1. Production Planning may be said to be atechnique of forecasting ahead every step inthe long process of production, taking them atright time and in the right degree and trying tocomplete operations at the maximum efficiency

2. Inputs like materials, men and machines areefficiently used Factors of production are integrated to use themeconomically Division of work is undertaken carefully so thatevery available element is properly utilised Work is regulated from the first stage ofprocuring raw materials to the stage of finishedgoods Questions like what, when and how to bemanufactured are decided 3. Determining sequence of operations forcontinuous production Planning plant capacity for future productionprogrammes Issuing co-ordinated work schedules toconcerned persons Maintaining sufficient inventories to supportcontinuous flow of production Evaluating performance of workshops Maintaining production schedules to ensuredelivery at proper time 4. Production planning is important for thefollowing reasons - For Increasing Production Main purpose ofproduction planning is to arrange inputs. Ithelps in raising industrial output. For co-ordinating plant activity -Inplanning production is carried out in a numberof processes and thus activities aresynchronized for smooth working. 5. Following are the limitations faced by productionplanning Based on Assumptions In case the assumptionsprove correct, the planning and control will gosmoothly. But if they go wrong, procol will go weak. Rigidity Under production planning, there isrigidity in the behaviour of employees and it maynot help in smoothening flow of work. 6. Difficult for small firms This process is timeconsuming and therefore not affordable for smallfirms Costly It is a costly device as itsimplementation requires separate persons toperform functions of planning, expediting,dispatching etc. Dependence on External Factors Externalfactors like natural calamities, change intechnology, government controls etc reduceeffectiveness of production planning. 7. Planning Routing Scheduling Despatching Follow-up and Expediting Inspection 8. It is the first element of production planningand control. Planning is deciding in advancewhat is to be done in future. Anorganisational set up is created to prepareplans and policies. Various charts, manualsand production budgets are also prepared.Planning provides a sound base for control. Aseparate department is set up for this work. 9. Routing is determining the exact path which willbe followed in production. It is the selection ofthe path from where each unit have to passbefore reaching the final stage. The stagesfrom which goods are to pass are decided in thisprocess. 10. Scheduling is the determining of time and datewhen each operation is to be commenced orcompleted. The time and date of manufacturingeach component is fixed in such a way thatassembling for final product is not delayed inany way. 11. Despatching refers to the process of actuallyordering the work to be done. It involvesputting the plan into effect by issuing orders. Itis concerned with starting the process andoperation on the basis of route sheets andschedule charts. 12. Follow up or expediting is that branch of production control procedure which regulates the progress of materials and part through the production process. 13. Inspection is the process of ensuring whetherthe products manufactured are of requisitequality or not.Inspection is undertaken both of products andinputs. It is carried on at various levels ofproduction process so that pre-determinedstandards of quality are achieved.Inspection ensures the maintenance of pre-determined quality of products. 14. A firm can manufacture two products A& B relevant financial and resourcerequirment details are as follows.A(x) B(y)Material(Kg/unit) 41Labour(Kg/unit) 23Unit variable 18 11cost(Rs)Selling 24 16Price(Rs/Unit)Maximum(Sales/180250Unit) 15. The daily supply of material Is ltd to 800Kgs and Labour hrs are Ltd to 900. Thefirm wish to set production level so as tomaximise the total profit. Formulate LPP and Solve by graphicalmethod. 16. THANK YOU