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Production planning


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Production planning

  1. 1. Production Planning may be said to be atechnique of forecasting ahead every step inthe long process of production, taking them atright time and in the right degree and trying tocomplete operations at the maximum efficiency
  2. 2.  Inputs like materials, men and machines are efficiently used Factors of production are integrated to use them economically Division of work is undertaken carefully so that every available element is properly utilised Work is regulated from the first stage of procuring raw materials to the stage of finished goods Questions like what, when and how to be manufactured are decided
  3. 3.  Determining sequence of operations for continuous production Planning plant capacity for future production programmes Issuing co-ordinated work schedules to concerned persons Maintaining sufficient inventories to support continuous flow of production Evaluating performance of workshops Maintaining production schedules to ensure delivery at proper time
  4. 4. Production planning is important for the following reasons - For Increasing Production – Main purpose of production planning is to arrange inputs. It helps in raising industrial output. For co-ordinating plant activity -In planning production is carried out in a number of processes and thus activities are synchronized for smooth working.
  5. 5. Following are the limitations faced by production planning– Based on Assumptions – In case the assumptions prove correct, the planning and control will go smoothly. But if they go wrong, procol will go weak. Rigidity – Under production planning, there is rigidity in the behaviour of employees and it may not help in smoothening flow of work.
  6. 6.  Difficult for small firms – This process is time consuming and therefore not affordable for small firms Costly – It is a costly device as its implementation requires separate persons to perform functions of planning, expediting, dispatching etc. Dependence on External Factors – External factors like natural calamities, change in technology, government controls etc reduce effectiveness of production planning.
  7. 7.  Planning Routing Scheduling Despatching Follow-up and Expediting Inspection
  8. 8. It is the first element of production planningand control. Planning is deciding in advancewhat is to be done in future. Anorganisational set up is created to prepareplans and policies. Various charts, manualsand production budgets are also prepared.Planning provides a sound base for control. Aseparate department is set up for this work.
  9. 9. Routing is determining the exact path which willbe followed in production. It is the selection ofthe path from where each unit have to passbefore reaching the final stage. The stagesfrom which goods are to pass are decided in thisprocess.
  10. 10. Scheduling is the determining of time and datewhen each operation is to be commenced orcompleted. The time and date of manufacturingeach component is fixed in such a way thatassembling for final product is not delayed inany way.
  11. 11. Despatching refers to the process of actuallyordering the work to be done. It involvesputting the plan into effect by issuing orders. Itis concerned with starting the process andoperation on the basis of route sheets andschedule charts.
  12. 12. “Follow up or expediting is that branch of production control procedure which regulates the progress of materials and part through the production process.”
  13. 13. Inspection is the process of ensuring whetherthe products manufactured are of requisitequality or not.Inspection is undertaken both of products andinputs. It is carried on at various levels ofproduction process so that pre-determinedstandards of quality are achieved.Inspection ensures the maintenance of pre-determined quality of products.
  14. 14.  A firm can manufacture two products A & B relevant financial and resource requirment details are as follows. A(x) B(y) Material(Kg/unit) 4 1 Labour(Kg/unit) 2 3 Unit variable 18 11 cost(Rs) Selling 24 16 Price(Rs/Unit) Maximum(Sales/ 180 250 Unit)
  15. 15.  The daily supply of material Is ltd to 800 Kgs and Labour hrs are Ltd to 900. The firm wish to set production level so as to maximise the total profit. Formulate LPP and Solve by graphical method.
  16. 16. THANK YOU