Production Planning & Control & Manufacturing

1. Introduction to Production Planning &
Control & Manufacturing
Presented By:
xxx
Assistant Professor (Mechanical)
Textile Engineering College

2. Contents
Production System, Necessity of PPC,
Objectives, Functions, Phases
01
02
03
04
Activities in PPC System, Information
required, Categories of Production
System, Comparison
Discrete Parts Manufacturing, Alternative
Classification
Customer Order Decoupling Point (CODP)

3. Production Planning
Production planning involves management decisions on the
resources that the firm will require for its manufacturing operations
and the selection of these resources to produce the desired goods
at the appropriate time and at the least possible cost.
"The planning of industrial operations involves four considerations,
namely, what work shall be done, how the work shall be done and
lastly, when the work shall be done - kimball

4. Production Process
 PRODUCTION is sequence of operations that transform given
materials to desired products.
 It is combination of different manufacturing process.
 PROCESS - Logical arrangement of components according to the
plan.
 PRODUCTION PROCESS - Inputs to outputs.

5. PPC
PPC = Production Planning +
Production Control

6. Necessity of PPC
Production planning is required for scheduling, dispatch, inspection, quality
management, inventory management, supply management and equipment
management. Production control ensures that production team can achieve
required production target, optimum utilization of resources, quality management
and cost savings.
The role of production planning and control in the manufacturing industry is to
ensure that materials and equipment are available when needed and that
everything runs smoothly.
Component traceability and procurement has special challenges in the electronics
industry that require diligent planning. The end goal is the most efficient and
profitable production possible.

7. Objectives of PPC
 To design the production system to meet with minimum cost and quality
standard.
 To ensure maximum utilization of resources.
 To ensure production of quality products.
 To maintain inventory controls.
 To maintain flexibility in manufacturing operations.
 To plan the plant capacities for future requirements.
 To establish targets and checking them against performance.
 To ensure effective cost reduction and cost control.

8. Functions of PPC
 Material Planning (Batch, delivery rates, etc.,)
 Methods Planning (Identify the alternate methods and select the best methods)
 Machines And Equipment (Tools and machines checking for requirements)
 Process Planning (Sequence of operation in the production)
 Estimating (Production orders and detailed root sheets)
 Scheduling And Loading (Fixing priorities and machine loading)
 Dispatching (Release the orders for customers)
 Expenditing (Tracking of the progress of work according to the planned schedule)
 Inspection And Testing (Quality of the products meet the specification)
 Evaluation ( Link between the control and future planning)

9. Phases of Production Planning &
Control
1) Pre–Planning Phase
2) Planning Phase
3) Control Phase

10. Phases of Production Planning &
Control
1) Pre – Planning Phase:
 Micro planning
 Analysis of data
 Out line of basic planning (Demand , Market analysis, and product design and development)
 Pre planning concern with 4’M’s Material, Machine, Methods, Manpower.
Pre planning contents are given below:

11. Phases of Production Planning &
Control
2) Planning Phase:
 Analysis of 4’M’s (Material, Machine, Methods, Manpower) to undertake the above “M”s
 Phase for Planning, Estimating, & Scheduling
 Short-term planning
 Long-term planning

12. Phases of Production Planning &
Control
3) Control Phase:
This involves Dispatching, Inspection, Expediting, and evaluation.
Control of scrap, control of transportation.
Feed back information for the corrective actions.

13. Activities in PPC System

14. Where it needs to be
carried out ?
When it needs to be
carried out ?
What is the Task ?
.
Who will perform the
task ?
.
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Activities in PPC System

15. Activities in PPC System
Planning :
It is the first element of production planning and control. Planning means
deciding in advance what is to be done in future. An organizational set up is
created to prepare plans and policies. Various charts, manuals and production
budgets are also prepared. Planning provides a sound base for control. A
separate department is set up for this work.

16. Activities in PPC System
Routing :
Routing is determining the exact path which will be followed in production. It is the
selection of the path from where each unit have to pass before reaching the final
stage. The stages from which goods are to pass are decided in this process.
“Routing is the specification of the flow sequence of operations and
processes to be followed in producing a particular manufacturing lot.”
( Alford & Beaty)

17. Activities in PPC System
Routing Procedure:
• Deciding what part to be made or purchased
• Determining Materials required
• Determining Manufacturing Operations and Sequences
• Determining of Lot Sizes
• Determining of Scrap Factors
• Analysis of Cost of the Product
• Preparation of Production Control Forms

18. Activities in PPC System
Scheduling:
Scheduling is the determining of time and date when each operation is
to be commenced or completed. The time and date of manufacturing
each component is fixed in such a way that assembling for final product
is not delayed in any way.
“The determination of the time that should be required to perform each
operation and also the time necessary to perform the entire series, as
routed, making allowances for all factors concerned.”(Kimball)

19. Activities in PPC System
Loading:
The next step is Loading which is execution of the scheduled plan as per
the route chalked out. It includes the assignment of the work to the
operators at their machines or work places.
So Loading determines who will do the work.

20. Activities in PPC System
Dispatching:
Dispatching refers to the process of actually ordering the work to be done.
It involves putting the plan into effect by issuing orders. It is concerned with
starting the process and operation on the basis of route sheets and
schedule charts.
“Dispatches put production in effect by releasing and guiding manufacturing
order in the sequence previously determined by route sheets and
schedules.”(John A.Shubin)

21. Activities in PPC System
Follow Up & Expediting:
Progress may be assessed with the help of routine reports or
communication with operating departments. The follow up procedure is
used for expediting and checking the progress.
“Follow up or expediting is that branch of production control procedure
which regulates the progress of materials and part through the production
process.”

22. Activities in PPC System
Inspection:
• Inspection is the process of ensuring whether the products
manufactured are of requisite quality or not.
• Inspection is undertaken both of products and inputs. It is carried on at
various levels of production process so that pre-determined standards of
quality are achieved.
• Inspection ensures the maintenance of pre-determined quality of
products.

23. Activities in PPC System
Corrective Measures:
• Adjusting the route
• Rescheduling of work
• Changing the workloads
• Repairs and Maintenance of machinery or equipment,
• Control over inventories
• Certain personnel decisions like training, transfer, demotion etc.
• Alternate methods may be suggestedto handle peak loads.

24. Requirements for an effective
Production Planning and Control
In an organization, PPC system can be effective only if the following aspects are given due
considerations before implementation:
a) Appropriate organization structure with sufficient delegation of authority and responsibility
at various levels of manpower.
b) Right person should be deputed at right place for right job.
c) Maximum level of standardization of inventory, tooling, manpower, job, workmanship,
equipment, etc.
d) Appropriate management decision for production schedule, materials controls, inventory
and manpower turnover and product mix.

25. Categories of Production System
There are 4 different types of productions which are most commonly used. Which type of
production should be used by the company depends on the type of product being manufactured,
the demand of the product as well as the supply of raw materials. Taking these factors into
consideration, below are the 4 types of Production.
(1) Unit or Job type of production
(2) Batch type of Production
(3) Mass Production or Flow production
(4) Continuous production or Process production.

26. Categories of Production System
1. Unit or Job type of production:
This type of production is most commonly observed when you produce one single unit of a
product. A typical example of the same will be tailored outfits which are made just for you or a
cake which is made just like you want it.
Example of Unit type of production
It is one of the most common types of products used because it is generally used by small
businesses like restaurants, individual products providers or individual services providers.
It is also a type of production used by very premium companies like Harley Davidson, or Dell.
Harley Davidson actually has a lot of accessories which can be customized, and which suit the
individual. Same ways, you can design your own DELL laptop on their website with the given
specifications.

27. Categories of Production System
Features of Unit production or Job Production
• Depends a lot on skill
• Dependency is more on manual work than mechanical work
• Customer Service and customer management plays and important role

28. Categories of Production System
2. Batch type of Production:
It is one of the types of production most commonly used in consumer durables, FMCG or other
such industries where there are large variety of products with variable demands. Batch
production takes place in batches. The manufacturer already knows the number of units he
needs to a manufacturer and they are manufactured in one batch.
So, if a manufacturer has the shortage of Product X and 100 units of this product is consumed in
one month, then the manufacturer can give orders for batch production of 100 units of Product
X.

29. Categories of Production System
Example of Batch production
LG has many different types of home appliance products in its portfolio. It has to
manufacture all these different variants of the same type of product. There would be
10-20 types of mixer grinders alone in the product portfolio of LG home appliances.
Thus, a company like LG manufactures these variants via Batch production.
First, one type of mixer will be manufactured completely and then the second type will
be manufactured. They are manufactured on the basis of demand. Depending on
demand, the batch production can produce the number of units required in one batch.
The batches may be as small as 10 units or they may be as large as 1 lakh units of the
same products. However, as long as there is a defined quantity of product which has to
be manufactured before moving on to the next item in the list, it is known as batch
production.

30. Categories of Production System
Features of Batch production
Production is done in batches
The total number of units required is decided before the batch production starts
Once a batch production starts, stopping it midway may cost a huge amount to the
company.
Demand plays a major role in a batch production. Example – seasonality of
products.

31. Categories of Production System
3. Mass Production or Flow production:
One of the best examples of mass production is the manufacturing process adopted by Ford.
Mass production is also known as flow production or assembly line production. It is one of the
most common types of products used in the automobile industry and is also used in industries
where continuous production is required.
An Assembly line or mass production plant typically focus on specialization. There are multiple
workstations installed and the assembly line goes through all the workstations turn by turn. The
work is done in a specialized manner and each workstation is responsible for one single type of
work. As a result, these workstations are very efficient and production due to which the whole
assembly line becomes productive and efficient.

32. Categories of Production System
Products which are manufactured using mass production are very standardized
products. High sophistication is used in the manufacturing of these products. If 1000
products are manufactured using mass production, each one of them should be exactly
the same. There should be no deviation in the product manufactured.
Features of Mass Production
• Mass production is generally used to dole out huge volumes of the product
• It is used only if the product is standardized
• Demand does not play a major role in a Mass production. However, production
capacity determines the success of a mass production.
• Mass production requires huge initial investment and the working capital demand is
huge too.

33. Categories of Production System
4. Continuous production or Process production:
There is a lot of confusion between mass production and continuous production. It can be
differentiated by a single element. The amount of mechanical work involved. In Mass production,
both machines and humans work in tandem. However, in continuous production, most of the work
is done by machines rather than humans. In continuous production, the production is
continuous,24×7 hours, all days in a year.
A good example of the Continuous production is brewing. In brewing, the production goes on 24
hours a day and 365 days a year. This is because brewing takes a lot of time and production is
important. As a result, there is a continuous input of raw materials such as malt or water, and there
is continuous output in the form of beer or other alcoholic drink. The key factor in this is that the
brewing and fermentation process itself is time-consuming, and the maximum time is spent in the
fermentation which is a continuous process.

34. Categories of Production System
There are many chemicals which are manufactured in the form of a continuous process due to the
huge demand across the world. Similarly, the Plastic industry is known to adopt the continuous
production methodology where production can go continuously for weeks or months depending
on the demand. Once the production starts, you only need to feed in the raw material, and the
machines turn out the finalized products.
Features of Continuous production
• Majority of the work is done by machines rather than humans
• Work is continuous in nature. Once production starts, it cannot be stopped otherwise it will
cause huge loss.
• A very controlled environment is required for continuous production.

35. Comparison of Production System
Different systems of production can be compared in terms of following characteristics :
(1) Manufacturing Costs :
Per unit cost is maximum in Job production and minimum in process production. The four
methods of production in increasing order of costs can be arranged as process, mass, batch and
job.
(2) Capital Investment :
The requirement of capital varies according to the nature of the product and the input needs. The
systems in ascending order of capital investment can be arranged as job, batch, mass and process.

36. Comparison of Production System
(3) Size of Plant :
In job and batch system same equipment/machine can perform a number of operations to
manufacture different type of items. So the size of the plant is likely to smaller than those for
mass and process system where whole production process is to be strictly arranged in a
predetermined sequence of operations.
(4) Technical Requirements :
Highly skilled labor is required in job and batch production to operate and carry out specialized
work on machines. In the case of mass and process systems semi-skilled persons can also operate
the machines. But due to large scale of production, more managerial skill is required in
continuous systems.

37. Comparison of Production System
(5) Organizational Structure:
In job and batch production generally functional organizational approach is adopted whereas
divisional organization pattern is used in mass and process systems. There is decentralization
concept in organization of job and batch whereas centralization is prominent in mass and process
systems.
(6) Flexibility in Production :
Job-batch systems can easily adjust to changes in the requirement of the consumer with incurring
any heavy expenditure. But in the case of mass and process systems we can produce one single
product and with change in demand of products the systems cannot be adjusted easily. Thus job-
batch system using general purpose machines is more flexible than mass-process system using
single purpose machines.

38. Comparison of Production System
(7) Type of Products Produced:
Job system can be used in buildings, bridges, specific machines. production etc. and batch system
can be used in producing machine tools, garments, shoes etc. Mass production is helpful for
producing electrical items like switches, plugs, refrigerators etc., cars, trucks, tractors etc. Process
production is suitable to manufacture, petroleum, dairy and chemical products.
(8) Security of Job:
Job and batch systems produce items only when orders are received. During slack periods when
there is no or very little demand workers are likely to be sacked. Thus, there is less job security in
Job-batch production systems. In mass and process system, items are manufactured for stock and
so production is continuous. Due to this there is more job-security for workers

39. Discrete Manufacturing
Discrete manufacturing is the production of distinct items. Automobiles, furniture,
toys, smartphones, and aeroplanes are examples of discrete manufacturing products.
The resulting products are easily identifiable and differ greatly from process
manufacturing where the products are undifferentiated, for example oil, natural gas and
salt.
Discrete manufacturing is often characterized by individual or separate unit production.
Units can be produced in low volume with very high complexity or high volumes of low
complexity. Low volume/high complexity production results in the need for a flexible
manufacturing system that can improve quality and time-to-market speed while cutting
costs. High volume/low complexity production puts high premiums on inventory
controls, lead times and reducing or limiting materials cost and waste.

40. Discrete Vs. Process Manufacturing
Discrete manufacturing contrasts with process manufacturing. In process manufacturing,
the product is created by using a formula or recipe to refine raw ingredients and the final
product cannot be broken down to its basic components.
Examples of goods produced by process manufacturing include pharmaceuticals, food
and beverages, refined oil and paints.
Discrete manufacturers use a bill of materials (BOM) and production follows a route,
such as an assembly line, whereas process manufacturing uses a recipe and the
ingredients are blended or refined in batches

41. Discrete Vs. Process Manufacturing

42. Customer Order Decoupling Point
(CODP)
The Customer Order Decoupling Point refers to the point in the value chain of mass
customization at which a customer triggers the production activities. All activities before the
CODP are drive by a firm’s market research and planning department. This point, (also
known as the freeze point, order penetration point), is the fork dividing customer-
dependent and customer-independent production.
All activities at the left side of the decoupling point (Demand upstream) will start based on
the forecast of the specific customer. All activities at the right side of the decoupling point
(demand down stream) will start as soon as the customer order gets issued.
These activities at the left side start based on the forecast of the specific customer too.
Determining the CODP is a trade off between lead-time and value in the supply chain.

43. Thank You