Skip to content

CMA Intermediate · Operations Management and Strategic Management

Production Planning and Control for CMA Inter Paper 9

Production Planning and Control (PPC) is the function that decides what to make, how much, when and where, then checks that the plan is followed. To prepare, learn the basics and production systems, then routing, scheduling, aggregate planning, MRP, control tools and capacity and layout, practising MRP numericals.

What this chapter covers

This chapter in Paper 9 (Operations Management and Strategic Management) explains how a factory turns demand into a workable plan and then keeps output on track. It begins with what PPC is and the kinds of production systems. It then moves through the planning chain: routing, scheduling and dispatching, then aggregate planning and the master production schedule, and then material requirement planning.

The second half covers control and capacity. You study tools such as the Gantt chart, Kanban and Just-in-Time (JIT), and then capacity planning and plant layout. The chapter mixes theory you must explain in words with a few calculations, mostly MRP netting and simple capacity or scheduling figures.

It connects to the rest of the paper through the operations half: inventory, quality, and supply chain decisions all depend on the plan built here. It also links to your costing papers, because production plans drive material, labour and overhead cost. Strategic ideas such as cost leadership and flexibility show up in the choice of production system and layout.

PPC is a core chapter of the operations part of Paper 9, and its content suits both exam formats. The compulsory Section A (15 MCQs of 2 marks each, no negative marking) can test definitions, differences between systems, and Kanban or MRP terms. The descriptive questions of 14 marks can ask you to explain a technique, compare two approaches, or work out a short MRP table. Because the topics are clearly separated and the numerical part is small, a focused effort here is a reliable way to collect marks that do not depend on lengthy calculation.

Production Planning and Control: topics in the order to study them

  1. 1Production Planning and Control BasicsStart here because it gives the objectives, phases and vocabulary that every later topic builds on.
  2. 2Types of Production SystemsJob, batch, mass and continuous production decide which planning and layout methods fit, so learn them before the techniques.
  3. 3Routing, Scheduling and DispatchingThese are the first practical steps of PPC and are easier once you know the production type.
  4. 4Aggregate Planning and Master Production ScheduleThis moves from single jobs to overall output planning, and the master schedule feeds the next topic.
  5. 5Material Requirement Planning (MRP) and MRP IIMRP uses the master schedule as its input, so study it after that; it is the most numerical topic, so give it time.
  6. 6Production Control Techniques: Gantt Chart, Kanban, JITOnce you know how plans are made, you can see how these tools monitor and pull production to match them.
  7. 7Capacity Planning and Plant LayoutFinish with the resource side, since capacity and layout tie together all the earlier planning decisions.

How to prepare Production Planning and Control

Treat this chapter as a chain of steps where each topic feeds the next. Spend your time on understanding the flow, then drill the few numerical parts.

  1. Read the basics and production systems once, and make a one-page table comparing job, batch, mass and continuous production.
  2. Write the sequence routing, scheduling, dispatching and follow-up in your own words, with one line on what each does.
  3. Learn the link between aggregate plan, master production schedule and MRP, and draw it as a simple flow on one page.
  4. Practise MRP netting: gross requirement, scheduled receipts, projected stock, net requirement and planned order, using the lead time to offset orders. Do several small problems until the layout is automatic.
  5. Prepare comparison notes for Kanban versus traditional push systems, and for JIT benefits and limits, in short point form.
  6. Finish with capacity planning and layout types (product, process, fixed position, cellular), noting when each suits.
  7. Attempt MCQs on each topic, then write two or three full descriptive answers with a clear heading, points and an example.

Common mistakes in Production Planning and Control

  • Mixing up routing, scheduling and dispatching.

    Fix: Remember route is the path, schedule is the time, dispatch is the release of the order to start work.

  • Confusing aggregate planning with the master production schedule.

    Fix: Aggregate planning is broad and for product groups; the master schedule is detailed for specific end items and dates.

  • Making errors in the MRP table, especially ignoring lead time or stock already on hand.

    Fix: Always net gross requirement against available stock and receipts first, then shift the planned order earlier by the lead time.

  • Describing Kanban and JIT as the same thing.

    Fix: Present JIT as the philosophy and Kanban as one signalling tool that supports it.

  • Writing descriptive answers as one long paragraph.

    Fix: Use a heading, numbered points, and a short example, so the examiner can award marks point by point.

  • Choosing a layout without linking it to the production system.

    Fix: Tie each layout to volume and variety: for example, product layout for mass production, process layout for job or batch work.

Last-day revision: Production Planning and Control

  • PPC decides what, how much, when and where to produce, and then controls progress against the plan.
  • Job production makes one-off items; batch makes lots; mass makes standard items in large volume; continuous runs non-stop.
  • Routing fixes the path and sequence of operations; scheduling fixes the timing; dispatching releases work orders.
  • Follow-up (expediting) checks progress and corrects delays.
  • Aggregate planning plans output at a broad level over the medium term, before detailed schedules.
  • The master production schedule states what end items will be made and when.
  • MRP works backwards from the master schedule using the bill of materials, inventory status and lead times.
  • MRP II extends MRP to include other resources such as capacity, labour and finance.
  • A Gantt chart shows planned versus actual progress of tasks against time.
  • Kanban is a card-based pull signal: work is triggered by actual consumption downstream.
  • JIT aims to receive and produce only what is needed, when needed, reducing inventory and waste.
  • Layouts: product, process, fixed position and cellular; the choice follows the production system and volume.

Production Planning and Control practice questions

Production Planning and Control: frequently asked questions

Is Production Planning and Control a numerical or theory chapter?

It is mostly theory, with a small numerical part. MRP netting is the main calculation, and a few scheduling or capacity figures may also appear. Practise MRP so that you do not lose easy marks.

Which topics in this chapter should I study first?

Start with PPC basics and the types of production systems, because the rest of the chapter builds on them. Then follow the planning chain from routing to MRP before moving to control tools and capacity.

How are MCQs asked from this chapter?

Section A has 15 standalone MCQs of 2 marks each with four options, and there is no negative marking. Expect questions on definitions, differences between terms, and the purpose of tools like Kanban or MRP. Attempt every question.

How should I write descriptive answers on JIT or Kanban?

Give a short definition, then the key features or steps in points, then benefits and limits. Add a small example from an Indian manufacturing setting if time allows. Structured points make it easier for the examiner to award marks.