What is PCP (Production Planning and Control)?
Production planning and control (PPC) is an industrial management process that helps organize the operational structure and predict results, ensuring that the company can adapt its pace according to work demand.
This is because seasonality in the segment influences the production planning of factories. Therefore, by identifying the month in which the demand for orders is high, the team can anticipate the purchase of raw materials, the division of the team, the organization of the stock, the deadlines for orders, etc.
However, without a plan, industries may face problems such as more expensive purchases of inputs, shortages of suppliers, work overload and even the inability to meet all order demands.
And letting customers down once can be a determining factor in them choosing to work with another company.
If you don’t want this situation to happen to your business, continue reading this article. Through it, you will understand what a PPC is, its objectives, and how to create one to keep operations active and adapted to the needs of each period of the year.
What is production planning and control (PPC)?
Production planning and control, or PPC, is a tool that helps manage a company’s production chain, from purchasing inputs and raw materials, defining production capacity to dividing the team into production cycles .
In the industrial process , historical data and seasonality throughout the year are analyzed to forecast demand and organize the operational structure, identifying the necessary adjustments to meet the expected workload.
All sectors involved are analyzed when preparing the PPC. After all, if a team does not fulfill its part, the activity of the next group is affected.
With production planning and control ready, the entire team knows when, how much, where and in what order the production process will work, making it easier to monitor and check the steps.
The objective is to have maximum predictability and efficiency in all stages so that the result is as expected.
What are the objectives of PCP in the industry?
The creation of production planning and control (PPC) meets three objectives: planning, programming and monitoring the company’s processes so that they are efficient, productive and standardized.
In the planning stage , the team analyzes the entire production chain, creating a flowchart of its stages. In addition, it identifies which equipment, inputs and raw materials need to be available and working.
Another planning activity is creating a production schedule that defines the time frame in which each step must be completed to ensure quality standards and team safety.
In the programming phase , the PPC team and the purchasing management team control all resources that must be available for use, keeping the stock supplied with raw materials and other resources.
Finally, in monitoring , the team evaluates the results and performance of the production process through indicators, identifying the successes and errors that interfered with the progress of the work.
In this way, the company maintains a cycle of continuous improvement , closely monitoring all details so that employees have a good work structure and customers receive the expected quality.
How to do production planning and control?
Now that you know what the tool is and its objectives, check out the step-by-step guide to planning and controlling production in your company.
1. Study and forecast of demand
The first step towards efficient production planning and control is to study how the current system works, evaluating production successes and bottlenecks, item quality, defects, delays, well-aligned processes and more.
Other factors analyzed are: market seasonality and forecast demand for orders per period. Having a data history for checking is essential for the success of the PPC.
2. Assessment of production capacity
Without knowledge about production capacity, it is impossible to create an efficient PPC for a company.
Production capacity analysis includes checking the number of employees, the quantity and quality of machinery and equipment, the size of the production area and the space for storing stock and raw materials.
The alignment of these factors contributes to productivity and meeting demands.
3. Aggregate Production Planning (APP)
The third step consists of Aggregate Production Planning (PAP), which is the part of the PPC that defines the best production strategy to meet customer demand, reducing waste as much as possible throughout the year.
The PAP must be monitored monthly so that adjustments to production capacity and demand can be made as necessary.
4. Master Production Schedule (MSP)
The Master Production Plan (MSP) guides the short-term production process, indicating production volume, delivery date, necessary materials and equipment, tools and general instructions for manufacturing the items.
While the PAP provides a macro overview of the operating system, the PMP details how each period will be conducted and the needs to meet demands.
5. Detailed Production Scheduling (DPS)
Detailed Production Scheduling is the fifth stage of production planning and control.
The PDP directs the routine and work of the production team, ensuring available materials, organized stock, batch separation, production order and quality standards.
6. Production control
The final step of the PPC is production control, that is, monitoring the results of each plan and schedule. The objective is to verify whether the plans were fulfilled and the demands delivered as expected.
Furthermore, the control checks industrial production indicators, creating reports with successes, errors and necessary adjustments to ensure continuous improvement of processes.