Production is a process which involves transformation of raw material (input) into desired product or service (output) by adding economic value. For efficient, effective and economical operation in a manufacturing unit of an organization, it is essential to integrate the production planning and control system. Production planning and subsequent production control follow adoption of product design and finalization of a production process.
Production planning and control address a fundamental problem of low productivity, inventory management, and resource utilization. Production planning and control are essential for customer delight and overall success of an organization. Production Planning is required for scheduling, dispatch, inspection, quality management, inventory management, supply management, and equipment management. Production control ensures that the production team can achieve the required production target, optimum utilization of resources, quality management, and cost savings.