The document discusses production planning and scheduling (PPC) in manufacturing. It covers key aspects of PPC including production planning, production control, master production scheduling, routing, scheduling and loading. The objectives of PPC are to determine resource needs, coordinate activities efficiently and economically, establish targets, ensure smooth material flow, and utilize underutilized resources. It aims to produce the right output quality and quantity on time. Production control regulates production activities and ensures resources, materials, and quality standards are met.

1. Manufacturing Planning &
Scheduling
N.K.Agarwal

2. PPC
• PPC concerned with decision making regarding
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What to produce?
How to produce?
Where to produce?
When to produce?
Who will produce?
How much to produce?

3. Production Planning & Control(PPC)
• PPC is the organisation and planning of
manufacturing process
• PPC
– Co-ordinates supply and movement of materials and labour
– Ensures economic and balanced utilisation of machines and
equipments, and
– Other activities related with production
• To achieve the desired manufacturing results

4. Production Planning & Control(PPC)
• Production Planning involves
– Formulation
– Co-ordination, and
– Determination of activities
• In a manufacturing system
• Production Control involves
– Process of maintaining a balance between various activities
involved in production planning providing
• Most effective and efficient utilisation of resources

5. Production Planning
• The function of the management that decides
– The resources the firm will require for its future
manufacturing operations, and
– Allocating these resources to produce the desired output in
required amount at least cost

6. Production Planning-Procedures
• Production planning prepares
– Procurement plans for materials and personnel,
– Establishes work procedures and control,
– Prepares and issues work authorisation,establishes finished
goods inventory control, and
– Maintains alternative plans of action

7. Production Planning-Procedures
• Categories of production planning procedures
– Routing
– Scheduling, and
– Loading

8. Production Planning-Routing
• Routing means determination of path or route over
which each piece is to travel in being transformed
from raw material into finished product
• Routing generally involves the following
– Whether to make/buy
– Form and shape of the material
– Division of work to be done into operations

9. Production Planning-Routing
– Choice of machines/ work centers on which each operation
should be done and its duration
– Sequence in which operations are to be performed
– Division of operations into work elements
– Choice of special tooling
– Economic lot size of production order quantity
– Estimation of amount of scrap

10. Production Planning-Scheduling
• Scheduling is
– Deciding when and where each operation in a production
process is to be executed, and
– Establishment of time table at which to begin and/or
complete each event or operation involved in a procedure

11. Master Schedule
• Developed by reviewing market forecasts, customer
orders, inventory levels, facility loading & capacity
information regularly
• Plan for future production of end items over short
range planning horizon
• An important link between production and marketing

12. Functions of MPS
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Translating aggregate plans into specific end items
Evaluating alternative master schedules
Generating material requirement
Generating capacity requirement
Facilitating information processing
Maintaining valid priorities
Utilising capacity effectively

13. MASTER PRODUCTION SCHEDULE- FLOW CHART
DOMESTIC &
INTERNATIONAL
FORECAST & CUSTOMER
ORDERS
END PRODUCTS &
SERVICE PARTS /
SPARE PARTS
AGGREGATE PLAN
TENTATIVE MPS
TRIAL FIT ON
REVISE MASTER
SCHEDULE
MRP SYSTEM
ARE
MATERIALS
NO
ADEQUATE ?
YES
REVISE MASTER
SCHEDULE
CRP SYSTEM
ARE
CAPACITIES
ADEQUATE ?
FIRM MPS
TO MRP & CRP SYSTEM
NO
YES
CAPACITY
REQUIREMENT
PLAN (CRP)

14. MPS Environment
• Make – to – stock
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Production by the company in batches
Carries finished goods inventory for most of the end items
Mostly consumer products
Orders from warehouses mostly
Lot sizes of orders based on economics
Efforts to prepare MPS are relatively less

15. MPS Environment
• Make – to – order
– Companies do not carry finished goods inventory
– Builds customer orders as needed
– Customers expected to wait for the design & manufacturing
lead time
• Example: Buildings, Jewellary making,Ship building
– Lot size and number of products depends upon customer
orders
– Many product designs, products and orders to be included
Efforts required to prepare MPS are more

16. MPS Environment
• Assemble –to – order
– Customer delivery times often less than total lead times
– Flexibility maintained in manufacturing
• Basic components and sub-assemblies produced
• Final assemblies taken up only against customer order
– Typical with very large number of possible end items made from
combination of basic components and sub-assemblies
– Example: Automobile manufacturing, Fork lifts with
different specifications
– End items not scheduled
– Schedule units stated in planning bills of materials
– Common parts and options form the MPS planning bill

17. Production Planning-Loading
• Objectives
– To plan new work orders on the basis of spare capacity
available
– To balance the work load in a plant
– To maintain delivery promises
– To check the feasibility of production programmes

18. PPC-Production Control
• Production Control is the procedure
– To regulate an orderly flow of materials, and
– Co-ordinate various production activities
• To accomplish the objective of producing the desired
item
– In the right quantity of desired quality at the required
time by the best and the cheapest method
» To attain highest efficiency in production

19. PPC-Production Control
– Proper co-ordination of the operation of various sections/
departments responsible for production
– To ensure timely supply of raw material at the desired place
and of prescribed quality and quantity to avoid delays in
production
– To perform inspection of semi finished and finished goods
and use of quality control techniques to ensure
manufactured goods meeting required specifications
– Also responsible for product design and development

20. Production Control- Levels
• Three levels in production control
– Programming
• Planning the output of product for the factory as a whole
– Ordering
• Planning the output of components from suppliers and
production departments
– Dispatching
• Considers each processing department in turn and plans
the output from the machines, tools and other work
centers so as to complete the order by due date

21. Production Control- Ordering
• Ordering is
– Process of placing orders, also known as work orders, to
the suppliers and the processing departments for the
materials and other parts needed to manufacture the
product, and
– To arrange the ordering quantity and delivery schedule in
such a way
• That all items are delivered in time to meet the
production programme

22. Production Control- Dispatching
• The decision of assigning various jobs to different
machines is known as Dispatching
• Functions
– To check the immediate availability of materials
– Ensuring availability of all production and inspection aids for
use
– Obtain appropriate drawings and specifications
– Collate jobs, operation layouts, routine etc. with the design

23. Production Control- Dispatching
– Processing information or inspection schedule
– Assign work to definite machine, work place and men
– Issue necessary materials and tools etc. to the required
point for use
– Issue production note indicating the start and finish time of
the work
– Inform progress regarding start of work
– Instruction to start the work
– Maintain all production records

24. Production Control- Follow - up
• Follow-up/expediting or progressing is checking
production activities so that production may be
carried out as per plan
– Involves measurement of output against plan, analysis of
performance for short-falls and following up the line
management to apply corrective action
• The chaser is responsible for observing that any
detail which is overlooked or not properly executed is
set right

25. Scheduling of Process – Focused
Production Systems
• Scheduling becomes complex due to
– Delivery dates have to be promised for work orders against
customers’ orders
– Production lots tend to become small & many require
machine change over
– Possibility of assigning / reassigning workers & machines to
various work orders
– Schedules to be specific and detailed machine wise to bring
orderliness

26. Scheduling of
Product - Focused System
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Relatively fewer standard product designs
Production usually on produce – to – stock & sell basis
Finished goods inventories are maintained
Production rates of individual products exceed their
demand
– Much less pre production planning concerning route sheets, job
instructions, process plans and product designs
– Schedules based on economic production runs for products without
firm delivery commitments
– Major scheduling concerns are
• Timing of production line change over
• Length of production runs

27. PPC - Importance
• Reduces cost of production by minimising wastage of
material and economic utilisation of resources
• Leads to lower investment by means of efficient and
balanced utilisation of resources
• Promotes employee morale by avoiding all sorts of
bottlenecks
• Enhances customer satisfaction and confidence

28. MPS and Shop Floor Planning &
Control
• MPS and shop floor planning & control results in
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Low inventory levels,
Minimise the manufacturing cycle time,
Full utilization of production services, and
Helps in the development of positive customer relations
• By meeting the promised delivery dates

29. References
• Production Operations Management :
Aswathappa / Bhat
• Modern Production / Operations Management:
Buffa / Sarin
• Operations Management :
Donald Waters
• Manufacturing Planning & Control Systems :
Vollman / Bery / Whybark
• Operations Management: R.G.Schroeder

30. Thank You

32. PPC - Objectives
• Determining the nature and magnitude of various
input factors to manufacture the desired output
• To co-ordinate labour, machines and equipment in
the most effective and economic manner
• Establishing targets and checking these against
performance
• Ensuring smooth flow of materials by eliminating
bottlenecks in production
• Utilisation of under employed resources
• To manufacture the desired output of right quality and
quantity at right time

33. Production Planning-Objectives
• Systematic co-ordination and regulation of various
activities
• To maintain proper balance of the activities for
efficient production
• Determination of raw materials, machines, equipment
etc. and other inputs for desired output
• Anticipation of business changes and reacting to
them in proper manner
• To have optimum usage or resources with optimum
cost and time
• To provide alternative production strategies in case of
emergencies

34. Production Planning-Routing
• Various types of proformas to record details of
production process at different stages also to be
designed
• In manufacturing plants, routing of an order carried
out using Route Sheets

35. Route Sheet
Manufacturing
Order no.
Drawing no.
Description of
the item
No. of pieces on
order/Economic
lot size
Date of
completion
Remarks
Spoilage
allowance
Total items to
be produced
Material description
Quality of material allotted.
Purchase Order no.
Stores requisition no.
Time/ Piece
Due date.
Tool Description
Setup time/lot operation no.
Time allowance

36. PPC-Production Control
• Objectives of Production control
– Provision of raw materials , equipment, machines and labour
– To organise production in conformity with the demand
forecast
– Ensure utilisation of resources in the best possible manner
such that the cost of production is minimised and delivery
date is maintained
– Determination of economic production runs with a view to
reduce the setup costs

37. Production Control- Techniques
• Programming: Objectives
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Reliable delivery to customers
Even loading of the plant
Even loading of the labour in total man -hours per week
Efficient use of capital
• Lack of production programming in any
manufacturing system results in late delivery to
customers

38. SCHEDULING SERVICES
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ECONOMIC ACTIVITIES IN WHICH PRIMARY OUTPUT IS
NEITHER A PRODUCT NOR A CONSTRUCTION
• VALUE IS ADDED TO THIS OUTPUT THAT CANNOT BE
INVENTORIED LIKE CONVENIENCE, COMFORT, SECURITY,
AND THE OUTPUT IS CONSUMED AS PRODUCED
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TRANSPORTATION
UTILITIES
COMMUNICATIONS
FINANCE, BANKING, INSURANCE, POST & TELEGRAPH

39. SERVICE OPERATIONS
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SERVICE SYSTEMS
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DO NOT HOLD INVENTORIES
DEMAND ON THEM HIGHLY VARIABLE
OPERATIONS LABOUR INTENSIVE
PRIMARILY PERFORMED THROUGH PERSONNEL
• AS SUCH, PERSONNEL SCHEDULING BECOMES COMPLEX

40. SERVICE OPERATIONS
•
ALSO KNOWN AS NON-MANUFACTURING OPERATIONS, CAN
BE CLASSIFIED AS
– STANDARD SERVICES
– CUSTOMER SERVICES
• CLASSIFICATION ACCORDING TO THE DEGREE OF
STANDARDISATION OF THE OUTPUTS AND THE PROCESS
PERFORMED BY THE SERVICE SYSTEM

41. SERVICE OPERATIONS
•
STANDARD SERVICES
– SYSTEMS MORE LIKE PRODUCT-FOCUSSED MANUFACTURING
• SERVICES STANDARD FOR MOST CUSTOMERS
• PROCESS ONCE BEGUN CARRIED THROUGH TO
COMPLETION WITHOUT MUCH DELAY
• SIGNIFICANT DIFFERENCE WITH PRODUCT-FOCUSSED
MANUFACTURING BEING THAT SERVICES PRODUCED
ACCORDING TO CUSTOMER ORDER RATHER THAN FOR
FINISHED GOODS INVENTORY
– TRNASPORT COMPANIES, FAST FOOD
RESTAURANTS, POSTAL SERVICES, AIRLINES
• SOPHISTICATED SCHEDULING SUCH AS ON-LINE
COMPUTER BASED SCHEDULING SYSTEMS USED

42. SERVICE OPERATIONS
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CUSTOMER SERVICES
– SYSTEMS LIKE JOB SHOPS AND HENCE SCHEDULING MUCH
LIKE JOB SHOPS
• SMALL SERVICES LIKE A DOCTOR’S CLINIC, SMALL
RETAILERS, LOCAL TRANSPORT COMPANIES
– NO FORMAL SCHEDULING SYSTEMS EMPLOYED
– SIMPLE SCHEDULING SYSTEMS SUCH AS APPOINTMENT
SCHEDULES, TOKEN SYSTEM, FIRST-COME-FIRST-SERVICE ETC
USED TO ASSIGN PRIORITIES TO CUSTOMERS
– PART TIME WORKERS AND STAND-BY EQUIPMENT FREQUENTLY
USED DURING HIGH DEMAND PERIOD
– HOSPITALS USE MORE SOPHISTICATED SCHEDULING SYSTEM
• INCLUDING A MOST CRITICAL NEED CRITERIA ;FIRST-COMEFIRST-SERVED

43. SCHEDULING PERSONNEL IN
SERVICES
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USE OF WAITING LINES(BASED ON FIRST-COME-FIRST-SERVED
PRIORITY) AS A BUFFER FOR DIFFERENCE BETWEEN CUSTOMER
DEMAND AND SYSTEM CAPACITY
– ENABLES SCHEDULING PERSONNEL TO MAINTAIN UNIFORM SYSTEM
CAPACITY FROM TIME TO TIME
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USE OF APPOINTMENT SCHEDULES TO LEVEL OUT THE DEMAND
FOR SERVICES
– ENABLES SCHEDULING PERSONNEL SO THAT THE SYSTEM CAPACITY
IS ALMOST UNIFORM
• APPOINTMENT SCHEDULES IN MEDICAL, LEGAL SERVICES
• EMERGENCY CUSTOMERS ACCORDED PRIORITY AND REMAINING
SERVICED BY APPOINTMENT

44. SCHEDULING PERSONNEL IN
SERVICES
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PERSONNEL SCHEDULES DEVELOPED TO ALLOW SYSTEM
CAPACITIES WHICH MATCH THE CUSTOMER DEMAND
– SYSTEM CAPACITY VARIED BY VARYING NUMBER OF PERSONNEL TO
WORK DURING EACH HOUR OF THE DAY
– PART TIME PERSONNEL MAY BE EMPLOYED DURING PERIODS OF
PEAK DEMAND
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FOR EMERGENCY SERVICES LIKE FIRE OR POLICE, SCHEDULING
DONE FOR 24 HOUR FULL CREW COVERAGE
– DURING PEAK DEMAND PERIODS, OFF-DUTY PERSONNEL CALLED IN
AND COMPENSATED WITH OVERTIME PAYMENT OR TIME-OFFS