Significance of Material Planning, Production Control in Actualization of Organization Aims and Objectives

Abstract

The paper aims at evaluating the significance of material planning, production control in actualization of organization. Materials required for nay operation are based on the sale forecasts and production plans. Planning and Control is dome for the materials talking into account the materials not available for the operation and those in hand or in pipe line. It involves the task of making decision about what materials to purchase, when to purchase, how much to purchase and the best method of purchasing that should be adopted by the organization.The production estimating the individual requirement of parts, preparing materials budget, forecasting the level of inventories, scheduling the orders and monitoring the performance in relation to production and sales.The production control is also an important ingredient in the manufacturing flow process, the objective is to keep customers satisfied through meeting the delivery date at when due. Customer satisfactions should be a priority for any successful organization, satisfy customers in terms of quality and quantity of the order. In achieving this, there is need for proper establishment of routes and schedules for work that will ensure the optimum utilization of materials, workers, and machines and to provide means for ensuring operation in accordance with the plans.The paper revealed that any organization without adequate materials planning and control will lose its market shares, loss of customers, and may eventually die. This emphasizes the need for organization to pay a serious attention to how materials are being consumed in production process, adequate plan to be kept for optimum inventory level. Since the cost of inventory alone represent a huge amount of the total organization working capital.It is therefore imperative that organization should wary of the consequence it may cause if adequate plans were not made. An attempt to evaluate critically the topic in question was the primary purpose of this paper.