Production Planing and Inventory Control (PPIC) Job Description
What is PPIC?
PPIC stands for Production Planning & Inventory Control.
PPIC is a part of the corporate organization that bridges the 2 department ie: marketing & production.
PPIC translate procurement requirements for the marketing of finished products into the form of production plan & availability of raw materials and packaging materials.
PPIC so important role in the company's operations because it is closely related to "cash flow / flow of funds" & performance of the production in general.
What PPIC function?
1. Synergy to the marketing and manufacturing interests
2. Integrate / incorporate the parties in the organization (marketing, production, personnel, and financial) in order to work properly.
Any requirement to be optimized PPIC work?
1. There is a plan of marketing Sales Department
2. There are standard formulas of all products
3. There are standard production capacity and labor
4. There are standard yield of all products
5. There are guidelines for time (delivery time) for the procurement of materials / materials, both local and imported.
6. There are minimum and maximum limits stock
7. There is coordination and good communication with related elements of the marketing, inventory, production, personnel, quality control and F & A (Finance & Accounting)
Task - the task of PPIC are as follows:
1. Make a production plan based Sales Marketing plan
2. Material procurement plans based on plans and stock conditions by calculating the production material requirements according to the ideal standard stock (there are minimum and maximum limits that must be available)
3. Monitor all inventory for the production process, stock in the warehouse or imported so that the implementation of market entry process and continue to run smoothly and in balance
4. Making evaluation of the production, sales and inventory conditions
5. Processing and analyzing data about the plan and realization of production and sales and inventory data
6. Calculating standard employee each year based on input from the production of direct observation
7. Calculating yield based on the realization of standards of production each year
8. Actively communicate with all parties concerned so as to obtain accurate data and up to date
9. Sales-Order Filtering of the Sales.
They will be entering orders into the Monthly Prod. Planning, after acceptable.
-Develop a schedule for the production process at the time, route, & the right qty so that goods can be delivered on time and in accordance with customer demand.
-Attempt at balancing the production line work.
-Inform the Sales section if there is a problem in the production process that causes delay delivery.
Production planning conducted jointly by the Ministry of Production Planning and Inventory Control (PPIC) with the Ministry of Production based on the forecast received from the marketing division. With these forecasts, purchase plans and disusunlah PPIC issued Order Requisition (OR) are submitted to the Department of Purchasing (purchase), purschasing then make Purshase Order (PO) / Purschase Request (PR), selecting appropriate suppliers and known by the manager to be submitted to Supplier. Supplier then sends the goods in accordance with the demand and handed over to the barn. After the goods received by the warehouse, the warehouse and create Evidence Receiving Goods (BPB). One copy of the Proof of Acceptance of Goods delivered to the Department of Quality Control (QC) or QA
What is PPIC (Production Planning & Inventory Control)
1 year ago
PPIC stands for Production Planning and Inventory Control. If you work in manufacturing, you are certainly very familiar with this term, because it is very closely related to the production process. In this article, we help you to understand what PPIC really means, its benefits, and how ERP software can optimize it.
What is PPIC?
PPIC is the practice of planning a manufacturing process and controlling the inventory of raw materials to be produced into finished goods. It is also a department in a manufacturing company that is responsible for planning and controlling a series of processes, making sure they run according to the predetermined plan.
The PPIC department must work side by side with several other departments such as sales, procurement, and finance. The duties of a PPIC manager include:
1. Creating master production schedules and manufacturing orders as well as forecasting inventory requirements
2. Reviewing sales forecasts and customer demands as well as scheduling production batches based on inventory levels and production time
3. Creating plans for procurement based on demand forecasting that has previously been done
4. Monitoring inventory during the production process, goods stored in the warehouse, as well as the incoming and outgoing goods
5. Scheduling production process in accordance with the planned time, routing, and quantity, in order to speed up the order fulfillment
6. Ensuring the optimization of machine productivity so that no production machines are overused or rather useless
7. Helping solve problems related to the production process through communication with the marketing department
8. Analyzing capacity and resource requirements as well as coordinating necessary adjustments
9. Ensuring adequate levels of raw materials and finished goods
10. Providing accurate inventory data especially to the finance department
The Benefits of PPIC
PPIC plays a critical role in the smooth production process, because without proper planning and control, order fulfillment can be delayed and this can lead to customer dissatisfaction.
Some of PPIC benefits are:
• The level of raw materials needed for production will always be adequate
• The production process runs according to the schedule and consumer demand can be fulfilled on time
• Machines and equipment can be used optimally
• Better collaboration between sales (or marketing), procurement, and finance departments through systematic production planning, demand-based inventory levels, and accurate inventory reports
• Optimum inventory management and reduced waste due to excess inventory and unnecessary purchases
How ERP Software Optimizes PPIC
In the midst of fast-changing technological developments, it will be difficult for manufacturers to optimize PPIC if they still manage their business operations manually. Human error leads to data inaccuracy and slow processes cause inconsistency during the production process.
Thanks to ERP software, manufacturers can now automate their business processes. With an ERP system, you can manage various processes more quickly and accurately. The whole process is integrated into a centralized system, so that you no longer need to use a different system for each process.
Here are some benefits you can get by implementing ERP software to manage your PPIC:
• Production scheduling can be done automatically
• More efficient BoM (Bill of Materials) and routing preparation
• Early alerts of low inventory levels
• Automated equipment and machine maintenance scheduling
• Automated purchasing process
• Ability to monitor raw materials, WIP (Work In Process), and finished goods
• Accurate inventory data and ease of forecasting demand and inventory needs
• Ability to analyze reports related to inventory, production process, and expenses
EQUIP Manufacturing ERP Software by HashMicro consists of modules that cover all processes in the manufacturing business, from HR management, customer management, production management, inventory management, asset management, to financial management. This means that our cloud-based ERP system is not only able to optimize your PPIC, but also your entire manufacturing business process.
What is PPIC (Production Planning & Inventory Control) and its benefits?
22 November 2019
PPIC or Production Planning & Inventory Control is crucial for any business, large or small. The process can be quite complex, yet when done right can reduce costs significantly while improving the productivity of the manufacturing process.
If you are a business in manufacturing, PPIC is a crucial aspect of your business, and you have to figure out it correctly. In this article, we share what PPIC is and what are its benefits.
Let’s dive in
What is PPIC or production planning and inventory control?
It is a process of planning the production of a company in advance for the manufacturing process and controlling the raw materials in the inventory needed for producing finished goods. Usually, every manufacturing company has a department of production planning and inventory control to handle the planning and controlling process.
The PPIC department works with sales, procurement and financing departments of the organization to ensure seamless workflow.
Following are some of the duties of the PPIC department of an organization;
• Planning production schedules to ensure a smooth manufacturing process
• Creating and handling manufacturing orders
• Forecasting inventory requirements
• Reviewing sales forecasts and customer demands to understand the product demands in the market
• Scheduling production batches based on raw material level in the inventory and the production time
• Planning the procurement process based on the customer demand forecasting
• Monitoring stores raw materials and in the raw materials in the inventory and items stored in the warehouse
• Monitoring receiving and delivering goods from the warehouse
• Planning production schedules to fulfil orders effectively taking planning time, routing and product quantities into account
• Managing machinery productivity and optimize machine productivity to avoid machine overuse or underuse
• Actively solve issues related to the production process effectively communicating with the marketing department and procurement department
• Analyzing and fulfilling capacity and requirements for resources in the production process.
• Monitoring stock levels in raw materials and finished products to ensure a smooth production process
• Providing inventory data to the accounting department.
Benefits of PPIC Production Planning and Inventory Control
Ensure right-size your investment in capital equipment.
When you have a proper production planning and inventory control process implemented in your organization, you will easily be able to identify the production capacity requirements your business has at the moment.
The system will help you identify the right amount of machinery and equipment, labour and suppliers you need to finish your production capacity.
Thus you will be able to plan your budgets required to fulfil your target production capacities without any delays or accuracy issues. It enables you to make confident decisions on investments in equipment while helping you reduce wastes assuring you the highest ROI.
Reduce your inventory costs
When done correct PPIC helps your organization cut down unnecessary costs in handling inventory. A good inventory control process will help you identify production capacity with high accuracy beforehand. The department will collaborate with the sales department and determine customer demand forecasts to plan the safety stocks and excessive work in progress inventories accurately.
Thus you will not have to panic even if you experience unexpected supply and demand in the market as you will have enough inventory to ensure a smooth workflow. Therefore, you will not have to spend money on immediate raw material orders which will cost way more than usual to get delivered from your supplier.
Reduce your labour costs
Another benefit of PPIC or production planning and inventory control is that it helps you reduce labour costs. With a good PPIC process, you will be able to find many ways to reduce labour costs.
From selecting the right raw materials, investing in the right technology, figuring out the best practices to optimize productivity in the manufacturing process, it will help maximize the labour force. Thus you could get done more with a lesser number of labours.
On the other hand, this will help you identify ways you could introduce automation to your manufacturing process, thus speeding up operations with the right machinery. And the benefit is improved productivity.
Improve your ROA (Return on Assets)
Helping you identify appropriate production capacity from machinery to suppliers, an effective PPIC process will always look for ways to improve your ROA. It will adapt the best industry practices that work for your business to help you optimize the usage of your machinery while ensuring you nothing is overworked from machines to the labour force. Thus you experience the optimum performance every time.
Customer Service Enhancement
With effective schedule planning for the production process, it ensures you on-time delivery of your orders every time. The result is a happier customer base and fewer complaints on delays. This will strengthen your relationship with your customers while improving your image as a brand.
Easy Inventory Control
When you have an excellent PPIC process implemented in your organization, you could easily plan and keep up with your inventory. It will let you know everything you have in your inventory and materials you are running low on etc. instantly. Thus you won’t have to struggle to have better control over your inventory ever again.
Thus the time and energy of your staff will be saves in a great deal which they can invest in another task.
Plant Morale Improvement
A good PPIC process will have everything under control with well-planned schedules, a well-monitored inventory and warehouse. It will maintain effective communication between departments and proper coordination among teams. Thus the workflow will improve significantly.
Labours won’t have to deal with rush orders as everything is pre-planned and well prepared to the tiniest detail.
Idle Time Reduction
When there is a lack of smooth flow in raw materials, you can’t help but kill time without doing anything. With proper planning in the production process and effective inventory control, you can avoid idle time in a great deal waiting for any raw materials
