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Production Planning and Control

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40 Questions

What is the primary objective of a project's capacity determination?

To determine the investment capacity of the project

What is the purpose of a 'bill of materials'?

To prepare a list of materials required for manufacture

What is the primary aim of production control?

To produce the products of right quality, in right quantity at the right time

What is the sequence of activities in a time sequence?

Preplanning, planning, and control

What is the main goal of 'method study' in operation planning?

To eliminate wastage of material, labour, machine, and time

What is the main consideration for deciding the site of a factory?

All of the above

What is the primary function of preplanning?

To decide what shall be made and how it shall be made

What is budgeting in the context of production planning?

Forecasting and preplanning for a particular future period

What is the purpose of project planning?

To anticipate and consider all relevant provisions in advance

What is the primary function of the control stage?

To initiate the plan at the right time

What is the primary objective of creating a manufacturing organization?

To make products

What is the relationship between planning and control in PPC?

They are interrelated but separate functions

What is the primary function of PPC?

To plan and control manufacturing activities

What is the purpose of setting standards in planning?

To assess performance during control

What is the significance of PPC in industrial organizations?

It intervenes in multiple departments

What is the primary purpose of capability studies in production control?

To analyze the capabilities of equipment and workforce

What is the significance of feedback in production control?

It provides vital information for future performance

What is the last step in the control cycle?


What is the purpose of evaluation in the control cycle?

To compare actual performance with plans and objectives

What is required for successful implementation of production control?

Flexibility and feedback

What is the primary criterion used to analyze the feasibility of a project?

Rate of return on invested capital

What is the purpose of planning in achieving an objective?

To provide the supporting arithmetic for an objective

What is the primary goal of production planning?

To minimize costs associated with fluctuations in workforce and inventories

What are the three types of production planning?

Project planning, lot planning, and progressive planning

What is the primary difference between production planning and scheduling?

Planning is future-oriented, while scheduling is current-oriented

What is the primary purpose of scheduling in production planning?

To allocate resources for short-term production goals

What is the primary difference between planning and scheduling?

Planning is general, while scheduling is detailed

What is the purpose of decision rules in scheduling?

To link scheduling with organizational goals

What is an example of a decision rule in scheduling?

Schedule the job with the earliest delivery date first

What is the purpose of coordinating flow rates along production lines?

To ensure smooth workflow and efficient use of resources

What is the primary purpose of schedules in production planning?

To provide warnings of deviations and enable corrective action

What is the primary objective of inventory control in production planning?

To ensure the availability of goods and services

What is the primary factor that determines the place of production planning and control in an organization?

The type of production

What is the primary objective of the implementation phase of production planning?

To supervise and control the production process

What is the primary goal of production planning?

To meet sales requirements

What is the primary purpose of the 'methods' function in PPC?

To analyze and select the best manufacturing method

What is the main consideration when determining the lot size in production?

The economic lot quantity

What is the purpose of determining the scrap factor in PPC?

To anticipate normal scrap encountered in manufacturing

What is the role of the 'routing' function in PPC?

To determine the sequence of operations

What is the purpose of the 'estimating' function in PPC?

To work out the operation time

Study Notes

Understanding Production Planning and Control

Importance of PPC

  • PPC (Production Planning and Control) is essential for the effective operation of a manufacturing organization
  • It involves planning, organizing, and controlling the production process to achieve the organization's objectives

Functions of PPC

  • Planning: deciding what, how, and when to produce
  • Routing: determining the sequence of operations and the path of material flow
  • Dispatching: releasing orders and schedules to the production floor
  • Controlling: monitoring and correcting the production process to ensure it meets the plan


  • Identifying what to produce and how to produce it
  • Involves forecasting, product design, jig and tool design, machine selection, and estimating


  • Deciding where and when to produce
  • Includes sequencing of operations, scheduling, material planning, and machine loading


  • Ensuring the planned action is carried out
  • Involves measurement of actual results, comparison with planned results, and feeding back information to planning stage

Project Planning

Steps in Project Planning

  • Market survey
  • Project capacity
  • Selection of site
  • Plant layout
  • Design and drawing
  • Material requirement
  • Operation planning
  • Machine loading
  • Sub-contract consideration
  • Equipment requirement
  • Organizational layout and staff requirement
  • Material handling
  • Budgeting
  • Cost calculation
  • Procurement of finance
  • Critical report on feasibility

Planning and Scheduling

Types of Production Planning

  • Project planning
  • Lot or batch planning
  • Progressive or continuous planning


  • Providing detailed plans for utilizing facilities to achieve immediate product objectives
  • Starts with the desired end results and provides a blueprint for accomplishing tasks

Inventory Control

  • Related aspect of production control
  • Involves managing inventory levels to meet production plans and customer delivery requirements



  • The process of creating goods and services

Production System

  • Combines materials, labor, and capital resources to produce goods or services
  • Involves inputs from other subsystems, such as service inputs and control inputs

Objectives of Production Planning

  • Determine capacity of manufacturing departments and plan production activities
  • Translate sales orders into production orders
  • Ensure availability of materials and resources
  • Coordinate departmental activities
  • Promote fuller utilization of plants
  • Assist labor in earning more
  • Train staff in effective performance of duties


Principles of Control

  • Action, feedback, evaluation, and adjustment

Steps in Control Cycle

  • Operation

  • Measurement

  • Capability studies

  • Objectives

  • Evaluation

  • Adjustment### Feedback and Flexibility

  • Feedback is information received after the performance of an action that is used as the basis for future performance

  • Feedback is vital for control and improvement

  • Flexibility is necessary for successful plant implementation, which implies the establishment of details, benchmarks, and measures of progress

  • Feedback and flexibility are key to successful implementation and improvement

Functions of PPC

  • The goal of PPC is to obtain the highest efficiency in production by manufacturing the required quantity of product at the required time by the best and cheapest method
  • The main functions of PPC are:
    • Coordinating all manufacturing activities
    • Ensuring materials are available on time
    • Analyzing and selecting the best method of manufacture
    • Relating methods to available production facilities and determining equipment replacement policy
    • Determining the sequence of operations and the division of products into assemblies and sub-assemblies
    • Designing economy of jigs and fixtures


  • Routing specifies the flow of sequence of operations and processes to be followed in producing a particular manufacturing lot
  • Routing determines what work will be done on the product, where, and how it will be done
  • Routing estimates the operations, their path, sequence, and class of machines and personnel required
  • Routing involves determining what to make and what to purchase based on relative cost, technical considerations, purchasing policies, and availability of equipment and personnel

Estimating, Loading, and Scheduling

  • Estimating involves working out operation times based on production orders and detailed operation sheets
  • Loading involves allocating machines according to their capabilities and performance
  • Scheduling involves determining what, when, and where specific resources will be employed to produce specified output
  • Scheduling can be simple or complex, and decision rules are necessary to tie the scheduling function with overall company goals and objectives
  • Examples of decision rules for scheduling include:
    • Scheduling the longest jobs first
    • Scheduling jobs in the order they are received
    • Scheduling the job with the earliest delivery dates first
    • Scheduling jobs on a random basis
    • Scheduling first those jobs with the greatest idle capacity
    • Scheduling all jobs first which requires operation in a specific department
    • Scheduling customer orders based on priority

Test your knowledge of Production Planning and Control (PPC) concepts, including its importance and functions in a manufacturing organization.

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