Production Planning And Control System Commerce Essay

Businesss can be of different types. Some industries focus on supplying the clients with different types of services. Some others concentrate on merchandising of merchandises. Majority of ventures are in the concern of fabricating something or the other. To get down with, you would necessitate some basic natural stuffs to which you would add some value to do something else. Simply put, this is production.

Therefore, we can state that production is a concern procedure in which a natural stuff is converted into finished or semi-finished merchandises, in the procedure adding value to the of public-service corporation of merchandises. This production process is measured by ciphering the difference between the value of what goes into the production and the value of what is produced in the terminal. The things which go into the devising of things are called the inputs and what is produced in the terminal is called the end products. Say for illustration, if you want to fabricate frocks you will necessitate fabrics, labour, and machines at the primary degree. These are all inputs. The terminal merchandise, that is the frock, is the end product.

What is meant by production?

Production can be described as a procedure of fabrication or bring forthing goods for trading intent. It is a method that uses the intangible inputs like creativeness, thoughts, cognition, research and perceptual experience in action. With the aid of these intangible inputs, the touchable inputs like the natural stuffs are converted into finished merchandises and made ready to be sold in the market.

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Production Function

In mathematics, a map determines the relation between a set of inputs and the set of end products. Similarly production map is that sort of a map through which false specification is made by the industry or a house about the end product in relation to all the input which went into the undertaking. Production map serves to provide to the client demands and demands in a cost effectual manner. Therefore planning and transporting out the production map in an efficient manner is of premier importance to obtain this aim.

Production Management

Pull offing anything has to include proper planning at the initial degree. The same thing is applicable in instance of production direction. You start with be aftering about how the production process will take topographic point. Then you organize it harmonizing to your demands or demands merely after which you can put to death the program, direct and command the production activities. Hence, we can state that production direction is the pull offing procedure which deals with the transition of natural stuffs to the finished merchandises that excessively in an economical manner. Production direction is guided by 6 ‘M’s- a ) money, B ) work forces, degree Celsius ) stuffs, vitamin D ) machines, vitamin E ) methods and degree Fahrenheit ) markets. If the same construct is applied to the direction of services so the subsequent direction activities are termed as operation direction.

Definitions of Production Management

Here are some common and widely accepted definitions of production direction:

“ Production direction trades with decision-making related to production procedures so that the ensuing goods or service is produced harmonizing to specification, in sum and by the agenda demand and at minimal cost. ” – Elwood Spencer Buffa

“ Production direction, A besides calledA operations direction, trades with planning and control of industrial procedures to guarantee that they move swimmingly at the needed levelaˆ¦.In fabrication operations, production direction includes duty for merchandise and procedure design, planning and control issues affecting capacity and quality, and organisation and supervising of the work force. ”

-Encyclop?dia Britannica

Therefore, we can easy state that, production direction is the transition of production inputs into end products which when distributed in the market will provide to run into the demands of consumers.

History of Production and Operation Management

Industrial Revolution – For over two and half centuries, production and operation direction has been regarded as one of the of import factors responsible for the economic growing and development of any state. With the eruption of the industrial revolution in England in the mid 1700s a mayhem alteration was observed in the industrial sectors. The alterations began to be observed when the watercourse engine was invented by James Watt in 1764. It mostly replaced the adult male power in the mills. In the twelvemonth 1776 Adam Smith published his radical book, The Wealth of Nations, where he talked about the ‘specialization of labours in fabricating ‘ and the economic benefits it avails to an industry. Therefore, the mills of the late eighteenth century experienced non merely the usage of the power by the freshly invented machines but besides new agencies of planning and commanding a mill production. About the same clip the construct of division of labours came into being. Quickly the industrial revolution spread from England to the other parts of Europe and besides to America. Further development was observed as an American named Eli Whitney came up with the constructs of ‘interchangeable parts ‘ and cost accounting ‘ . Early 1800s saw the coming of electricity and gasolene engines which enhanced the industrial revolution to a great extent. During the station civil war period an increased rate of production capacity was recorded which on the other manus led to growing of the capital. A monolithic production detonation followed in the freshly developed U.S. market.

Scientific Management- The constructs of ‘scientific direction ‘ , ‘work survey ‘ and ‘time survey ‘ was introduced by Frederick Taylor. He talked of the ‘shop system ‘ as good which brought the accomplishment, strength and learning ability of the workers into inquiry. The store system was the first to originate the thought of the incentive wage. Specification of stuffs, methods of work and routing systems were used to form the store. It was the Ford Motor Company who embodied the major aspects like ‘interchangeable parts ‘ , ‘low fabricating cost ‘ , ‘mass production ‘ , and ‘standardized designs of the merchandise ‘ of scientific direction in 1920s. The scientific direction was popularized by Henry Ford, who used it in his houses. These attacks helped him in maximising the production at the works.

Operational Research System- During the Second World War tremendous resources were installed. Military operational research squads were formed to cover with the complications of the deployment. P.M. Blacker is regarded as one of the chief subscribers in the field of operational research application in the Second World War. The operational system brought to the bow front the positive facets of the system which helped the operational director to command the complexnesss of production.

Service Revolution- The publication of the Hawthorne surveies in the 1930 ‘s revealed that human factors are act uponing the production procedure to a great extent. The survey study said that the atmospheres, sociological and psychological conditions of the worker are impacting the production. It was the behavioralists who talked about these factors which made the industrialists change the manner of handling the mill workers. The thought of the labours reacting positively to the attending therefore paid to them came to be acknowledged as the Hawthorne consequence. The alteration in the idea procedure and the debut of this new doctrine had a enormous impact on the production planning and control system of the mills. Surveies showed that the due to the increased usage of machineries work became humdrum to the workers which affected the rate of production. In order to decide this job the workers were conferred a greater function in the planning process of the whole production so that they can happen involvement in their work.

Computer Revolution- It was the 1930s which witnessed the coming of the computing machine age. There was an explosive growing in the communicating engineering.

Gathering information became really easy as everyone had an effortless entree to it. Advancement in the package engineering made the people aware about the use of electronic mails. More and more workss took induction in get downing E- Business. A particular computerized system known as the Material Requirement Planning was developed which proved to be really utile in pull offing the concern.

Where we stand now?

Today the whole production or operational direction entirely stands on the demands and demands of the clients and supplying them with quality merchandises. This is because the competition degree in the market is really high and in order to construct and keep the image and repute of a company, client satisfaction is the perfectly necessary. Other factors which are act uponing the operational direction these yearss are the promotion of the engineerings, competition in the universe broad market, cost challenges etc.

Why Production and Operation Management is required?

Any house or industry needs production direction.

To accomplish all its objectives- Every house or industry possesses certain aims behind the undertakings they undertake. Production direction enables the house to carry through all its aims in clip and at the same clip carry through the demands of the client.

To derive repute every bit good as to construct up a good image in the market- One of the chief aims of production direction is to fulfill the consumers. Production direction helps in accomplishing this end.

Aids other functional fields- Production direction aids the functional field of the industry or house. Other functional sphere includes finance, forces and selling. It will be easier for the selling section to sell good quality goods which in bend helps the fiscal section to derive more fundss due to the addition of the sale of the merchandises. This will besides enable the company to get loans for spread outing the house. Proper direction of the production will besides assist the forces sector to manage the human resources decently and increase the efficiency of the resource.

Aidss in advancing new products- Production direction controls the research and development subdivision of the house. It enables to analyze the market and demands of the client depending on which they can present freshly manufactured goods in the market.

Helps in get bying up with the competition degree in the market- Same merchandises may be produced by other companies as good. Production direction helps the house to get by up with the competition degree in the market by maintaining the quality, monetary value, measure of the merchandises as per demands of the consumers.

Produce the goods in a cost effectual way- Cost of production can be checked and reduced to a great extent through proper direction of production. It tries to minimise the input maintaining the end product to the optimal degree.

Maximize the usage of resources- Production direction aids in maximization of the usage of resources like machines, human resources etc.

Helps the house to grow- Production direction helps the company to spread out itself which in bend enables the house to give greater net income.

Production direction is of import to the consumers because-

Improves the criterion of life of the people – The research work that the production section carries out reveals the demands and demands of the consumers which the industries cater to carry through. This increases every bit good as improves the criterion of liner of the people as they get to utilize good and new merchandises.

Enhances the economy- Production direction helps to bring forth goods in a cost effectual manner. This leads to the proper economic growing of the state.

Decreases the job of unemployment- Unemployment is a major job of our state. The activities of the production section of any house open up many occupation chances for the people.

Quality of the merchandises increases- As mentioned earlier production direction controls the research and development sector of a house. These researches help to supply the clients with the better quality of the merchandise.

Provides the clients with low cost products- Production direction facilitate the clients with low cost merchandises so that the bulk of the population can avail that merchandise for usage.

What is a system?

System as we understand comprises of assorted religious orders which works together as a unit. All the procedures are mutualist and map as a whole. The system operates with a distinguishable purpose to carry through the preset aims. Massive systems are frequently a digest of assorted sub-systems.

Production System

In a broader sense production system is the model which supports all sorts of production activities that may take topographic point within an organisation. The procedure of fabricating involves the transition of inputs into end products. A suited designing of production system makes certainly the coordination of the different processs which undergoes in the production. There is no difficult and fast regulation that merely a individual form of production system is to be followed universally and hold to be applied to all sorts of productions. It differs from one undertaking to another.


The methods which include all maps required to roll up the inputs, procedure or recycle the inputs and bring forth the salable end products.

Ray Wild defines production or operation system as “ a constellation of resources combined for the proviso of goods and services. ”

Production system has three chief constituents namely- inputs, transition procedure and end products. Inputs comprise of machines, man-power, capital, natural stuffs, drawings, paper plants. Conversion procedure includes all sorts of procedures and processs which can be mechanical or manual or chemical. These operations are responsible for change overing all the inputs into the desired end products. This phase of production system besides has some back uping operations like obtaining of natural stuffs, storing, production planning, merchandise planing etc. Outputs comprise of the terminal merchandises which the house will supply it to the clients like services, finished goods etc.

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A Systematic Diagram of Production System

Types of Production System

In general there are two types of production system. They are-

Continuous Production- It is a procedure which is used to bring forth merchandises without any hinderance in a uninterrupted manner. This type of production system is void of any break. Continuous production is frequently referred to as uninterrupted flow procedure or uninterrupted procedure. It is so named because the natural stuffs which go into doing of the merchandise are continuously traveling and at the same clip are exposed to chemicals or heat or cold as required in the devising of the merchandise. By ‘continuous ‘ we mean running twenty four hours a twenty-four hours, seven yearss a hebdomad, with rare closure of the working force which can be quarterly, semi-annually or yearly. Goods are manufactured on a monolithic graduated table in a uninterrupted production. They are non produced depending on the clients ‘ orders. This system of production requires immense investing in machineries. This type of production system is found in oil refineries, power Stationss etc.

Features of Continuous Production

Production is uninterrupted.

Large scale production of goods takes topographic point.

Does non depend on the clients ‘ orders.

Standardized merchandises are produced.

Quality of the goods is predetermined.

Types of Continuous Production System

Mass production flows-Here same sort of merchandise is manufactured to carry through the demand of the market. This system needs good planning for stuff, procedure, care of machines and direction to operators.

Procedure production flows- The differentiation between mass and procedure production is the sort of merchandise a steadfast produces. Mass production manufactures the same merchandises and is produced in a big graduated table. If the demand ceases, the machineries are used for fabricating merchandises of similar nature after little alteration. In procedure production, the works and equipment is designed for a specific merchandise. Hence if the demand falls for the merchandise or ceases, the house can non be used for fabricating other merchandises.

Intermittent Production System

Unlike uninterrupted production system intermittent production system as the name suggests is such a system where goods are produced on the footing on clients ‘ orders. Normally the goods are produced in a little graduated table. The production flow is non changeless. Assorted types of merchandises of assorted sizes are produced in this type of system. The system is really fictile. Ex- Production found in car workss, electric goods workss.

Features of Intermittent Production System

Production is non uninterrupted. Arrests are made often.

Assorted sorts of goods are produced.

Machines used for general intent is used.

Production depends on the order of the clients.

The degree of production is normally little.

Types of intermittent production system

Undertaking Production Flows- Here a house accepts a individual complex contract or order. The undertaking has a deadline within which the contract has to be finished that excessively within an approximate calculated cost. Undertaking production flows include undertakings like constructing a high rise, building a dike or an airdrome. Resource demands are high at the beginning of the undertaking but finally ceases as the undertaking nears its terminal.

Job Production Flows- Items are manufactured merely on the footing of specifications made by the clients. The cost is determined at the clip of subscribing the undertaking. Highly skilled labours are required in occupation production flows. Ex- Services the orienting stores, mending shops provide.

Batch Production Flows- The production agenda is decided before get downing on the undertaking. It depends on the estimation of consumers ‘ demands or upon the specific clients ‘ orders. The fabricating procedure of the merchandise is divided into a figure of batches consecutive. Each batch is to be completed first to get down with the following. A elaborate production planning is required in batch production flows. Ex. – Fabrication of drugs.

Factors Influencing Production Procedure

Supplies – The production or fabrication procedure mostly depends on the supplies of natural stuffs. If the supply of stuffs is hampered due to jobs like transit or bad conditions, the fixed mark can non be achieved within the promised clip. On the contrary if there is a smooth supply of stuffs so the flow of production will be normal and the production agenda can be easy followed.

Power Supply- For running any works, supply of ceaseless power is required. Even if the power supply is gets disrupted temporarily can hold a great impact on the production procedure.

Machineries and Equipments- A sudden shut down of any of the machineries of the equipments used in the production of merchandise can take to minimisation of the production rate. Continual operations of the equipments are necessary in order to better the efficiency of the machines.

Man Power- The labours straight associated with the fabricating procedure can act upon the production in many ways. For illustration, ill foliages and holidaies taken by cardinal workers have a negative impact on fabrication.

Capacity of the works is besides influences the production process of a house. The larger the house, the larger will be the production, all the other factors staying invariable.

Flexibility- The production procedure should be elastic in order to accommodate to the alterations that take topographic point during the production procedure.

Merchandise Design

Planing a merchandise by a house includes a strategic process of be aftering to make a new merchandise to be sold to the clients. The merchandise design is one of the most important and sensitive facet for an organisation. Success or failure of the sale of the merchandise depends on a figure of factors which finally decides the repute and image of the company in the market. So during the scheming period of the merchandise there are a figure of things which need to be paid heeded to. Everything is analyzed while planing a merchandise right from what the general public likes to the cost and the procedure which undergoes in doing the merchandise.

Production Planning and Control ( PPC )

The chief purpose of any fabrication works is to bring forth the merchandises. Therefore the production is the nucleus of the full concern operations. It is the driving force to which all the other maps of the works depend. Once the industrialist has taken the determination about the merchandise design, the following measure he takes is be aftering the production and chalk out the commanding procedure. This is really much of import for the economical facet of the undertaking. PPC is perfectly necessary for the little graduated table industries. A inquiry may originate that why controlling of the fabrication procedure is required. Well production planning without production control is like a school without the Headmaster. Planed determinations when put to action can travel incorrect, but look intoing the harm due to the bad luck is production control.

Aims of Production Planning and Control

a ) To find the ability of all bring forthing sectors

B ) To be after the fabrication activities in a systematic order depending on the gross revenues demand of the market

degree Celsius ) To back the fullest use of the house

vitamin D ) To develop labours for effectual public presentation

vitamin E ) To guarantee agencies of happening out the fabrication demands and demands so that the stuffs needed for the production can be attained at right clip in the right quality every bit good as measure

degree Fahrenheit ) To keep coordination between the assorted sectors of the production procedure.

Phases of Production Planning and Control

The undermentioned tree will demo you what the phases of PPC are


Production Planning and Control Process

Production Planning

It is a pattern of anticipating the phases of production procedure before get downing on a distinguishable undertaking and besides to judge the efficiency degree of all those phases through which the maximal net income of the industry can be brought approximately at the scheduled clip. It enables the enterpriser to gauge the measure of natural stuffs, money and labours to be needed for the production.


It helps in finding the class and patterned advance of the production activities of a works. The machines which will be required for the operations and the executives to be engaged for the work are determined in the routing phase. The chief purpose of routing is arrange the production process in a cost effectual mode. It besides makes certain that the distinct consecutive agreement is followed steadfastly. The treatment about the quality and appraisal of the cost of the merchandise to be produced is besides done in the routing phase.


Scheduling agencies finding the approximative clip to be taken by each production activity and besides all the operations taken together. It extremely differs from one occupation to the other. Time is the chief factor which is worked upon at this phase of production planning.


Here the agenda planned in the old measure is put into pattern. Loading hence decides who will be given the duty to make the work at manus. It helps in judging the bing work burden and besides to foretell how early the staying work can be finished.

Production Control

As mentioned earlier every production procedure must be controlled to maintain the procedure running swimmingly and carry through the production of the merchandises within the specified clip. The production control section can execute efficaciously merely when the fiscal director, forces director, work director and purchase director works together in instance of little graduated table industry.


To get down a production procedure an mandate is required which is done in this phase. From the motion of stuffs to the different work Stationss, maintaining a path of the cost occurred in each operation of the production, review of the activities are all looked after in the dispatching phase of the production control. This measure is really important because it converts the production program into action.

Follow Up

Follow up, besides regarded as coverage, is that phase of production control where the follies of the production program or in the agenda construction of the operations are recorded. The chief aim behind the follow up phase is to do certain all the distinct programs and plans are been followed. It finds out whether there is any divergence from the production program or non. And if there is any, immediate action is taken to decide the mistake and complete the production within the scheduled clip.


This phase is concerned about look intoing the quality of the finished goods because it is the most critical factor as the image, the name and the repute of the company in the market depends on it

Corrective Measures

Corrective steps involve all those activities which are done to rectify the mistakes which may hold occurred in the routing, programming, lading programming or in any of the phases of the production planning or control system. Decisions sing the inclusion of more labours, transportation of forces to other work Stationss, preparation of the employees are besides taken in the disciplinary phase.


From the above treatment one thing can be easy understood that without efficient planning and control no concern company can carry through its aim of gaining a net income. Production planning and control becomes really much crucial for the little graduated table industries because they often face the challenge of bring forthing goods at a really low cost. Production be aftering non merely aids the companies to find the convenient production process they need to follow but besides reveals the hazard factors which they are likely to confront during the fabrication procedure.


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