What is PCP (Production Control Plan) and what is its importance in your company’s logistics? – WAU
PCP is the acronym for Production Control Plan. In other words, it is a system that manages an organization’s operational resources.
The production and logistics sectors are fundamental in a company. It is through these departments that the organization obtains more quality, agility and economy in its processes, achieving a competitive advantage.
But how can we achieve all of this? The best tool is the PCP.
In this post you will learn:
What is the PCP – Production Control Plan?
PCP is the acronym for Production Control Plan. It is a company’s operational management system, involving all operations and consolidating information.
In other words, in the PCP, good results are achieved through the planning, control and scheduling of production processess. In this way, the company is able to guarantee more quality and productivity. In addition, it allows to reduce operating costs.
What are the objectives of the PCP?
Due to its main characteristics, the PCP influences the entire business. The functions of this type of planning are based on three pillars:
- Planning – determines which products will be produced and when;
- Programming – defines the resources that will be used from the beginning to the end of the production flow;
- Control – performs the monitoring to correct possible deviations and / or errors identified.
In addition to these pillars, other points are verified, such as:
- the quantity of products that will be produced;
- O layout the factory, with the objective of making better use of the flow of inputs;
- the steps that make up the manufacturing process;
- the definition of work, mechanical and human.
With these delimitations, the company can better plan, program and control the production process, always reviewing the established objectives and preventing deviations from occurring.
If changes need to be made due to errors or failures, having these factors internalized will allow you to make better decisions. That’s why this planning tool also provides technical support to management, showing the main problems of the production sector.
What are the advantages of the Production Control Plan?
Check out the advantages of applying this method in the daily life of the company.
Get support for decision making
As we mentioned, this tool allows you to control the entire flow of the company’s production process. This means that the data will always be at hand and can be consulted whenever necessary. In addition, it facilitates the identification of problems and failures.
Based on this observation, management and direction can make decisions based on real data, defining what must be done to solve the problem.
Achieve more attractive end results
The company that adopts the Production Control Plan presents more attractive final results. This is because, basically, it is able to better identify the strengths and weaknesses of production and logistics, attacking problems according to the order of priority.
Have greater compatibility between the production and sales sectors
The production sector needs to be interconnected with the entire company, especially with the sales sector. After all, there is no point in selling a product if a product is not available.
By adopting the planning and control process, the company knows exactly how many products are in stock, which ones it will have to produce and which are missing (possibly requiring urgent attention and production).
Systematize the production process
The goal when using operational planning is to have control over the production process, which results in systematic production. This brings more organization, agility, ease, safety, quality, correction, speed and less cost.
This account is very simple: more control means less loss, less work, less waste and, consequently, more cost reduction.
What are the steps of the PCP?
Making a demand forecast is an important action so that the company knows when it needs each product – for the sales sector or for the stock, production and logistics departments.
This technique is subjective, but it is based on historical and statistical data to identify the most sold products, the most used raw material, the minimum stock of each product and seasonal sales.
With this data, managers are able to scale production and verify the material and human resources required for the process.
Production planning and capacity
This step uses demand forecast data defined in the medium and long term. Based on this, it is necessary to analyze the company’s production capacity to see if any type of adaptation should be made in the sector.
In this way, production capacity can be increased or reduced according to demand.
Aggregate production planning (PAP)
At PAP, the objective is to define the best production strategy for the company. Thus, decisions regarding production volume, inventory, dismissal and hiring of people, subcontracting, need for overtime and logistics and supply service contracts are considered.
PAP is generally considered annually, but there is a monthly review, which takes into account consumer demand and production capacity. The objective is to make decisions appropriate to the needs of the company.
Master production plan (PMP)
This step considers the short-term execution of production plans. The PMP allows analyzing and directing resources so that the production of a certain period is carried out and meets the demand.
This schedule, therefore, is more detailed, covering not only the demand forecast, but also open purchase and production orders and orders placed.
Detailed production schedule (PDP)
The main objective of the PDP is show how the company will carry out its operations daily – that is, it covers the operational side itself. The activities involved in this process are:
- sequence of production orders – defines the operational sequence of the machines to reduce idleness, delays and stocks;
- materials management – aims to control the stock, define the size of the lots, the safety stock and how to replenish the raw material.
- issuing production orders – it is the implementation of the production program, issuing the documents necessary for the operations to start; production is also released, leaving the necessary resources available.
In companies that work with repetitive production (that is, they have a large volume of production and little variety of products), the PDP must be guided by production systems. Some examples are Kanban, Six Sigma, Poka-yoke and Kaizen.
On the other hand, companies that have intermittent production (ie, low production volume and a wide variety of products) have more difficulty in carrying out the PDP. In this case, the use of specific software is the most suitable.
The production process must be monitored to ensure that it is moving as expected. This stage also provides notes on process time and performance, storing the updated data for use in later decisions.
What tools can be used?
O Kanban system is based on the use of post-its to identify and visualize the production flow. In general, 3 columns are used in a table.
The first comprises the tasks that need to be performed, the second shows the tasks in execution and the last shows the completed tasks. These steps must be adequate according to the needs of the company, but, in general, they are named in “To do”, “In progress” and “Finalized”.
As tasks evolve, the post-it is moved to the corresponding column. This way, it is easier to see if any process is delayed and to identify possible problems. In addition, it ensures that deadlines are met.
The Six Sigma tool is recognized internationally because provides more efficiency, economy and quality to the company’s production processes. This is achieved by identifying problems and implementing improvements. In this way, lower operating costs are obtained, which increases profits as a result.
O Six Sigma it is also related to the frequency with which a specific operation uses more of the minimum resources needed to satisfy customers. This represents a waste rate per operation, which allows a diagnosis of the performance level of the process.
This theory has collective work as the main point. Therefore, human resources are highly valued, and they must be motivated to combine their personal interests with the organization’s objectives.
O Kaizen method presents some characteristics. Are they:
- waste disposal;
- involvement of all employees, regardless of hierarchies;
- greater productivity with low investments;
- visual management principle, which provides transparency in procedures, values and processes;
- attention to the work environment or the shop floor, that is, the company’s facilities that generate value;
- oriented processes;
- learning through practice.
This tool is applicable in any situation involving risk of defects or failures. In other words, it is a quality management method that aims to reduce costs, eliminating failures or problems (disagreement) with the products.
We can see that the PCP – Production Control Plan is an ideal tool for get more productivity, eliminate errors, failures and reduce costs, increasing profit. The use of various tools and the execution of the PCP steps will ensure that the process is carried out in the best possible way so that the company obtains the maximum benefits.
Do you want to know other tools that can help in the management of a company? Download now free stuff with over 200 tools available!