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PRODUCTION PLANNING AND
CONTROL
Unit-1: Introduction
Syllabus
Text Book
1. Production Planning and control – M. Mahajan, Dhanpath Rai & Co
2. Production Planning and control – Jain & Jain, Khanna Publications
Definition of PPC
• Direction and co-ordination of the firms materials and physical
facilities towards attainment of Pre-specified production goals in most
efficient and economical manner
In simple it’s a complete plan, Fallow up of plan execution, regulate the
work, proper utilization of resources.
Production planning and Control represents the heart of any
manufacturing process and essential for customer delight and
overall success of an organization.
Objectives of PPC
Functions of PPC
• 1. Planning Phase
• 2. Execution or Action Phase
• 3. Control or Follow-up Phase
Types of Production Systems
1. Discontinuous
•i) Job Order Production
•ii) Batch Production
2. Continuous
•iii)Mass Production
•Iv) Flow Production
I. Job Order Production
• Specific Customers requirements, not standard
• Very Small quantity higher variety diversity
• Skilled worker required,
• one or very few quantity
• Planning is very complex
Ex: special projects, Rockets, Aircrafts,
Power plants
ii) Batch Production
• Specific applications,
• standard with in few products
• Skilled worker required, small quantity
• Planning is required
• Process Layout
Ex: Turbines, Heavy Pumps, Shoes and Clothes
iii)Mass Production
• Regular usage and applications
• Very large quantity same components
• Unskilled worker required,
• Huge demand, higher requirements
• Planning is less
• Product Layout
Ex: Automobiles, Household Appliances
Iv) Flow Production
• Continuous usage and applications
• Huge quantity on day today basis
• Semi skilled workers required,
• Very Huge demand higher requirements
• Planning routine
• Product Layout
Ex: Steel plant, Petroliam Production etc
Elements of Production Control
• 1. Control of Materials
• 2. Control of Material Handling
• 3. Control of Tools
• 4. Control of time
• 5. Control of Quality
• 6. Control of Planning
Organization of PPC
Product Development
• 1. Venturing new Product Ideas
• 2. Screening Ideas
• 3. Concept Development
• 4. Product Analysis
• 5. Product design
• 6. Marketing
• 7. Commercialization
Product Analysis
• 1. Marketing Aspects
• 2. Economic Analysis
• 3. Product charatecterstics
• 4. Production aspects
Few imp terms
• Contribution : Role for the profit made on individual products.
• Standardization : process of developing and implementing technical
levels based on different parties that include firms, users,
interest groups, standards organizations and governments.
It can help to maximize compatibility, interoperability, safety
• Specialization : strategy to develop by a process or business to focus
on the production of a very limited range of products or services
for maximum productivity.
• Diversification : corporate strategy to enter into a new market or industry
in which the business doesn't currently operate, while also creating a
new product for that new market.
Break Even Analysis
• Quantity or level of sales volume, sales value or production at which
the business makes neither a profit nor a loss
• Fixed Cost = F
• Variable cost = Q x v
• Total Cost = F+Qv
• Total revenue / Sales income
= Q x s
BEP (Qb)=
𝐹
𝑠−𝑣

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introduction of Production Planning and Control

  • 2. Syllabus Text Book 1. Production Planning and control – M. Mahajan, Dhanpath Rai & Co 2. Production Planning and control – Jain & Jain, Khanna Publications
  • 3. Definition of PPC • Direction and co-ordination of the firms materials and physical facilities towards attainment of Pre-specified production goals in most efficient and economical manner In simple it’s a complete plan, Fallow up of plan execution, regulate the work, proper utilization of resources. Production planning and Control represents the heart of any manufacturing process and essential for customer delight and overall success of an organization.
  • 5. Functions of PPC • 1. Planning Phase • 2. Execution or Action Phase • 3. Control or Follow-up Phase
  • 6.
  • 7. Types of Production Systems 1. Discontinuous •i) Job Order Production •ii) Batch Production 2. Continuous •iii)Mass Production •Iv) Flow Production
  • 8. I. Job Order Production • Specific Customers requirements, not standard • Very Small quantity higher variety diversity • Skilled worker required, • one or very few quantity • Planning is very complex Ex: special projects, Rockets, Aircrafts, Power plants
  • 9. ii) Batch Production • Specific applications, • standard with in few products • Skilled worker required, small quantity • Planning is required • Process Layout Ex: Turbines, Heavy Pumps, Shoes and Clothes
  • 10. iii)Mass Production • Regular usage and applications • Very large quantity same components • Unskilled worker required, • Huge demand, higher requirements • Planning is less • Product Layout Ex: Automobiles, Household Appliances
  • 11. Iv) Flow Production • Continuous usage and applications • Huge quantity on day today basis • Semi skilled workers required, • Very Huge demand higher requirements • Planning routine • Product Layout Ex: Steel plant, Petroliam Production etc
  • 12. Elements of Production Control • 1. Control of Materials • 2. Control of Material Handling • 3. Control of Tools • 4. Control of time • 5. Control of Quality • 6. Control of Planning
  • 14. Product Development • 1. Venturing new Product Ideas • 2. Screening Ideas • 3. Concept Development • 4. Product Analysis • 5. Product design • 6. Marketing • 7. Commercialization
  • 15. Product Analysis • 1. Marketing Aspects • 2. Economic Analysis • 3. Product charatecterstics • 4. Production aspects
  • 16. Few imp terms • Contribution : Role for the profit made on individual products. • Standardization : process of developing and implementing technical levels based on different parties that include firms, users, interest groups, standards organizations and governments. It can help to maximize compatibility, interoperability, safety • Specialization : strategy to develop by a process or business to focus on the production of a very limited range of products or services for maximum productivity. • Diversification : corporate strategy to enter into a new market or industry in which the business doesn't currently operate, while also creating a new product for that new market.
  • 17. Break Even Analysis • Quantity or level of sales volume, sales value or production at which the business makes neither a profit nor a loss • Fixed Cost = F • Variable cost = Q x v • Total Cost = F+Qv • Total revenue / Sales income = Q x s BEP (Qb)= 𝐹 𝑠−𝑣