The awareness and practice of modern Production Planning and Control (PPC) techniques is very less reported from Small Medium Enterprises (SMEs) in comparison with large firms. This paper investigates, whether there is any improvement in the use of planning in accordance with the improvement in the awareness of modern PPC tools in the SME context. A model is developed and is empirically tested. There is positive and significant linkage between the two. Factors limiting the low level awareness of modern PPC tools and its implications on the effectiveness of planning are discussed. Suggestion for improving the usage of planning is given in the end.

Keywords: Production Planning and Control (PPC), SMEs, PPC Tools, Planning