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Production Planning and
Control
INTRODUCTION
• PPC is the organization and planning of the
manufacturing process.
• It co-ordinates supply and movement of
materials and labor, ensures economic and
balanced utilization of machines and equipment
as well as other activities related with production
to achieve the desired manufacturing results in
term of quantity, quality, time and place.
IMPORTANCE
1. Production planning sets objectives
2. Facing the unforeseen conditions
3. Best utilization of resources
4. Basis of control
Levels of PPC
1. Strategic planning : it are usually long
term plan done by the top management.
It is the process of thinking through the
organizations current mission and
environment.
2. Tactical planning : planning over a
medium range time horizon by middle
level management .
• Operational planning : I is done over a
short time span by the junior levels
management, mainly concerned with the
utilization of facilities.
Factors effecting
1. Volume of production
2. Nature of production processes
3. Nature of organization
Objectives of PPC
1. 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 machine utilization.
4. To provide information for production management &
distribution of goods.
5. To issue relevant orders to production personals to implement
the production plan.
6. To make available materials, machines, tools, equipment &
manpower in the required quality & quantity & at the specified
time.
Objectives of PPC
7. To ensure production of goods in the required quantities of the
specified quality at the pre-determined time.
8. To maintain cordial industrial relations
PPC process
1. Determination of targets
2. Collection of information
3. Interpretation of information
4. Development of actual actions
5. Execution of plan or putting them in
action
6. Follow up action
Process of PPC
PRODUCTION PLANNING
• PLANNING
• ROUTING
• SCHEDULING
• LOADING
PRODUCTION CONTROL
• DISPATCHING
• FOLLOWING UP
• INSPECTION
• CORRECTIVE
PLANNING
1. 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 to active planning. The
modules of prior planning are: product
development & design, forecasting, aggregate
planning, master scheduling etc. Active planning
includes various activities directly related to the
production. The modules of active planning are:
process planning & routing, material planning,
tools planning, loading, scheduling etc.
Action phase
• 2. Action phase: Action phase directly
deals with dispatching. Dispatching is the
transition from planning phase to action
phase. The employee is ordered to start
manufacturing the product. The tasks that
are included in dispatching are: job order,
store issue order, tool order, inspection
order, move order etc.
Control phase
• Control phase: Control phase includes (a)
progress reporting & (b) corrective action.
Progress reporting helps to make
comparison with the present level of
performance. Corrective action makes
provisions for an unexpected event e.g.,
capacity modifications, schedule
modifications etc.
ROUTING
• Routing is the process of determining the correct
sequence of operations to be performed.
• Routing determines what work will be done,
where and how it will be done.
• It decides the path of work & the sequence of
operations.
• The objective of routing is to chooses the best
and cheapest method of work.
ROUTING 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.
SCHEDULING
• Scheduling is the process of prescribing “when” each
operation in production process is to be executed.
• Scheduling arranges the different manufacturing
operations in order of priority, fixing the time & date for
the commencement & completion of each operation.
• It includes all requisites of production like scheduling of
parts, materials, machines, etc. perfect coordination
must exist between operation so that parts that are
separately produced are brought to the final assembly in
right time.
• In brief, scheduling means fixing or deciding the amount
of work to be done & fixing the time for starting &
finishing each operation. It is like a timetable of the
USE OF
SCHEDULING
1. Scheduling is certainly a necessity in a large setup
which produces a variety of products with numerous
components. The time within which products must be
manufactured forms an important element in production
control.
2. Scheduling also determines the total time required to
perform a given piece of work or assembly.
3. Time & motion study helps standardization of methods
of work after a careful analysis of all the vital factors
surrounding the manufacturing processes.
Classification of
scheduling
1. Operational schedule
2. Master schedule
3. Sequential schedule
i. Gantt charts
ii. CPM AND PERT technique
DISPATCHING
• Dispatching is concerned with starting the
processes & operations of production.
• Dispatching is based on the route sheets &
schedule sheets.
• Dispatching provides the necessary authority to
start the routed & schedule work.
• It is similar to putting oneself into the train after
deciding the route of the particular train & the
destination.
DISPATCHING
FUNCTIONS
1. To ensure that the right materials are moved from stores to
machines & from operation to operation.
2. To distribute machine loading & schedule charts, route sheets,
operation instruction cards & identification tags for each works
order.
3. To instruct tools department to issue the right tools, accessories
& fixtures in 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 production order, for filing & reference.
7. To inform the follow-up section that production is starting.
FOLLOW-UP
• It expedites the movement of materials & production
process as a whole.
• It looks into determination of the present situation
expediting the department lagging behind & removing
the bottleneck in the production line.
• Once production commences it is necessary to check
that it is proceeding according to plan. Before
dispatching new orders to the manufacturing department
the progress of outstanding orders must be known.
PERT
• The Program (or Project) Evaluation and
Review Technique, commonly
abbreviated PERT, is a statistical tool, used
in project management, that is designed to
analyze and represent the tasks involved in
completing a given project.
• PERT is a method to analyze the involved tasks
in completing a given project, especially the time
needed to complete each task, and to identify
the minimum time needed to complete the total
project.
• It was developed primarily to simplify the
planning and scheduling of large and
complex projects.
• optimistic time (O): the minimum possible
time required to accomplish a task,
• pessimistic time (P): the maximum
possible time required to accomplish a
task.
• most likely time (M): the best estimate of 
the time required to accomplish a task.
• expected time (TE): the best estimate of 
the time required to accomplish a task, 
accounting for the fact that things don't 
always proceed as normal.
• TE = (O + 4M + P) ÷ 6
• critical path: the longest possible 
continuous pathway taken from the initial 
event to the terminal event.
• crashing critical path: Shortening duration 
of critical activities
PERT Diagram
Gantt chart 
• A gantt chart is a type of bar chart, 
developed by Henry  Gantt in 1910.
• Gantt charts illustrate the start and finish 
dates of the terminal elements and 
summary elements of a project.
A Gantt chart is a type of bar 
chart, developed by Henry 
Gantt in the 1910s
Gantt Chart

Ppc

  • 1.
    > > >> > > > > Production Planning and Control
  • 2.
    INTRODUCTION • PPC isthe organization and planning of the manufacturing process. • It co-ordinates supply and movement of materials and labor, ensures economic and balanced utilization of machines and equipment as well as other activities related with production to achieve the desired manufacturing results in term of quantity, quality, time and place.
  • 3.
    IMPORTANCE 1. Production planningsets objectives 2. Facing the unforeseen conditions 3. Best utilization of resources 4. Basis of control
  • 4.
    Levels of PPC 1.Strategic planning : it are usually long term plan done by the top management. It is the process of thinking through the organizations current mission and environment. 2. Tactical planning : planning over a medium range time horizon by middle level management .
  • 5.
    • Operational planning: I is done over a short time span by the junior levels management, mainly concerned with the utilization of facilities.
  • 6.
    Factors effecting 1. Volumeof production 2. Nature of production processes 3. Nature of organization
  • 7.
    Objectives of PPC 1.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 machine utilization. 4. To provide information for production management & distribution of goods. 5. To issue relevant orders to production personals to implement the production plan. 6. To make available materials, machines, tools, equipment & manpower in the required quality & quantity & at the specified time.
  • 8.
    Objectives of PPC 7.To ensure production of goods in the required quantities of the specified quality at the pre-determined time. 8. To maintain cordial industrial relations
  • 9.
    PPC process 1. Determinationof targets 2. Collection of information 3. Interpretation of information 4. Development of actual actions 5. Execution of plan or putting them in action 6. Follow up action
  • 10.
    Process of PPC PRODUCTIONPLANNING • PLANNING • ROUTING • SCHEDULING • LOADING PRODUCTION CONTROL • DISPATCHING • FOLLOWING UP • INSPECTION • CORRECTIVE
  • 11.
    PLANNING 1. Planning phase:It has two categories of planning , a. Prior planning is pre-production planning & b. Active planning is actual production planning.
  • 12.
    • Prior planningrefers to all the planning efforts that take place prior to active planning. The modules of prior planning are: product development & design, forecasting, aggregate planning, master scheduling etc. Active planning includes various activities directly related to the production. The modules of active planning are: process planning & routing, material planning, tools planning, loading, scheduling etc.
  • 13.
    Action phase • 2.Action phase: Action phase directly deals with dispatching. Dispatching is the transition from planning phase to action phase. The employee is ordered to start manufacturing the product. The tasks that are included in dispatching are: job order, store issue order, tool order, inspection order, move order etc.
  • 14.
    Control phase • Controlphase: Control phase includes (a) progress reporting & (b) corrective action. Progress reporting helps to make comparison with the present level of performance. Corrective action makes provisions for an unexpected event e.g., capacity modifications, schedule modifications etc.
  • 15.
    ROUTING • Routing isthe process of determining the correct sequence of operations to be performed. • Routing determines what work will be done, where and how it will be done. • It decides the path of work & the sequence of operations. • The objective of routing is to chooses the best and cheapest method of work.
  • 16.
    ROUTING 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.
  • 17.
    SCHEDULING • Scheduling isthe process of prescribing “when” each operation in production process is to be executed. • Scheduling arranges the different manufacturing operations in order of priority, fixing the time & date for the commencement & completion of each operation. • It includes all requisites of production like scheduling of parts, materials, machines, etc. perfect coordination must exist between operation so that parts that are separately produced are brought to the final assembly in right time. • In brief, scheduling means fixing or deciding the amount of work to be done & fixing the time for starting & finishing each operation. It is like a timetable of the
  • 18.
    USE OF SCHEDULING 1. Schedulingis certainly a necessity in a large setup which produces a variety of products with numerous components. The time within which products must be manufactured forms an important element in production control. 2. Scheduling also determines the total time required to perform a given piece of work or assembly. 3. Time & motion study helps standardization of methods of work after a careful analysis of all the vital factors surrounding the manufacturing processes.
  • 19.
    Classification of scheduling 1. Operationalschedule 2. Master schedule 3. Sequential schedule i. Gantt charts ii. CPM AND PERT technique
  • 20.
    DISPATCHING • Dispatching isconcerned with starting the processes & operations of production. • Dispatching is based on the route sheets & schedule sheets. • Dispatching provides the necessary authority to start the routed & schedule work. • It is similar to putting oneself into the train after deciding the route of the particular train & the destination.
  • 21.
    DISPATCHING FUNCTIONS 1. To ensurethat the right materials are moved from stores to machines & from operation to operation. 2. To distribute machine loading & schedule charts, route sheets, operation instruction cards & identification tags for each works order. 3. To instruct tools department to issue the right tools, accessories & fixtures in 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 production order, for filing & reference. 7. To inform the follow-up section that production is starting.
  • 22.
    FOLLOW-UP • It expeditesthe movement of materials & production process as a whole. • It looks into determination of the present situation expediting the department lagging behind & removing the bottleneck in the production line. • Once production commences it is necessary to check that it is proceeding according to plan. Before dispatching new orders to the manufacturing department the progress of outstanding orders must be known.
  • 23.
    PERT • The Program(or Project) Evaluation and Review Technique, commonly abbreviated PERT, is a statistical tool, used in project management, that is designed to analyze and represent the tasks involved in completing a given project. • PERT is a method to analyze the involved tasks in completing a given project, especially the time needed to complete each task, and to identify the minimum time needed to complete the total project.
  • 24.
    • It wasdeveloped primarily to simplify the planning and scheduling of large and complex projects. • optimistic time (O): the minimum possible time required to accomplish a task, • pessimistic time (P): the maximum possible time required to accomplish a task.
  • 25.
    • most likelytime (M): the best estimate of  the time required to accomplish a task. • expected time (TE): the best estimate of  the time required to accomplish a task,  accounting for the fact that things don't  always proceed as normal. • TE = (O + 4M + P) ÷ 6
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Editor's Notes

  • #8 Producing and marketing desired goods and services is the key role of businesses. Production converts raw materials and other inputs into finished products. People often use the terms production and manufacturing interchangeably.
  • #9 Producing and marketing desired goods and services is the key role of businesses. Production converts raw materials and other inputs into finished products. People often use the terms production and manufacturing interchangeably.
  • #11 The production process is at the center of any firm. Effective production processes increase quality, meet customer demands, provide new products, and lower the cost of production.
  • #28 PERT is a Program Evaluation and Review Technique. These diagrams seek to minimize delays by coordinating all aspects of the production process. They outline a critical path to identify to managers the sequence of operations with the longest time for completion.
  • #31 Production managers use a variety of tools to schedule work. Gantt Charts track projected and actual work. Gantt Charts are more effective for scheduling relatively simple projects.