Production Planning & Control (PPC) Procedure

A modern factory is a whirlwind of activity: thousands of components arriving from vendors, hundreds of machine tools running simultaneously, and strict delivery deadlines promised to customers. Without an organized central nervous system coordinating this chaos, workers will stand idle waiting for raw materials, machines will be overloaded, and orders will be delayed. That central nervous system is Production Planning and Control (PPC).

1. What is Production Planning & Control (PPC)?

Production Planning and Control (PPC) is the coordinated direction of all manufacturing activities to ensure raw materials, labor, and machine capacities are deployed according to pre-determined schedules, guaranteeing that products are completed on time, at specified quality standards, and at minimum cost.

The Twin Wings of PPC

• Production Planning: Formulating the strategy before work begins (What to produce? How much? On which machines? When?). It sets the standard.
• Production Control: Monitoring and regulating operations during and after manufacturing on the shop floor (Checking actual progress against the plan, clearing bottlenecks, and taking corrective actions).

Famous Management Quote:
“Plan your work, then work your plan.” — This captures the entire essence of PPC.

2. Primary Objectives of PPC

┌────────────────────────────────────────────────────────────────────────┐
│                        CORE OBJECTIVES OF PPC                          │
├──────────────────────────┬─────────────────────────────────────────────┤
│ 1. Continuous Material   │ Ensure raw materials are available at work  │
│    Flow                  │ stations so workers never sit idle.         │
├──────────────────────────┼─────────────────────────────────────────────┤
│ 2. Maximum Machine       │ Balance workloads across machine tools to   │
│    Utilization           │ prevent bottlenecks and minimize downtime.  │
├──────────────────────────┼─────────────────────────────────────────────┤
│ 3. Punctual Customer     │ Meet promised delivery deadlines to build   │
│    Deliveries            │ customer trust and market goodwill.         │
├──────────────────────────┼─────────────────────────────────────────────┤
│ 4. Cost Reduction        │ Minimize scrap, eliminate unnecessary       │
│                          │ overtime pay, and cut inventory holding.    │
├──────────────────────────┼─────────────────────────────────────────────┤
│ 5. Flexibility for       │ Allow factory schedules to accommodate rush │
│    Emergency Orders      │ orders without disrupting base operations.  │
└──────────────────────────┴─────────────────────────────────────────────┘

3. The Five Classical Steps in the PPC Procedure

The standard procedure of Production Planning and Control follows five sequential stages:

┌────────────────────────────────────────────────────────────────────────┐
│                        THE 5 STEPS OF PPC                              │
├───────────────────────────────────┬────────────────────────────────────┤
│ PLANNING PHASE (Pre-Production)   │ CONTROL PHASE (Shop-Floor Action)  │
├───────────────────────────────────┼────────────────────────────────────┤
│ 1. Routing (Path of Operations)   │ 4. Dispatching (Releasing Work)    │
│ 2. Loading (Assigning Workload)   │ 5. Expediting / Follow-up (Tracking│
│ 3. Scheduling (Timelines & Dates) │    and Correcting Bottlenecks)     │
└───────────────────────────────────┴────────────────────────────────────┘

Step 1: Routing (Determining the “Path”)

• Definition: The process of determining the exact sequence of manufacturing operations through which raw materials must pass to become finished goods.
• Questions Answered:
  • What operations are required (cutting, turning, drilling, painting)?
  • Where will each operation be performed (which specific machine or department)?
  • In what order must the operations take place?
• Key Output: The Route Sheet (or Operation Sheet), which lists the step-by-step path, machine requirements, special jigs/fixtures, and standard time allowed for each operation.

Step 2: Loading (Allocating Work to Specific Machines)

• Definition: The assignment of specific jobs and quantities of work to individual machines, work centers, or operators based on their rated capacity.
• Objective:
  • Prevent overloading a few popular machines (which causes breakdowns and long queues).
  • Prevent underloading other machines (which leaves expensive capital equipment sitting idle).
• Tool: Machine Load Charts that map out available operational hours versus scheduled hours.

Step 3: Scheduling (Fixing the “Calendar Timetable”)

• Definition: The determination of the exact calendar date and clock time when each manufacturing operation must start and finish.
• Types of Schedules:
  • Master Production Schedule (MPS): High-level schedule showing the total quantity of finished products to be produced each week or month.
  • Shop / Daily Schedule: Detailed micro-schedule assigning exact hours to individual machine tasks.
• Scheduling Methods:
  • Forward Scheduling: Starts scheduling from the date the order is received, calculating the earliest possible completion date.
  • Backward Scheduling: Starts from the customer’s promised delivery date and works backward to find the latest date manufacturing must begin.
• Visual Tool: Gantt Charts, bar charts invented by Henry Gantt that visually depict planned progress versus actual completion over calendar time.

Step 4: Dispatching (Starting the Physical Work)

• Definition: The execution stage where the theoretical paper plan is released into physical action on the shop floor through formal work authorizations.
• Duties of the Dispatcher:
  • Issuing Job Cards and Route Sheets to machine operators.
  • Authorizing the release of raw materials from stores to workstations (Store Issue Vouchers).
  • Issuing inspection instructions and tool-room requisitions.
  • Recording the exact start and finish times of each job.

Step 5: Expediting / Follow-Up (Correcting Deviations)

• Definition: The control function that continuously tracks the physical progress of work through the factory, compares it against scheduled milestones, and resolves bottlenecks.
• Why Delays Happen: Machine breakdowns, raw material defects, worker absenteeism, sudden power outages, or engineering design changes.
• Corrective Actions Taken by Expediter:
  • Re-routing delayed jobs to alternate standby machines.
  • Authorizing temporary worker overtime to catch up with schedule gaps.
  • Arranging emergency spare parts from nearby vendors.
  • Providing feedback to production planners so future schedule estimates are calibrated accurately.

4. Summary for BBA Exams

• PPC is the central coordinating system of manufacturing operations.
• Two halves: Production Planning (sets the standard before production) and Production Control (enforces the standard on the shop floor).
• Five essential steps:
  1. Routing: Which path? (Determines sequence of operations on Route Sheet).
  2. Loading: How much work? (Assigns workload against machine capacity).
  3. Scheduling: When? (Fixes calendar start and finish dates; uses Gantt Charts).
  4. Dispatching: Go! (Releases job cards and raw materials to start physical work).
  5. Expediting / Follow-Up: Check and fix! (Tracks progress, clears bottlenecks, corrects delays).