The document provides an overview of production planning and control. It discusses key concepts like production, planning, control, types of production systems including job production, batch production and continuous production. It covers functions of production planning and control like planning, dispatching, control. It also discusses topics like process planning, loading, scheduling, economic order quantity and goods and service tax. The overall document serves as a comprehensive reference on production planning and control.

1. PRODUCTION PLANNING AND
CONTROL

2. Introduction
• Production is the process by which goods or services are created.
Production can also be defined as a means of converting the raw materials
into finished products by performing a set of manufacturing operation in a
pre determined sequence that transforms material from a given to a
desired form.
1. Transformation by disintegration
2. Transformation by Integration
3. Transformation by service

3. Introduction
• Planning means preparing the scheme in advance before the actual work is
started. It also be defined as the pre-determination of future achievement
to meet the desired objectives.
• Control means the supervision of all the relevant operations with the help
of control mechanism that feeds back the progress of the work. Controlling
is made by the comparing the actual performance with the present
standards and deviations are analyzed.

4. Introduction
• According to Samuel Elion : “ the highest efficiency in production is
obtained by manufacturing the required quantity of the product, of the
required quality, at the required time, by the best and cheapest method.”
• According to Charles A. Koepke : “Production planning and control may be
defined as the coordination of the series of functions according to a plan
which will economically utilize the plant facilities and regulate the orderly
movement of goods during the entire manufacturing cycle, from the
procurement of all materials to the shipping of finished goods at a
predetermined rate.”

5. Introduction
• According to Alford and Beatty: “Production Planning and Control comprise
the planning, routing, scheduling, dispatching and follow-up functions in
the productive process, so organized that the movement of material,
performance of machines and operations of labour, however subdivided,
are directed and coordinated as to quantity, quality, time and place. It is
based on the principle ‘plan your work and work your plan’.
• In simple words, production planning and control means:
a) A complete plan.
b) A follow up procedure for determining how closely the plans are being followed.
c) A means to regulate the mechanism to meet the requirements of proposed plan.
d) A procedure to employ right quantity and right type of personal at the right place.

6. Objectives of P. P. C.
1. To design a system and plan.
2. To ensure efficient utilization of production facilities.
3. To coordinate the production activities of different departments.
4. To maintain adequate but not excessive stock of row materials, work in process,
finished goods and delivery schedules at the most economical level.
5. To ensure production of right product in right quality at the right time.
6. To maintain flexibility in manufacturing operations, to accommodate rush jobs
or to meet contingencies.
7. To coordinate labour, machines and equipment in the most effective and
economic manner.
8. Ensuring smooth flow of materials by eliminating bottlenecks if any, in
production.
9. Establishing targets and checking it against performance.
10. To determine the nature and input factors to manufacture the desired output.

7. In short PPC regulates and control
“When”,
“Where”,
&
“How”
work is to be done.

8. Functions of Production Planning and Control
The various functions of production planning and control can be classified
into three main categories or phases as follows :
1. Planning Phase
I. Prior Planning
a. Fore-casting
b. Order writing
c. Product Design
II. Action Planning
a. Process Planning and
routing
b. Material control
c. Tool control
d. Loading
e. Scheduling
2. Dispatching 3. Control Phase
I. Progress reporting
a. Data collection
b. Data Interpretation
II. Corrective action
a. Expediting
b. Replanning

9. Types of Production Systems
Modes of manufacture, which may affect production planning and control
system, include three main relevant factors:
1. The type of production
2. Size of the plant
3. The type of industry
The types of production systems can be broadly grouped into three headings
according to the volume of production and the regularity of manufacture:
1. Job Production
2. Batch Production
3. Continuous Production

10. Characteristics of Job Production Systems
1. Small production runs
2. The flow of materials
3. Manufacturing cycle time
4. Layout of plant and equipment
5. Skill required
6. Quality of supervision.

11. Characteristics of Batch Production Systems
1. Short runs
2. Investment
3. Planning
4. Skill of labour
5. Quality of supervision
6. Plant layout
7. Material Handling
8. Flexibility in production schedule.

12. Characteristics of Continuous Production Systems
1. Flow of material
2. Machines and plant layout
3. Material Handling
4. Skill of labour
5. Manufacturing cycle time
6. Quality of supervision
7. Flexibility in production schedules.

13. Process Planning
• Process planning is also called: manufacturing planning, process
planning, material processing, process engineering, and machine
routing.
• Which machining processes and parameters are to be used to convert
a piece part from its initial form to a final form predetermined from
an engineering drawing.

14. Process Planning
Product Design
Process Planning
Operation Programming
Verification
Scheduling
Execution
Process,
Machine
Knowledge
Scheduling
Knowledge
How can we make it?
How much does it cost?
How long will it take us to complete it?
How reliable will it be?
How can we recycle it?

15. Steps in Process Planning
1. Analysis of the product print and specification.
2. Improvement of the specification.
3. Make or buy decision.
4. Selection of basic manufacturing process.
5. Determining the sequence of operations.
6. Combine the operations.
7. Prepare the list of raw materials.
8. Selection of machine tools or equipments.
9. Inspection.
10. Requirements of tools, gauges, labour etc…
11. Time standards.
12. Cost of production.
13. Prepare the operation sheet and the route sheet.

16. Factors affecting process plan selection
• Shape
• Tolerance
• Surface finish
• Size
• Material type
• Quantity
• Value of the product
• Urgency
• Manufacturing system itself.

17. Principles of sound production control system
The following are the important principles of sound production planning and
control system.
The production control system must:
1. Furnish timely, adequate and accurate information.
2. Be flexible to accommodate necessary changes.
3. Be simple and understandable in operation.
4. Be economical in operation.
5. Force prior planning and corrective action by the user of the system.
6. Permit management by exception.

19. Sales Forecasting
• Forecasting means to predict or estimate the future
• Estimate the future demand of product is necessary, when planning for
production
• Done by using past data of the product demand
• Type of Forecasting
There are two types of forecasting:
1. Short term forecasting
2. Long term forecasting

20. Objective of Forecasting
Objectives of short term forecasting:
a) Formulation of suitable production policy.
b) Regulate supply of raw material
c) Best utilization of machines
d) Regular availability of labour
e) Price policy formulation
f) Forecasting of short term financial requirements
g) Setting the sales target

21. Objective of Forecasting
Objectives of long term forecasting:
a) Deciding plant capacity
b) Manpower Planning
c) Estimating cash Inflows
d) Determining dividend policy
e) Planning of long run production
f) Long run financial requirements
g) Budgetary control over expenditure

22. Importance of Sales Forecasting
• Helps in business planning by providing estimate of the market
• Helps organization in better planning of resources for procurement
• Enables better utilization of resources
• Helps the firm to decide which products are to be introduced as
product or to be dropped as product
• Enables the firm to identify its position in the market

23. Techniques of
sales forecasting
The important methods of sales forecasting are:
1. Jury Method/Executive Opinion Method
a) Top Jury Method
b) Percolated Jury Method
2. Survey of Experts Opinion Method
3. Sales Force Composite Method
4. Survey of Buyers Intention Method
5. Market Share Method
6. Analytical and Statistical Method
a) Extrapolation Method (Sales Trend Analysis)
b) Moving Average Method
c) Exponential Smoothing
d) Least Square Method

24. The factors to be considered for selecting the particular method of sales
forecasting are:
1. The purpose of forecast
2. The degree of accuracy desirable
3. The time period to be forecast
4. The cost and benefit of the forecast to the company
5. The time available for making the analysis
6. Component of the system for which forecast has to be made etc.

25. Sequencing
• Also termed as a prioritization
• Raw material passes through various operation
• Various operations are to be done on the same machines for different
types of job
• Necessary to decide the sequence of job to be performed
• Production schedule is not disturbed and resource utilization is maximum

26. Presumed condition for sequencing
• At a time single operation is carried out on a single machine
• Time of performing the operation is known
• Once the job is started, it unloaded only when it is completed
• An operation may be completed before its succeeding operation can start
• Time or shifting the jobs is negligible
• Time of performing the operation is independent on the sequence of the
job

27. Sequencing problems
1. n jobs one machine
2. n jobs two machine
3. n jobs three machine
4. 2 jobs m machine

28. Loading and Scheduling
Objectives:
I. To ensure maximum utilization of plant
II. To ensure manpower availability for the duration
III. To minimize the ideal for the resources of plant

29. Different types of schedule:
I. Master schedule
• Shows total load of the project from beginning to end along with imp. dates,
showing schedule, targets, delivery dates etc.
• Shows summary level of the different projects
• Gives overall picture of the job
II. Perpetual schedule:
• Similar to master schedule but it is more detailed scheduling of the dept.
• Uses tool such as “Gantt chart” or “load analysis sheet”
• Calculate weekly load on machine then chart is used which shows planned work and
actual work carried out on machine
III. Order schedule:
• more detailed compared to both of above

30. • It uses following details:
I. Time for setting up machine
II. Starting time of the job
III. Processing time for the job
IV. Completion time for job
V. Tool change and other time movement
• Drawback of this one that is it is costliest method, because it
involves continuous change in schedule

31. Line of Balance
• Used to find out the status of completion of various process stages of
product
• Actual level of completion of each process stage is compared with its
expected level of completion at given time
• Help In finding out the backlog at each process stage of the product ,
and take appropriate action
• Line of balance can be as a scale against which the progress is
measure at given time

32. Heuristic method of assembly line balancing
• Assigning the work elements to workstation so that all station get
equal amount of work is called assembly line balancing
• Problems deals with the minimizing the total amount of ideal times is
called balance delay
• Precedence diagram according to technological order
• Grouping of the work elements at work stations from diagram

33. Before performing line balancing, following terminologies are necessary
to understand.
• Cycle time (C): the hours per shift to the production volume including
rework and scrap desire in H hours
• No. of work station (K): the minimum possible number of station for an
assembly line.
• Balance delay (D): when station time equals cycle time (C)
• For all station it is not possible, some station will have to wait
• Line efficiency: ratio of total station time to the product of the cycle
time and the number of work station

34. Progress control
• Continuous follow up of the issued orders, also called follow up
• Function is to report daily progress of the work in each shop and to
investigate the cause of deviation from the planned performance
• Monitors the production schedule and attempt to match with the
delivery schedule
• Required for material, component and assembly
• Each and every aspect of job progress, if any deviation found it is
required to settle

35. The cause of delay may be:
• Shortage and unavailable of raw material
• Shutdown equipment
• Shortage of tools, jigs and fixture etc.
• Higher amount of rework
• Errors in routing, scheduling, and dispatching.

36. Following are the steps involved in progress control:
1. Setting up a system to watch and record the progress of the
operating facility
2. Marketing report of the work progress or work accomplishment
3. Control of the work progress
4. Accounting for the recording material and labour expenditures
5. Interpretation of the information contained in the progress report
6. Taking corrective action, if necessary

37. Economic Order Quantity (EOQ)
• Order quantity that minimizes total inventory holding cost and
ordering cost and ordering cost
• There is also fixed cost for each order placed, regardless the number
of units ordered.
• Cost for each held in storage, sometimes expressed as a percentage of
the purchase cost of the item
• Determine the optimal number of the unit to order such that the
total cost associate with the purchase, delivery and storage of the
product, is minimized and respective quantity termed as EOQ.
• EOQ depends on ordering cost as well as on storage cost
• Total cost is total of the both cost

38. Economic Order Quantity (EOQ)
• Carrying cost linearly varies
according to number of
quantities
• Ordering cost reduces as
the number of quantity
increases in per order
• Total cost decreases up to
some quantities order but
again increases.

39. Goods Service Tax (GST)
• Goods and Services Tax (GST) is an indirect tax (or consumption tax) used
in India on the supply of goods and services.
• It is a comprehensive, multistage, destination based tax: comprehensive
because it has subsumed almost all the indirect taxes except a few state
taxes.
• Multi-staged as it is, the GST is imposed at every step in the production
process, but is meant to be refunded to all parties in the various stages of
production other than the final consumer and as a destination based tax,
it is collected from point of consumption and not point of origin like
previous taxes.