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Important of Production PlanningThe importance of production planning maybe judged form the following facts.
1. Production Planning Sets Objectives: Production planning sets objectives for an enterprise. In accomplishing its objectives for an enterprise, it chooses out best out of available alternatives considering the available resources of the plant. Production planning in normal conditions may be applied mathematically for selecting the best alternative course, which may yield the desired and predetermined results at the minimum cost on the basis of known facts. After selecting the best alternative it become imperative to prepare a plan to achieve the goal.
2. Facing the unforeseen conditions : Under abnormal conditions production planning proceeds it helps in meeting out the risk of uncertainly at operational stage because production manager takes care of difficulties which may be faced subsequently .
3. Best Utilization of Resources: Production planning helps in utilizing the available resources in the possible manner because it helps in coordination of the working of various individuals and department of the concern which leads to better utilization of time efforts and materials. It ensures the best use of available plants and regular supply or raw materials and other things for the production of goods and services.
4.Basis for control: Production planning provides the basis for production control, which is also major function of production manager. As a matter fact, production planning and control a are inseparable because unplanned work cannot be controlled. Product in planning sets the targets quantitatively and also qualitatively a and fixes the standard time for completing the job whereas production control keeps the operations along with the predetermined course of action by minimizing deviation from standards. Reasons for deviation are located and then removed in the next planning process
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