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:
- Creating master production schedules and manufacturing orders as well as forecasting inventory requirements
- Reviewing sales forecasts and customer demands as well as scheduling production batches based on inventory levels and production time
- Creating plans for procurement based on demand forecasting that has previously been done
- Monitoring inventory during the production process, goods stored in the warehouse, as well as the incoming and outgoing goods
- Scheduling production process in accordance with the planned time, routing, and quantity, in order to speed up the order fulfillment
- Ensuring the optimization of machine productivity so that no production machines are overused or rather useless
- Helping solve problems related to the production process through communication with the marketing department
- Analyzing capacity and resource requirements as well as coordinating necessary adjustments
- Ensuring adequate levels of raw materials and finished goods
- 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.