Objectives of Production Planning and Control

The overall need for PPC translates into several specific objectives that guide its activities and define its success criteria. These objectives focus on optimizing the production system's performance.

Specific Objectives of PPC:

1. Ensure Timely Delivery:
   • Meet customer delivery commitments reliably by planning and controlling production schedules effectively.
   • This builds customer trust and satisfaction.
2. Optimize Resource Utilization:
   • Achieve the highest possible efficiency in the use of manpower, machinery, equipment, and materials.
   • Minimize idle time and waste.
3. Maintain Desired Quality Levels:
   • Ensure that production processes adhere to specified quality standards, resulting in products/services that meet customer expectations.
   • Coordinate with quality control functions.
4. Minimize Production Costs:
   • Achieve production targets at the lowest possible cost through efficient scheduling, inventory control, reduced setup times, and minimized waste/rework.
5. Maintain Optimal Inventory Levels:
   • Balance the costs of holding inventory (raw materials, WIP, finished goods) against the risks of stockouts.
   • Ensure materials are available when needed without carrying excessive stock (using techniques like MRP).
6. Ensure Smooth and Continuous Production Flow:
   • Coordinate activities and resource availability to prevent bottlenecks and interruptions, facilitating a balanced workflow.
7. Maximize Flexibility:
   • Maintain the ability to adapt production plans and schedules in response to changes in customer demand, rush orders, or unforeseen disruptions (e.g., machine breakdowns, material shortages).
8. Coordinate Inter-departmental Activities:
   • Facilitate effective communication and collaboration between production and other departments (sales, purchasing, engineering, finance) to ensure alignment.
9. Improve Employee Morale:
   • A well-organized and predictable production environment, supported by effective PPC, can lead to reduced stress and improved morale among workers.

• Indian Example: Hero MotoCorp, India's largest two-wheeler manufacturer, has clear PPC objectives. Timely delivery to its vast dealer network is critical. Optimizing resource utilization on its high-volume assembly lines is essential for cost control. Maintaining optimal inventory of thousands of components using systems like MRP prevents stockouts while minimizing holding costs. Ensuring smooth production flow prevents disruptions that could impact output targets. These objectives drive their complex planning and control activities.

By striving to meet these objectives, the PPC function directly contributes to the overall profitability, competitiveness, and success of the organization.