Production- converting input into output effectively, efficiently & economically.Planning – coordinating all activities to achieve desire goal effectively ,efficiently, & economically
Productionplanning control power point presentation
DR. MAHADEO GHADGE
PRODUCTION PANNINGProduction planning is apre-production functionperformed to match theproduction capacity withthe essential marketdemand in the mostfeasible manner.It consist of 1-Production& 2- Planning
PRODUCTION CONTROLProduction controlis follows otherfunctions & helpsdetermine theperformance of anorganization.
OBJECTIVES OF PRODUCTION PLANNINGTo meet the demand of the product effectively &maintain the balance between different productionactivities.The best possible utilization of available resources.To operate the plant at a predetermined level ofefficiency.To utilize production facilities to the maximum for gettingthe minimum operating costs & meeting deliveryschedules.To assist workers engaged in production activities formaking right & greater earnings.To equip management for tackling any difficulty, whichmay arise later on in the achieving of production target.
FUNCTION OF PRODUCTIONPLANNING Production selection & design – this helps toselection of most suitable product that fulfillsmarket demand. It also ensures that design of theproduct is according to customer requirements. Process selection & planning – this helps tochoose right technology, equipments, machines,material handling systems, automation involved inproduction of product. Facility location – this helps to minimize the costssuch as production & distribution costs. Facility location & materials handling – this helpsto material transfer & processing of product in themost efficient manner through the shortestpossible distance with minimum time wages. Capacity planning – decides about how muchresource should be kept to meet current marketdemand. Procedure planning – specifies productionprocedure to be practiced for obtaining the desireoutput at optimum cost.
STEPS INVOLVED IN PP Determination of target(past experience / budget / manpower/ production capacity) Collection & interpretation of information(raw material availability / new technology / regulations) Developing plan( deciding batch size / procedure/process/ lead time) Putting plan into operations(execution ) Follow up action (controlling to correct deviation if any.
PRODUCTIION PLANNING hierarchyLong Term (Capacity Planning Capital Intensive in nature- This deals with Strategic and business issue. In thelong term we deal with those issue which help us tocreate demand for our products and generatingsufficient revenue for the company.- Reflect in process choice and equipment selection.Since selection of equipment and facilities requirelot of investment and decision is irreversible, oneshould pay utmost care keeping in mind customerrequirements.Medium Term (Aggregate Planning)- How demand can be met from existing facilitiesand resources. Here we are trying to utilizing ourexisting resources (manpower, machine, facilitiesetc) to satisfy the market demand
Short Term (operational Planning)- In short term we monitoring the production activities on day today basis and compare the output against the plan and takecorrective action.Master Production Schedule (MPS) - Is a statement of howmany finished items are to be produced and when they are to beproduced.Material Requirement Planning (MRP) - System that uses netdemand from the MPS and explodes it using the bill of materials(BOM).
Organizational structure of PPC department• It differ from organization to organization• FACTORY HEAD• PRODUCTION MANAGER• PRODUCTION SUPERVISOR SKILLED WORKER• QC/QA MANAGER• MAINTAINANCE MANAGER 9
Production Control To execute the Production plans & to attainthe company objectives production managerneeds to check the work progress & correct thedeviations between actual performance &planned standards or requirements ofcustomers. Controlling is the process that measures theexisting performance of an organization &guides it towards predetermined objectives. It means Production Control is essentially thecontrol of quantity in manufacturing of therequired quality.
OBJECTIVES OF PRODUCTION CONTROL To make essential arrangements for theproduction of goods & services according topredetermined demand. To organize require raw materials, machines,equipments, tools & workers for production. To maintain inventory of RM at optimum level,which calls minimum capital investment & prodnobstacles. To maximize use of production facilities –buildings, plant, men, material etc. To coordinate the activities of differentdepartments related to prodn.
CONT----- To make the plan for product development& design. To arrange the activities of quality control &inspection so that goods may be producedaccording to specifications & standards. To provide RM to the plant at proper place& in proper quality so that delays in prodnmay be eliminated. To evaluate production progress from timeto time & to arrange proper guidance &control.
FUNCTIONS OF PRODN CONTROLInventory control – Helps determine theoptimal inventory levels of RM, components,parts, tools FG, spares in order to ensure theiravailability with minimum capital investment.(JIT)Time management – Helps to ensure whetherthe manufacturing of product is according toschedule.Quality control – Helps ensures that theservices & products produced by companymeet the declared quality standards withminimum cost.
FUNCTIONS OF PRODN CONTROLCont…..Maintenance & replacement – Helps select the optimal maintenance policy to ensure or availability of equipments& machines, includes – preventive inspection, planned lubrication, periodic cleaning, planned replacement of parts etc.• Cost reduction & cost control• Dispatching – Moving of RM among various operations, collecting fixtures & tools from
ADVANTAGES OF PRODNCONTROL TO MANAGEMENTProdn control aims to make right quantity &quality of product, accessible to customers atright time & at minimum cost.Investment in inventories & finished stock canbe kept minimum.The firm can capture market share by producinggoods at lowest cost & best quality & may resultin large amount of sales.The amount of profit will be higher.The firm can compete in the market with lowcost prodn & higher profits.
Routing – is selection of path or route over which each piece is to travel in being transformed from RM into FG. Scheduling – It involves establishing the amount of work to be done & the time when each element of work will start. Determine most feasible sequence of operations. Dispatching – is concerned with the issue of orders to shop floor, instructions, tools are provided, job cards & work force. Guiding & controlling the material & operations in processing on the basis of route sheet & shedule Follow up – to see whether the work is being carried on according to planning & orders & instructions issued. Inspection – To check the process or quality Correction – Making correction or initiating necessary action to ensure desired output.
OBJECTIVES OF PRODN PLANNING & CONTROL Effectiveness – ensures right kind of goods to fulfill the customer requirement. Maximizing output – ensures the prodn of maximum goods & resources in minimum output. Quality control – ensures quality of goods/services meet the quality specification. Minimizing the output time – ensures reducing delays, waiting time & ideal time. Capacity utilization – ensures manpower/machine is fully utilized. Maintain inventory level – ensures optimal level of stock. Flexibility – ensure that flexibility maintain for all operations.
OBJECTIVES OF PRODN PLANNING & CONTROLCont….. Better coordination – between machine & labour. Reducing bottlenecks – ensures that all the bottlenecks are removed from all stages of operations. Maintaining performance – ensures the proper standards are maintained by comparing actual result with planned result. Prepare production schedules – ensures that timely production is made according to the schedule.
BENEFITS OF OF PRODN PLANNING & CONTROLHigher quality,Better utilization of resources,Reduced inventories,Reduced manufacturing cycle time,Faster delivery,Better customer services,Lower production costs,Lower capital investments,Higher customer services,Improve sales turnover,
BENEFITS OF OF PRODN PLANNING & CONTROL Improve market share, Improve profitability, Flexibility, Lower prices, Competitive advantage for firm due to balance inventory levels & higher quality.