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The Definition Of Production Planning And Job Description

Production Planning
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PPIC stands for Production Planning and Inventory Control, which is a division in a company that makes planning and simultaneously controlling the production process.  PPIC is a division that designing a workflow, which is from the coming of raw material until the assembly process of finished goods in the final assembly.

PPIC is the division that performs the production schedule and then performs the setting of the resource (in the form of manpower or machine) and executes it so that it can finally fulfill the demand of goods from the customer.

The role of PPIC in addition to making planning production (Production Planning) also controls the stock of goods (Inventory Control) that will be used for production needs. The role of the other PPIC is to carry out the stock control of raw materials (Raw Material), packaging (Packaging), and finished goods to be produced in accordance with production planning that has been made based on the Sales Order (SO) received of the Sales Marketing division.

PPIC is the liaison division between Sales Marketing and the production section. PPIC is responsible for the breakdown and translating the needs of finished goods from Sales Marketing into production planning. In addition, PPIC is also responsible for the procurement and availability of raw materials and other supporting materials for production needs. 

The skills and expertise of a PPIC are instrumental in keeping the company's cash flow healthy, so it does not affect the needs of the company's operational funds in general. How? The trick is to do the purchase planning of goods needed for the purposes of the careful and precise production process.

So many and a complete role and function of PPIC so that the assumption that a PPIC is the life of the company. Here I share two of PPIC's very important functions, namely:

  • Align interests between the Marketing section and the Operational (production) section.
  • Align other parts of the company in order to work better, such as the Marketing section, Production section, HRD section, Finance, and Accounting section and other parts.
Here I will share with you about the PPIC Job Desk in the company as follows:

  • PPIC makes production plans (production schedules) monthly with guidelines and refers to sales Marketing (Forecast) plans.
  • PPIC makes procurement and purchase of raw material based on the monthly production plan and stock conditions in Raw Material warehouse. Note that in calculating the material needs for production needs should pay attention to the ideal safety stock (there are minimum and maximum limits that must be available in the RM warehouse)
  • PPIC Monitoring of all stock inventory for the needs of production, the stock that must remain in the warehouse or goods that will be imported so that the purchase does not occur over the material.
  • PPIC makes evaluation and monitoring of finished goods from production, sales Marketing results and stock level conditions in the warehouse.
  • PPIC processes and analyzes the data on the schedule and realization of production, sales, and data stock inventory in the Finish Good warehouse.
  • PPIC calculates employee work standards annually based on input from the production section on the basis of conducting observations directly.
  • PPIC calculates the standard yield and target based on the realization of average production each year.
  • PPIC should actively communicate with all related divisions until it is obtained accurate and up to date data. For that, need someone who has good communication skills because of the complete production process.
The conclusion is that PPIC in working guidelines to PDCA + 1 C, namely Planning, Doing, Control, Action + Continous Improvement.

The following is an overview of the following:


In the industrial and manufacturing world, there is a term we know with the artificial of 5M, namely Man, Money, Material, Machine, Methode. PPIC should prepare the five elements in making a production plan. The following is a slight description of the five elements and elements of the 5M, which are as follows:

a. Man: Is the manpower or labor that is needed to occupy each workstation (Work Station) where the manpower must meet the competency standards of expertise according to the workstation that is his responsibility. For example for welding or welding, every manpower that works at the station should have a certificate of welding expertise from the authorized institution.

2. Money: The sense of money here is not identical to money but rather cost. The calculation of this fee will be directly related to the product price (HPP) which will affect the selling price of the product.

3. Material: the availability of raw materials (Raw material) main, supporting materials and so on should be planned the purchase according to the needs of production and stock of raw materials must be monitored and controlled to avoid over. 

Planning a purchase and the right timing of goods will save the budget and cost to be spent by the company. One of the planning methods currently in use is MRP (Material Requirement Planning).

4. Machine: The placement of the layout and machine position must be made in such a way that the operator's work becomes more efficient. Periodically check the condition of the machine is done consistently under the responsibility of production maintenance. 

A good layout is to create a working process flow such as flowing water and no repetition of the process due to incorrect machine layout placement.

5. Method: Set the target to be accomplished by each workstation and what strategies to be applied in order to achieve that target. Manufacture of work procedures and technical instruction or manual instruction equipped with necessary equipment and tools. Quality standard of the products produced by each workstation need to be set to maintain the quality stability of the product.

With the proper management of 5M, PPIC can make a production schedule that suits the demand of sales marketing and the right delivery time in accordance with the wishes of the customer.


That is the process of realization or implementation of the planning that has been made. Starting from the creation of a production Master schedule, then a working warrant, delegation of tasks and authority to each division. Production parts then carry out the production process according to the planning that has been made.


The next process is controlling the execution of the work by monitoring production output. The PPIC part has a responsibility for the smooth production process. This means that the control process is to ensure that the product realization is planned in the schedule. Any discrepancy that occurs is recorded for evaluation and is made as a consideration material for subsequent decision making.


Action means taking precautions (Preventive) and or repair. All forms of incompatibilities that have been recorded are then analyzed by the relevant divisions to make decisions on what action to take to resolve the discrepancy. 

The principle of priority scale and product urgency should be worn in determining which action should be a precedence. Some of the methods that are usually used for handling inconsistency are Brainstorming, Pareto Diagram, Fishbone Diagram and so on.


After carrying out the four points above there is one more to do namely visit Improvement, meaning the corrective action is done continuously. This action should be done by every division and operator involved in the production activities.

And in the conclusion of this article is that any action that is done by each of these divisions, must be remembered that it will be to a point that is Customer Satisfaction.

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