Production Planning and Control System is one of the method currently being implemented in some of the local shipyards. Since a shipyard can be regarded as a multi-disciplinary heavy industry factory, it needs a reliable production management and control system for its oepration in order to be competitive with the other shipyards. This project is being carried out at a selected local shipyard, the Malaysia Shipyard & Engineering, in order to study the Production Planning and Control System currently being practiced at the shipyard and to propose an improvement to the existing system in order to increase its efficiency. The project is being carried out through observations to the shipyard's operations and interviews with its personnels, and by conducting literature survey of the Production Planning and Control System being used in the modern shipyards. From the initial survey been done, it can be concluded that although M.S.E. did accomodate P.P.C system, yet its implementation is very minimal. An effective P.P.C. system is necessary in order to improve its performance.