{"id":13630,"date":"2024-12-18T04:00:09","date_gmt":"2024-12-18T04:00:09","guid":{"rendered":"https:\/\/www.hashmicro.com\/ph\/blog\/?p=13630"},"modified":"2026-01-09T03:36:46","modified_gmt":"2026-01-09T03:36:46","slug":"production-planning-inventory-control-ppic","status":"publish","type":"post","link":"https:\/\/www.hashmicro.com\/ph\/blog\/production-planning-inventory-control-ppic\/","title":{"rendered":"What is PPIC (Production Planning &amp; Inventory Control)? | The Meaning and Advantages"},"content":{"rendered":"<p>Imagine running a manufacturing operation where every resource is optimized, every schedule is on time, and raw materials are always ready. This is the promise of effective Production Planning and Inventory Control (PPIC) in today\u2019s fast-paced industry.<\/p>\n<p>Yet, without the right tools, PPIC managers face overwhelming challenges such as inaccurate forecasting, production delays, and high operational costs. These issues impact efficiency and profitability and affect customer satisfaction.<\/p>\n<p>According to a study by the Philippine Statistics Authority (PSA), over 40% of manufacturing delays in the country stem from mismanaged inventory and production schedules. Adopting advanced solutions is critical for overcoming these setbacks.<\/p>\n<p>Discover in this article how PPIC works, its benefits to your business, and how ERP software can simplify your processes. Let us guide you toward a more intelligent, more efficient manufacturing operation.<\/p>\n<p><a href=\"https:\/\/www.hashmicro.com\/ph\/free-product-tour\/?medium=free-product-tour\" target=\"_blank\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/bir-demo-gratis.webp\" data-desktop-src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/bir-demo-gratis.webp\" data-mobile-src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/mobile-bir-demo-gratis.webp\" alt=\"FreeDemo\" class=\"responsive-image-banner\" width=\"620\" height=\"255\"><\/a>\r\n\r\n<script>\r\n    \/\/ check which image to use based on screensize\r\n    document.addEventListener(\"DOMContentLoaded\", function() {\r\n        function updateImageSource() {\r\n            var images = document.querySelectorAll('.responsive-image-banner');\r\n            var screenWidth = window.innerWidth;\r\n\r\n            images.forEach(function(img) {\r\n                var mobileSrc = img.getAttribute('data-mobile-src');\r\n                var desktopSrc = img.getAttribute('data-desktop-src');\r\n\r\n                if (screenWidth < 576 && mobileSrc) {\r\n                    img.setAttribute('src', mobileSrc);\r\n                } else {\r\n                    img.setAttribute('src', desktopSrc);\r\n                }\r\n            });\r\n        }\r\n\r\n        \/\/ Initial check\r\n        updateImageSource();\r\n\r\n        \/\/ Update on resize\r\n        window.addEventListener('resize', updateImageSource);\r\n    });\r\n<\/script> <div id=\"toc_group_article\" style=''>\r\n\t<p style='font-size:25px;font-weight:bold; margin-bottom:0px'>\r\n\t\tTable of Contents\r\n\t<\/p>\r\n\t<ul id=\"list_toc\" class='list_toc'><\/ul>\r\n<\/div>\r\n\r\n<div id=\"placeholder-toc\"><\/div>\r\n<div id=\"toc\">\r\n    <div class=\"header\">\r\n\t<span class=\"toc-title\" id=\"toc-title\">Content Lists<\/span>\t\r\n\t <i class=\"toc-icon\">\r\n        <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"30\" height=\"30\" viewBox=\"0 0 24 24\" fill=\"none\" stroke=\"#000\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\" class=\"header-icon\">\r\n          <path d=\"m6 9 6 6 6-6\" \/>\r\n        <\/svg>\r\n      <\/i>\r\n\t<\/div>\r\n    <div class=\"list\">\r\n      <ul id=\"toc-list\"><\/ul>\r\n    <\/div>\r\n <\/div>\r\n\r\n<style>\r\n\/* Simple styling for the TOC *\/\r\n\t\r\n\t#toc ul li:last-child {\r\n    padding-bottom: 16px; \/* Adjust the value as needed *\/\r\n}\r\n\r\n.td-fix-index {\r\n\t transform: unset !important;\r\n     -webkit-transform: unset !important; \r\n}\r\n.footer-contact .td-fix-index {\r\n\t transform: translateZ(0) !important;\r\n     -webkit-transform: translateZ(0) !important; \r\n}\r\n\t.tdb_single_content .tdb-block-inner.td-fix-index{\r\n\t\tposition: static;\r\n\t}\r\n\t\r\n\r\n\t\r\n#toc {\r\n  background-color: #FFF;\r\n\tpadding: 17px 24px 20px 24px !important;\r\n  margin-bottom: 20px;\r\n\/*   border: 1px solid #9C171E; *\/\r\n  border-radius: 6px;\r\n\tdisplay: none;\r\n  max-width: 100%;\r\n  transition: .4s ease height;\r\n\tmargin-left: 0;\r\n\toverflow: hidden;\r\n}\r\n\r\n#toc .header{\r\n  display: flex;\r\n  align-items: center;\r\n  justify-content: space-between;\r\n\tbackground-color: transparent;\r\n}\r\n\t\r\n\t#toc.sticky .header{\r\n\t\tpadding: 4px 0;\r\n\t}\r\n\t\r\n.header p{\r\n  font-size: 18px !important;\r\n  font-weight: 600 !important;\r\n  color: #393939;\r\n   margin-bottom: 0;\r\n  \/* margin-top: 20px; *\/\r\n}\r\n\r\n.toc-icon{\r\n  float: right;\r\n\/*   visibility: hidden; *\/\r\n}\r\n\r\n\t.toc-title{\r\n\t\tmargin-right: auto;\r\n\/* \t\tpadding-left: 20px; *\/\r\n\t\tfont-weight: 600;\r\n\t\talign-self: center;\t}\t\r\n\r\n#toc ul {\r\n  list-style-type: none;\r\n  padding-left: 0;\r\n  padding-top: 20px;\r\n  margin-top: 0px;\r\n}\r\n\t\r\n#toc.sticky ul{\r\n\toverflow-y: auto;\r\n\tmax-height: 250px;\r\n\tmargin-top: 0px;\r\n\tpadding-top: 20px;\r\n\/* \tborder-top: 1px solid #d3d3d3; *\/\r\n}\r\n\t\r\n#toc ul li {\r\n\/*   margin-bottom: 10px; *\/\r\n  margin-bottom: 10px;\r\n\tmargin-left: 0;\r\n\ttransition: .2s ease;\r\n\tcursor: pointer;\r\n}\r\n\t\r\n\t#toc.sticky ul li {\r\n\t  margin-right: 10px;\r\n\t}\r\n\t\r\n.td-post-content #toc-list li a:hover, .td-post-content #toc-list a.active{\r\n\tbackground-color: #FFF;\r\n\/* \tpadding: 8px 16px 8px 16px; *\/\r\n\tpadding: 4px 16px 4px 16px;\r\n\tborder-radius: 6px;\r\n\tcolor: #9c171e !important;\r\n\tfont-weight: 600 !important;\r\n}\r\n\t\r\n\t.td-post-content #toc-list li:hover a, .td-post-content #toc-list a.active{\r\n\t\tcolor: #9C171E !important;\r\n\t\tfont-weight: 600 !important;\r\n\t}\r\n\t\r\n.td-post-content #toc-list a.active{\r\n\tfont-weight: bold !important;\r\n\tcolor: #9C171E !important;\r\n}\r\n\t\r\n#toc a, .td-post-content #toc-list a {\r\n  text-decoration: none;\r\n  color: #ea1717 !important;\r\n  transition: .2s ease;\r\n\tfont-weight: 400 !important;\r\n\tdisplay: block;\r\n\t\r\n\tpadding: 4px 16px 4px 0;\r\n}\r\n\r\n#toc.sticky {\r\n  position: fixed;\r\n\/*   top: 73px; *\/\r\n\tbottom: 0;\r\n  z-index: 100; \r\n  box-shadow: 0 2px 5px rgba(0,0,0,0.1); \r\n\twidth: 100%; \r\n\tbackground-color: #FFF;\r\n\/* \tbackground-color: #FFF1F1; *\/\r\n\tborder-bottom: 1px solid #ea1717;\r\n\/*   border: 1px solid #393939; *\/\r\n  box-shadow: 0px 0px 14px 0px #00000040;\r\n  cursor: pointer;\r\n\tanimation: fadein .3s ease;\r\n\tpadding: 12px 16px !important;\r\n}\r\n\t\r\n\t.fadein{\r\n\t\tanimation: fadein .3s ease;\r\n\t}\r\n\t\r\n\t.fadeout{\r\n\t\tanimation: fadeout .3s ease;\r\n\t}\r\n\t\r\n\t\r\n\t@keyframes fadein{\r\n\t\t0% {\r\n\t\t\topacity: 0;\r\n\t\t}\r\n\t\t100%{\r\n\t\t\topacity: 1;\r\n\t\t}\r\n\t}\r\n\t\r\n\t@keyframes fadeout{\r\n\t\t0% {\r\n\t\t\topacity: 1;\r\n\t\t}\r\n\t\t100%{\r\n\t\t\topacity: 0;\r\n\t\t}\r\n\t}\r\n\r\n\t\r\n#toc.sticky .header p{\r\n\tmargin-bottom: 10px;\r\n\tmargin-top: 10px;\r\n}\r\n\r\n#toc.sticky .toc-icon{\r\n  visibility: visible;\r\n\/* \ttransition: 0.4s ease; *\/\r\n}\r\n\t\r\n\t.toc-icon{\r\n\t\talign-items: center;\r\n    \tdisplay: flex;\r\n\t}\r\n\t\r\n\tsvg.header-icon{\r\n\/* \t\tbackground-color: #9c171e; *\/\r\n\t\tbackground-color: #FFF;\r\n\t\tborder-radius: 30px;\r\n\t\tpadding: 5px;\r\n\t}\r\n\r\n#toc.sticky .list{\r\n\/*   max-height: 0; *\/\r\n  transition: height 0.4s ease;\r\n}\r\n\t\r\n\t#toc .list{\r\n\/*   max-height: 0; *\/\r\n  transition: height 0.4s ease;\r\n}\r\n\r\n#toc .header.active .toc-icon{\r\n\ttransform: rotate(0deg); \r\n\topacity: 1;\r\n}\r\n\r\n\t#toc .header.active + .list {\r\n\t  max-height: 200px; \/* Adjust this value as needed *\/\r\n\t  opacity: 1;\r\n\t}\r\n\t\r\n\t#placeholder-toc{\r\n\/* \t\tdisplay: none; *\/\r\n\t}\r\n\t\r\n\t@media (min-width: 768px) and (max-width: 991px){\r\n\t\t#toc.sticky{\r\n\/* \t\t\ttop: 104px; *\/\r\n\t\t\tbottom: 0px;\r\n\t\t}\r\n\t\t\r\n\t\t#toc{\r\n\t\t\twidth: unset !important;\r\n\t\t}\r\n\t}\r\n\t\r\n\t@media (max-width: 767px){\r\n\t\t#toc{\r\n\t\t\twidth: 100% !important;\r\n\t\t\tdisplay: inline-block;\r\n\t\t}\r\n\t\t\r\n\t\t#toc.sticky{\r\n\t\t\twidth: 84% !important;\r\n\/* \t\t\ttop: 81px; *\/\r\n\t\t\tbottom: 60px;\r\n\t\t\tmargin-left: auto;\r\n\t\t\tmargin-right: auto;\r\n\t\t\tpadding: 0 16px;\r\n\/* \t\t\tright: 5%; 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\/\/ Declare activeLink outside the loop\r\n\t\r\n  \/\/ Function to handle scroll and add\/remove .sticky class\r\n  function handleScroll() {\r\n    const windowTop = window.pageYOffset || document.documentElement.scrollTop;\r\n    let currentHeader = '';\r\n\r\n    \/\/ Highlight user progress as the heading comes\r\n    headers.forEach(header => {\r\n\t\tconst headerTop = header.offsetTop;\r\n\t\tconst headerHeight = header.clientHeight;\r\n\t\tif(window.innerWidth < 767){\r\n\t\t\ttocTitle.textContent = 'Table of Contents'; \/\/ Selalu pertahankan judul ini di mobile\r\n\t\t} else {\r\n\t\t\tif (window.scrollY >= (headerTop - headerHeight + 700)) {\r\n\t\t\t\tconst currentHeaderId = header.getAttribute('id');\r\n\t\t\t\tconst currentHeaderText = document.getElementById(currentHeaderId).textContent;\r\n\t\t\t\ttocTitle.textContent = currentHeaderText;\r\n\t\t\t\tcurrentHeader = currentHeaderId;\r\n\t\t\t}\r\n\t\t}\r\n\t});\r\n\r\n    navLinks.forEach(link => {\r\n      link.classList.remove('active');\r\n      if(currentHeader != '') {\r\n\t\t  if (link.getAttribute('href').includes(currentHeader)) {\r\n\t\t\t  link.classList.add('active');\r\n\t\t  }\r\n\t  }\r\n    });\r\n\r\n    \/\/ Update TOC title if sticky\r\n    if (windowTop > triggerPoint) {\r\n      if (!toc.classList.contains('sticky')) {\r\n        phtoc.style.display = \"block\";\r\n        toc.classList.add('sticky');\r\n        toc.style.width = `${tocParent.offsetWidth}px`; 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This minimizes production delays, reduces waste, and improves operational flow.<\/li>\n<li style=\"font-weight: 400\">PPIC managers struggle with inaccurate forecasting, inventory mismanagement, and high costs without proper tools. Adopting <a href=\"#hashmicro\">ERP solutions<\/a> resolves these challenges by automating scheduling, inventory tracking, and real-time monitoring.<\/li>\n<li>Modern ERP systems, like <a href=\"https:\/\/www.hashmicro.com\/ph\/hash-manufacturing-software\">HashMicro\u2019s Manufacturing ERP<\/a>, streamline PPIC processes with features like automated production schedules, inventory optimization, and insightful reporting. These tools improve accuracy, reduce errors, and boost manufacturing productivity.<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><strong>What is PPIC (Production Planning and Inventory Control)?<\/strong><\/h2>\n<p><img decoding=\"async\" class=\"alignnone wp-image-21645\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/ppic-300x169.webp\" alt=\"ppic\" width=\"667\" height=\"376\" srcset=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/ppic-300x169.webp 300w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/ppic-768x432.webp 768w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/ppic-747x420.webp 747w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/ppic-150x84.webp 150w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/ppic-696x392.webp 696w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/ppic.webp 800w\" sizes=\"(max-width: 667px) 100vw, 667px\" \/>Production Planning and Inventory Control (PPIC) is planning a company\u2019s manufacturing activities and managing the raw materials needed to produce finished goods. It involves creating schedules, monitoring resources, and ensuring sufficient inventory levels meet production demands.<\/p>\n<p>In most manufacturing companies, the PPIC department coordinates production with other key departments like sales, procurement, and finance. This ensures a smooth workflow and minimizes disruptions caused by inventory shortages or production bottlenecks.<\/p>\n<p>The PPIC department plans production and controls inventory to align with customer demand and market trends. It is a vital link between various departments, ensuring that every stage of the production process runs seamlessly\u2014proper PPIC management results in reduced waste, optimized resource utilization, and timely fulfilment of customer orders.<\/p>\n<p>Here are some key responsibilities handled by the PPIC department:<\/p>\n<ul>\n<li><strong>Planning production schedules:<\/strong> Create detailed schedules to ensure manufacturing processes run smoothly and meet deadlines efficiently.<\/li>\n<li><strong>Creating and managing manufacturing orders:<\/strong> Organize and handle production orders to align with inventory levels and customer requirements.<\/li>\n<li><strong>Forecasting inventory requirements:<\/strong> Predict inventory needs by analyzing customer demand, sales forecasts, and market trends.<\/li>\n<li><strong>Scheduling:<\/strong> Plan production batches based on available raw materials, inventory levels, and estimated production times.<\/li>\n<li><strong>Monitoring inventory levels:<\/strong> Track raw materials and finished goods in warehouses to ensure uninterrupted production.<\/li>\n<li><strong>Optimizing machine productivity:<\/strong> Manage machinery usage to avoid overuse or underuse, ensuring efficient and balanced operations.<\/li>\n<li><strong>Coordinating with other departments:<\/strong> Collaborate with sales, marketing, and procurement teams to address production-related challenges.<\/li>\n<li><strong>Managing stock movements:<\/strong> Monitor incoming and outgoing goods to maintain optimal stock levels and avoid excess or shortages.<\/li>\n<li><strong>Providing inventory data:<\/strong> Share accurate inventory information with the finance department to support financial planning and reporting.<\/li>\n<li><strong>Solving production issues:<\/strong> Resolve production-related problems quickly through effective communication with relevant departments.<\/li>\n<\/ul>\n<p><strong>Read more:<\/strong> <a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/what-is-manufacturing-execution-system-mes\/\">Manufacturing Execution System<\/a><\/p>\n<h2><strong>Benefits of PPIC (Production Planning and Inventory Control)<\/strong><\/h2>\n<p><img decoding=\"async\" class=\"alignnone wp-image-21646\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/ppic-1-300x169.webp\" alt=\"ppic\" width=\"667\" height=\"376\" srcset=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/ppic-1-300x169.webp 300w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/ppic-1-768x432.webp 768w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/ppic-1-747x420.webp 747w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/ppic-1-150x84.webp 150w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/ppic-1-696x392.webp 696w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/ppic-1.webp 800w\" sizes=\"(max-width: 667px) 100vw, 667px\" \/>Production Planning and Inventory Control (PPIC) is vital to managing manufacturing processes effectively. Implementing an efficient PPIC system ensures streamlined operations, reduces unnecessary expenses, and boosts overall productivity.<\/p>\n<p>The key benefits of adopting PPIC are explained below in detail:<\/p>\n<h3>1. Ensure right-sized investments in capital equipment<\/h3>\n<p>PPIC helps organizations determine the exact production capacity requirements to meet their business demands. It guides investment decisions by identifying the right amount of machinery, labour, and suppliers needed, ensuring budgets align with production goals.<\/p>\n<p>With accurate planning, businesses can reduce waste and make confident decisions about equipment investments. This approach maximizes ROI while eliminating delays and inaccuracies in production capacity.<\/p>\n<h3>2. Reduce your inventory costs<\/h3>\n<p>An effective PPIC system minimizes unnecessary inventory handling costs by optimizing stock levels. By collaborating with the sales team, PPIC forecasts customer demand and ensures well-planned safety stocks.<\/p>\n<p>This preparation allows businesses to navigate unexpected supply and demand fluctuations without panic. Moreover, it prevents expensive last-minute raw material orders, saving significant costs in the long run.<\/p>\n<h3>3. Reduce your labor costs<\/h3>\n<p>PPIC streamlines labor allocation by optimizing manufacturing processes and introducing automation where applicable. This ensures maximum productivity with minimal workforce requirements.<\/p>\n<p>It helps identify the correct practices, raw materials, and technology investments, allowing businesses to accomplish more tasks with fewer employees. Automation further enhances operational speed and labor efficiency.<\/p>\n<h3>4. Improve your ROA (Return on Assets)<\/h3>\n<p>PPIC enables businesses to optimize asset utilization, from machinery to suppliers, ensuring nothing is overworked. PPIC helps improve overall performance and ROI by adopting best practices tailored to the business.<\/p>\n<p>This systematic approach enhances asset efficiency while maintaining production quality, ensuring a consistent return on investment.<\/p>\n<h3>5. Enhance customer service<\/h3>\n<p>Effective PPIC ensures precise production schedules and on-time order delivery. This consistency strengthens customer satisfaction and builds a positive brand image. Businesses foster stronger client relationships with fewer complaints and delays, resulting in a loyal customer base.<\/p>\n<h3>6. Easy inventory control<\/h3>\n<p>A robust PPIC process provides real-time insights into inventory levels, making stock management effortless. It instantly notifies teams about stock availability or shortages, enabling proactive planning.<\/p>\n<p>This efficiency saves time and energy, allowing staff to focus on other essential tasks. As a result, businesses maintain better control over inventory without unnecessary effort. If you want to learn more, try the pricing calculation by clicking the banner below!<\/p>\n<a href=\"https:\/\/www.hashmicro.com\/ph\/offer\/download-erp-pricing-list?medium=banner-article\" target=\"_blank\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/bir-skema-harga.webp\" data-desktop-src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/bir-skema-harga.webp\" data-mobile-src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/10\/mobile-bir-skema-harga.webp\" alt=\"SkemaHarga\" class=\"responsive-image-banner\" width=\"620\" height=\"255\"><\/a>\r\n\r\n<script>\r\n    \/\/ check which image to use based on screensize\r\n    document.addEventListener(\"DOMContentLoaded\", function() {\r\n        function updateImageSource() {\r\n            var images = document.querySelectorAll('.responsive-image-banner');\r\n            var screenWidth = window.innerWidth;\r\n\r\n            images.forEach(function(img) {\r\n                var mobileSrc = img.getAttribute('data-mobile-src');\r\n                var desktopSrc = img.getAttribute('data-desktop-src');\r\n\r\n                if (screenWidth < 576 && mobileSrc) {\r\n                    img.setAttribute('src', mobileSrc);\r\n                } else {\r\n                    img.setAttribute('src', desktopSrc);\r\n                }\r\n            });\r\n        }\r\n\r\n        \/\/ Initial check\r\n        updateImageSource();\r\n\r\n        \/\/ Update on resize\r\n        window.addEventListener('resize', updateImageSource);\r\n    });\r\n<\/script>\n<h3>7. Improve plant morale<\/h3>\n<p>PPIC improves team coordination by ensuring well-planned schedules, organized inventories, and clear communication. It fosters a stress-free work environment by reducing rush orders and last-minute chaos.<\/p>\n<p>Employees feel more empowered and confident in their roles, leading to higher morale and a more productive workforce.<\/p>\n<h3>8. Reduce idle time<\/h3>\n<p>Idle time due to a lack of raw materials can disrupt workflows and lower productivity. PPIC minimizes this issue by ensuring a smooth flow of materials and a well-planned production process. Businesses can maintain continuous operations and maximize efficiency across all departments by reducing delays.<\/p>\n<p>Adopting an effective PPIC process is essential for businesses looking to streamline <a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/production-planning-software\/\">production planning software<\/a> and <a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/inventory-management-system\/\">inventory management system<\/a>. Whether exploring improving your production schedule or seeking better control over your resources, PPIC offers the foundation for success.<\/p>\n<p><strong>Read More: <\/strong><a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/top-construction-inventory-management-software\/\">Top Construction Inventory Management Software<\/a><\/p>\n<h2 class=\"p1\"><strong>Types of Production Planning<\/strong><\/h2>\n<h3>1. Master Production Schedule<\/h3>\n<p><span class=\"s2\">The Master Production Schedule is a comprehensive plan that specifies when production will commence for various products, detailing the timing and quantities involved. Its primary objective is to establish a practical timeline that ensures timely delivery while minimizing excess inventory.<\/span><\/p>\n<h3><span class=\"s2\">2. Materials Requirement Planning<\/span><span class=\"s3\"><br \/>\n<\/span><\/h3>\n<p><span class=\"s2\">Materials Requirement Planning focuses on guaranteeing the availability of essential raw materials, maintaining minimal stock levels, enhancing inventory oversight, and aiding in procurement strategies. <a href=\"\/ph\/blog\/manufacturing-inventory-software\/\">Manufacturing inventory software<\/a> can support this process by automating material tracking and improving planning accuracy.<\/span><\/p>\n<h3><span class=\"s2\">3. Capacity Planning<\/span><\/h3>\n<p><span class=\"s2\">Capacity Planning refers to the evaluation of the production capabilities necessary for the organization to meet customer demand and adapt to variations in product requirements. This process aims to balance costs with available resources, as well as align supply with demand.<\/span><\/p>\n<h3><span class=\"s2\">4. Workflow Planning<\/span><\/h3>\n<p><span class=\"s2\">Workflow Planning involves organizing the sequence of tasks executed throughout the production process. It allows for monitoring each item&#8217;s progress and clarifies who is responsible for specific tasks, thus providing visibility into the current status of production activities.<\/span><\/p>\n<h2 class=\"p1\"><strong>What are the stages involved in production planning and inventory control?<\/strong><\/h2>\n<h3><span class=\"s1\">1. Planning<\/span><\/h3>\n<p><span class=\"s3\">This phase outlines the production objectives, including what will be made, who will handle the tasks, and the methods to be employed. It involves collecting information from sales and engineering to develop a detailed plan for labor, equipment, and material needs, ensuring an efficient workflow.<\/span><\/p>\n<h3><span class=\"s1\">2. Routing<\/span><span class=\"s2\"><br \/>\n<\/span><\/h3>\n<p><span class=\"s3\">Routing determines how raw materials move through the production facility, detailing their conversion into finished products. This step coordinates all production stages, specifying the required materials and resources while optimizing operational efficiency.<\/span><\/p>\n<h3><span class=\"s1\">3. Scheduling<\/span><span class=\"s2\"><br \/>\n<\/span><\/h3>\n<p><span class=\"s3\">Scheduling is concerned with timing, focusing on when each operation will be completed to make the best use of available time. Various schedule types, such as Master and Daily Schedules, are utilized to effectively manage timelines.<\/span><\/p>\n<h3><span class=\"s1\">4. Loading<br \/>\n<\/span><\/h3>\n<p><span class=\"s3\">Loading evaluates the workload assigned to machines and workers by balancing new tasks with those already scheduled. It identifies both underutilization and overloading issues, proposing solutions like adding shifts or overtime to prevent delays.<\/span><\/p>\n<h3><span class=\"s1\">5. Dispatching<\/span><\/h3>\n<p><span class=\"s3\">Dispatching involves issuing orders and instructions based on routing and scheduling plans. This step ensures that all necessary materials are prepared for production and maintains comprehensive records throughout the process.<\/span><\/p>\n<h3><span class=\"s1\">6. Follow-up<\/span><\/h3>\n<p><span class=\"s3\">Often referred to as monitoring, this step identifies problems in the production process by comparing actual performance with expected outcomes. It addresses issues such as missed deadlines and may require adjustments to targets or schedules to improve overall efficiency.<\/span><\/p>\n<h2><strong>How ERP Software Optimizes PPIC<\/strong><\/h2>\n<p><img decoding=\"async\" class=\"alignnone wp-image-21647\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/ppic-2-300x169.webp\" alt=\"ppic\" width=\"653\" height=\"368\" srcset=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/ppic-2-300x169.webp 300w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/ppic-2-768x432.webp 768w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/ppic-2-747x420.webp 747w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/ppic-2-150x84.webp 150w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/ppic-2-696x392.webp 696w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/ppic-2.webp 800w\" sizes=\"(max-width: 653px) 100vw, 653px\" \/>Amid rapid technological advancements, manufacturers have become increasingly inefficient in relying on manual processes to manage PPIC. Manual operations often result in human errors, data inaccuracies, and delays, leading to consistency in production.<\/p>\n<p>To overcome these challenges, implementing PPIC software is essential to simplify production planning and enhance manufacturing management. With ERP software, manufacturers can automate and streamline their business operations seamlessly.<\/p>\n<p>An ERP system allows quicker, more accurate process management by integrating them into a centralized platform. This eliminates the need to use separate systems for different tasks, enabling businesses to operate more efficiently and precisely.<\/p>\n<p>Here are some key benefits of using ERP software to optimize your PPIC:<\/p>\n<ul>\n<li>Automated production scheduling for better planning<\/li>\n<li>Efficient BoM (Bill of Materials) and routing preparation<\/li>\n<li>Early warnings for low inventory levels to avoid disruptions<\/li>\n<li>Automated scheduling of equipment and machine maintenance<\/li>\n<li>Simplified purchase processes through automation<\/li>\n<li>Real-time monitoring of raw materials, WIP (Work in Process), and finished goods<\/li>\n<li>Accurate inventory data for better forecasting of demand and stock requirements<\/li>\n<li>Comprehensive analysis of reports on inventory, production, and expenses<\/li>\n<\/ul>\n<p><span id=\"hashmicro\">HashMicro\u2019s ERP <a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/best-manufacturing-software\/\">manufacturing software<\/a> offers modules to optimize all aspects of a manufacturing business, including HR, customer, production, inventory, asset, and financial management. This cloud-based solution enhances your PPIC processes and transforms your entire manufacturing operation.<\/span><\/p>\n<h2><strong>Streamline Your PPIC Management with HashMicro\u2019s Manufacturing Software<\/strong><\/h2>\n<p><img decoding=\"async\" class=\"alignnone wp-image-21649\" src=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/hashmicro-manufacturing-software-300x208.webp\" alt=\"hashmicro manufacturing software\" width=\"665\" height=\"461\" srcset=\"https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/hashmicro-manufacturing-software-300x208.webp 300w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/hashmicro-manufacturing-software-768x532.webp 768w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/hashmicro-manufacturing-software-607x420.webp 607w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/hashmicro-manufacturing-software-150x104.webp 150w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/hashmicro-manufacturing-software-218x150.webp 218w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/hashmicro-manufacturing-software-696x482.webp 696w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/hashmicro-manufacturing-software-100x70.webp 100w, https:\/\/www.hashmicro.com\/ph\/blog\/wp-content\/uploads\/2024\/12\/hashmicro-manufacturing-software.webp 900w\" sizes=\"(max-width: 665px) 100vw, 665px\" \/><\/p>\n<p>&nbsp;<\/p>\n<p><strong><a href=\"https:\/\/www.hashmicro.com\/ph\/hash-manufacturing-software\">HashMicro\u2019s Manufacturing ERP Software<\/a><\/strong> is an all-in-one solution designed to optimize overall manufacturing operations for businesses in the Philippines. By automating processes and providing real-time data, this software helps manufacturers streamline production workflows, reduce inefficiencies, and ensure compliance with industry standards.<\/p>\n<p>To help businesses explore its features, HashMicro offers <a href=\"https:\/\/www.hashmicro.com\/ph\/free-product-tour\/?medium=web-form-header\">free demo<\/a> access for its Manufacturing ERP Software. This lets companies experience its capabilities firsthand, including automated scheduling, inventory tracking, and enhanced operational efficiency.<\/p>\n<p>The following are some of the key features provided by HashMicro\u2019s Manufacturing ERP Software to help companies optimize their manufacturing processes:<\/p>\n<ul>\n<li><strong>Manufacturing Production Scheduling:<\/strong> This feature allows manufacturers to forecast production needs based on demand history, ensuring better planning. With graphical tools, businesses can analyze and control the Master Production Schedule (MPS) for informed decision-making and improved efficiency.<\/li>\n<li><strong>Manufacturing Requisition Planning:<\/strong> By aligning raw material requisitions with production schedules, this feature prevents inventory shortages and production delays. It ensures materials are requested at the right time, supporting a seamless manufacturing workflow.<\/li>\n<li><strong>BoM Cost Forecast:<\/strong> This feature helps businesses predict the costs associated with the Bill of Materials (BoM) for <a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/production-planning-system\/\">production planning<\/a>. It enables manufacturers to allocate budgets accurately, reducing financial inefficiencies.<\/li>\n<li><strong>Multi-Level BoM:<\/strong> With multi-level BoM, manufacturers can create detailed breakdowns of components and materials required for production. This improves resource management and ensures precise planning at every stage.<\/li>\n<li><strong>Stock Requisition Based on Planned Production:<\/strong> This feature automates inventory requests by analyzing planned production needs. It eliminates overstocking and ensures the availability of raw materials for uninterrupted operations.<\/li>\n<li><strong>Manufacturing Gantt Chart Schedule Management:<\/strong> This tool provides a visual timeline to manage production tasks effectively and track progress. It ensures deadlines are met, improving overall production efficiency and accountability.<\/li>\n<li><strong>Real-Time Stock Input and Output for Production:<\/strong> With real-time tracking, manufacturers can monitor raw materials used and finished goods produced. This enhances inventory accuracy and reduces manual errors in stock management.<\/li>\n<li><strong>Finished Goods Production Simulation:<\/strong> This feature allows businesses to simulate production processes, ensuring proper resource allocation and planning. It minimizes risks by identifying potential bottlenecks before actual production begins.<\/li>\n<li><strong>Manufacturing Quality Control:<\/strong> This tool ensures production quality meets standards, reducing waste and rework. It helps maintain consistency in outputs, enhancing customer satisfaction and brand reliability.<\/li>\n<li><strong>In-depth reporting on Time Spent, Materials Used, and Finished Goods Produced:<\/strong> Detailed reporting provides insights into production performance, helping manufacturers optimize processes. This feature supports better decision-making and enhances overall operational efficiency.<\/li>\n<\/ul>\n<p>In addition to these features, the software supports unlimited users, offers flexible customization options, and integrates seamlessly with other modules or third-party applications such as <a href=\"https:\/\/www.hashmicro.com\/ph\/blog\/best-inventory-management-software\/\">inventory management software<\/a> from <a href=\"https:\/\/www.hashmicro.com\/ph\/inventory-management-system\">HashMicro Inventory Management System<\/a>. These qualities make it a powerful solution for businesses looking to enhance efficiency and productivity across their manufacturing operations.<\/p>\n<h2><strong>Conclusion<\/strong><\/h2>\n<p>PPIC is crucial for smooth production and inventory management in manufacturing. Without proper planning and control, businesses face delays and inefficiencies. Leveraging the right tools helps streamline workflows, meet customer demand, and improve operational performance effectively.<\/p>\n<p>Modern ERP software, like <a href=\"https:\/\/www.hashmicro.com\/ph\/hash-manufacturing-software\">HashMicro\u2019s Manufacturing ERP<\/a>, simplifies PPIC with automation and real-time data accuracy. Its features, such as automated scheduling and inventory tracking, help businesses improve efficiency, reduce errors, and optimize operations seamlessly.<\/p>\n<p>Take the first step toward transforming your manufacturing processes by exploring HashMicro\u2019s Manufacturing ERP software. Schedule a <a href=\"https:\/\/www.hashmicro.com\/ph\/free-product-tour\/?medium=web-form-header\">free demo<\/a> today and discover how it can elevate your business efficiency and performance.<\/p>\n<a href=\"https:\/\/www.hashmicro.com\/ph\/hash-manufacturing-software?medium=moneysite-banner\" target=\"_blank\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/www.hashmicro.com\/blog\/wp-content\/uploads\/2022\/03\/2-CTA-BLOG-new-design-14-scaled.jpg\" data-desktop-src=\"https:\/\/www.hashmicro.com\/blog\/wp-content\/uploads\/2022\/03\/2-CTA-BLOG-new-design-14-scaled.jpg\" data-mobile-src=\"\" alt=\"HashManufacturingAutomation\" class=\"responsive-image-banner\" width=\"620\" height=\"255\"><\/a>\r\n\r\n<script>\r\n    \/\/ check which image to use based on screensize\r\n    document.addEventListener(\"DOMContentLoaded\", function() {\r\n        function updateImageSource() {\r\n            var images = document.querySelectorAll('.responsive-image-banner');\r\n            var screenWidth = window.innerWidth;\r\n\r\n            images.forEach(function(img) {\r\n                var mobileSrc = img.getAttribute('data-mobile-src');\r\n                var desktopSrc = img.getAttribute('data-desktop-src');\r\n\r\n                if (screenWidth < 576 && mobileSrc) {\r\n                    img.setAttribute('src', mobileSrc);\r\n                } else {\r\n                    img.setAttribute('src', desktopSrc);\r\n                }\r\n            });\r\n        }\r\n\r\n        \/\/ Initial check\r\n        updateImageSource();\r\n\r\n        \/\/ Update on resize\r\n        window.addEventListener('resize', updateImageSource);\r\n    });\r\n<\/script>\n<h2><strong>FAQ About PPIC<\/strong><\/h2>\n<ul class=\"bottom_faq\">\n<li>\n<details>\n<summary><strong>What is PPIC in supply chain?<\/strong><\/summary>\n<p>PPIC, or Production Planning and Inventory Control, is a key function in the supply chain that ensures efficient production processes and optimal inventory management. It aligns production schedules with inventory levels to meet customer demand while minimizing waste and delays.<\/p>\n<\/details>\n<\/li>\n<li>\n<details>\n<summary><strong>What is the purpose of PPIC? <\/strong><\/summary>\n<p>The purpose of PPIC is to streamline manufacturing processes and manage inventory effectively. It ensures production schedules run on time, raw materials are available, and finished goods meet demand. PPIC aims to enhance efficiency, reduce costs, and improve overall operational performance.<\/p>\n<\/details>\n<\/li>\n<li>\n<details>\n<summary><strong>What is the purpose of the inventory control system?<\/strong><\/summary>\n<p>The purpose of an inventory control system is to maintain optimal stock levels, prevent overstocking or shortages, and ensure smooth operations. It helps monitor inventory in real time, reduce waste, improve cash flow, and ensure that production processes remain uninterrupted.<\/p>\n<\/details>\n<\/li>\n<\/ul>\n<p><script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What is PPIC in supply chain?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"PPIC, or Production Planning and Inventory Control, is a key function in the supply chain that ensures efficient production processes and optimal inventory management. 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Yet, without the right tools, PPIC managers face overwhelming challenges such as inaccurate forecasting, production delays, and high [&hellip;]<\/p>\n","protected":false},"author":19,"featured_media":21650,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[19],"tags":[],"class_list":{"0":"post-13630","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-manufacturing"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.6 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is PPIC (Production Planning &amp; Inventory Control)?<\/title>\n<meta name=\"description\" content=\"PPIC, or Production Planning and Inventory Control, involves planning production processes and managing raw materials to produce finished goods.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.hashmicro.com\/ph\/blog\/production-planning-inventory-control-ppic\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is PPIC (Production Planning &amp; Inventory Control)? 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