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Unit structure

  1. 1. In any manufacturing industry, production is the driving force to which most other functions react. The changing business environment in which pharmaceutical manufacturers are acting creates the need for more effective production processes planning and control methods, which are able to deal with uncertainties in internal processes and external deliveries. In this article we have briefly highlighted the challenges and factors affecting Production Planning and Control (PPC) and role of Master Production Schedule (MPS). We will begin this article with the objective of PPC. The ultimate objective of PPC is to contribute to the profit of organization accomplished by keeping the customers satisfied through the meeting of delivery schedules. The specific objective is to establish routes and schedules for work that will ensure the optimum utilization of materials, workers and machines and to provide the means for ensuring operation of the plant in accordance with these plans. Challenges in Production Planning and Control Combining Functions – It is desirable that a minimum changes be made after schedules are established. This objective can be approached if the amount of work scheduled for the factory or department is equal or slightly greater than the production cycle. Follow-up – When jobs are started and completed on schedule, there should be very little concern about the meeting of commitments. Optimum operation of the plant is attained only if the original plan has been carefully prepared to utilize the manufacturing facilities fully and effectively. Re-planning – Often required in manufacturing. Changes in market conditions, manufacturing methods, etc. affecting the plant will often indicate that a new manufacturing plan is required. What Challenges Do You Face the Most in Production Planning? Combining Functions Follow-up VoteView ResultsPolldaddy.com Re-planning Factors Affecting Production Planning and Control
  2. 2. Market Forecast – It will indicate future trends in demand for manufactured products. Work shift policies, plans for an increase or decrease in manufacturing activity are based upon the market forecast and in turn affect the production planning and control. Sales Order – It is a rewrite of the customer order specifying what has been purchased (product, quantity and authorizing shipment of the goods to the customer). Variation or changes in sales order will drastically affect production planning and control. Standard Process Sheet – It is prepared by process engineering group or process owner and it is the source of basic data which may include type of machine to be used, time required for processing, etc. For e.g. if any machine is under breakdown, the standard process sheet will be disturbed which in turn affect production planning and control. Load Charts – These charts are prepared for each workstation or machine in the plant or may be for groups of machines or departments. Project Planning Method – The product to be produced are manufactured in quantities and their total processing time can be measured. The best known methods are Critical Path Method (CPM) and Program Evaluation and Review Technique (PERT). Planning is the process of selecting and sequencing activities such that they achieve one or more goals and satisfy a set of domain constraints. Schedules should reflect the temporal relationships between activities and the capacity limitations of a set of shared resources. Master Production Schedule is main driver and information source for further material requirements planning and accompanying calls or supplies and allows making detailed production schedules for production system. The high re-planning frequency in order to overcome the uncertainty induces the system nervousness. The system nervousness can be defined as – State of a system when a minor changes in Master Production Schedule creates significant changes in Materials Requirement Planning (MRP). The following critical points can be considered in Master Production Schedule:
  3. 3. Frequent changes in MPS result in due-date changes in open orders, quantity and timing for planned order of end products. Mentioned changes are translated into gross requirements changes for products and timing of their delivery. Unexpected changes in MPS effect that materials, needed for a particular order may not be available. The availability of materials is often limited due to the fact that suppliers have similar bottlenecks and schedules variations transmitted from sub-tier suppliers. The following questions can be considered while scheduling MPS: How to make initial MPS that is as feasible as possible? How to limit the number of re-planning activities? How to be reactive to disturbances in materials flow? How to provide planners with accurate information about material resources available which often lead to bloated inventory and in accurately promised delivery dates to the customers? Conclusion Production planning and control practices will vary widely from plant to plant/organization to organization. Though no production control function can be entirely eliminated, the least control that results in effective operation of the factory is the best control. It must be remembered that production planning and control systems should be tools of management. The objective is not an elaborate and detailed system of controls and records, but rather, the optimum operation of the plant for maximum profits. PPC places an emphasis on the control of work-in-process, the system will be in effect tie together all previous records and forms developed in all planning for the manufacture of the products. - See more at: http://www.askaboutvalidation.com/challenges-andfactors-affecting-production-planning-and-control-inpharmaceutical-industry/#sthash.YKomZqwj.dpuf
  4. 4. UNIT STRUCTURE 1. Learning Objectives 2. Introduction 3. Meaning and definition of Production Planning and Control 4. Elements of Production Planning and Control 1. Routing 2. Scheduling 3. Dispatching 4. Follow Up or Expediting 5. Techniques of Control 6. Advantages of Production Planning and Control 7. Let Us Sum Up 8. Further Readings 9. Answers To Check Your Progress 10. Possible Questions LEARNING OBJECTIVES After going through this unit, you will be able to: define Production planning and control
  5. 5. explain the elements of Production planning and control outline the techniques of Production planning and control explain the advantages of Production planning and control INTRODUCTION This unit will introduce you to the concept of Production planning and control. Production planning and control (PPC) is most essential for any organisation. Planning process within an organisation is dynamic and continuous. In this unit we are going to discuss how production process is planned and scheduled and ultimately implemented in a production unit. For production purpose, all the facilities should be arranged and the factory itself has to be properly set up. PPC involves the planning of production, a decision on the sequence of operations to achieve what has been planned , the setting of starting and finishing time for production, proper dispatching of the material, and follow up action to check the progress of operations. MEANING AND DEFINITION OF PRODUCTION PLANNING AND CONTROL Planning and control generally involve the planning of manufacturing process. Especially it consists of the planning of routing, scheduling, dispatching, inspection, and coordination, control of materials, methods, machines, tools and operating times etc. The ultimate objective of PPC is to organize the supply and movement of materials and labour, machines utilization and related activities, in order to bring about the desired
  6. 6. manufacturing results in terms of quality, quantity, time and place. Production control regulates and stimulates the orderly show of materials in the manufacturing process from the beginning to the end. Production planning may be defined as the technique of foreseeing every step in a long series of separate operations, each step to be taken at the right time and in the right place and each operation to be performed in maximum efficiency. Planning and control are the two most important and dynamic process of management. Managers plan for different activities in their organisation and through control mechanism they take corrective actions where ever required. Production planning consists of the evaluation and determination of production inputs such as labour, machinery and equipment, materials and utilities to achieve the desired goal. The productivity of an organisation can be improved by better planning efforts. Production planning and control can be defined as ―the process of planning or deciding on the resources the firm will require for its future manufacturing operations and of allocating and time scheduling these resources to produce the desired products on time at the least total cost.‖ Generally PPC is used in manufacturing organisations. But it can also be used in different non manufacturing units also. For example, we can use PPC in any restaurant to provide customer service more efficiently. ELEMENTS OF PRODUCTION PLANNING AND CONTROL
  7. 7. There are basically four elements in PPC, which are stared as below: 1.Routing 2.Scheduling 3.Dispatching 4.Follow up Routing Routing is the planning process, which is undertaken to find the best possible path for manufacturing a certain product. It determines what work will be done on a product and how it will be done. It establishes the operations, their path and sequence, and the proper class of machines that require performing specific operations. Routing prescribes the flow of work in the plant and it is related to the considerations of layout, temporary location for raw materials and components and material handling system. The main aim of routing is to determine the best and cheapest Production Planning and control Routing procedure involves the following different activities: (1) An analysis of the article to determine what to make and what to buy. (2) To determine the quality and type of material (3) Determining the manufacturing operations and their sequence. (4) A determination of lot sizes (5) Determination of scrap factors (6) An analysis of cost of the article Scheduling
  8. 8. The next step after routing is scheduling. Scheduling is the allocation of resources applying the limiting factors of time and cost to perform a collection of tasks. It involves the assignment of starting and completion times for the various operations to be performed. Therefore scheduling can bring productivity in shop floor by providing a schedule/ routine for processing a set of jobs. Scheduling finds the total time needed for manufacturing of a product. It also finds the time required in each machines to perform each task. The purpose of scheduling is to execute a customer’s order well in time. For example, if we order for a car, the manufacturer will estimate the time required for its production and then will give us the delivery date. Scheduling is that phase of production and control, which rates the work in order of its priority and then provide for its release to the plant at the proper time and in correct sequence. Thus, scheduling is concerned with when the work shall be performed on a product. Routing and scheduling activities are complementary to each other. One cannot route properly without having previously designed schedule and scheduling is impossible without the knowledge of required routing. The essence of scheduling is to make allocation decisions pertaining to the starting and finishing times for tasks. Scheduling can be classified into Single machine scheduling, Flow shop scheduling and Job shop scheduling. Scheduling is mainly concerns with time element and priorities of a job. The pattern of scheduling differs from one job to another which is explained as below: Production schedule: The main aim is to schedule that amount of work which can easily be handled by plant and equipment without interference. Master Schedule: Scheduling usually starts with the preparation of the master schedule which is weekly or monthly break-down of the production requirement for each product for a definite time period. This
  9. 9. would enable the production manager to shift the production from one product to another as per the changed production requirements. This forms a base for all subsequent scheduling acclivities. A master schedule is followed by operator schedule which fixes total time required to do a piece of work with a given machine or which shows the time required to do each detailed operation of a given job with a given machine or process. Best scheduling is not always possible because of the following conditions: · Physical plant facilities of the type required to process the material being scheduled. · Personnel who possess the desired skill and experience to operate the equipment and perform the type of work involved and, · Necessary materials and purchased parts. While preparing schedules, the types of orders and their promised delivery dates must be taken into consideration. Some orders may call for overtime work because they have to be delivered soon. Such rush orders should receive priority over repeat orders, which can be scheduled for completion in the normal course. Dispatching Dispatching is the transition from planning phase to action phase. In this phase, the worker is ordered to start manufacturing the product. Dispatching involves the actual granting of permission to proceed according to plans already laid down. In dispatching, orders are issued in terms of their priority. The dispatch section of the PPC is responsible for the following task: · Checking the availability of material and then taking appropriate action
  10. 10. to have it transferred from the main stores to the point at which it is needed. · Ensuring that all production aid is ready when needed and then having them issued to manufacturing departments. · Obtaining specific drawings from the drawing office. · Informing the process section that production is commencing. · At the conclusion of the manufacturing, ensure that all the drawings, layout and tools are withdrawn and returned to their correct location. Dispatching is an important step as it translates production plans into actual production. Follow up or expediting Once production has been set in motion, it is necessary to check that it is proceeding according to the plan. Every production programme involves determination of the progress of work, removing bottlenecks in the flow of work and ensuring that the productive operations are taking place in accordance with the plans. It spots delays or deviations from the production plans. It helps to reveal defects in routing and scheduling, misunderstanding of orders and instruction, under loading or overloading of work etc. All problems or deviations are investigated and remedial measurers are undertaken to ensure the completion of work by the planned date. Generally production is assumed to progress as expected. But there may be differences which may arise due to the following reasons: · Materials may be delivered late or may not be delivered at all. · Associated departments may have fallen behind in their own production. · There may be excessive absenteeism on the part of the worker. · The customer may insist on changing the specification or delivery date. · Machines may break down.
  11. 11. · There may be errors in drawings. · There may be too many rejections due to poor material quality. Other things related to production are inspection and corrective actions. Inspection: This is mainly to ensure the quality of goods. It can be required as effective agency of production control. Corrective measures: Corrective action may involve any of those activities of adjusting the route, rescheduling of work, changing the workloads, repairs and maintenance of machinery or equipment, control over inventories, poor performance of the employees. Certain personnel decisions like training, transfer, demotion etc. may have to be taken. Alternative methods may be suggested to handle peak loads. CHECK YOUR PROGRESS 1. Fill in the blanks with appropriate words: (i) There are ————————— elements in Production Planning and Control process. (ii) Routing is the ------------------- activity which determines the best rout for manufacturing. (iii) Scheduling involves starting and completion --------------for various operations to be performed. (iv) ------------- involves actual permission to proceed as per the plan. (v) Follow up is the process of ------------ the activities , whether it is going as per the plan or not.
  12. 12. TECHNIQUES OF CONTROL Production control is the process of planning production in advance of operations, establishing the exact route of each individual item part or assembly, setting, starting and finishing for each important item, assembly or the finishing production and releasing the necessary orders as well as initiating the necessary follow-up to have the smooth function of the enterprise. The production control is of complicated nature in small industries. The production planning and control department can function at its best in small scale unit only when the work manager, the purchase manager, the personnel manager and the financial controller assist in planning production activities. The production controller directly reports to the works manager but in small scale unit, all the three functions namely material control, planning and control are often performed by the entrepreneur himself. Production control starts with dispatching and ends up with corrective actions. Production technique is an updating and revising procedure, through which the requirements of implementation, the labour assignments, the machine assignments, the job priorities, the production routes etc may be revised. It is a correcting mechanism which goes on through out the implementation process of the already drawn out production plan and schedule. In order to perform the function of PPC properly, managers require some techniques to control any deviations. Following are the some of the technical tools used by the managers: 1. Control Charts and Graphs: Gantt chart is an effective control chart used to gauge the planned and actual progress. Again a simple graph will be highly useful to compare actual progress with the scheduled progress. 2. Control Boards: A control board is a device for automatically indicating the progress of the work. Control boards are generally used for repetitive
  13. 13. productions. 3. Communication systems: Quick exchange of information and instructions is highly useful for controlling productions. 4. Quantitative techniques: With the help of quantitative techniques like, PERT, CPM or linear programming, managers can control production. ADVANTAGES OF PRODUCTION, PLANNING AND CONTROL Following are the advantages of using PPC in any plant: · PPC forecasts sales orders and makes sales order more economical in production. · It co-ordinates the operations of several departments. · It ensures better service to customers by delivering quality goods within the specified time period. · Reduces production costs through orderly scheduling of work activities and reducing wastages. · Reduces employee idle time. · Ensures a better control of material and contributes to efficient buying. CHECK YOUR PROGRESS 1. What are the techniques used by managers in production control? (ii) Write any two advantages of PPC.
  14. 14. LET US SUM UP In this unit we have discussed how production process is planned and scheduled and ultimately implemented in a production unit. Production planning and control (PPC) is most essential for any organisation. PPC involves the planning of production, a decision on the sequence of operations to achieve what has been planned , the setting of starting and finishing time for production, proper dispatching of the material, and follow up action to check the progress of operations. Generally PPC is used in manufacturing organisations. Elements of PPC are Routing, Scheduling, Dispatching and Follow up. There are different Techniques of production control are used such as Control Charts and Graphs, Control Boards, Communication systems, Quantitative techniques etc. Managers can avail lots of benefits by using PPC. PPC forecasts sales orders and makes sales order more economical in production. It reduces production costs through orderly scheduling of work activities. PPC also reduces an employee’s idle time and ensures a better control of material and contributes to efficient buying. FURTHER READINGS
  15. 15. 1. Production Management, by K. Aswathappa, Himalaya Publishing House 2. Production and Operations Management, by R. Panneerselvam, PHI publications. 3. Production and Operations Management, by S.N. Chary, Tata Mc Graw Hill. ANSWERS TO CHECK YOUR PROGRESS Check Your Progress : 1 1. (i) Four, (ii) Planning, (iii) Time, (iv) Dispatching, (v) Checking. Check Your Progress : 2 1. Control Charts and Graphs, Control Boards, Communication systems, Quantitative techniques. 2. (a) PPC forecasts sales orders and makes sales order more economical in production,(b) It co-ordinates the operations of several departments. POSSIBLE QUESTIONS 1. What do you mean by Production planning and control? 2. Explain the different elements of PPC. 3. Explain the different techniques used in control process. 4. Do you think the follow up stage is important in any production plan? If yes, explain your comment. 5. Discuss few advantages of PPC.
  16. 16. Description Reporting to the VP Operations, the Planning & Production Control Manager oversees the running of the aircraft maintenance and overhaul production planning and control booths and man-hour budgets. In this capacity he/she will manage and lead a group of certified Aircraft Maintenance Planners and clerical support staff to accomplish package/job card production and production planning and control to support large commercial aircraft Maintenance, Repair and Modification Services, in accordance with the work scope and company/FAA/EASA procedures. Develop production schedules and work statements identifying detailed facility requirements, manpower requirements, parts and material lists, tooling lists, third party services and specialized resources to ensure contractual commitments and production targets of the company are met. Prepare the production planning boards, communicating with internal production and support organizations to manage the plan in an efficient, effective and customer centric manner. Support operations departments with optimized production plans, job cards, drawings, manuals, standards and production management information systems. Ensure that all required documentation is supplied with the Task Cards in order to maximize efficiency in job execution by aircraft mechanics and technicians. Monitor task execution man hours and report in a timely manner to Leads, Project Managers and Maintenance Manager any potential threats leading to delays/overages and wastage that will negatively impact project profitability. Control paperwork to ensure thorough and accurate completion in full compliance with OEM MPDs, company/FAA/EASA procedures. Ensure all data is entered accurately into the company’s information system in accordance with company’s Work Order processes and procedures. Make sure that Production Planning and Control personnel ensure that all required documents are included in completed work packages prior to copying and filing records into company’s archives, delivering originals to the
  17. 17. Customer. Assist the Business Development department in developing work scopes, man hour estimates, schedules and production plans in development of customer contracts. Directly interface with business development, finance, operations, purchasing, stores and human resources in the development and execution of multiple/concurrent projects with diverse contract types. Ensure company procedures and processes are followed in providing finance all necessary supporting information to allow for accurate and timely preparation and submission of invoices. Lead, coach and mentor direct reports and their subordinates to consistently deliver excellence in their undertaking as individuals and team players. To ensure commitment and accountability at all levels by maintaining a cohesive organization motivated to meet and exceed expectations. To hire, discipline and terminate employees as required. Provide on-the-job and formal training of department personnel in the proper performance of their assigned duties. Strive for continuous process improvements while ensuring compliance to FAA, safety (OSHA), legal and established corporate procedures, checks and balances. Drive efficiencies throughout the department and eliminate waste wherever possible. Produce regular reports and statistics on a daily, weekly and monthly basis as required ensuring a smooth running of operations. Report to operations management any discrepancies and threats on a timely basis with the objective of resolving any issues and to avoid aircraft re-delivery delays. Elaborate annual strategic plans and budgets no later than the last quarter of the preceding fiscal year. Establish performance metrics, goals and performance evaluation processes in line with corporate policy. The individual and department goals should be aggressive, achievable and in line with corporate strategy. Conduct regular meetings, clearly establishing objectives and resultant actionable items. Deal with Customers in a cordial, respectful and professional
  18. 18. manner, and to see to it that all personnel behave accordingly. Collaborate with all other managers in delivering the highest quality repair station service. Support the VP Operations with other business activities as needed. To Lead by example at all times; through professional behavior, integrity, commitment to the company and compliance with its policies. All Production booths are managed and controlled by the Production Planning and Control department. The manning of this department is necessary for all operations shifts. The Manager, Production Planning and Control plays a key role as an internal service provider to the operations of the Company. He/she has a sense of urgency due to his/her deep appreciation of the importance of monitoring man hour estimates, tooling requirements, delivery of parts and materials in order not to negatively affect an on-time re-delivery of aircraft, job profitability and the accurate completion and compliance of required documentation. RESPONSIBILITIES: High School Degree/GED and 10 years related experience in Planning and Production in commercial aircraft MRO environment. Minimum 5 years in a supervisory or management position. Strong organization skills. Strong communications skills. Bilingual, English/Spanish preferred. Airframe and Powerplant licenses, preferred. Ability to work in a fast-paced environment. Production planning policy and procedure by ADMIN on MAY 9, 2006 PRODUCTION PLANNING POLICY AND PROCEDURE
  19. 19. The end product of the production planning efforts is the formulation of production plans. The plans are formulated in the light of the specified future period. The plans are to be implemented in the light of the estimated costs and agreed policies. The costs in the case include capital costs of assets and plant facilities, inventory cost, labor cost and cost of setting up the operations. The policies are framed in the light of the planning techniques and strategies which have been developed for the particular plan. The important steps in production planning are as under: 1. Demand Forecasts: The production planning function is geared to the estimated demand for the product. The demand forecasting represents an anticipated level of demand and it also reflects on the pattern of the demand. If seasonal or other kind of symmetry can be predicted, production can be planned to take advantage of the predicted pattern of the demand. 2. Specification of Production requirement: Though demand forecasts provide the basis for production planning, it is not everything in production planning. The demand forecast must be converted into a specification of production requirements. The forecast demands are adjusted as under while planning the actual production: (a) On the basis of available production capacity, the forecast demand is put on the calendar schedule. (b) Reasonable allowances are made for possible errors in the forecast (c) The deficiency of surplus of the existing production capacity ascertained in term of machine capacity and labor force. On the basis of the temporary or permanent fluctuations in the demand, the adjustment in the machine capacity and labor force are planned well in advance. (d) A schedule, of material requirement is prepared. While deciding the quantity of material due considerations is given to the seasonal advantage, cost of excess inventories carrying, cost of stock outs etc. The above type of production planning is made in the light of the specification of the product or the customer orders within the prescribe tolerance limits.
  20. 20. Setting of Production Rate: The production requirements are broken into periods and the schedule of production is prepared. The production at any point of time is the result of the prescribed rated capacity. In the light of the desired production, the production rate should be planned on the basis of the existing production capacity, overtime working, extra shift working or new additions to the existing production capacity. The inventory levels should be geared to the production rates. On the basis of the set production rates, the schedule of the period production and inventory holding should be prepared. The production rate is set with the help of graphic technique. The setting of the production rate is relatively difficult in case of the seasonal demand. However, the adjustment can be made by continuing the average production throughout the year and by manipulating the inventories if it releases some costs advantages. Various mathematical programming methods are used in practice for planning the seasonal production requirements. Controlling Production: Once the production plan is made and set to operations , is likely that the actual stocks of the finished goods inventory will fall below or exceed the planned balances due to the discrepancies in the estimated an actual sales. The marginal imbalance in the estimated and actual sales is solved by providing for certain safety level of inventory. The size of the safety stock depends on the promptness of production adjustment. In any way, such discrepancies would necessitate the periodic adjustment in the production with the view to bring the inventories into the line. The adjustments in the plan are made as under I. Where only a short span of the planned cycle is over, the revisions I the original forecast should be made by adjusting the excepted sales changes to the cumulative forecast for the remainder of the planned cycle. II. Where the planned cycle is on the verge of completion, the forecast may be extended to cover the next planning cycle.
  21. 21. Production Control: Meaning: Production planning strives to set the production targets and plans the availability of the resources to translate these targets into reality. While the production control constantly keeps a watchful eye on the production flow and views of resources along with the location, of any deviation from the pre-set action and to arrange for the prompt adjustment so that the productivity may run according to the original and revised schedules. Production control (PC) is facilitating service to manufacturing. PC coordinates all the production operations by collecting the relevant information about various types of inputs and outputs and by making necessary adjustment in them. It directs and checks the course and progress of the work and closes the records on the completion of the work or order. more at http://www.citeman.com/500-production-planning-policy-andprocedure.html#ixzz2hI9aN4Ap