Planning and control of production

1. PRODUCTION PLANNING AND
CONTROL
Presented to: Presented by:
Amarjeet Sir Harpreet Singh
Roll No.: 1734736
MBA 2nd Semester
PYRAMID COLLEGE OF BUSINESS
AND TECHNOLOGY

2. AREAS TO BE COVERED
Introduction of PPC
Definition of PPC
Concepts of PPC
Objectives of PPC
Functions of PPC

3. INTRODUCTION OF PPC
Production: Transformation of raw materials to useful finished goods.
Planning: Looks ahead, anticipates possible difficulties and decides in advance as to
how the production, best, be carried out.
Control: This phase makes sure that the programmed production is constantly
maintained.

4. DEFINITION OF PPC
• According to Charles A. Koepke, “Production planning and control may be defined
as the co-ordination of a series of functions according to a plan which will,
economically utilize to plant facilities and regulate the orderly movement of goods
through their entire manufacturing cycle, from the procurement of all materials to
the shipping of finished goods at a predetermined rate”.
• According to Alford and Beatty, “Production planning and control comprise the
planning, routing, scheduling, dispatching and follow up function in the productive
process, as organised that the movements of material, performance of machines
and operations of labour, however subdivided, are direct and coordinated as to
quantity, quality time and place. It is adopting as business principle the old saying
plan your work and work your plan”.

5. CONCEPTS OF PPC
Pull and Push
Material Requirement Planning
Resource Requirements Planning
Aggregate Planning
Capacity Requirement Planning
Lean Production Systems
Toyota System

6. Pull and Push: Pull and push are two conceptually different production
philosophies. According to Vollmann et al., “A pull system exists when a work
centre is authorised to produce only when it has been signalled that there is a
for more parts in a downstream department”. According to Karmarkar, “Push
initiates production in anticipation of future demand”.
Aggregate Planning: Aggregate planning is the process of developing, analysing,
and maintaining a preliminary, approximate schedule of the overall operations of
organisation. The aggregate plan generally contains targeted sales forecasts,
production levels, inventory levels, and customer backlogs.
Material Requirement Planning: The business environment today is complex with
uncertainties, competition and change. According to American Production and
Inventory Control Society (APICS), “MRP constitutes a set of techniques that use
bill of material, inventory data, and the master production schedule to calculate
requirements for materials”.

7. Capacity Requirement Planning (CRP): The objective of CRP is to ensure that sufficient
capacity is available where and when it is needed to accomplish planned production.
Without materials, production capacity is idle, and without productive capacity, materials
are idle.
Resource Requirements Planning (RRP): RRP develops resource acquisition plans.
According to APICS, “The process of establishing, measuring, and adjusting limits or levels
of long-range capacity”.
Lean Production Systems: Lean production is a manufacturing methodology based on a
new system design. It has enabled companies to achieve continual gains in productivity
(low unit costs), which satisfy customer expectations for superior quality and prompt
delivery.
Toyota System: TPS refers to an integrated socio-technical system, developed by Toyota,
that comprises of its management philosophy and practices.
Concepts of TPS:
 Jidoka: It means that when a problem occurs, the equipment stops immediately, preventing
defective products from being produced.
 Just-in-Time: JIT, in which each process produces only what is needed by the next process in a
continuous flow.

8. OBJECTIVES OF PPC
Nature of the Inputs
Proper Coordination
Ensures Uninterrupted Production
Quantity of Inputs
Better Control
Capacity Utilization
Timely Delivery

9. Nature of the Inputs: To manufacture a product, different types of inputs are used.
Hence the planning is done to determine the nature of various types of inputs
is a complicated process.
Quality of Inputs: To achieve a level of production, determination of the quantity of
the inputs and their composition is very important. A product can be prepared
when there is an estimate of the required composition of inputs. If the composition
of inputs is not proper, the desired product will not be ready.
Proper Coordination: It ensures the proper coordination among the workforce,
machines and equipment. This leads to avoidance of wastages and smooth flow of
production.
Better Control: Production planning is the method of control. For a better control,
planning is a precondition. Only then, one can compare the performance and
calculate the deviations which lead control of the production.

10. Ensure Uninterrupted Production: The planning of materials ensures the regular
supply of raw materials and other components. The regular flow of materials and
supplies are helpful in the uninterrupted production.
Capacity Utilisation: There is need to use the available resources effectively. It is
helpful in bringing down various costs of production.
Timely Delivery: If there is good production and control, there will be timely
production and the finished product will be rushed to the market in time. This also
ensures the better relationship with the customers.

11. FUNCTIONS OF PPC
Production Planning
Estimating
Routing
Scheduling
Loading
Production Control
Dispatching
Expediting/
Follow-up/
Progressing
Inspection

12. FUNCTIONS OF PRODUCTION PLANNING
o Estimating: Deciding on the quantity of products to be manufactured. This is based
on sales forecast. Look for the changes to plan, estimating future maintenance
workload, estimating cost and creating business plans are included in it.

13. o Routing: This is the process of determining the flow of work, material handling in
the plant and sequence of operations or processing steps. According to Kimball
and Kimball, “Routing is the selection of path or route over which each piece is to
travel in being transformed from raw material into finished product”.

14. o Scheduling: It involves fixing priorities for each job and determining the starting
time and finishing time for each operation, the starting dates and finishing dates
each part, sub-assembly and final assembly. According to Spriegal and Lansburgh,

15. o Loading: It is the process of converting operation schedules into practice. Machine
loading is the process of assigning specific jobs to machines, men or work centres
based on relative priorities and capacity utilisation. Loading ensures maximum
possible utilisation of productive facilities and bottlenecks in production.

16. FUNCTIONS OF PRODUCTION CONTROL
o Dispatching: Dispatching may be defined as setting production activities in motion
through the release of orders and instruction in accordance with the previously
planned time schedules and routings. According to James L. Landy, “The
dispatching function involves the actual granting of permission to proceed
according to plans already laid down. This is similar, in case of traveller to his
employer family approving his vacation leave”.

17. o Expediting/Follow-up/Progressing: Expediting or progressing ensures that, the
work is carried out as per the plan and delivery schedules are met. Expediting
includes activities such as status reporting, attending to bottlenecks or hold-ups in
production and removing the same, controlling variations or deviations from
planned performance levels and monitoring progress of work through all stages of
production and modifying production plans if necessary.

18. o Inspection: Inspection is the process of examining an object for identification or
checking it for verification of quality and quantity in any of its characteristics. It is
important tool for ascertaining and controlling the quality of a product.
Inspection can occur at three points:
• Before production
• During production
• After production