Objectives of Production Planning


• Objectives of Production Planning

  • Effective utilization of resources
  • Ensures steady flow of production
  • Estimates the resources
  • Ensures optimum inventory
  • Coordinates activities or department
  • Minimizes wastage of raw materials
  • Improves the labor productivity
  • Helps to capture the market
  • Provides better work environment
  • Facilitates quality improvement
  • Results in customer satisfaction
  • Reduces production costs
• Production Planning


  An act on the ways and means of production to have direction in the activities to be undertaken by the producer
• Production control


  The prerequisite of production planning
• Effective utilization of resources


  Human and non-human resources are utilized to the fullest because they are determined beforehand.
• Ensures steady flow of production


  A smooth flow of production is ensured by the availability of resources for they are needed.
• Estimates the resources.


  The quantity and quality of the resources are estimated. As a result, their costs are determined, and wastage is avoided.
• Ensures optimum inventory.


  The estimation of the quantity of resources helps keep the inventory for production purposes at a desired level.
• Coordinates activities or department


  The scheduling done during the production planning is responsible for the coordination of the department in the activities involved.
• Minimizes wastage of raw materials


  Wastage of raw materials will be reduced to a minimum, if not zero because only those raw materials needed in production are purchased or acquired.
• Improves the labor productivity.


  The laborers become if the raw materials needed in their work are available; if there is a shortage of materials, they must wait and are therefore left idle.
• Helps to capture the market.


  When materials are available all the time for the production, finished goods are completed on time and delivered or supplied promptly to the target market and customers.
• Provides better work environment.


  Production planning involves planning of the work area such that the physical movements of the materials are properly sequenced to avoid back-tracking. It also involves the setting up of a safe and comfortable work environment for the laborers.
• Facilitates quality improvement.


  Because all activities are properly coordinated among departments, the possibility of improving the quality of the finished goods is present.
• Results in customer satisfaction


  When the finished goods produced are of good quality and these goods are made available anytime to consumers, their satisfaction is guaranteed.
• Reduces production costs.


  Production planning involves budgeting. As such, the cost of production is reduced to a minimum because the production operates on a limited budget.