Production Planning and Control - September 7th, 2010STEPS IN PRODUCTION PLANNING & CONTROLPlanning is the determinative p...
6. To make available materials, machines, tools, equipment & manpower in therequired quality & quantity & at the specified...
Phases of PPC1. Planning phase: It has two categories of planning ,a. Prior planning is pre-production planning &b. Active...
2.   Production of goods according to schedule.3.   Maximization of productivity.4.   Interruption free production.5.   Re...
production order, for filing & reference.7. To inform the follow-up section that production is starting.Follow-upThis is t...
Product design consists of form and function. The form designing includesdecisions regarding its shape, size, color and ap...
The nature of the process of production required by these three different typesof production system are distinct and requi...
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  1. 1. Production Planning and Control - September 7th, 2010STEPS IN PRODUCTION PLANNING & CONTROLPlanning is the determinative phase of production management. It “figures out“what is to be done. Production planning translates sales forecasts into masterproduction schedules, takes off material, personnel & equipment requirements &prepares detailed area or department schedules. It also determines themaintaining of raw materials & finished goods at proper levels. Also, itprepares alternative plans of action as a means of meeting emergencies. Controlbalances production & inventories apart from the determinative phase ofplanning. Production control supervises the execution of production schedules sothat work flows through the manufacturing departments on time & withoutinterruptions. Control also maintains raw material inventories at levels thatneither tie-up excessive amounts of working capital nor lead to shortages thatinterrupt production. At the same time, finished goods inventories are regulatedso that they neither become excessive nor fall so low that they fail to meetdemands & so cause back orders to accumulate.Functions/scope of production planning & control1. Materials: Materials should be made available at the right quality, rightquantity, right price & right price. Inventory control & regular supply ofmaterials should be guaranteed.2. Manpower: It is important to carry out manpower planning to maintainoperational & managerial staff possessing requisite skills & expertise.3. Methods: It is always desirable to consider all the available alternatives &select the best method of processing. Simultaneously, to plan for tooling, jigs& fixtures & to determine the best sequence of operations.4. Machines & equipments: The choices of manufacturing methods depend onavailable production facilities & utilization of plant, machines equipments.5. Routing: The routing function specifies what work is to be done where & whenit is to be performed.6. Estimating: it involves establishing performance standard of each work afterduly analyzing operation sheets. These sheets indicate feeds, speeds, depth ofcuts, use of special attachments & methods.7. Loading & scheduling: Loading & scheduling machines have to be made as perthe production requirements. Machine loading generates accurate information onwork standard, scrap allowances, machine-time requirements & machine capacities.Scheduling is a time-table for performing the job on the available machines sothat delivery dates are maintained.8. Dispatching: Dispatching is the release of orders & instructions to startproduction as per the route sheets & schedule charts.9. Expediting: It refers to follow-up which is done after the dispatchingfunction.10. Inspection: It is related to maintenance of quality in production &processes, methods labour so that improvements can be made to achieve thequality standards.11. Evaluating: It provides a feedback mechanism on a long term basis so thatpast experience can be used to improve upon use of methods, facilities &resources in future period.12. Cost control: In manufacturing products, costs can be kept within controlthrough wastage reduction, value analysis, inventory control & efficient use ofresources.Objectives of production planning & control1. To make all preparations to manufacture goods within specified time & cost.2. To make available supply of materials, parts & components at the right time.3. To ensure most economical use of plant & equipment by scheduling best machineutilization.4. To provide information for production management & distribution of goods.5. To issue relevant orders to production personals to implement the productionplan.
  2. 2. 6. To make available materials, machines, tools, equipment & manpower in therequired quality & quantity & at the specified time.7. To ensure production of goods in the required quantities of the specifiedquality at the pre-determined time.8. To keep the plant free from production bottleneck.9. To maintain spare capacity to deal with rush orders.10. To maintain cordial industrial relations.Organization of Production planning & controlActivities in Production planning section includes:1. Production budget office: In this office, incoming orders are recorded inorder book. Budget allocation is done to execute each order. In case thecustomer gives a required date of delivery, the date is noted for furtheraction.2. Material Requirement planning: No sooner the planning engineer receives theproduct to be produced, the production planning department prepares materialrequirement plan. Material can be applied either internally from the store orordered from outside.3. Methods planning office: The responsibility of this office is to assess thepotentialities of available methods & to select the best method for producingcomponents.4. Capacity planning office: This office checks the status of each of thefacility & allocates them as per requirement of jobs.5. Tool & jig design office: The planner tries to provide simple & costeffective tools & jigs for performing the operation. The selection of suitabletool & jig is advised by industrial engineers.6. Operation layout & routing office: The responsibility of this office is toprepare several forms & documents so that the production people can work withease.7. Scheduling office: The planner is excepted to prepare a time table of machineallocation for different jobs. Individual capacity of the machine indicates tothe planner that with the existing number of machines how much work can becleared & time taken to complete the work.Activities of Production Control section:1. Dispatching office: This office releases production orders & instructions tothose who are expected to carry out production activities.2. Expediting centre: This centre implements the plan. The centre maintains aneffective communication with help from expeditor, between shop floor & thescheduling office.3. Transportation office: It looks after movement of men & materials within thefactory premises.4. Stores & inspection section: This section assumes the materials management &control functions.Principles of Production Planning & Control1. The kind of production planning & the control system required in a factory isdetermined by the type of production.2. The operation of production planning & control department is influenced bythe number of parts involved in manufacturing the product.3. The complexity of production planning & control function varies with thenumber of assembles involved.4. The scheduling activities must be carried out strictly as per time table.5. A sound production planning & control system works on the same principle forboth small & large plants.6. An effective production planning & control function brings about costcontrol.7. Production planning & control allows “management by exception“.8. Production planning & control is a tool to coordinate all manufacturingactivities in a product system.
  3. 3. Phases of PPC1. Planning phase: It has two categories of planning ,a. Prior planning is pre-production planning &b. Active planning is actual production planning.Prior planning refers to all the planning efforts that take place prior toactive planning. The modules of prior planning are: product development &design, forecasting, aggregate planning, master scheduling etc. Active planningincludes various activities directly related to the production. The modules ofactive planning are: process planning & routing, material planning, toolsplanning, loading, scheduling etc.2. Action phase: Action phase directly deals with dispatching. Dispatching isthe transition from planning phase to action phase. The employee is ordered tostart manufacturing the product. The tasks that are included in dispatching are:job order, store issue order, tool order, time ticket, inspection order, moveorder etc.3. Control phase: Control phase includes (a) progress reporting & (b) correctiveaction. Progress reporting helps to make comparison with the present level ofperformance. Corrective action makes provisions for an unexpected event e.g.,capacity modifications, schedule modifications etc.Steps in production planning & controlThe production planning & control department has thus to initiate the followingsteps.1. Routing i.e. determination of the manufacturing path.2. Scheduling i.e. establishing time for starting & finishing each operation orjob.3. Despatching i.e. issue of orders.4. Follow-up i.e. ensuring that work proceeds according to plans & there is novariation. This means to ensure smooth flow of work.RoutingRouting is one important step in production planning & control. It is useful forsmooth & efficient working of the whole plant or factory. Production planningstarts with routing. It decides the path of work & the sequence of operations.The demand for a more systematic method of carrying the work through the shopgave rise to the practice of routing. In fact, production planning starts withrouting which includes the following activities:a. Determining the quality of the product to be manufactured;b. Determining the men, machines & materials to be used;c. Determining the types, number & sequence of manufacturing operations; &d. Determining the place of production.Routing has the following objectives:1. It determines the sequence of manufacturing operations.2. It ensures the strict adherence to the sequence so determined.3. It strives for the best possible & cheapest sequence of operations.4. It influences the design & layout of the factory building with a view to getquick & better production results.5. It also influences the installation of plants & factory for better results.Advantages of routing:1. Well chalked out division of labour.
  4. 4. 2. Production of goods according to schedule.3. Maximization of productivity.4. Interruption free production.5. Reduction in cost of production.6. Optimum use of all factors of production.7. scientific layout of the plant.SchedulingScheduling is next to routing & is concerned with timetable of production.Scheduling arranges the different manufacturing operations in order of priority,fixing the time & date for the commencement & completion of each operation. Itincludes all requisites of production like scheduling of parts, materials,machines, etc. perfect coordination must exist between operation so that partsthat are separately produced are brought to the final assembly in right time. Inbrief, scheduling means fixing or deciding the amount of work to be done &fixing the time for starting & finishing each operation. It is like a timetableof the production plan.Essentials of master scheduling:1. Inventory policy & position.2. Procurement including subcontract.3. Sales forecast.4. Departmental manufacturing capacities.5. Operations required & operations schedule.6. Specific operations presenting critical path or imbalance of production flow.7. Specific customer demands or delivery requirements.8. Alternative delivery schedules.9. Production plan including quantitative data.10. Production standards.11. Demand for finished products.Uses of scheduling:1. Scheduling is certainly a necessity in a large setup which produces a varietyof products with numerous components. The time within which products must bemanufactured forms an important element in production control.2. Scheduling also determines the total time required to perform a given pieceof work or assembly.3. Time & motion study helps standardization of methods of work after a carefulanalysis of all the vital factors surrounding the manufacturing processes.DispatchingDispatching is concerned with starting the processes & operations of production.Dispatching is based on the route sheets & schedule sheets. Dispatching providesthe necessary authority to start the routed & schedule work. It is similar toputting oneself into the train after deciding the route of the particular train& the destination.Functions of dispatching:1. To ensure that the right materials are moved from stores to machines & fromoperation to operation.2. To distribute machine loading & schedule charts, route sheets, operationinstruction cards & identification tags for each works order.3. To instruct tools department to issue the right tools, accessories & fixturesin time.4. To authorize the work to be taken in hand as per the predetermined dates &time.5. To direct inspection at various stages of production for inspection report.6. To maintain proper report of the various subsidiary orders issued with each
  5. 5. production order, for filing & reference.7. To inform the follow-up section that production is starting.Follow-upThis is the last function of production control. It expedites the movement ofmaterials & production process as a whole. It looks into determination of thepresent situation expediting the department lagging behind & removing thebottleneck in the production line. Once production commences it is necessary tocheck that it is proceeding according to plan. Before dispatching new orders tothe manufacturing department the progress of outstanding orders must be known.There are certain factors over which the manufacturing department has no control& hence follow-up is necessary. The production schedule is likely to suffer evenif slight irregularity is caused by one or more of these factors. The mostimportant factors causing disturbances in production schedule are: excessivelabour, absenteeism, machine breakdown, errors in drawings, strikes, latedelivery of materials etc. the function of follow-up is to maintain properrecords of work, delays & bottleneck. Such records can be used in future tocontrol production.Follow-up Documents:Follow-up documents are prepared with the objective to identify the products.They also help to check completion dates with due dates. They vary greatlyaccording to the type of production. These documents include the followinginformation:1. Labels with part numbers.2. Order numbers mentioned on the article.3. Number of products or batches of products.4. Daily progress sheets showing the position of every order in process.5. Reports showing orders behind schedule.ppc intro PRODUCTION PLANNING AND CONTROL PRODUCTION PLANNING AND CONTROL.docx (Size: 45.16 KB / Downloads: 28)INTRODUCTIONAfter taking decisions about the type of business, its location, layout etc. theentrepreneur steps into the shoe of production manager and attempts to applymanagerial principles to the production function in an enterprise. Production isa process whereby raw material is converted into semi finished products andthereby adds to the value of utility of products, which can be measured as thedifference between the value of inputs and value of outputs. Production functionencompasses the activities of procurement, allocation and utilization ofresources. The main objective of production function is to produce the goods andservices demanded by the customers in the most efficient and economical way.Therefore efficient management of the production function is of utmostimportance in order to achieve this objectivePRODUCT DESIGNProduct design is a strategic decision as the image and profit earning capacityof a small firm depends largely on product design. Once the product to beproduced is decided by the entrepreneur the next step is to prepare its design.
  6. 6. Product design consists of form and function. The form designing includesdecisions regarding its shape, size, color and appearance of the product. Thefunctional design involves the working conditions of the product. Once a productis designed, it prevails for a long time therefore various factors are to beconsidered before designing it. These factors are listed below: -(a) Standardization(b) Reliability© Maintainability(d) Servicing(e) Reproducibility(f) Sustainability(g) Product simplification(h) Quality Commensuration with cost(i) Product value(j) Consumer quality(k) Needs and tastes of consumers.Above all, the product design should be dictated by the market demand. It is animportant decision and therefore the entrepreneur should pay due effort, time,energy and attention in order to get the best results.DESIGN OF PRODUCTION SYSTEMProduction system is the framework within which the production activities of anenterprise take place. Manufacturing process is the conversion process throughwhich inputs are converted into outputs. An appropriate designing of productionsystem ensures the coordination of various production operations. There is nosingle pattern of production system which is universally applicable to all typesof production system varies from one enterprise to anotherTYPES OF PRODUCTION SYSTEMBroadly one can think of three types of production systems which are mentionedhere under: -(a) Continuous production(b) Job or unit production© Intermittent production(a) Continuous production: -It refers to the production of standardized products with a standard set ofprocess and operation sequence in anticipation of demand. It is also known asmass flow production or assembly line production. This system ensures less workin process inventory and high product quality but involves large investment inmachinery and equipment. The system is suitable in plants involving large volumeand small variety of output e.g. oil refineries reform cement manufacturingetc.(b) Job or Unit production: -It involves production as per customer“s specification each batch or orderconsists of a small lot of identical products and is different from otherbatches. The system requires comparatively smaller investment in machines andequipment. It is flexible and can be adapted to changes in product design andorder size without much inconvenience. This system is most suitable whereheterogeneous products are produced against specific orders.© Intermittent Production:Under this system the goods are produced partly for inventory and partly forcustomers orders. E.g. components are made for inventory but they are combineddifferently for different customers. . Automobile plants, printing presses,electrical goods plant are examples of this type of manufacturing.MANUFACTURING PROCESS
  7. 7. The nature of the process of production required by these three different typesof production system are distinct and require different conditions for theirworking. Selection of manufacturing process is also a strategic decision aschanges in the same are costly. Therefore the manufacturing process is selectedat the stage of planning a business venture. It should meet the basic twoobjectives i.e. to meet the specification of the final product and to be costeffective.TYPES OF MANUFACTURING PROCESSThe manufacturing process is classified into four types.(i) Jobbing production(ii) Batch production(iii) Mass or flow production(iv) Process ProductionJobbing Production: -Herein one or few units of the products are produced as per the requirement andspecification of the customer. Production is to meet the delivery schedule andcosts are fixed prior to the contract.Batch Production: -In this, limited quantities of each of the different types of products aremanufactured on same set of machines. Different products are produced separatelyone after the other.Mass or flow production:Under this, the production run is conducted on a set of machines arrangedaccording to the sequence of operations. A huge quantity of same product ismanufactured at a time and is stocked for sale. Different product will requiredifferent manufacturing lines. Since one line can produce only one type ofproduct, this process is also called as line flow.Reference: