1.) Effective utilization of resources
2.) Steady flow of production
3.) Estimate the resources
4.) Minimize wastage of raw materials
5.) Facilitates quality improvement
6.) Increase Market Share
7.) Reduces the production costs
8.) Improves the labour productivity
1.) Effective utilization of resources
Proper utilization of resources means to take the most advantages of resources like men, material, machines, and equipment. Production planning helps the company to forecast the demand and arrange the resources according to it. It helps to make the effective utilization of resources.
2.) Steady flow of production
Production planning ensures that there is a continuous flow of production of goods and services. Production planning helps to know the customer demand in future times. So, the company sets its production target according to it, which helps to give a continuous supply of products to customers.
3.) Estimate the resources
Production planning is concerned with estimating and arranging the resources ( men, material, machinery, and equipment ) that are required to achieve the goals at the appropriate time. This estimation is based on the demand that is going to raise in the future. It results in low-cost and high returns for the organization.
4.) Minimize wastage of raw materials
Production planning minimizes wastage of raw materials. It ensures that material is used in a proper and effective manner. If there is any wastage of material happen, then production controlling helps to check the reason for wastage and take the proper action at the appropriate time.
5.) Facilitates quality improvement
Production planning helps to proper utilization of resources that will improve the quality of the product. In production, control management checks the quality of the product on a regular or interval basis. Thus PPC ensures the production of quality goods. It results in minimum rejects.
6.) Increase Market Share
Production planning helps to deliver the quality product to its customer at the appropriate time. As the management has forecast the future demand of the market and arranged the resources according to it. It helps to avoid a shortage of products. So the company can face competition effectively, and it can easily capture the market.
7.) Reduces the production costs
Production planning makes optimum utilization of the resources, and it minimizes wastage in the production process. All the resources like man, material, machine, and equipment are used in the best manner. It also maintains the optimum size of inventories. All this reduces the production costs.
8.) Improves the labour productivity
Production planning improves the productivity of the labour. Every management focuses on utilizing the manpower in a better way. They provide training to their workers from time to time as per the requirement. The profits get shared with the workers by increasing wages and incentives, which motivate them to perform their best.
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