15 min read
TL;DR: Production planning and control (PPC) helps manufacturers decide what to make, when to make it, and how to control execution so orders are delivered on time with optimal use of materials, machines, and manpower.
What is Production Planning and Control?
Production planning and control is the system used to plan production in advance and continuously control execution on the shop floor. It ensures the right quantity is produced at the right time using available resources without delays or excess costs.
In practice, PPC connects demand, capacity, materials, and schedules into one coordinated workflow.
What is Production Planning?
Production planning focuses on deciding how products will be manufactured. It answers three core questions upfront:
What should be produced?
When should it be produced?
How should it be produced?
For SME manufacturers, this means aligning demand forecasts, available capacity, material availability, and delivery commitments before production begins.
What is Production Control?
Production control ensures that actual production follows the plan. It tracks progress on the shop floor, monitors deviations, and enables corrective actions when delays, shortages, or quality issues arise.
In short, planning decides the path, and control ensures the factory stays on that path.
Objectives of Production Planning and Control
The primary objective of PPC is smooth, predictable production. Key objectives include:
Optimal utilization of machines, labour, and raw materials
Maintaining the right inventory levels
Matching capacity with demand
Reducing machine idle time and setup losses
Coordinating sales, production, and procurement
Controlling costs while maintaining quality
Improving delivery reliability and customer satisfaction
Why is Production Planning and Control Important?
Production planning and control matters because it prevents chaos on the shop floor. Without PPC, manufacturers rely on guesswork, last-minute decisions, and manual follow-ups.
With PPC in place:
Managers can estimate material and inventory needs accurately
Decisions are based on demand trends, not intuition
Resources are deployed where they add the most value
Departments stay aligned on priorities and timelines
Phases of Production Planning and Control
Production planning and control typically follows these seven phases:
Planning: Define operations, process sequence, and required resources.
Time Planning: Estimate time required for each operation and machine.
Loading: Allocate work to machines and operators based on capacity.
Production: Release production orders and begin execution.
Follow-up: Monitor progress and identify bottlenecks.
Inspection: Check quality against defined standards.
Correction: Fix deviations and improve future cycles.
Each phase builds discipline and predictability into manufacturing operations.
Steps in Production Planning and Control
PPC is executed through a structured set of steps:
1. Demand Forecasting
Forecast future demand using historical data, market signals, and confirmed orders. This forms the base for all production decisions.
2. Master Planning
Create a high-level production plan that defines quantities, timelines, and priorities based on sales commitments and engineering inputs.
3. Material Requirements Planning (MRP)
Calculate required raw materials and components by considering BOMs, inventory on hand, and supplier lead times.
4. Capacity Planning
Check whether machines, labour, and tools can meet the planned production load. Identify bottlenecks early.
5. Routing
Define the exact path raw materials follow through machines and processes to become finished goods.
6. Scheduling
Assign start and end times to each operation so work progresses in the correct sequence.
7. Loading
Distribute workloads across machines and operators without overloading capacity.
8. Dispatching
Release work orders, tools, and instructions to begin production as scheduled.
9. Follow-up
Track progress, identify delays, and take corrective action to stay on schedule.
10. Quality Control
Inspect products during and after production to ensure quality standards are met.
11. Performance Monitoring
Measure KPIs such as output, cycle time, and utilization to identify improvement areas.
12. Continuous Improvement
Use production data and feedback to refine plans and processes over time.
Functions of Production Planning and Control
PPC performs several critical functions:
Forecasting: Align production with future demand.
Scheduling: Ensure timely completion of operations.
Routing: Optimize process flow and reduce bottlenecks.
Make-or-Buy Decisions: Decide what to manufacture internally versus outsource.
Requirements Planning: Ensure materials are available when needed.
Material Control: Minimize waste and control costs.
Together, these functions create operational stability.
Benefits of Production Planning and Control
Effective PPC delivers tangible benefits:
Uninterrupted production with fewer stoppages
Lower production and inventory costs
Improved on-time delivery
Reduced idle time and wastage
Better supplier coordination
Higher productivity from the same resources
For SMEs, these benefits directly translate into better margins and calmer operations.
Production Planning and Control Processes
Different manufacturing setups use PPC differently:
Job Production
Used for customized or low-volume orders with unique requirements. Flexibility is high, but idle time can increase.
Batch Production
Products are manufactured in batches to balance setup costs and inventory holding costs.
Mass Production
High-volume, continuous production focused on efficiency and low unit cost.
Production Planning and Control in Manufacturing
Many manufacturers still depend on spreadsheets to track production. These tools are static and fail to reflect real-time changes, leading to missed updates and costly delays.
Modern PPC systems use live data, BOM-driven planning, and integrated execution tracking to keep production aligned with reality.
Production Planning and Control with TranZact
TranZact helps SME manufacturers move from reactive production to planned execution. By combining BOMs, MRP, and production tracking in one system, teams gain visibility into what is planned, what is in progress, and what needs attention.
This enables faster decisions, fewer surprises, and more reliable deliveries.
FAQs
What are the types of production management?
Common types include job-based planning, batch planning, flow planning, and process planning, depending on volume and product variety.
What is the difference between production planning and production control?
Production planning decides what, when, and how to produce. Production control ensures execution happens as planned by monitoring progress and correcting deviations.
What are the seven stages of production planning and control?
Planning, time planning, loading, production, follow-up, inspection, and correction.
What are the main steps in production planning?
Planning, routing, scheduling, loading, dispatching, and follow-up.
What are the key functions of production planning and control?
Forecasting, scheduling, decision-making, planning, and material control.
What are the elements of production planning and control?
Decision-making, planning, routing, scheduling, loading, dispatching, follow-up, inspection, and corrective actions.
