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Procedure For Production Planning

Procedure of Production Planning and Control Online Tutoring / Homework Help
The process of PPC follows a pre designed formulation. The purpose is to ensure that the plans are implemented properly .These plans are for a specified time period keeping in mind the stipulated costs and agreed policies. The costs include the capital cost of the facility, assets and labor. The steps or the procedure followed in PPC are as under:

  • Demand predictions: The production planning process begins with estimating or forecasting the demand among the consumers for the product or the service which is being offered
  • Preparation of production budget: to compute the total cost of production.
  • Design the facility layout
  • Prescribe the types of machines and equipments to be used
  • Appropriation of production requirements: At the planning stage itself the appropriation of raw materials, men and machinery required is done. Specifics regarding their quality and quantity are decided.
  • Schedule: The schedule of production is drawn. Date by which a particular operation or production step should be completed is stipulated and reasonable allowances are made for any possible delays or errors.
  • The shortage or excess of the end product is ascertained I relation to efficiency of labor and equipment. According to the fluctuation in the demand for the product, necessary adjustments are made in capacity of machines and the number of labor.
  • Plans are drawn in case of a sudden surge in demand as in seasonal advantages of certain products. Cost of surplus inventory and stocks are taken account of.
  • Rate of production: The rate and scale of production is set up. It is broken into realistic time periods and schedules. The stipulated or specified job needs to be finished by a particular date to start the next step.

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