Friday 10 August 2018

Advantages of Production Planning and Control

Product planning is the process of creating the products and follow up until the product is introduced to the market. In addition, the company must have a backup strategy if the product failed in its marketing. Including the extension or improvement of products, distribution, price changes and promotions.

Production planning and control yields the following main advantages.

  1. Avoidance of Rush Orders

    Production is well planned and its time aspects are well controlled. Therefore, production control reduces the number of risk-orders and overtime work on plant.

  2. Avoidance of Bottlenecks

    The incomplete work does not get accumulate because production control maintains an even flow of work.

  3. Cost Reduction

    Production control program minimizes the idleness of men and machines, keeps in process inventories at a satisfactory level, leads to a better control of raw materials inventory, reduces costs of storage and materials handling, helps in maintaining quality and containing rejection and thus reduces unit cost of production.

  4. Effective Utilization of Resources

    It reduces the loss of time by the workers waiting for materials and makes most effective use of equipment.

  5. Co-Ordination

    It serves to co-ordinate the activities of plant and results in a concerted effort by workmen.

  6. Benefits to Workers

    Adequate wages, stable employment, job Security, improved working conditions, increased personal satisfaction, high morale.

  7. Efficient Service to Customers

    It ensures better service to the customers by enabling production. To be conduct in accordance with the time schedules. Therefore deliveries are complete on promise dates.

Characteristics & Benefits from PPC

In order to make the company more focus on the entire production level. Then the production planning can be classify within a product group or family (aggregate). Given the unit use in the planning of production vary widely, depending on the types of products. Such as: tonnes, liters, cubic, or machine hours hours people. If the unit is already set, then the conversion factor must be set up. As a means of communication with other temperament. Such as marketing and accounting department.

Next the unit the unit should be convert in the form of a unit of dollars. In addition, the unit is also very necessary to translate production planning master production schedule to production.

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