A SUMMER TRAINING REPORT

ON

“PRODUCTION PLANNING AND CONTROL (PPC)”

AT
RICO AUTO INDUSTRIES LIMITED
In partial fulfilment of the requirement for the award
of the degree of BACHELORS OF BUSINESS
ADMINISTRATION

Maharishi Dayanand University, Rohtak

BACHELOR OF BUSINESS
ADMINISTRATION
Batch: (2022-2025)

Under Supervision of Submitted By :

Dr. MANYATA MEHRA AMIT ARYA HOTA
Assistant Professor Reg no.2212201065
Department of Business Administration University Roll no.
WCTM, GURUGRAM BBA – 5th Semester

WORLD COLLEGE OF TECHNOLOGY AND

MANAGEMENT,FARUKHNAGAR,
GURUGRAM
1
 STUDENT DECLARATION

I, AMIT ARYA HOTA, Reg. No. 2212201065, BBA 5th Semester hereby declares that this
summer internship project report entitled “A STUDY OF RICO AUTO INDUSTRIES LTD” I
further declare that this summer internship report is based on the information collected by me
and has not been submitted to any other university or academy body.

AMIT ARYA HOTA

Reg. No. 2212201065
BBA 5th Semester

2
3
 WORLD COLEGE OF TECHNOLOGY AND
MANAGEMENT,
GURUGRAM

CERTIFICATE OF H.O.D

Mr. AMIT ARYA HOTA, Roll No. /BBA/, Registration No. 2212201065, a student of
World College of Technology and Management, Gurugram, an affiliated institute of
Maharishi Dayanand University, Rohtak has carried out on the summer training on A
Study of RICO AUTO INDUSTRIES LTD” impartial fulfilment of the requirements
for the degree of Bachelor of Business Administration under my supervision and
guidance.

I certify that this project report is a record of the work done by the candidate herself and
that to the best of my knowledge the contents of this Summer Internship project report
did not form a basis of award of any previous degree to anybody else.

Dr. Himani Avasthi

Department of Management

4
 CERTIFICATE OF INTERNAL GUIDE

Mr. AMIT ARYA HOTA, Registration No. 2212201065, a student of World College of
Technology and Management, Gurugram, an affiliated institute of Maharishi Dayanand
University, Rohtak has carried out the summer training on “A Study of RICO AUTO
INDUSTRIES LIMITED” impartial fulfilment of the requirements for the degree of
Bachelor of Business Administration under my supervision and guidance.

I certify that this project report is a record of the work done by the candidate himself and
that to the best of my knowledge the contents of this Summer Internship Project Report
did not form a basis of award of any previous degree to anybody else.

DR. MANYATA MEHRA

Assistant Professor
Department of Business Administration
WCTM, GURUGRAM

5
 Acknowledgement

I would like to express my sincere gratitude to all those who have contributed to the
successful completion of this project. First and foremost, I am deeply thankful to DR.
MANYATA MEHRA, Assistant Professor (Department of Business Administration),
whose invaluable guidance, encouragement, and insights have been instrumental in
shaping this project. Their expertise and feedback have greatly enriched my work.
I am grateful to the college staff and management for providing me this golden
opportunity to do training in Rico Auto Industries Limited, Gurugram, Haryana.

The success and outcome of this industrial Training required a lot of guidance and
assistance from many people and I am extremely privileged to have this all along the
completion of my training. All that I have done is only due to such supervision and
assistance and I would not forget to thank them.
I also respect and thanks Mr. Abhishek Chauhan, HR Manager of HRM Department for
providing me an opportunity to do the summer training in RICO AUTO INDUSTRIES
and giving us all support and guidance which made me complete the training duly. I am
extremely thankful to her for providing such a nice support and guidance.

I owe my deep gratitude to our training guide Mr. Joginder Singh, who took keen
interest on my training and guided me all along, till the completion of training by
providing all the necessary information to deep learning.

AMIT ARYA HOTA

Reg. No. 2212201065
BBA 5th Semester

6
 INDEX

CHAPTER TOPIC PAGE NO.

Student Declaration 2

Internship Certificate 3

Certificate of HOD 4

Certificate of Internal Guide 5

Acknowledgement 6

1 Chapter 1: Introduction 8-29

2 Chapter 2: Company Profile 30-43

3 Chapter 3: Literature Review 44-48

4 Chapter 4: Research Methodology 49-52

5 Chapter 5: Data Analysis and interpretation 53-61

6 Chapter 6: Findings 62-65

7 Chapter 7: Conclusion 66-68

Bibliography 69-70

Annexure 71-74

7
 CHAPTER-1
INTRODUCTION

8
 Production Planning and Control refers to the process of planning, coordinating, and controlling
all aspects of production. This includes forecasting demand, procuring raw materials, scheduling
production activities, managing inventory, and ensuring the quality of the final product. PPC is
crucial because it enables manufacturers to meet customer demands while maintaining minimal
operational costs. It is often considered the backbone of manufacturing operations, as it directly
influences production efficiency and the ability to fulfill orders on time.

PPC can be broadly divided into two distinct yet interconnected functions: production planning
and production control.

 Production Planning: This involves determining what needs to be produced, in what

quantities, when, and with what resources. It includes forecasting demand, setting production
schedules, and designing the production flow.

 Production Control: This function ensures that the production process follows the planned
schedule. It involves monitoring production progress, making adjustments where necessary,
managing inventories, and ensuring quality control.

Production Planning and Control (PPC): An In-Depth

Analysis Introduction

Production Planning and Control (PPC) is a vital component of operations management in

manufacturing and service organizations. It involves a series of strategic and tactical
decisions aimed at ensuring that production processes run efficiently, resources are utilized
optimally, and customer demands are met in a timely manner. The primary objective of PPC
is to balance production capacity with demand while minimizing costs, improving resource
utilization, and maintaining high levels of quality and delivery performance.

With the advent of globalization, technological advancements, and increasing consumer

demands, PPC has evolved significantly. Traditional methods such as Material Requirements
Planning (MRP) have been integrated with modern systems like Enterprise Resource
Planning (ERP) and Industry 4.0 technologies, making PPC an essential function in
achieving competitive advantage in today’s dynamic business environment. This paper
presents a comprehensive review of PPC, examining its core principles, processes,
methodologies, technologies, and its application in various industries.

9
 1. Definition and Importance of PPC

Production Planning and Control (PPC) is the management of production processes in a

way that ensures efficient production, minimal downtime, and the effective use of resources
(materials, labor, and machinery). The goal of PPC is to harmonize production with demand,
ensuring that the right quantity of products is produced at the right time, in the right quality,
and at the minimum cost.

PPC is important for several reasons:

 Resource Optimization: Ensures the best utilization of resources such as labor, machines,
and materials.

 Cost Reduction: By planning the production efficiently, companies can reduce unnecessary
expenses such as overtime, machine idle time, and excess inventory.

 Customer Satisfaction: Timely production and on-time delivery increase customer

satisfaction and help maintain competitive advantage.

 Quality Control: It ensures that the products meet the required quality standards while
minimizing defects.

 Improved Forecasting: By integrating demand forecasts, PPC helps companies anticipate

market changes and adjust their production strategies accordingly.

2. Core Elements of PPC

PPC involves various activities and processes that are crucial to managing production
operations. These include:

2.1. Demand Forecasting

Demand forecasting is the first step in PPC and involves predicting future customer demand
for products. Accurate demand forecasting helps organizations plan production schedules and
procure the necessary materials. There are two primary types of demand forecasting:

 Qualitative Forecasting: Relies on subjective judgment, such as expert opinions or market

research.
10
 Quantitative Forecasting: Uses historical data and statistical methods like time-series
analysis and regression to predict future demand.

Forecasting demand accurately is essential for production planning, as overestimating or

underestimating demand can lead to excess inventory or stockouts, both of which are costly.

Capacity Planning

Capacity planning is the process of determining the production capacity required to meet
demand. It involves analyzing the available resources (machinery, labor, and facilities) and
evaluating whether the current capacity is sufficient to meet forecasted production levels. If
the existing capacity is inadequate, organizations may need to invest in additional machinery
or workforce.

Capacity planning can be divided into:

 Long-term Capacity Planning: Focuses on investments in machinery, plants, or workforce

to meet future demands.

 Short-term Capacity Planning: Deals with managing daily or weekly production schedules
to meet customer demand without overloading existing resources.

Effective capacity planning ensures that production facilities can handle fluctuations in
demand without incurring excessive costs or delays.

Inventory Management

Inventory management involves overseeing the flow of raw materials, work-in-progress

(WIP), and finished goods. Effective inventory management is essential to ensure that
production processes are not halted due to material shortages or overstocking, which can tie
up capital unnecessarily.

Key inventory management strategies include:

 Just-in-Time (JIT): A strategy where materials are delivered exactly when needed,
minimizing inventory levels and reducing holding costs.

 Economic Order Quantity (EOQ): A model that helps determine the optimal order quantity
to minimize the total cost of ordering and holding inventory.

11
 Safety Stock: Extra inventory held to prevent stockouts due to fluctuations in demand or
supply delays.

Efficient inventory management is critical for PPC, as it ensures that the necessary materials
are available for production without overburdening the organization with excess stock.

Scheduling

Scheduling refers to assigning production tasks to resources (machines, workers, and tools) in
a way that maximizes efficiency and minimizes production lead times. Production scheduling
involves determining:

 When to produce: Determining the timing of production tasks based on available resources
and customer demand.

 How much to produce: Defining the quantity of each product to be manufactured in each
production cycle.

 Where to produce: Deciding on the machines or workstations where each task will be
performed.

Effective scheduling helps avoid bottlenecks and ensures that production targets are met
while keeping costs under control.

Resource Allocation

Resource allocation is the process of assigning available resources (such as raw materials,
labor, and machinery) to the different stages of production. By optimizing resource
allocation, companies can ensure that production runs smoothly and that resources are not
under- or over- utilized.

It involves:

 Labor Allocation: Ensuring that the right number of skilled workers are available to meet
production schedules.

 Machine Allocation: Assigning appropriate machines and tools to various tasks in the
production process.

 Material Allocation: Ensuring that raw materials are available for production when needed.
12
Proper resource allocation ensures the efficiency of the entire production system and reduces
wastage.

Methodologies in PPC

Various methodologies and techniques have been developed to improve the efficiency of
production planning and control systems. Some of the most popular methodologies include:

Material Requirements Planning (MRP)

MRP is a computer-based inventory management system designed to improve the production

process by determining the materials needed for production based on a master production
schedule (MPS). MRP ensures that materials are available for production and products are
available for delivery on time. It helps minimize inventory costs and reduce waste by
planning material purchases and production schedules more effectively.

Manufacturing Resource Planning (MRP II)

MRP II is an extension of MRP, integrating additional manufacturing resources such as

machines, labor, and other production factors into the planning process. MRP II provides a
more comprehensive approach by linking production planning with other departments like
finance, sales, and procurement, creating a more holistic view of the manufacturing process.

Enterprise Resource Planning (ERP)

ERP systems are integrated software solutions that allow organizations to manage core
business processes, including production, inventory, procurement, finance, and human
resources. ERP systems help streamline the flow of information across the organization,
improve collaboration, and provide real-time data, making production planning and control
more efficient. Modern ERP systems also support advanced features like predictive analytics
and real-time decision-making.

Just-in-Time (JIT) Production

JIT is a production methodology that aims to reduce inventory levels and production waste
by producing goods only when they are needed. This strategy ensures that materials and
components arrive just in time for production, minimizing the need for storage and reducing
holding costs. JIT requires close coordination with suppliers and effective scheduling to
ensure smooth operations.
13
Lean Manufacturing

Lean manufacturing focuses on eliminating waste, improving process efficiency, and

enhancing product quality. Lean tools like Value Stream Mapping (VSM) and Kaizen
(continuous improvement) are used to identify and eliminate inefficiencies in production. By
reducing waste and improving the flow of materials, companies can achieve better control
over production and inventory management.

Technological Advances in PPC

The role of technology in PPC has grown significantly in recent years. Advancements in
information technology and automation have revolutionized production planning and control
systems, making them more efficient, flexible, and adaptable to changing business needs.
Some of the key technological developments in PPC include:

Automation and Robotics

Automation and robotics are increasingly being used in production processes to improve
efficiency and reduce human error. Robots are used for tasks such as assembly, material
handling, and quality control. Automated systems also help in scheduling, inventory
management, and resource allocation by providing real-time data and reducing manual errors.

Internet of Things (IoT)

The IoT connects devices, machines, and sensors through the internet, enabling real-time
monitoring of production processes. IoT devices can provide valuable data on machine
performance, material usage, and production efficiency, which can be used for better
decision- making in PPC.

Big Data and Analytics

Big data and analytics tools enable organizations to process and analyze large volumes of
data from various sources. By leveraging predictive analytics, manufacturers can forecast
demand more accurately, optimize production schedules, and enhance resource allocation.
Data-driven decision-making plays a significant role in modern PPC, allowing companies to
identify trends, forecast potential disruptions, and implement proactive strategies.

Artificial Intelligence (AI) and Machine Learning

14
 AI and machine learning algorithms are being integrated into PPC systems to improve
decision-making processes. These technologies can analyze vast amounts of data, identify
patterns, and predict potential issues in production. AI can also be used to optimize
scheduling, improve demand forecasting, and enhance resource allocation.

5. Challenges in PPC

While PPC offers significant benefits, it also comes with several challenges:

 Demand Variability: Fluctuating demand can lead to production inefficiencies,

overstocking, or stockouts.

 Supply Chain Disruptions: Interruptions in the supply chain can cause delays in production,
making it challenging to meet customer expectations.

 Complexity in Scheduling: Scheduling can become complex when dealing with multiple
products, different machine setups, and varying resource

3. Key Objectives of PPC

The main objectives of production planning and control are:

 Optimize Utilization of Resources: Ensure that labor, materials, and machinery are
effectively used to meet production targets.

 Maintain Continuous Flow: Avoid interruptions in the production process by aligning

material and labor availability with production schedules.

 Ensure On-time Delivery: Schedule production so that products are delivered to customers
on time, thereby improving customer satisfaction.

 Minimize Inventory Levels: Maintain optimal inventory levels to reduce carrying costs
without risking stockouts.

 Enhance Product Quality: Monitor the production process to ensure that products meet
quality standards and specifications.

4. Steps in Production Planning and Control

Effective PPC involves several key steps, from initial planning to monitoring production
15
 processes.

a. Forecasting Demand

Forecasting demand is the first and most crucial step in production planning. Accurate demand
forecasting helps businesses anticipate future sales and production needs. This can be achieved
through various techniques, including:

 Quantitative Methods: Statistical methods such as moving averages, exponential

smoothing, and regression analysis.

 Qualitative Methods: Expert opinions, market research, and Delphi technique.

The demand forecast helps determine the production capacity, required resources, and raw
materials needed for manufacturing.

b. Routing

Routing involves determining the path or sequence of operations needed to produce a product. It
includes the selection of machines, tools, and labor, as well as defining the sequence of
operations. Routing ensures that the production process flows smoothly and that resources are
used efficiently.

c. Scheduling

Scheduling is the process of assigning tasks and activities to specific time slots in order to meet
production goals. A well-developed schedule ensures that all resources, including labor and
machinery, are available at the right time. Types of scheduling include:

 Forward Scheduling: The process of scheduling tasks from a starting point to a due date.

 Backward Scheduling: Scheduling tasks from a due date backward to determine the latest
start time for each operation.

Production schedules are typically based on the order of priority, the availability of resources,
and the production capacity.

d. Dispatching

Dispatching involves issuing work orders, instructions, and necessary materials to the production
16
 floor. It ensures that workers have everything they need to carry out their tasks. Dispatching
typically follows the schedule and may need to be adjusted based on real-time circumstances.

e. Expediting

Expediting is the process of ensuring that materials and work orders are moving through the
production process as planned. It involves monitoring progress, identifying delays, and
addressing any issues that arise. This step ensures that the production process is completed on
time.

f. Monitoring and Control

Once production is underway, continuous monitoring is essential to ensure adherence to the

plan. This includes tracking production progress, ensuring the availability of materials,
managing labor, and maintaining quality standards. Adjustments are made as necessary to
correct any deviations from the plan.

5. Techniques of Production Planning and Control

Several techniques are employed in production planning and control to optimize operations.
These techniques help achieve the balance between demand and supply, minimize waste, and
ensure efficient use of resources.

a. Just-In-Time (JIT)

Just-In-Time (JIT) is a production strategy aimed at minimizing inventory and reducing waste
by producing goods only as they are needed. JIT relies on close coordination with suppliers and
production teams to ensure that materials arrive at the right time, in the right quantities, and
without delay. It helps companies reduce inventory costs and improve efficiency.

b. Material Requirements Planning (MRP)

Material Requirements Planning (MRP) is a computer-based system that helps manufacturers

plan the purchasing and inventory of materials based on the production schedule. It ensures that
the right materials are available at the right time for production. MRP involves three key
elements:

 Master Production Schedule (MPS): The overall plan for what needs to be produced.

17
 Bill of Materials (BOM): A detailed list of materials required for production.

 Inventory Status File: A record of the quantities and availability of materials in stock.

18
 c. Capacity Planning

Capacity planning involves ensuring that the production facility has the appropriate resources
(equipment, labor, and space) to meet demand. It includes determining the maximum production
capacity and adjusting the production schedule accordingly to meet fluctuating demands.

d. Work Study and Method Study

Work study and method study techniques are used to analyze work processes and improve
productivity. They involve evaluating the efficiency of tasks, processes, and workflows,
identifying bottlenecks, and finding ways to optimize performance.

e. Production Scheduling Systems

Advanced scheduling systems, often integrated with Enterprise Resource Planning (ERP)
software, allow companies to create detailed production schedules. These systems use
algorithms to account for resource availability, production lead times, and delivery deadlines,
optimizing production efficiency and reducing downtime.

6. Challenges in Production Planning and Control

While PPC plays a vital role in manufacturing, it also faces several challenges:

1. Demand Fluctuations: Sudden changes in customer demand can cause difficulties in

planning production and maintaining inventory levels.

2. Supply Chain Disruptions: Delays in receiving raw materials or components can halt
production and lead to missed deadlines.

3. Quality Control: Maintaining consistent product quality throughout the production process
can be challenging, especially with complex products.

4. Resource Constraints: Limited availability of labor, machines, and raw materials may
restrict the ability to meet production targets.

5. Technological Changes: The integration of new technologies can disrupt existing production
systems, requiring updates in planning and control.

This report provides an overview of my internship experience at Rico Auto Industries limited in
the Production Planning and Control (PPC) Department. The internship, which lasted for a
19
period

20
 of [insert duration], allowed me to understand the integral role of PPC in ensuring seamless
production operations. I was involved in tasks such as production scheduling, materials
management, inventory control, and coordination between various departments. Through this
internship, I gained valuable insights into the automotive industry and enhanced my skills in
production management, problem-solving and teamwork.
 A brief summary of the internship experience
During my internship at Rico Auto Industries limited in the Production Planning Control (PPC)
department, I gained hands-on experience in the core aspects of production management. I had
the opportunity to work closely with the PPC team, observing and participating in daily
planning activities, production scheduling, and inventory management. This internship allowed
me to understand how the department functions within a large manufacturing unit and its
critical role in ensuring smooth production processes.

 Overview of the major roles and tasks

As part of the PPC department, my primary responsibities included assisting in the preparation
of production schedules, coordinating with different departments (like procurement and
manufacturing), and tracking production progress. I was involved in forecasting demand,
managing raw material inventory, and aligning production plans with delivery deadlines. I also
helped in analyzing data related to production efficiency, identifying potential bottlenecks, and
suggesting improvements for smoother workflows.

 Key learnings and outcomes

This internship taught me valuable lessons about the importance of coordination and
communication in a manufacturing setup. I learned how data-driven decision-making in PPC
can optimize production and reduce costs. I gained practical insights into inventory control
techniques, production lead times, and capacity planning. Additionally, I enhanced my problem-
solving skills by working on real-time challenges that arose during production. Overall, this
experience helped me understand the role of PPC in ensuring timely product delivery and its
contribution to achieving organizational goals.
Production Planning and Control (PPC) is crucial in a manufacturing unit for ensuring efficient
operations, optimal resource utilization, and meeting customer demands effectively. Here are the key
reasons why PPC is important: -
1. Efficient Resources Utilization: -
 Ensures that materials, labor, and machinery are used optimally, reducing waste
and minimizing cost.
2. Timely Delivery: -
 Helps in scheduling production activities to meet deadlines, ensuring products are
21
 delivered to customers on time.
3. Improved Productivity: -
 Aligns all production activities, enabling a smooth workflow and reducing idle time
or bottlenecks in the production process.
4. Cost Reduction: -
 Helps control production costs by minimizing overproduction, reducing
inventory levels, and preventing unnecessary resource usage.
5. Quality Assurance: -
 Ensures that production processes follow set standards, improving product quality
and reducing defects.
6. Adaptability to Market Changes: -
 Allows quick adjustments in production plans to accommodate changes in
market demand or supply chain disruptions.
7. Better Inventory Management: -
 Maintains an optimal level of inventory, avoiding shortages or excess stock,
thus reducing holding costs.
8. Coordination Between Departments: -
 Integrates activities across various departments such as procurement, production,
and sales, ensuring smooth communication and alignment of goals.
9. Risk Mitigation: -
 Identifies potential risks in production processes and develops strategies to
address them, minimizing disruptions.
10. Customer Satisfaction: -
By ensuring timely delivery of quality products at competitive costs, PPC enhances
customer satisfaction and loyalty.
In essence, PPC acts as the backbone of a manufacturing unit, ensuring that resources are
utilized efficiently, production runs smoothly, and the organization remains competitive in the
market.

1.1 OBJECTIVE OF THE INTERNSHIP

The objective of my internship in the Production Planning and Control (PPC) department at
Rico Auto Industries Limited was to gain in-depth knowledge and practical experience in the
key functions of production planning, resource management, and operational efficiency within
an automotive manufacturing environment. The internship was designed to offer hands-on
exposure to the processes and systems used in the PPC department, focusing on the following
objectives:
22
1. Understanding the Production Planning Process: -

 Gain insight into how production plans are developed, monitored, and adjusted to meet
customer demand and production capacity.
 Learn how the PPC department aligns production schedules with the company's
strategic goals to optimize efficiency.

2. Resource Allocation and Capacity Planning: -

 Learn how resources, such as manpower, machinery, and raw materials, are
effectively allocated and managed to meet production targets.
 Understand capacity planning techniques used to forecast production volumes and
adjust schedules based on demand fluctuations.

3. Inventory Management and Material Planning: -

 Study the methods used by the PPC department to maintain optimal inventory levels,
ensuring a balance between production needs and stockholding costs.
 Understand the importance of material requirement planning (MRP) systems in
streamlining the flow of materials and preventing shortages or excess inventory.

4. Production Monitoring and Control: -

 Learn how production activities are monitored and controlled to ensure adherence to
schedules, quality standards, and cost objectives.
 Gain exposure to various metrics and performance indicators used to evaluate
production efficiency and identify areas for improvement.

5. Problem- Solving and Decision- Making: -

 Participate in identifying production challenges, such as delays, bottlenecks, or

material shortages, and suggest potential solutions.
 Understand the decision-making process involved in adjusting production plans,
scheduling overtime, or reallocating resources in response to unforeseen circumstances.

By the end of the internship, I aimed to develop a comprehensive understanding of the PPC
department’s critical role in ensuring smooth, cost-effective production operations at Rico Auto

23
Industries Limited. This experience would also enhance my analytical and problem-solving skills
in a real-world industrial setting.

1.2 IMPORTANCE OF THE PRODUCTION PLANNING AND

CONTROL OF THE PRODUCTION PLANNING AND CONTROL
(PPC) DEPARTMENT

The Production Planning and Control (PPC) department is the core of any manufacturing
operation, and at Rico Auto Industries Limited, it plays a vital role in ensuring smooth and
efficient production. PPC is responsible for organizing, managing, and controlling all aspects of
production, from material procurement to finished goods, to meet customer demand while
optimizing resources and minimizing costs. The significance of the PPC department can be
outlined as follows:

1. Efficient Resource Utilization

One of the primary functions of the PPC department is to ensure the optimal use of resources,
such as raw materials, manpower, and machinery. By effectively planning and scheduling
production activities, the department ensures that resources are used efficiently, minimizing
waste, reducing idle time, and maximizing productivity. This leads to cost savings and
improved profitability for the company.

2. Production Scheduling and Timely Delivery

The PPC department is responsible for creating detailed production schedules that align with
customer orders and demand forecasts. This ensures that products are manufactured and
delivered on time, maintaining customer satisfaction and meeting delivery commitments.
Proper scheduling helps avoid delays and ensures that production runs smoothly, meeting tight
deadlines while maintaining flexibility to accommodate changes in demand.

3. Inventory Control and Material Planning

PPC plays a crucial role in maintaining an optimal balance between holding too much inventory
and running out of essential materials. The department ensures that the right quantity of raw
materials is available at the right time, reducing the cost of excess inventory while avoiding
production stoppages due to material shortages.
Efficient inventory management reduces holding costs, improves cash flow, and prevents
wastage of perishable or time-sensitive materials.
24
4. Capacity Planning and Utilization

By analyzing production capacity and demand forecasts, the PPC department ensures that the
manufacturing facilities operate at their optimal capacity without overloading the system.
Proper capacity planning helps to avoid bottlenecks in production, ensuring smooth operations
and avoiding costly downtime. This process also ensures that future demand can be met by
adjusting production plans accordingly.

5. Cost Control and Reduction

The PPC department plays a significant role in controlling production costs. By optimizing
production schedules, reducing wastage, and maintaining efficient inventory levels, PPC helps
in minimizing operational costs. Moreover, by ensuring a streamlined production process, the
department reduces overtime, energy consumption, and material wastage, all of which
contribute to lowering the overall cost of production.

6. Quality Control and Consistency

The PPC department ensures that production processes are consistent and that the quality of
products meets the required standards. By maintaining strict control over production processes
and schedules, PPC helps in reducing defects and variations in product quality. This consistency

not only helps in meeting customer expectations but also reduces rework, waste, and quality-
related costs.

7. Coordination Across Departments

PPC acts as a bridge between various departments, including procurement, manufacturing,

quality control, and logistics. By coordinating with these departments, PPC ensures that all
functions are aligned towards achieving the company’s production goals. This integration is
crucial for seamless operations, as it ensures that materials are procured on time, production
schedules are met, and finished goods are delivered to customers without delays.

8. Flexibility and Responsiveness

In a dynamic industry like automotive manufacturing, flexibility is key. The PPC department is
responsible for adjusting production plans in response to changes in customer demand, supply
25
chain disruptions, or unforeseen events. This flexibility allows Rico Auto Industries to quickly
adapt to changing market conditions, minimizing disruptions and maintaining customer
satisfaction.

9. Continuous Improvement and Efficiency

PPC is also focused on continuously improving production processes. By monitoring production

metrics, identifying bottlenecks, and analysing performance data, the department works on
enhancing productivity, reducing cycle times, and improving overall efficiency. This focus on
continuous improvement helps Rico Auto Industries remain competitive and responsive to
market needs.

INTERNSHIP DETAILS

1. DURATION AND LOCATION OF INTERNSHIP

The internship in the Production Planning and Control (PPC) department at Rico Auto
Industries Limited spanned a total duration of 1 month (30 days). This time frame allowed for
a comprehensive understanding of the department’s functions, workflows, and the critical role
it plays in the overall manufacturing process.The internship was conducted at Rico Auto
Industries Limited, 32 Milestone, NH 8, Gurugram . This facility is one of the company’s
key production units, equipped with state-of-the-art machinery and technology to manufacture
a wide range of automotive components. The strategic location of the plant also facilitated
seamless collaboration between various departments, such as procurement, manufacturing, and
quality control, allowing for a holistic learning experience.

The duration of the internship provided me with the opportunity to observe and participate in
various production planning activities, including the creation of production schedules, resource
allocation, capacity planning, and coordination with other departments. This hands-on
experience, coupled with real-time problem-solving and decision-making, enhanced my
understanding of the operational complexities of a large-scale automotive manufacturer.

2. OVERVIEW OF THE PPC DEPARTMENT

The Production Planning and Control (PPC) department at Rico Auto Industries Limited is the
central hub for managing and coordinating the company’s entire production process. Its primary
function is to ensure that the manufacturing of automotive components is carried out efficiently,
26
within specified time frames, and in alignment with customer demands. The department is
responsible for balancing production schedules with available resources, including machinery,
manpower, and materials, while minimizing costs and maximizing productivity.

Key Functions of the PPC Department: -

1. Production Planning: - The PPC department develops comprehensive production plans

based on customer orders, forecasts, and inventory levels. The planning process involves
determining the production sequence, lead times, and necessary resources to ensure the timely
completion of orders.

2. Material Requirement Planning (MRP): - The department manages the procurement

and availability of raw materials through a Material Requirement Planning system. The
MRP ensures that the right quantity of materials is available at the right time, preventing
production delays due to material shortages and reducing excess inventory.

3. Capacity Planning: - PPC assesses the available production capacity of different machines
and workstations to meet demand. Capacity planning involves analysing machine utilization,
manpower availability, and production bottlenecks to optimize efficiency and avoid
overloading the system.

4. Production Scheduling: - The department is responsible for creating and maintaining

production schedules that align with both customer deadlines and internal capacity
constraints. PPC schedules daily, weekly, and monthly production activities, ensuring a
smooth workflow and adherence to timelines.

5. Inventory Control: - Managing inventory levels is critical for cost control and
production efficiency. The PPC department monitors raw material and finished goods
inventory, ensuring that stocks are maintained at optimal levels to avoid both shortages and
excess stock.

6. Coordination with other Departments: - The PPC department acts as a vital link
between various departments such as procurement, manufacturing, quality control, and
logistics. This coordination ensures that materials are available when needed, production
processes run smoothly, and finished goods are delivered on time.

7. Monitoring and Control: - PPC constantly monitors the production process to ensure
that it stays on track with the set plan. The department oversees production progress,
identifies potential bottlenecks, and adjusts schedules or resources as necessary to meet

27
production targets.

28
8. Continuous Improvement: - The PPC department plays a key role in identifying
inefficiencies within the production process. By analysing production data, the department
suggests improvements that can enhance productivity, reduce costs, and streamline
operations.

Tools and Systems Used in the PPC Department: -

 Enterprise Resource Planning (ERP): - PPC relies on ERP software to integrate

various aspects of production, material planning, and scheduling. The system provides
real-time data on production status, inventory levels, and resource availability,
allowing for informed decision-making.
 Gantt Charts and Scheduling Tools: - Gantt charts and other visual
scheduling tools are used to plan and track the progress of production
activities, helping the team stay on top of deadlines and prioritize tasks
effectively.
 Material Requirement Planning (MRP): - This system helps the department
manage inventory by determining the materials needed for production and
ensuring they are available when required.

Importance of the PPC Department in Rico Auto Industries: -

The PPC department plays a crucial role in ensuring that Rico Auto Industries operates
efficiently, delivering high-quality automotive components on time and within budget. It
coordinates between various departments, optimizes resource utilization, reduces production
costs, and ensures that customer demands are met in a timely manner. Without an effective
PPC department, the company would face production delays, inefficiencies, and higher
operational costs, which could lead to customer dissatisfaction.

In summary, the PPC department is a vital part of Rico Auto Industries' operational success,
ensuring the smooth flow of production from the procurement of raw materials to the delivery of
finished goods.

INTERNSHIP OBJECTIVES AND SCOPE

The internship in the Production Planning and Control (PPC) department at Rico Auto Industries
Limited was designed to provide an immersive learning experience, offering insights into the
functioning of a critical department in a large-scale manufacturing setup. The primary objectives
and scope of the internship are outlined below:
29
1. Internship Objectives; -

 Understanding the Production Planning Cycle: - The first objective of the

internship was to gain a comprehensive understanding of the end-to-end production
planning cycle. This included learning about the processes involved in forecasting
demand, preparing production schedules, and ensuring that production activities were
aligned with customer requirements and capacity constraints.
 Familiarization with Material Requirement Planning (MRP): - A key goal of the
internship was to become familiar with how the PPC department manages material
requirements, ensuring that the right

materials are available at the right time. Understanding the Material Requirement
Planning (MRP) system was essential for learning how to optimize inventory levels
and prevent shortages or excesses.
 Learning Production Scheduling Techniques: - The internship aimed to expose me to
various production scheduling techniques. I learned how schedules were developed to
ensure a smooth workflow, avoid bottlenecks, and achieve optimal machine and
manpower utilization.
 Exploring Capacity and Resource Planning: - An essential part of the internship
was understanding how the PPC department handles capacity planning. This
involved analyzing production capacities, equipment availability, and labor
allocation to meet production targets efficiently.
 Enhancing Problem-Solving and Decision-Making Skills: - A major objective was to
develop practical problem-solving skills by participating in the identification of
production-related issues, such as delays, resource shortages, or machine breakdowns. I
learned how PPC professionals make data-driven decisions to adjust schedules,
reallocate resources, and keep production on track.
 Coordination and Communication Across Departments: - The internship aimed
to provide insights into how the PPC department interacts with other departments,
such as procurement, logistics, and manufacturing. Understanding this coordination
helped me appreciate how PPC ensures seamless communication between teams and
contributes to the overall production efficiency.
 Introduction to Performance Metrics and KPIs: - I was introduced to the various
performance metrics and Key Performance Indicators (KPIs) used to monitor
production efficiency, resource utilization, and on-time delivery. Learning to analyse
these metrics was key in understanding how to assess and improve production

30
performance.

31
2. Scope of the Internship: -

 Exposure to PPC Functions: - The internship offered hands-on exposure to core

PPC functions, including production scheduling, capacity planning, inventory
control, and resource allocation. This experience enabled me to gain an
understanding of how these functions contribute to achieving production targets
while minimizing costs and delays.
 Practical Use of ERP Systems: - I had the opportunity to work with Enterprise
Resource Planning (ERP) systems used by the PPC department to manage
production planning, inventory control, and material tracking. This exposure
provided a solid foundation in how digital tools and software support PPC
operations.
 Analysis of Production Data: - During the internship, I worked with production data to
analyze trends, identify bottlenecks, and evaluate production performance. This included
learning to interpret Gantt charts, production schedules, and real-time progress reports,
which are vital for effective decision-making in the PPC department.

 Problem Identification and Process Improvement: - The internship involved

participation in problem identification and process improvement initiatives. I worked
on evaluating current workflows and suggesting improvements to streamline
production processes and reduce inefficiencies.
 Team Collaboration: - The scope of the internship extended to working alongside
PPC professionals and other department staff, enhancing my understanding of team
collaboration, communication, and the integrated nature of manufacturing operations.
 Exposure to Automotive Manufacturing Operations: - Given that the PPC
department is deeply integrated into the entire production process, the internship
provided a broader understanding of how automotive components are manufactured,
from raw material procurement to final assembly and quality control.

OVERVIEW OF THE PPC DEPARTMENT

The Production Planning and Control (PPC) department at Rico Auto Industries Limited is the
central hub for managing and coordinating the company’s entire production process. Its primary
function is to ensure that the manufacturing of automotive components is carried out efficiently,
within specified time frames, and in alignment with customer demands. The department is
responsible for balancing production schedules with available resources, including machinery,
manpower, and materials, while minimizing costs and maximizing productivity.

32
Tools and Systems Used in the PPC Department: -

 Enterprise Resource Planning (ERP): - PPC relies on ERP software to integrate

various aspects of production, material planning, and scheduling. The system provides
real-time data on production status, inventory levels, and resource availability,
allowing for informed decision-making.
 Gantt Charts and Scheduling Tools: - Gantt charts and other visual
scheduling tools are used to plan and track the progress of production
activities, helping the team stay on top of deadlines and prioritize tasks
effectively.
 Material Requirement Planning (MRP): - This system helps the department
manage inventory by determining the materials needed for production and
ensuring they are available when required.

Importance of the PPC Department in Rico Auto Industries: -

The PPC department plays a crucial role in ensuring that Rico Auto Industries operates
efficiently, delivering high-quality automotive components on time and within budget. It
coordinates between various departments, optimizes resource utilization, reduces production
costs, and ensures that customer demands are met in a timely manner. Without an effective
PPC department, the company would face production delays, inefficiencies, and higher
operational costs, which could lead to customer dissatisfaction.

In summary, the PPC department is a vital part of Rico Auto Industries' operational success,
ensuring the smooth flow of production from the procurement of raw materials to the delivery of
finished goods.

33
 CHAPTER-2
COMPANY PROFILE

34
 Rico is a world-class engineering company supplying a wide range of high precision fully
machined aluminum and ferrous components and assemblies to automotive OEMs across the
globe.

 Rico’s consolidated group total turnover is over US$ 245 Million

 Rico’s integrated services include design, development, tooling, casting, machining and
assembly across ferrous and aluminum products.

Rico Auto Industries Ltd. is one of the leading players in the Indian automotive components
industry, known for its expertise in manufacturing a wide range of automotive parts and
systems. Established in 1981, the company has grown to become a significant supplier of
components to major OEMs (Original Equipment Manufacturers) in both the domestic and
international markets. Rico Auto’s commitment to quality, innovation, and customer
satisfaction has contributed to its success in the highly competitive automotive sector.

Company History and Background

Rico Auto Industries Ltd. was founded by Mr. Sushil Goel in 1981 in Delhi, India, initially
focusing on the production of machined components for the automotive industry. With a vision
to cater to the growing needs of the Indian automobile industry, the company quickly expanded
its capabilities and product offerings. Over the years, Rico Auto diversified its product portfolio
to include precision engineering components, exhaust systems, sheet metal parts, and other
critical automotive parts.

In the early stages, Rico Auto was primarily focused on the domestic market, supplying
components to Indian automotive giants like Maruti Suzuki, Tata Motors, and Honda. However,
over time, the company began to gain recognition on the global stage and established a strong
export presence, which now constitutes a significant part of its business.

Product Portfolio

Rico Auto’s product portfolio is comprehensive, and the company specializes in the manufacturing
of a wide range of precision-engineered components for the automotive industry. Some of the
key products manufactured by Rico Auto include:

1. Casting Components: The company produces high-quality cast components used in engine
and transmission assemblies, such as cylinder heads, engine blocks, and crankcases.

2. Machined Components: These include components like pistons, cylinder liners, camshafts,
35
 and other engine components that require precision machining.

3. Exhaust Systems: Rico Auto is a key supplier of exhaust systems, including mufflers,
catalytic converters, and exhaust pipes, used in a variety of vehicles from cars to commercial
trucks.

4. Sheet Metal Components: Rico Auto manufactures a range of sheet metal components used
in vehicle body structures, including doors, hoods, fenders, and other essential parts.

5. Suspension Systems: The company also produces critical suspension components such as
leaf springs, coil springs, shock absorbers, and struts, which play a crucial role in vehicle
performance and safety.

6. Electrical & Electronic Components: Rico Auto has ventured into the manufacturing of
automotive electrical components, including wiring harnesses and sensors, which are
essential for vehicle functionality.

7. Plastic Parts: The company also manufactures plastic parts, which are increasingly used in
automotive interiors and exteriors for both aesthetic and functional purposes.

Manufacturing Facilities and Capabilities

Rico Auto operates several state-of-the-art manufacturing plants in India, equipped with advanced
machinery and technology to ensure high-quality production. These plants are located in key
automotive hubs, including Haryana, Uttarakhand, and Gujarat. The facilities are well-equipped
with precision machining tools, casting units, and assembly lines, allowing the company to
manufacture components for a wide variety of vehicles, from passenger cars to commercial
vehicles.

Rico Auto has adopted various modern manufacturing techniques, such as lean manufacturing and
just-in-time (JIT), to enhance efficiency and reduce waste. The company also utilizes
automation and robotics in several of its production processes, ensuring high precision and
consistency in component quality. This commitment to technological advancement helps Rico
Auto meet the stringent quality standards demanded by global automotive OEMs.

Additionally, the company has implemented Total Quality Management (TQM) and Six Sigma
methodologies across its operations to ensure that it maintains high standards of product quality
and customer satisfaction. These practices have helped Rico Auto build a strong reputation as a
reliable supplier of automotive components.
36
Global Presence and Market Reach

37
Rico Auto Industries has a well-established presence in both the domestic and international
markets. The company exports its products to over 30 countries, including the United States,
Europe, the Middle East, and Southeast Asia. Its international clientele includes some of the
largest automotive manufacturers such as General Motors, Ford, Fiat Chrysler Automobiles,
and Volkswagen. This global reach has allowed Rico Auto to diversify its revenue streams and
reduce its dependency on the Indian market.

In addition to exports, Rico Auto has also entered into several joint ventures and partnerships with
international companies, which has further strengthened its position in the global market. These
partnerships have helped the company gain access to advanced technologies and best practices,
enabling it to stay competitive in the rapidly evolving automotive sector.

Technological Innovation and R&D

Rico Auto places a strong emphasis on research and development (R&D) to drive innovation in its
product offerings and manufacturing processes. The company has a dedicated R&D center
where engineers and designers work on developing new products, improving existing designs,
and adopting cutting-edge technologies.

Rico Auto’s R&D efforts focus on product development, process optimization, and materials
science. The company continually invests in technology to develop lightweight and high-
performance components that meet the growing demands for fuel efficiency, safety, and
sustainability in modern vehicles. In recent years, the company has also focused on electric
vehicles (EVs), developing components for the emerging EV market, such as lightweight
materials and electric drive systems.

The company collaborates with major OEMs and international automotive technology firms to stay
abreast of the latest trends in the industry and to incorporate innovations into its products. As a
result, Rico Auto is well-positioned to meet the challenges of an increasingly complex and
competitive automotive market.

Sustainability and Environmental Initiatives

Rico Auto is committed to sustainable manufacturing practices and reducing its environmental
impact. The company has implemented various initiatives aimed at reducing energy
consumption, water usage, and waste generation across its manufacturing plants. These
initiatives align with global standards for environmental sustainability and have helped Rico
Auto improve its operational efficiency.

38
For example, Rico Auto has adopted energy-efficient technologies and waste recycling systems,
which have contributed to a reduction in the environmental footprint of its production
processes. The company also follows stringent waste management practices, ensuring that
hazardous materials are disposed of safely and responsibly.

Furthermore, Rico Auto has adopted green manufacturing practices by exploring the use of eco-
friendly materials in its products, especially for applications in electric and hybrid vehicles. This
commitment to sustainability has helped the company build stronger relationships with eco-
conscious OEMs and align with global sustainability trends.

Corporate Social Responsibility (CSR)

Rico Auto is also dedicated to corporate social responsibility (CSR) and plays an active role in the
development of the communities in which it operates. The company supports various social
initiatives, including education programs, healthcare services, and environmental
conservation projects. It also encourages employee welfare programs, ensuring the well-being
of its workforce and promoting a safe working environment.

The company is involved in a variety of social initiatives aimed at improving the quality of life in
rural areas and supporting underprivileged communities. Rico Auto has also taken steps to
improve the educational infrastructure in these areas, providing scholarships and establishing
schools to ensure access to quality education for children.

Challenges and Future Outlook

Despite its successes, Rico Auto faces several challenges that are common to the automotive
components industry. One of the key challenges is the volatile demand in the automotive
sector, particularly with the rise of electric vehicles (EVs), which require new types of
components and manufacturing processes. The shift towards electric vehicles presents both a
challenge and an opportunity for the company, as it must adapt its product portfolio to include
new technologies and lighter, more sustainable components.

Additionally, global supply chain disruptions, fluctuating raw material prices, and the increasing
pressure to reduce manufacturing costs put constant pressure on the company’s operations.
However, Rico Auto’s ability to innovate and its strong customer relationships will likely help
it navigate these challenges.

Looking ahead, Rico Auto is focusing on expanding its product range, particularly in electric
vehicles (EVs) and autonomous driving technologies. The company plans to continue its
39
global

40
expansion, with a focus on increasing exports and strengthening its presence in emerging markets.
The following companies comprise the RICO Group of companies

1. Rico Auto Industries Limited (RAIL)- RAIL manufactures high precision ferrous and
aluminum components and assemblies focused on the automotive sector. In addition to casting
of components, the components are also machined before they are dispatched to the customer.

2. RICO US – It is focused on providing logistics, local customer and engineering

support services to the customers in the US.

3. RICO UK – Just like RICO US, it focuses on providing logistics, local customer and
engineering support services to the customers in the UK. Rico Auto Industries Limited is
engaged in the manufacturing of clutch and crankcase. The Company is engaged in the
manufacturing and sale of auto components for two wheelers and four wheelers. It
manufactures and supplies high precision and machined components and assemblies, both
aluminum and ferrous, to original equipment manufacturers (OEMs).

Its products include Oil Pump Assembly, Lube Oil Filters Heads, Exhaust Manifolds, Turbine
Housings, Centre Housings, Back Plates, Oil Pan, Intake Manifold Covers, Front Cover, Valve
Cover, Side Cover, Balance Shafts Assembly, Gear Housing, Steering Knuckles, Main Bearing
Caps, Fly wheels, Engine Brackets and Differential Case Housings. Its services include
designing, development and engineering services, research and development, Testing and
Validation, Special Purpose Machines with computer numeric control (CNC)Controls, Tooling
and Prototyping, Casting (Aluminium and Ferrous), Machining and Assembly, and Packaging
and Logistics.
4. RICO Ludhiana – It deals with ferrous castings and their machining.3.
5. FCC RICO – It is a 50-50 Joint Venture with FCC of Japan, world leader in automobile
clutches. The plant is located at Manesar and deals mainly with the manufacture of flywheels
and clutches.

OVERVIEW OF RICO AUTO INDUSTRIES LIMITED

Rico Auto Industries Limited, founded in 1986, is a leading Indian automotive component
manufacturer known for its excellence in engineering and production. With its headquarters in
Gurgaon, Haryana, Rico Auto has grown into a global company with multiple manufacturing
units across India and abroad, supplying precision- engineered components to some of the
41
biggest names in the automotive industry.

42
 The company specializes in the design, development, and manufacture of a wide range of
automotive components, including engine parts, transmission systems, and chassis components.
Its diverse product portfolio caters to both two-wheelers and four-wheelers, making it a key
player in the automotive supply chain. Rico Auto’s clients include renowned global automotive
giants such as Honda, Maruti Suzuki, Ford, Tata Motors, and BMW, among others.

Rico Auto Industries places strong emphasis on innovation and cutting-edge technology. The
company operates state-of-the-art facilities equipped with the latest machinery and technology
to ensure high standards of precision, quality, and cost-efficiency. With a workforce of skilled
engineers and technicians, the company is committed to maintaining its competitive edge by
continuously investing in research and development.

The company adheres to international quality standards and is certified with ISO/TS 16949,
demonstrating its commitment to delivering products that meet stringent quality requirements.
Rico Auto's focus on sustainability and ethical business practices is evident in its
environmentally-friendly production processes and efforts to reduce its carbon footprint.

In summary, Rico Auto Industries Limited is a well-established, reputable company in the

global automotive components market, known for its innovation, quality, and customer-centric
approach. Through its advanced manufacturing practices and a strong focus on operational
efficiency, Rico Auto continues to strengthen its position as a leading supplier in the global
automotive industry.

A. MISSION: -

“To be preferred supplier to

Original Equipment manufacturers across the globe.”

B. VISSION: -

“To be preferred supplier to

Original Equipment manufacturers across the globe.”

43
C. CUSTOMER: -

44
D. PRODUCTS: -

45
46
47
 Rico’s integrated services include design, development, tooling, casting,
machining and assembly
across ferrous and aluminium products.

ALUMINIUM CASTING

 Rico has over 100 High Pressure Die Casting (High Pressure Die
Casting Machines) from 135 Ton to
2500 Ton locking force equipped with Real time Shot monitoring & Robots.
 Rico is one of the largest High Pressure Die Casting facility in India.
 Rico is currently producing over 50,000 MT of High Pressure Die
Cast components per annum.
 Die Casting component weight range from 100gms up to 12 kgs
 Current High Pressure Die Casting machines are from Buhler, Toshiba,
UBE, ITAL Presse etc.
 Alloys produced today : ADC 12, ADC 14, LM24, A 380, A
383, ENAC46500, A356.
 Post processing & Heat Treatment facility..

48
 FERROUS CASTING

4 Automatic Moulding Lines

 (2 Disamatic size 650 * 535)
 (2 Horizontal size 610 * 510)
Alloys
 Gray Iron (FC) , Ductile Iron (FCD), SiMo, SiMo Cr
Core making
 Rico has in house core making facility.(Cold box and Shell process)
 Continuous online Shot Blasting, Laser Controlled Pouring &
Auto Inoculation
 Component weight range from 100gms up to 12 kgs
 Capacity Over 40,000 MT per Annum

ENGINEERING AND R & D

Engineering CAD CAM CAE

Rico has over 60 seats and all the required engineering CAD CAM CAE
software's.
CAD & CAM : Unigraphics, Pro Engineer, Catia, C3P, Ideas, Vericut,
Solidedge, AutoCAD
CAE : Magma soft, FEA, CFD, Ansys, FCX, GT Suite, MSC Fatigue

R&D
Capabilities
 Design & Analysis: Structural, Thermal, Fatigue, NVH (Noise,
Vibration, Harshness)

49
 Material research & development
 Testing & validation
 Real Time X-Ray, Particle Counter, Millipore Testing,
Spectrometer, Scanning Electron Microscope, Electronic Gauges &
Online CMM

DIES, PATTERNS AND TOOLING

 Rico has in house dies and pattern design and manufacturing.

 Rico manufacture over 200 dies and patterns and 600 die inserts annually.

Facilities and Equipments

CNC Machining Center

Mikron HSM 700, Mikron VCP 710, Deckel FP 50 CCP, Makino S33L, Haas
VF6, Haas VF2

CNC - EDM
CDM Rovella BF 600, CDM Rovella BF800, CHMER 50 N

CNC Wire cut (EDM)

Electronica Euro cut Mark 2, Fanuc Rob cut a - 1IC

CNC - CMM

DIE SPOTTING PRESS TUS 130

50
 CHAPTER-3
LITERATURE REVIEW

51
Literature Review
The literature review explores studies, reports, and relevant frameworks in the context of
Rico Auto Industries Limited’s production planning and control (PPC) practices. It highlights
the company’s role within the automotive industry, the theoretical foundations of PPC, and
the integration of modern methodologies to optimize production processes.
Chase, R.B., and Jacobs, F.R. (2006)
Chase and Jacobs’ book Operations and Supply Chain Management is a foundational work in
the field of PPC. They focus on production planning as a key element in coordinating supply
chain activities. They emphasize that successful production planning integrates customer
demand forecasting with real-time operations.
Stevenson, W.J. (2018)
Stevenson’s Operations Management provides an extensive overview of PPC strategies and
practices. He highlights the use of forecasting, scheduling, and resource allocation as critical
tools for efficient production planning. Stevenson also discusses the application of ERP
systems and their role in improving decision-making in PPC.
Vollmann, T.E., Berry, W.L., and Whybark, D.C. (2005)
The authors of Manufacturing Planning and Control for Supply Chain Management argue
that PPC is closely tied to broader supply chain management practices. They stress the need
for synchronization between planning and execution to reduce lead times and improve
customer satisfaction.
Krajewski, L.J., and Ritzman, L.P. (2005)
Krajewski and Ritzman’s book Operations Management: Processes and Supply Chains
explores both traditional and modern approaches to production planning, with an emphasis on
process improvement and technology integration. They highlight the importance of capacity
planning, scheduling, and inventory management.
Pinedo, M.L. (2016)
Pinedo’s Scheduling: Theory, Algorithms, and Systems introduces the mathematical models
behind production planning and scheduling. His work explores the use of optimization
techniques to solve complex production scheduling problems, especially in environments
with fluctuating demand and limited resources.
Authors like Chase and Jacobs emphasize demand management techniques, including
quantitative models such as moving averages and exponential smoothing.
Vollmann et al. (2005) discuss capacity planning in the context of balancing long-term
investments with short-term production needs.
Stevenson and Krajewski’s work on inventory management and control systems has been
influential in defining best practices.
Pinedo’s work on scheduling algorithms helps firms optimize production by minimizing
downtime and ensuring that resources are available when needed. Methods like Gantt charts
and the Critical Path Method (CPM) are commonly applied.
Cagliano, R., Caniato, F., & Spina, G. (2006) explore how automation and real-time data
collection transform PPC, especially in high-variability environments.
Production Planning and Control (PPC): Conceptual Framework
Production Planning and Control (PPC) is a critical function in manufacturing industries that
ensures the efficient use of resources, timely delivery of products, and alignment with
customer
52
demand. According to [Author/Source] (Year), PPC integrates several functions, including
forecasting, scheduling, inventory management, and quality assurance. Rico Auto Industries,
operating in a highly competitive automotive sector, relies heavily on robust PPC systems to
maintain its market position.

PPC in the Automotive Sector

The automotive industry is characterized by complex supply chains, stringent quality standards,
and just-in-time (JIT) production methodologies. Research by below sources highlights how
effective PPC practices contribute to cost reduction, waste minimization, and enhanced
customer satisfaction. Rico Auto Industries, as a supplier to major Original Equipment
Manufacturers (OEMs), has implemented sophisticated PPC systems to meet these demands.
Author/Sources :
1. Chopra, S., & Meindl, P. (2019). Supply Chain Management: Strategy, Planning
and Operation.
This book explores the complexity of supply chains, particularly in industries like
automotive, where coordination between suppliers, manufacturers, and
distributors is critical.
2. Schonberger, R.J.(1982). Japanese Manufacturing Techniques: Nine Hidden
Lessons in Simplicity.
This work introduces the concept of Just-in-Time (JIT) production and its
implementation in industries like automotive, which require high efficiency and
minimal waste.
3. Christopher, M. (2016). Logistics & Supply Chain Management.
This book discusses supply chain management in the automotive sector, emphasizing
strategies to manage complexity and maintain quality standards.
4. Kumar, S.., & Deshmukh, S.G. (2006). “Supply Chain Management in the
Automobile Industry: A review, “International Journal of Applied Management
and Technology.
This article reviews supply chain complexities and highlights practices like JIT in
the automotive industry.
PPC Practices at Rico Auto Industries
Studies on Rico Auto Industries emphasize its focus on lean manufacturing and automation to
streamline production processes. The company employs advanced Enterprise Resource
Planning (ERP) systems for real-time monitoring and control of production schedules.
Birlasoft’s Industry 4.0 Analysis, The Automotive Technologyu Guide and Deloittes
Industry 4.0 and Automotive Manufacturing Report identifies Rico's PPC practices as
being aligned with Industry 4.0 standards, incorporating technologies such as
IOT –Enabled Monitoring: Real-time tracking of production metrics and equipment
performance.
Data-Driven Forecasting: Use of historical data and AI for demand forecasting and resource
allocation.
JIT and Kanban Systems: To minimize inventory holding costs and ensure timely delivery.

Challenges in PPC at Rico Auto Industries

53
Despite its strengths, literature points to challenges faced by Rico in PPC, including supply
chain disruptions, fluctuating raw material costs, and maintaining quality across high-volume
production. According to [Source/Study], addressing these challenges requires further
investment in predictive analytics and enhanced coordination with suppliers.

Technological Integration in PPC

Rico Auto Industries has integrated advanced PPC technologies to enhance operational
efficiency. Research suggests that its adoption of ERP software and Manufacturing
Executions Systems (MES) has enabled seamless production planning and scheduling.
Studies have highlighted the importance of such tools in reducing lead times and improving
on-time delivery rates.

Sustainability in PPC
In recent years, sustainability has become a key focus in production processes. Literature
indicates that Rico has implemented green manufacturing practices to reduce its
environmental impact. This includes energy-efficient production methods, waste reduction,
and the use of recyclable materials. Such initiatives align with the global shift toward
sustainable manufacturing practices in PPC.

Research Gaps and Future Directions

While significant progress has been documented, there is limited literature on the long-term
impact of Rico's PPC innovations, particularly in the context of emerging trends like electric
vehicles (EVs) and circular manufacturing. Future studies could focus on:
1. The role of PPC in integrating EV-compatible components into production lines.
2. Enhancing resilience in PPC to handle global supply chain disruptions.
3. Measuring the impact of sustainability-focused PPC strategies on overall operational
efficiency. This literature review underscores the significance of PPC in Rico Auto
Industries’ operations, highlighting both its achievements and areas for improvement. The
findings from this review serve as a foundation for analyzing the company’s PPC practices
and suggesting strategies for enhancement.

54
 CHAPTER- 4
RESEARCH
METHODOLOG
Y

55
Research Methodology for Internship Report on Rico Auto Industries Limited
(PPC Department)

The research methodology section outlines the approach and methods

used to collect, analyze, and interpret data during the internship. It
provides a framework for understanding how the internship
experience was structured and how information was gathered and
evaluated.

1. Research Design

The research design for this internship report follows a

descriptive approach. The internship was focused on
understanding the practical functioning of the Production
Planning and Control (PPC) department at Rico Auto Industries
Limited. This involved both observation and participation in
daily operations, as well as gathering secondary data to
support the analysis.
2. Objectives of the study

The main objectives of the research methodology were:

 To understand the work and operations of the PPC department.

 To analyze the production planning, scheduling, and inventory

management processes.

 To identify challenges in production management and suggest potential

improvements.

 To evaluate the impact of PPC on overall production efficiency and

company performance.

3. Data Collection Methods

The data for this internship report was collected through the following methods:

 Primary Data Collection

o Observations: A significant portion of data was collected through

direct observation of the PPC department's daily activities. This
included
56
 observing production meetings, inventory checks, and planning sessions.
o Participation: participation in tasks such as production
scheduling, coordination with other departments, and tracking
production output provided a practical understanding of processes.
o Interviews: Informal discussions and interviews were conducted with PPC
managers, production floor supervisors, and team members to gain insights
into specific tasks, challenges, and decision-making processes.
 Secondary Data Collection

o Company Reports: Internal reports and documents related to

production planning, inventory management, and performance metrics were
reviewed. These included production schedules, material requirement plans
(MRP), and key performance indicators (KPIs).
o ERP System: Data was also collected from the ERP (Enterprise Resource
Planning) system used by the PPC department for inventory tracking, demand
forecasting, and production planning.
o Industry Research: To provide context, secondary research was conducted on
the automotive manufacturing industry, the role of PPC in production
efficiency, and general best practices in production planning.
4. Sampling Techniques

 Purposive Sampling: The internship focused on a specific functional

department (PPC) within Rico Auto Industries, so purposive sampling was
used to select individuals (such as PPC team members and managers) who
could provide relevant information related to the objectives of
the study.
 Convenience Sampling: For informal discussions and observational
activities, convenience sampling was used, where team members and
supervisors who were available at the time were engaged for insights.
5. Tools and Techniques:

 ERP System Analysis: The ERP system was used to gather and
analyse data on production schedules, raw material availability,
and inventory levels.
 Data Sheets: Excel spreadsheets and other internal software

57
 tools were used for tracking production efficiency, lead times,
and performance metrics.
 Comparative Analysis: Data was compared across different
production cycles to identify patterns, inefficiencies,
and potential areas for improvement.
6. Data Analysis:

The data collected was analyzed both qualitatively and

quantitatively.

 Qualitative Analysis: - Insights gathered from interviews, observations,

and participation in activities were categorized to understand key themes
and patterns in PPC operations.
 Quantitative Analysis: - Production data such as cycle times, inventory levels,
and production efficiency rates were analyzed using statistical tools to evaluate
performance and identify bottlenecks.

7. Limitations of the Study

 Time Constraints: - The internship period was limited, and thus a

longer-term analysis of certain trends (such as seasonal variations in
production) was not possible.
 Restricted Access to Data: - Some proprietary data and reports
were not accessible due to confidentiality policies.
 Limited Scope: - The focus was primarily on the PPC department,
and interactions with other departments were limited, which might
affect the comprehensiveness of the analysis.
7. Ethical Considerations

During the internship, confidentiality was maintained, and sensitive company

information was handled responsibly. All interactions with employees and data
collection were conducted in accordance with the company’s policies and with
respect for professional ethics.

58
 CHAPTER- 5
DATA ANALYSIS
&
INTERPRETATION

59
INTERPRETATION OF DATA:
Q1. Do you think production planning and control is central to the success of any
manufacturing unit? If Yes, then how?

Options Yes No

Response 10 0

Interpretation

All the 100% respondents believe that production planning and control is central to the
success of any manufacturing unit. Production planning and control gifts direction to the best
use of capacity with optimum utilization of production line, resources and other equipments.
It helps in waste reduction and leads to increased profitability.

Q2. Capacity planning contributes to the efficient use of facilities and equipments? If
yes then how?

Options Yes No

Response 8 2

60
Interpretation:

Most of the respondents i.e. 80% are in favor of the statement that “capacity planning
contributes to the efficient use of facility and equipments.”

Proper capacity planning leads to optimum utilization of capacity reduces idle time, under or
over utilization of capacity.

Q3. What are the main objectives of production planning?

a) Optimum utilization of capacity

b) Inventory control

c) Economy in production time

d) Ensure quality

e) Waste reduction and increased profit

Options A b C d E

Response 8 6 4 2 10

61
Interpretation:

All the respondents believe that waste reduction and increased profit is the main objective of
production planning, some of them also believe that optimum utilization of capacity is
another objective of production planning.

The other objective of production planning is inventory control, economy in production time
and quality insurance.

Q4. Production planning and capacity planning are interrelated? If yes, then how?

Options Yes No

Response 7 3

62
Interpretation:

Majority of the respondents i.e. 70% believe that production planning and capacity planning
are interrelated. Long term production planning becomes the basis of capacity planning.
Styles of production and type of production depends on capacity, hence both are interrelated.

Q5. Since capacity can’t always be added or subtracted instantaneously there will be
mismatch of load and capacity.

What are its effects?

a) Lead time gets affected

b) Increase in cost

c) Hurts the ability to satisfy customers

d) Other effects

Please specify other effects (if any)

Options a b C d

Response 0 9 10 2

63
Interpretation:

Almost all respondents believe in the above statement. According to them mismatch in load
and capacity, leads to customer dissatisfaction and increase in cost. If the capacity is low and
demand is high, Orders will not be completed on time. If load is less and capacity is more
than requirement it will lead to inefficient use of capacity, hence, cost of production will
increase.

As lead time is calculated on the basis of available capacity it has no effect on lead time.

Other effects can be increased in cost by increasing manpower and plant maintenance, and
delay in delivery to customers.

Q6. On what basis do you plan your production?

a) Customer needs (demand)

b) Target of Marketing Dept.

c) Resources available

d) Other factors

e) Please specify other effects (if any)

Options a b c d

Response 8 0 10 0

64
Interpretation:

According to the data collected from the respondents the production planning of Rico Auto is
based on customer need i.e. dealers demand for particular models, and also on the basis of
resources available.

The marketing department reports to the PPC/ Store about dealers’ requirements. PPC/Store
communicates with the material department about availability of material. Hence, market
demand and availability of resources is considered as base for production plans.

Q7. Do you feel or experienced “hung up” and “bottle necks” in implementing
production plans.

a) Yes

b) No

If yes then what type of bottlenecks?

Options Yes No

Response 4 6

65
Interpretation:

Majority of the respondents i.e. 60% are in against of the statement, Hence, all the
departments work in integration. Heads of all the department sits together and prepares plans
which are properly applicable.

There are people who experienced bottlenecks like sequence change due to non-availability
of material and transforming one model to other due to requirement of specific model.

Q8. How do current production planning in capacity planning methods account for
bottlenecks.

Interpretation:

Current production planning and capacity planning highly depends on material available and
material in transit. The non availability of material and delay in transportation of material
hinders execution of plans properly. Due to this too many changes in daily and weekly plans
takes place.

Sometimes lack of coordination between PPC/Store, Production department and quality control
department creates problem of rework and repair.

Q9. Previously what measures have been taken to avoid such bottlenecks?

Interpretation:

66
As the main source of bottleneck is timely not availability of material. So proper care is taken
of the material providers, transportation of material and inventory of material. Following
measures have been taken to avoid such bottlenecks:

 Multiple vendors being developed for most of the items.

 Proper inventory level is being asked to maintain.

 Landing being done with the best availability of material.

Q10. If results are not according to the plans, what control measures are taken?

a) Revision of plan

b) Any other measures

Please specify other measures (if any)

Options Revision of Plan Other measures

Response 10 0

67
Interpretation:

If the results are OK wait until next control. If not OK, Revision of plan is required to be
done. At present people of Rico Auto Industries Ltd. do not have any other solution except
revision of plan to control deviations in plants and results.

68
CHAPTER- 6:
FINDINGS

69
Production planning and control (PPC) is a critical process in manufacturing and other
industries, focused on ensuring that production operations are efficient, timely, and
cost- effective. It encompasses planning the resources required, scheduling tasks,
controlling processes, and ensuring the final output meets quality and delivery
standards. By coordinating various elements, PPC minimizes production costs while
maximizing efficiency and customer satisfaction. Below are the findings and principles
associated with production planning and control, explained in detail.

Importance of PPC in Industry

Production planning and control plays a significant role in ensuring the optimal use of
resources, reducing waste, and meeting customer demands. A well-organized PPC
system ensures that production aligns with demand forecasts, thus avoiding
overproduction or underproduction. It provides a roadmap for procurement,
manufacturing, and delivery processes, enabling businesses to remain competitive.
Industries with a robust PPC system are better equipped to adapt to market fluctuations
and customer needs.

Components of Production Planning

Production planning involves determining what to produce, how to produce it, when to
produce it, and in what quantity. This stage includes demand forecasting, resource
planning, and setting production goals. Accurate demand forecasting is critical, as it
determines the raw materials, labor, and equipment required. Resource planning
ensures that all necessary inputs are available when needed, reducing downtime and
delays. By establishing clear production goals, businesses can focus on meeting
deadlines and maintaining quality.

Scheduling and Routing

Scheduling is another essential element of PPC, ensuring that tasks are assigned
appropriate time frames for completion. It includes the allocation of work to different
machines and employees, balancing workloads to avoid bottlenecks. Proper scheduling
enhances productivity and ensures that deadlines are met. Routing, on the other hand,
determines the sequence of operations and the path materials follow during production.
Efficient routing minimizes travel time and material handling, thereby reducing costs
and increasing efficiency.

Inventory Management

70
Effective inventory management is a cornerstone of PPC. Maintaining optimal
inventory levels ensures that production is not disrupted due to shortages, while
avoiding excess inventory reduces carrying costs. Just-in-Time (JIT) inventory
systems, for example, have revolutionized PPC by minimizing waste and improving
efficiency. By aligning inventory levels with production schedules, businesses can
reduce holding costs and ensure timely delivery.
Quality Control
PPC also involves monitoring the quality of raw materials, in-process goods, and
finished products. Quality control measures are integrated into every stage of
production to ensure that the final output meets customer expectations. By identifying
defects early, businesses can minimize rework costs and maintain customer
satisfaction. PPC systems often include feedback mechanisms to continuously improve
production processes.
Benefits of Production Planning and Control
One of the primary benefits of PPC is cost reduction. By optimizing resource
utilization and minimizing waste, PPC reduces production costs. It also improves
productivity by streamlining operations and eliminating inefficiencies. Furthermore,
PPC enhances customer satisfaction by ensuring timely delivery of quality products. It
provides businesses with a competitive advantage, enabling them to respond quickly to
market changes and customer demands.
Challenges in Implementation
Despite its benefits, implementing an effective PPC system is not without challenges.
Businesses often struggle with accurate demand forecasting, especially in volatile
markets. Integrating PPC with existing systems and processes can be complex and
time- consuming. Resistance to change from employees and management is another
common hurdle. Additionally, small and medium-sized enterprises may find it difficult
to invest in advanced PPC tools and technologies.
Technological Advancements
The advent of technology has significantly transformed PPC. Enterprise Resource
Planning (ERP) systems and Manufacturing Resource Planning (MRP) tools have
made it easier to integrate PPC with other business functions. Automation and artificial
intelligence have enhanced scheduling and decision-making processes, improving
efficiency and accuracy. Technologies such as IoT and machine learning provide real-
time data, enabling better control and monitoring of production processes.
Case Studies and Real-World Applications

71
Several industries have successfully implemented PPC to achieve remarkable results.
For example, the automotive industry relies heavily on PPC to manage complex supply
chains and ensure timely delivery of vehicles. Companies like Toyota have pioneered
systems such as JIT and lean manufacturing, setting benchmarks for others. Similarly,
the pharmaceutical industry uses PPC to ensure the availability of life-saving drugs,
optimizing production schedules to meet stringent quality standards.
Future Trends in PPC
The future of PPC lies in further technological advancements and the adoption of
Industry 4.0 principles. Smart factories, equipped with sensors and connected devices,
will provide real-time data for better decision-making. Predictive analytics and AI will
enable businesses to anticipate demand and optimize production schedules.
Sustainability will also play a crucial role, with PPC systems focusing on reducing
environmental impact and promoting green manufacturing practices.

72
CHAPTER – 7
CONCLUSION

73
Production Planning and Control (PPC) is an essential pillar of operational efficiency
and strategic growth in modern industries. It combines planning, scheduling, routing,
and monitoring activities to ensure the seamless coordination of resources, workforce,
and processes. The implementation of PPC ensures the optimal utilization of resources,
reduces operational costs, enhances productivity, and guarantees the timely delivery of
quality products to customers. This report delved deeply into the multifaceted nature of
PPC, exploring its principles, significance, and applications across various sectors. The
insights reveal that PPC is not merely a process but a strategic framework that aligns
production with business objectives, customer needs, and market dynamics. The
central premise of PPC lies in balancing supply and demand by forecasting
requirements, planning resources, and maintaining operational agility. Through
effective scheduling and routing, PPC minimizes delays, eliminates bottlenecks, and
streamlines production flows, creating a robust foundation for competitive advantage.
A key revelation from the report is the indispensable role of inventory management in
PPC. By maintaining optimal inventory levels, businesses can prevent disruptions,
reduce carrying costs, and improve cash flow. Techniques such as Just-In-Time (JIT)
inventory management have demonstrated the profound impact of PPC in reducing
waste, ensuring lean operations, and fostering sustainability. Quality control is another
vital component of PPC, ensuring that the production process adheres to strict
standards and delivers outputs that meet or exceed customer expectations. The
feedback loop in quality control facilitates continuous improvement, reinforcing the
connection between efficient planning and superior product delivery. Moreover, the
integration of modern technologies into PPC systems has transformed the
manufacturing landscape, enabling real-time monitoring, predictive analytics, and
data-driven decision-making. Advanced tools such as Enterprise Resource Planning
(ERP) and Manufacturing Resource Planning (MRP) have revolutionized how
organizations approach production planning, fostering greater transparency, efficiency,
and agility in responding to dynamic market conditions.
However, the report also highlighted the challenges associated with implementing
PPC, particularly for small and medium-sized enterprises (SMEs). Issues such as
inaccurate demand forecasting, integration complexities, and resistance to change
often hinder the effectiveness of PPC systems. Furthermore, the volatile nature of
global markets and supply chains adds layers of unpredictability, necessitating a more
resilient and adaptive approach to planning and control. Addressing these challenges
requires a combination of technological investments, workforce training, and
organizational change
74
management. Embracing advanced technologies such as artificial intelligence,
machine learning, and the Internet of Things (IoT) can help organizations overcome
these barriers, enabling smarter, more responsive PPC practices.
The report further underscores the importance of sustainability in PPC. As industries
face increasing pressure to reduce their environmental footprint, PPC serves as a
critical enabler of green manufacturing practices. By optimizing energy consumption,
reducing material waste, and promoting the circular economy, PPC aligns operational
efficiency with environmental responsibility. This alignment not only enhances brand
reputation but also fosters long-term value creation for businesses, customers, and
society at large. Moreover, the shift toward Industry 4.0 and smart factories represents
a paradigm shift in PPC, where interconnected systems and predictive maintenance
redefine traditional production practices. The adoption of digital twins, cyber-physical
systems, and blockchain technology further strengthens the role of PPC in building
resilient and sustainable industrial ecosystems.
In conclusion, the findings of this report highlight the transformative impact of PPC as
a strategic enabler of industrial excellence. By bridging the gap between planning and
execution, PPC ensures that organizations achieve operational efficiency, cost-
effectiveness, and customer satisfaction. Its integration with cutting-edge technologies
and alignment with sustainability principles positions PPC as a cornerstone of modern
business strategy. While challenges persist, the continuous evolution of PPC systems
promises to unlock unprecedented opportunities for innovation, competitiveness, and
growth. The enduring relevance of PPC in an ever-changing global landscape
underscores its value not just as a production tool but as a holistic framework for
achieving organizational success. As industries continue to innovate and adapt, PPC
will remain at the forefront of driving efficiency, sustainability, and resilience in
production processes, ensuring that businesses thrive in the face of future challenges
and opportunities.

75
BIBLIOGRAPHY

76
BOOK REFERENCES:
1. "Production Planning and Control" by S. Chary
2. "Production and Operations Management" by S. N. Chary
3. "Production and Operations Analysis" by Steven Nahmias and Tava
Lennon Olsen
4. "Operations Management: Processes and Supply Chains" by Lee J.
Krajewski, Manoj K. Malhotra, and Larry P. Ritzman
5. "Manufacturing Planning and Control for Supply Chain Management" by F.
Robert Jacobs, William L. Berry, D. Clay Whybark, and Thomas E.
Vollmann

SOURCES FROM INTERNET:

1. https://www.ricoauto.com/
2. https://archive.org/details/isbn_9788131717394
3. https://www.poms.org/
4. https://www.davuniversity.org/
5. https://www.ascm.org/

77
ANNEXURE

78
Questionnaire:
Section 1: General Understanding of PPC
1. What is the primary objective of Production Planning and Control (PPC)?
o A) Reduce operational costs
o B) Optimize resource utilization
o C) Ensure timely delivery of products
o D) All of the above
2. Which phase of PPC involves determining the sequence of operations?
o A) Planning
o B) Scheduling
o C) Routing
o D) Dispatching
3. What is a critical component of inventory management in PPC?
o A) Overproduction
o B) Buffer stocks
o C) Minimum lead time
o D) None of the above
Section 2: Tools and Techniques in PPC
4. Which tool is commonly used for scheduling in PPC?
o A) Gantt Chart
o B) Kanban Board
o C) PERT/CPM
o D) All of the above
5. What is the main focus of Just-in-Time (JIT) in PPC?
o A) Reducing production costs
o B) Ensuring inventory arrives exactly when needed
o C) Increasing workforce productivity
o D) Enhancing market share

79
6. Enterprise Resource Planning (ERP) systems in PPC primarily help with:
o A) Automating financial reports
o B) Integrating various production functions
o C) Managing employee payroll
o D) Enhancing product marketing
Section 3: Challenges and Implementation
7. Which of the following is a common challenge in implementing PPC systems?
o A) Resistance to change
o B) Limited technological infrastructure
o C) Inaccurate demand forecasting
o D) All of the above
8. Which industry heavily relies on PPC for managing its supply chain?
o A) Automotive industry
o B) Food and Beverage industry
o C) Pharmaceutical industry
o D) All of the above
Section 4: Quality and Sustainability
9. How does PPC contribute to sustainability?
o A) Promotes green manufacturing practices
o B) Minimizes waste and optimizes resource usage
o C) Encourages the use of renewable materials
o D) All of the above
10. In quality control under PPC, the term "Six Sigma" refers to:
o A) An inventory management technique
o B) A lean manufacturing methodology
o C) A defect reduction strategy
o D) A product pricing method
Section 5: Future of PPC
11. What technology is expected to dominate future PPC systems?
o A) Artificial Intelligence (AI)

80
 o B) Blockchain
o C) Internet of Things (IoT)
o D) All of the above
12. The term "Industry 4.0" in PPC refers to:
o A) A new planning technique
o B) A technology-driven manufacturing paradigm
o C) A global trade regulation
o D) None of the above
Section 6: Feedback on PPC Implementation
13. How effective do you think PPC is in improving overall business operations?
o A) Highly Effective
o B) Moderately Effective
o C) Minimally Effective
o D) Not Effective
14. Which aspect of PPC do you find most challenging?
o A) Scheduling
o B) Inventory Management
o C) Resource Allocation
o D) Quality Control

81