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Advantages of production control
Posted Date: 02-Apr-2010
I think good Production control system means greater production on the same investment without unduly speeding up workers. It makes for an even flow of production. The advantages of production control are given below :-
1. Better Service to Customers :-
Promised delivery dates are kept. Production flows as per scheduled time. This injects confidence in the travelling salesmen of the firm to set delivery dates. Delivery in time wins customer's confidence, improves customer-relation and promotes profitable repeat orders.
2. Less Overtime Work :-
As flow of production is evened out matched with the promised delivery-dates or expected demand periods, there will be few rush-firms in the same industry without adequate production planning and control system.
3. Need of Smaller Invetories of work-in-process and Finished Goods :-
Enterprises working under an effective production planning and control system require lower inventories of material, parts, components etc, for work-in-process and less of finished goods in stocks. This results in less investment in inventory. Funds thus freed may be put to other more income-earning uses. Also, order to customers can be supplied in full. This would bring the benefits of economy in transport costs because single large shipment generally costs less than two or more small shipments.
4. More Effective Purchasing :-
Due to better materials management leading to effective inventory control purchasing is more scientific, economical and timely.
5. Less Loss of Time :-
Because of phased flow of material workers need not wait for the material for long. Hence there will be less loss of workmen-hours. Time of executives is conserved in two ways, first, their personnel attention is claimed only when there is any serious flaw in the working of the system, second, executives need not spend time on research data etc.
6. Saving in the Cost :-
A properly designed and introduced system of production planning and control frequently results in major cost-savings. These savings are greater in amount than the cost involved in introduction of the planning and control system.
7. Less Work-stoppage :-
Work-stoppages are avoided or minimized in terms of time-duration. Obviously, therefore delays in dispatch of goods to customers are very infrequent.
8. Industrial Harmony :-
Effective production control helps in establishing harmonious industrial relations.
Requirements of production control system
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