Production Planning may be said to be a

technique of forecasting ahead every step in the

long process of production, taking them at right
time and in the right degree and trying to
complete operations at the maximum efficiency

In the words of Kimball and Kimball Jr –

“The planning of industrial operations involves
four considerations, namely, what work shall
be done, how the work shall be done and
lastly, when the work shall be done.”
Production control is the process that keeps a
watchful eye on the production flow and size of
resources along with the location, of any deviation
from the present action and to arrange for the
prompt adjustment so that the production may run
according to the original or revised schedule

In the words of Henry Fayol –

“Production control refers to ensuring that all
which occurs is in accordance with the rules
established and instructions issued.”
 Inputs like materials, men and machines are
efficiently used
 Factors of production are integrated to use them
economically
 Division of work is undertaken carefully so that
every available element is properly utilised
 Work is regulated from the first stage of
procuring raw materials to the stage of finished
goods
 Questions like what, when and how to be
manufactured are decided
 Determining sequence of operations for
continuous production
 Planning plant capacity for future production
programmes
 Issuing co-ordinated work schedules to
concerned persons
 Maintaining sufficient inventories to support
continuous flow of production
 Evaluating performance of workshops
 Maintaining production schedules to ensure
delivery at proper time
 Preparation of production budget
 Devising manufacturing methods and sequence of
operations
 Deciding type of machines and equipments
 Preparation of operation sheets and instruction
cards
 Estimating men, machine and material
requirements
 Undertaking time and motion studies
 Preparing master schedules
 Production planning and control is important for
the following reasons -
 For Increasing Production – Main purpose of
production planning is to arrange inputs.
Production control programme minimises idleness
of men and machines. It thus helps in raising
industrial output.
 For co-ordinating plant activity -In planning
production is carried out in a number of
processes and thus activities are synchronized
for smooth working.
 Sub-dividing the master schedule into
manufacturing and subsidiary orders
 Routing
 Scheduling
 Despatching
 Expediting
 Tool keeping
 For Cost Control – A properly planned system of
production will help in controlling costs by not
only making full utilisation of various inputs but
also by increasing output and lowering overhead
expenses per unit.

 For Rationalisation of Production Activities – In

production planning, the process of entering of
raw materials and converting them into finished
goods is planned in such a way that everything is
done in sequence or routine. It regulates flow of
inputs to run production system smoothly
 Following are the limitations faced by production
planning and control –
 Based on Assumptions – Production planning and

control is based on certain assumptions. In case the

assumptions prove correct, the planning and control
will go smoothly. But if they go wrong, process of
planning and control will go weak.

 Rigidity – Under production planning and control,

there is rigidity in the behaviour of employees and
it may not help in smoothening flow of work.
 Difficult for small firms – This process is time
consuming and therefore not affordable for
small firms

 Costly – It is a costly device as its

implementation requires separate persons to
perform functions of planning, expediting,
dispatching etc.

 Dependence on External Factors – External

factors like natural calamities, change in
technology, government controls etc reduce
effectiveness of production planning.
 Planning

 Routing

 Scheduling

 Despatching

 Follow-upand Expediting
 Inspection
It is the first element of production planning and
control. Planning is deciding in advance what is to
be done in future. An organisational set up is
created to prepare plans and policies. Various
charts, manuals and production budgets are also
prepared. Planning provides a sound base for
control. A separate department is set up for this
work.
Routing is determining the exact path which will be
followed in production. It is the selection of the path
from where each unit have to pass before reaching the
final stage. The stages from which goods are to pass
are decided in this process.

In the words of ALFORD and BEATY –

“Routing is the specification of the flow sequence of
operations and processes to be followed in producing
a particular manufacturing lot.”
 The following steps are taken for completing a
routing procedure –
 Deciding what part to be made or purchased
 Determining Materials required
 Determining Manufacturing Operations and
Sequences
 Determining of Lot Sizes
 Determining of Scrap Factors
 Analysis of Cost of the Product
 Preparation of Production Control Forms
Scheduling is the determining of time and date when
each operation is to be commenced or completed. The
time and date of manufacturing each component is
fixed in such a way that assembling for final product is
not delayed in any way.

In the words of KIMBALL and KIMBALL –

“The determination of the time that should be
required to perform each operation and also the
time necessary to perform the entire series, as
routed, making allowances for all factors
concerned.”
 Master Scheduling – It is the breakup of production
requirements. It is the start of scheduling. It is
prepared by keeping in view the order or likely sales
order in near future.
 Manufacturing Scheduling – It is used where
production process is continuous. The order of
preference for manufacture is also mentioned in
the schedule for a systematic production planning.
 Detail Operation Scheduling – It indicates the time
required to perform each and every detailed
operations of a given process
Despatching refers to the process of actually
ordering the work to be done. It involves putting
the plan into effect by issuing orders. It is
concerned with starting the process and operation
on the basis of route sheets and schedule charts.

In the words of JOHN A. SHUBIN –

“Despatches put production in effect by
releasing and guiding manufacturing order in the
sequence previously determined by route sheets
and schedules.”
 Following two procedures may be used for
despatching –
 Centralised Despatching – Under this, orders are
directly issued to workmen and machines. It
helps in exercising effective control.
 Decentralised Despatching – Under this
procedure all work orders are issued to the
foreman or despatch clerk of the department or
section. It suffers from difficulties in achieving
co-ordination among different departments.
“Follow up or expediting is that branch of production
control procedure which regulates the progress of
materials and part through the production process.”

Follow up Procedure –

Progress may be assessed with the help of routine

reports or communication with operating departments.
The follow up procedure is used for expediting and
checking the progress.
 Inspection is the process of ensuring whether the
products manufactured are of requisite quality or
not.
Inspection is undertaken both of products and
inputs. It is carried on at various levels of
production process so that pre-determined
standards of quality are achieved.
Inspection ensures the maintenance of pre-
determined quality of products.