Management Planning Control - Job Description and Tasks of PPIC

PPIC Duties in the Company

Duties are the burden of responsibilities held by an employee in the company. The implementation of this employee's duties is intended to optimize the responsibilities assumed by the employees.

The Planning function in the company (manufacture) is carried out by the PPIC (Production Planning and Inventory Control) section. Besides having a production planning function, PPIC also has a role in Inventory management.

Inventory is a company's assets in the form of raw material inventory, goods in the process of production, and goods that are owned for sale. Because inventory is stored in warehouses, inventory management and warehouses are closely related. Warehousing itself is a component unit in the Supply Chain product. The warehouse functions as a storage place for goods, until it is used in the production process.

This storage function is often called inventory space, raw material warehouse, etc. Large or small companies, for the procurement and storage of these items requires a large fee. This annual storage cost generally reaches around 20 - 40% of the price of the goods (Indrajit, R, E., Djokopranoto, R., Inventory Management, 2003, Gramedia, p.3).

The several tasks that must be carried out by a PPIC manager include:

a. Provides orders from the marketing department and compiles production plans in accordance with marketing orders

b. Fulfill product sample requests from the company's marketing department and monitor the process of making product samples in the hands of subscriber customers

c. Develop a material procurement plan based on forecasts from marketing through monitoring the condition of the stock of goods to be produced

d. Monitoring the inventory in the production process, storage of goods in the warehouse or that will be brought to the company so that the production process that requires basic materials can run smoothly and in balance

e. Make a schedule of the production process in accordance with the time, routing and the right amount of production so that the product delivery time to consumers can be done optimally and quickly

f. Maintaining the balance of the use of company machinery so that no production machines are overloaded or even rarely used by production companies

g. Communicating with the marketing department to ensure the resolution of production problems

Production Planning Control

The general task of PPIC is to accept orders from Sales (marketing / sales) and then ensure these orders are completed and sent to the customer at the agreed time. Simple is not it?

Not as simple as the definition, the PPIC function is closely related to the Marketing, Purchasing, and Production functions. In addition, information about the level of raw material, Work In Process (WIP), Final Product, and stock taking data for the Finance section, especially in preparing financial statements, are also included in PPIC responsibilities. Some companies have a production planning management style that looks different technical, but in general this function is not much different. Market situation requires producers to be able to implement the most appropriate operating strategy. One example, to reduce storage costs, customers require manufacturers to apply a make to order production model, with high variety of product items and small quantity orders. This factor will greatly affect the system planning model in the company.

Planning and Monitoring the Production Process

Let's get to the point. PPIC becomes a kind of connection point and gate, between the outside world and the internal company in the context of product realization. PPIC must provide accurate information regarding internal processes to Sales / Marketing, to be forwarded to the Customer. Same with daily life, for example we are in the position of the customer, want to buy a Gado-gado, if the seller is slow and unclear when finished, each question is asked not to know or repeatedly say, "sorry I check first", there is almost no certainty when the completion and how much can be done.

This is just a hodgepodge problem, you know. In an industry, our company's final product may become material for other industries. For example, the button and zip industry has become a material for the Garment industry. This is one of the concepts of "customer satisfaction". Customers can not look directly into your "kitchen", but how to respond to the arrival of orders, will give an idea of how strong your company's manufacturing capabilities. This is where the vital role of PPIC and Information Systems in the process of planning and monitoring.
Stages in planning and monitoring the production process

Arrange Order

This is the initial stage of planning, which is to receive orders from Sales. This order can be a direct order from the customer, or making stock to buffer during peak season. Combination of Make To Order (MTO) and Make To Stock (MTS). Some companies call it a Schedulling Master Plan or the making of a Master Planning Schedule (MPS). Schedulling is still not detailed, it is still global and has a long period of 3-6 months. The data in MPS is very important to provide information to the production department to prepare its resources, and to the purchasing department to prepare the material.