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Production planning and_control-an_introduction

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    • 1. PRODUCTION PLANNING AND CONTROL-AN INTRODUCTION  Production planning  Production control  Sub functions of production planning and control  Types of production system  Summary
    • 2. Production planning is a managerial function which is concerned with the following important issues. 1) What production facilities are required. 2) How these production facilities should be laid out in the space available for production? And 3) How they should be used to produce the desired products at the desired rate of production?
    • 3. PRODUCTION PLANNING  Production planning is dynamic in nature and always remains in fluid state as plans may have to be changed according to the changes in circumstances.  Production planning is usually done at the following three horizon levels  Long term ( Capacity planning )  Medium term (aggregate planning)  Short term (operational planning)
    • 4. PRODUCTION PLANNING HORIZONS  Long term (capacity planning) - Upto 5 years or more - will deal with strategic/ business issues - will reflect in the choice of processes
    • 5. PRODUCTION PLANNING HORIZONS  Medium term (aggregate planning)  Up to 2 years ahead  How can demand be met from existing facilities and resources?
    • 6. PRODUCTION PLANNING HORIZONS  Short term (operational planning)  Monitoring and correction of day to day activities versus plan
    • 7. REQUIREMENTS OF PRODUCTION PLANNING  It should be based on accurate data.  It must be flexible  It must satisfy a set of pre defined production objectives (economy, quality etc)  It must be simple and straight forward.  It should have a reporting system, so that right information reaches at right place and at right time.  It should not have any weak link.
    • 8. PRODUCTION CONTROL  Production control is a mechanism to monitor the execution of plans. It has several important functions.  Making sure that production operations are started at planned places and planned times.  Observing progress of the operations and recording it properly.  Analyzing the recorded data with the plans and measuring the deviations.
    • 9. PRODUCTION CONTROL  Taking immediate corrective actions to minimize the negative impact of deviations from the plans.  Feeding back the recorded information to the planning section in order to improve future plans.
    • 10. OPEN LOOP CONTROL SYSTEM  Resources products and services  Objectives  An open loop system with no control Transformation process (value addition)
    • 11. CLOSED LOOP CONTROL SYSTEM  Corrective action Measure  Resources products and services  Objectives • comparizon  An closed loop system with control function Transformation process (value addition)
    • 12. PRODUCTION CONTROL  Control involves the monitoring and correction (where necessary) of operations to ensure that plans and objectives are being met.
    • 13. PRODUCTION CONTROL  Many different forms of production control  Quality control  Stock control  Order processing/ chasing against schedules  Cost control (budgeting)  People and the labour productivity
    • 14. FUNCTIONS OF PRODUCTION PLANNING AND CONTROL  Product planning-product engineering, product design and development, functional and quality considerations and quality considerations.  Forecast planning-quantity forecast, demand pattern forecast.
    • 15. FUNCTIONS OF PRODUCTION PLANNING AND CONTROL  Process planning:- technology selection, process selection, machine selection, tool selection, process parameter selection, operation sequencing etc.  Equipment planning:- Type of equipments, no: of equipments, machine capability analysis, maintenance planning.
    • 16. FUNCTIONS OF PRODUCTION PLANNING AND CONTROL  Materials planning:- material specifications, material volumes, economic lot sizing, inventory planning, store planning  Loading, scheduling and sequencing:-machine loadings, operations scheduling and job sequencing etc.
    • 17. Definition of a production system  A production system can be defined as a transformation system in which a saleable product or service is created by working upon a set of inputs. Inputs are usually in the form of men, machine, money, materials etc. it can be classified on the basis of the following:
    • 18. Definition of a production system  Type of production: (job production, batch production, mass production)  Size of plant  Type of product  Physical flow of materials  Nature of order/demand pattern  Variety of jobs
    • 19. JOB SHOP PRODUCTION  Characterized by make to order strategy  There are 3 possible situations Product is manufactured only once Small quantities of product are repeated in irregular time intervals Small quantities of product are repeated in regular time intervals
    • 20. JOB SHOP PRODUCTION  End product is different at every time (most of the time).  No standard methods, time standards can be developed.  As product is changing every time, machines and other resources should be of general purpose and flexible.  Highly skilled workforce is needed to work on varying product designs.
    • 21. JOB SHOP PRODUCTION  In-process inventory is usually very high.  Machines are grouped according to their functional capabilities.  System is very flexible.  Planning and control is very difficult  Product cost is usually very high  Delivery dates are only estimated due dates.
    • 22. BATCH PRODUCTION  A batch of identical articles are manufactured.  Demand rate < rate of production  There are 3 possible situations A batch is manufactured only once (made-to-order) A batch is repeated at irregular time intervals (made- to-order) A batch is repeated at regular time intervals (made-to- stock)
    • 23. BATCH PRODUCTION  Final product is usually standard or belong to same family.  Customer may be external or internal  Batch size is determined either by forecasting or order size.  Machines may be either general purpose or semi automated.
    • 24. BATCH PRODUCTION  Machines are grouped as per their functions  Skilled labor is required  Less supervision is required  Less flexible than job shop type  Planning and control is less complex
    • 25. MASS PRODUCTION  Demand rate > rate of production  Product is standard  Standard methods, time standards etc can be generated  It is a capital intensive system and needs elaborate planning
    • 26. MASS PRODUCTION  Semi skilled labor can be employed for supervision only  Day to day planning and scheduling need not be elaborate  It is a rigid system