What is PPIC (Production Planning & Inventory Control)?

For those of you who work in manufacturing, you must be familiar with the term PPIC. Because this term is closely related to the production process in an industry.

Actually what is PPIC and what are its benefits in the corporate industry. In this article, we will discuss the meaning of PPIC and its duties.

What is PPIC?

PPIC stands for Production Planning and Inventory Control, which means the work to prepare the manufacturing process and manage the stock of raw material inventory until it is finally produced into finished goods.

PPIC in manufacturing companies is included in the department in charge of planning and controlling the production process. So that the process can run according to a predetermined plan.

To carry out its duties, the PPIC department must work side by side with other departments, one of which is the marketing department.

This department has forecasts and estimates regarding the number of products to be sold to consumers.

That way the PPIC department can determine and control the amount of stock of raw material inventory to be produced.

So that the goods produced can be in accordance with consumer needs obtained from the marketing department.

Because it is very closely related to the stock of raw material goods, the PPIC department must also calculate the material requirements needed to be produced.

This process is known as Material Requirements Planning, so PPIC must also work closely with the Purchasing department .

PPIC must ensure that the goods that have entered the factory will then be further processed into the production process.

PPIC must ensure that the warehouse has recorded the goods into stock. Quality Control can also take samples of the goods to ensure their quality.

PPIC tasks

In general, the Production Planning and Inventory Control staff has the following duties.

1. Providing Finished Materials

PPIC staff must provide finished goods on time and must comply with requests from the marketing team. Because the finished goods will be distributed by the marketing team to consumers.

So the goods submitted to them must be precise and accurate.

2. Reviewing the Forecast of Marketing

PPIC will also get forecast data from the marketing team which they will later review. From this data, PPIC staff can plan the next production process to be carried out.

So that the goods that have been produced have better quality and quantity.

3. Calculate and Ensure Production Needs

PPIC staff is also tasked with calculating various things for production purposes such as materials needed by the production process.

All needs from the production process to finished materials must be considered properly by the PPIC staff.

PPIC staff must be able to ensure that the materials needed for production are met.

4. Ensure Product Quality

The QC staff must also ensure that they have carried out Quality Control before the goods are shipped. Because the finished goods must be checked first so that the quality of the product is guaranteed.

5. Scheduling Production Process

PPIC staff must be able to ensure that the production process must run according to a predetermined schedule.

PPIC Job Solutions

The development of the technology world has grown very rapidly, making it difficult for companies that still manage their business manually.

Even the tasks of PPIC will not run optimally because the system that works between departments is not integrated.

One way to simplify PPIC operations is to use an ERP system. This system can be integrated with other departments , so it will not run alone. The following are the advantages that PPIC will get when using an ERP system:

  • Production process schedule can run automatically
  • Material preparation and routing can run more efficiently.
  • Will give a warning if the stock will run out.
  • Schedule the maintenance process of equipment and machines running automatically.
  • Make it easier to monitor On Hand stock, customer needs, carry out inventory of goods, to maintenance of industrial machines.

That is an explanation of the meaning of PPIC and its tasks. This staff will run more effectively if they use an integrated system called the ERP system.

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