The basic objective of creating a manufacturing organization is to make products. Thus, production is the nucleus or the center of the entire business operations. Production planning and control functions look after the manufacturing activities. Production planning and control comprise the planning, routing, dispatching and follow-up functions in the manufacturing process so that the movements of materials, performance of machines and operations of the labor, however, subdivided, are directed and coordinated as to quantity, quality, time and place.
Planning and control are two basic and interrelated managerial functions. They are so interrelated that they can be and often are considered as being one function. Planning is a pre-operation activity while control is a post-operation function. Both of them are so closely related that they are treated as Siamese twins. Planning sets the objectives, goals and targets on the basis of the available resources with their given constraints. For the translation of such objectives, goals and targets into reality, it is imperative to install control machinery for using the resources and assessing the performance. Such assessment can be made effectively only when some standards of performance are set in advance. Planning involves setting up of such standards. Controlling is made by comparing the actual performance with these present standards and deviations are ascertained and analyzed. Effective control pre-supposes some sort of planning.
Thus, planning and controlling are intimately related. Production planning involves the decision on the resources (viz., men, materials, machines, methods etc) that the firm will require for its further manufacturing operations and allocation of these resources to produce the desired product in the required amounts at the minimum costs, while production control is the adjustment of the plans in response to the noted deviations from the plan arising out of the business uncertainties of the future.
Meaning of Production planning:
Production planning is an essential pre-requisite to production control. It involves management decision on the resources that the firm will require for its manufacturing operations and the selection of these resources to produce the desired goods at the appropriate time and at the least possible cost. Some experts have opined that Production planning can be defined as, â€œthe technique of foreseeing or picturing ahead, every step in a long series of separate operations, each step to be taken in the right place, of the right degree and at the right time, and each operation to be done at maximum efficiencyâ€™.
Objectives: The basic objectives of production planning are as under:
1. On the basis of the sales forecast and its engineering analysis, to estimate the kind of the resources like men, materials, machines, methods etc. in proper quantities and qualities. It also estimates when and where these resources will be required so that the production of the desired goods is made most economically.
2. It also aims to make all necessary arrangement so that the production targets as set in the production budget and master schedules are reached. While attaining these targets, adjustment are made for the fluctuations in the demand and customers.
Objectives of Production Control:
1. To implement the production plans by issuing necessary orders to the persons who are supposed to implement them.
2. To ensure the resources i.e. men, machines, materials methods etc. which are required for the implementation of the production plans have been provided in the required quantity and quality, at proper time and proper place.
3. To see that the persons are carrying out the operations properly so that the production plans may be executed according to the schedules.