Functions of Production Planning and Control
Functions of production planning and control are listed and explained below.
The importance or functions of production planning and control:
- Utilizes resources effectively.
- Makes flow of production steady.
- Estimates production resources.
- Maintains necessary stock levels.
- Coordinates departmental activities.
- Minimizes wastage of resources.
- Improves labor efficiency.
- Helps to face competition.
- Provides better work environment.
- Facilitates quality improvement.
- Customer satisfaction.
- Reduces production costs.
Now let's discuss above listed functions of production planning and control.
1. Utilizes resources effectively
- Production planning and control result in effective utilization of plant capacity, equipment and resources.
- It results in low-cost and high-returns for the organization.
2. Makes flow of production steady
- Production planning and control ensure a regular and steady flow of production.
- All machines are put to their optimum use.
- This helps in achieving a continuous production of goods.
- This also helps to provide a regular supply of goods to consumers.
3. Estimates production resources
- roduction planning and control help to estimate the resources like men, materials, machines, etc.
- The estimate is made based on sales forecast.
- So, production is planned to meet sales requirements.
4. Maintains necessary stock levels
- Production planning and control prevent over-stocking and under-stocking of materials.
- Necessary stocks are maintained.
- Stock of raw-material is maintained at a proper level in order to meet production demands.
- Stock of finished goods is also maintained to meet regular demands from customers.
5. Coordinates departmental activities
- Production planning and control helps to co-ordinate the activities of different departments.
- Consider, for an example, the marketing department co-ordinates with production department to sell the goods.
- This results in profit to the organization.
6. Minimizes wastage of resources
- Production planning and control ensure proper inventory of raw-materials and effective handling of materials.
- This helps to minimize the wastage of raw materials.
- It also ensures production of quality goods. This results in minimal rejects.
- So, it results in minimum wastage.
7. Improves labor efficiency
- There is maximum utilization of manpower.
- Training is provided to the workers.
- The profits are shared with the workers in form of increased wages and other incentives.
- Workers are motivated to perform their best. This results in improved labor efficiency.
8. Helps to face competition
- Production planning and control help to give delivery of goods to customers in time.
- This is because of regular flow of quality production.
- So, the company can face competition effectively, and it can capture the market.
9. Provides better work environment
- Production planning and control provide a better work environment to workers.
- They get better work facilities, proper working hours, leave and holidays, increased wages and other incentives.
10. Facilitates quality improvement
- Production planning and control facilitate quality improvement because the production is checked regularly.
- Quality consciousness is developed among the employees through training, suggestion schemes, quality circles, etc.
11. Customer satisfaction
- Production planning and control help to give a regular supply of goods and services to consumers at competitive market price.
- This results in customer satisfaction.
12. Reduces production costs
- Production planning and control make optimum utilization of resources, and it minimizes wastage.
- It also maintains an optimal level of inventories.
- Overall, this reduces the production costs.