning is a managerial function mainly concerned with the following issues.

• What production facilities are required?
• Layout of production facility to be laid out in the space available for the production
• Desired product at the desired rate of production

Production planning has a dynamic nature and has to be changed according to the changes in circumstances. Any deviation from the planned parameters as perceived during the initial planning i.e. Machine breakdown, change in raw material, change in demand, change in requirement etc will lead to the change in plan. 

Production planning is done in long term, medium term and short term. Long term planning is important in capital intensive industries (cement, fertilizer etc) where capacity additions cannot be done on a short notice. Medium term planning is done up to 2 years ahead to assess how demand can be met from existing facility by utilizing resource optimally. Short term planning is concerned to the day to day activities when plans are to be executed and corrective actions taken after efficient monitoring.

Requirements of Production Planning

A production plan should be based on accurate data. Random calculation or guess works should be avoided while planning as it can have a chain effect on the whole plan. Plans should be flexible to accommodate any deviation from the conditions and situations as perceived during planning. A rigid plan will be an accessory to fall as it may lead to compromises on various fronts which may not be suitable for longer duration. Any plan should satisfy pre defined objectives like timely delivery, quality etc. Plan should be simple and straight forward with a robust reporting system so that right information reaches at right place in right time.

Production Control

Production control is a mechanism to monitor the execution of plans. Production operation should start at right time and the progress should be observed and recorded properly so that the data can be analyzed and deviation can be measured to initiate a suitable action i.e. change in plan. Corrective action should be taken immediately in order to minimize the negative impact of deviation from the plan. There should be a feedback system in order to improve future plans.

In garment manufacturing where the final product and the input vary, challenges also come from different unpredictable fronts. A robust control mechanism is essential to make the planning successful.