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An Overview of PPIC (Production Planning & Inventory Control)


An Overview of PPIC (Production Planning & Inventory Control)

An Overview of PPIC (Production Planning & Inventory Control) - In essence, PPIC works according to the rules of four healthy five perfect. The four healthy ones are PDCA (Planing, Doing, Control, Action). 

While the perfect five are Continous Improvement or continuous improvement. In summary, it can be described as follows:


All components of the management system must be prepared. That's why PPIC is often called Production Planning & Inventory Control. The things that are usually prepared include 5 main elements, namely 5M (Man, Money, Material, Machine, Method).

a. Man: The personnel required to occupy each workstation must be prepared and their needs defined following the competency standards that should be.

b. Money: means not money, but costs. This means that planning costs, or more focus on determining the cost of the product. In large companies, the cost accounting section includes planning the cost of the product.

c. Material: Raw materials, supporting materials, etc. the needs must be planned and controlled the inventory/stock. A large number of preparations is not necessarily efficient. 

Many methods can be used in determining the appropriate demand plan and stock level. One of them is the MRP (Material Requirement Planning) method.

d. Machine: Each workstation has to determine the specifications and number of machines required along with the proper layout to achieve efficiency and no waste due to handling/transportation and no reverse flow (repetitive process).

e. Methods: Setting goals/targets and strategies for each workstation. Making work procedures and technical instructions / manual instructions that are equipped with the necessary tools/tooling. Product Quality Standards need to be set to maintain quality stability.

With the 5M, in the end, PPIC is expected to be able to make the tight production schedule and the right delivery time.


Namely the process of realization of planning. Starting from making work orders, delegating tasks and authorities to each section, and disseminating planning specs through media presentations to the production line. The production department carries out the work according to its plan.


The next process is controlling the implementation of work. The PPIC department is responsible for the smooth running of the production process. The quality/quality of the work of each workstation is monitored and controlled following the established product quality standards. 

In essence, process control is to ensure that product realization is as planned. Each non-conformity is recorded as a consideration for the next decision.


Action is to take preventive and or corrective actions. All recorded non-conformities are analyzed to determine what action should be taken. The principle of priority scale must be used in determining which action should take precedence. The method of work is usually with Brainstorming, Pareto Diagram, Fishbone Diagram, and so on.

Continual Improvement 

The four points above are not perfect if there is no continuous improvement. Ensure that non-conformities that have been taken by corrective and preventive steps do not recur. 

Campaign every time there is a new method or method of work for each actor of production. Try to get every important information to the line as much as possible.

Thank you for visiting and reading the articles on my blog. I hope these articles can be useful and can add to your knowledge.

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