THIS PRESENTATION HOLDS THE CONTENTS OF PRODUCTION PLANNING AND CONTROL FOR ENGINEERING STUDIES.

1. PRODUCTION PLANNING AND
CONTROL-1
SUBMITTED BY GUIDED BY
V.ATTIMURUGAN(B.E) Dr. R.SENTHILKUMAR.M.E, Ph.D.,
HEAD OF DEPARTMENT

3. Definition:
According to Charles A. Koepke “Production Planning and Control is
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”.

4. 1.To determine the requirements of men, material and equipment.
2.Arranging production schedules according to the needs of
marketing demand.
3.Arranging various inputs at a right time and in right quantity.
4.Making most economical use of various inputs.
5.To achieve coordination among various departments relating
to production.
6.To make all arrangements to remove possible obstacles in the
way of smooth production.
7.To achieve economy in production cost and time.
8.To operate plant at planned level of efficiency.
9.Making efforts to achieve production targets in time.
10.Providing for adequate stocks for meeting contingencies.

5. 1. The interdependence of various operations involved
in the transformation process.
2. The nature of product and quantity of product.
3. The nature and availability of various equipments
and materials required for manufacturing process.
4. The size of orders and the production run.
5. The nature and type of manufacturing system.
6. The nature and type of manufacturing method
adopted.

7. 1. It is the planning and control of manufacturing process
in an enterprise.
2.Questions like-what is to be manufactured? when it is to be
manufactured? etc.
3.All types of inputs like materials, men, machines are
efficiently used for maintaining efficiency of manufacturing
process.
4.Various factors of production are integrated to use them
efficiently and economically.
5.The manufacturing process is organized in such a way
that none of the work centers is either overworked or
under worked.
6.The work is regulated from the first stage of procuring
raw materials to the stage of finished goods.

8. 1. For Increasing Production
2. For Co-coordinating Plant Activity
3. For Cost Control
4. For Rationalization of Production
Activities
5. Consumers

9. 1.It maintains good coordination between the departments.
2. It reduces the employee and plant idle time.
3. It ensures the optimum utilization of resources.
4. It helps in achieving the quality standards so that the quality of
output is ensured.
5. It minimize the wastes, scrap, rework and also the rectification
hour.
6. It also helps in utilizing idle time of the machine.
7. It make sures the availability of right supplies at right time
[inventory control].
8. It avoids bottlenecks in the production process.
9. It ensures better services to customers by delivering quality
goods within the specified time period.

10. 1. Based on Assumptions: - Production planning and control is based
on certain assumptions. In case the assumptions prove correct then the
planning and control will go smoothly, otherwise it may not. The
assumptions generally are about plant capacity, orders, availability of
raw materials and power etc. if these assumptions go wrong then the
process of planning and control will go weak.
2.Rigidity: - Under production planning and control the things are predefined
and fixed. There is rigidity in the behavior of employees and it may not help in
smoothening the flow of work.
3.Difficult for Small Firms: - This process is time consuming and
small firms may not be able to make use of production planning and
control.
4.Costly: - It is a costly device as its implementation requires separate
persons to perform the functions of planning, dispatching, expediting
etc. Small firms cannot use the services of specialists due to cost
factor.

11. PRODUCTION PLANNING
Meaning:-
Production planning involves management decisions on
the resources that the firm will require for its manufacturing
operations and the selection of these resources to produce the
desired goods at the appropriate time and at the least possible
cost.
Definition:-
"The planning of industrial operations involves four
considerations, namely, what work shall be done, how the work
Shall be done and lastly, when the work shall be done .

12. 1.To determine the requirements of men, material and equipment.
2.Arranging production schedules according to the needs of
marketing demand.
3.Arranging various inputs at a right time and in right quantity.
4.Making most economical use of various inputs.
5.To achieve coordination among various departments relating
to production.
6.To make all arrangements to remove possible obstacles in the
way of smooth production.
7.To achieve economy in production cost and time.
8.To operate plant at planned level of efficiency.
9.Making efforts to achieve production targets in time.
10.Providing for adequate stocks for meeting contingencies.

13. Meaning:-
Production control guides and directs flow of
production so that products are manufactured in a best
way and conform to a planned schedule and are of the
right quality. Control facilitates the task of
manufacturing and see that every theme goes as per
the plan.
Definition:-
"Production control refers to ensuring that all which
occurs is in accordance with the rules established and
instructions issued.“
-HENRY FAYOL

14. 1.To implement production plans by issuing orders
to those who are supposed to implement them.
2.To ensure that various inputs like men, machine,
materials etc. are available in the required quantity
and quality.
3.Making efforts to adhere to the production schedules.
4.To ensure that goods are produced according to the
prescribed standards and quality norms.
5.To undertake the best and most economic production
policies.
6.To introduce a proper system of quality control.
7.To ensure rapid turnover of production and minimizing
of inventories of raw materials and finished products.

19. The work of a tailor is also based on the number of
orders he gets from his customers. The clothes are
stitched for every customer independently by the
tailor as per one's measurement and size. Goods
(stitched clothes) are made on a limited scale and is
proportional to the number of orders received from
customers. Here, stitching is not done on a continuous
basis

20. 1. Project production flows
Here, in project production flows, company
accepts a single, complex order or contract.
The order must be completed within a given
period of time and at an estimated cost.
Examples :
construction of airports, dams, roads,
buildings, shipbuilding, etc.

21. 2. Jobbing production flows
Here, in jobbing production flows, company
accepts a contract to produce either one or few
units of a product strictly as per specifications
given by the customer. The product is produced
within a given period and at a fixed cost. This
cost is fixed at the time of signing the contract.
Examples: services given by repair.

22. 3. Batch production flows
In batch production flows, the production
schedule is decided according to specific orders or
are based on the demand forecasts. Here, the
production of items takes place in lots or batches.
A product is divided into different jobs. All jobs of
one batch of production must be completed before
starting the next batch of production.
Examples :
manufacturing of drugs and pharmaceuticals,
medium and heavy machineries, etc.

24. The production and processing system of a
fuel industry is also purely based on, demand
forecast. CRUDE OIL and other raw sources
are processed continuously on a large scale to
yield usable form of fuel and compensate
global energy demand.

28. Product development is an activity which involves in creating a
new product or modifying the existing product in order to meet
the changing customer requirements.
The two main activities of product development are
1. Improving the existing product.
2. Introducing the new product to the market

29. Designing is very important before actual transformation of raw materials
(Input) into finished products (Output). Product design is a critical function
in the production system.
State I: Conception
Stage II: Acceptance
Stage III: Execution
Stage IV: Translation
Stage V: Pre-production

31. Various factors that influences the product design
are listed below
1. Marketing aspects
2. Product characteristics
 Functional aspects
 Operational aspects
 Durability & reliability.
 Aesthetic aspects.
3. Economic analysis
4. Production aspects

32.  Sales and Marketing is a key function whose participation is
often hard to enlist.
 Sales and Marketing are critical functions in this process, since
they provide the starting point of the planning and scheduling
process -- the forecasts and customer order demands
 They are also vital from the viewpoint of providing the proper
customer perspective whenever changes need to be made to
plans and schedules based on mismatches of resources to
customer demands.
 Only with a proper level of participation in Planning and
Scheduling, can Sales and Marketing optimally leverage its
performance and create a trusting and consensus-based
working relationship with Manufacturing, Purchasing,
Planning, Engineering and all other functions in the company.

34.  Dependability- for a system gathers the following
attributes or non-functional requirements:
Availability: readiness for correct service
Reliability: continuity of correct service
Maintainability: to undergo modifications and repairs
 Durability- aspects concerns about the way the
production is going to serve the purpose with out any
hurdles for a prolonged period of time scale

35. Difference between
aesthetic and non aesthetic effect

36. Economic analysis which seeks to answer the
following questions:
 What will be the amount of investment needed to
manufacture the new product?
 What is the estimated production cost per piece?
 What is the reasonable margin of profit that can be
expected?
 Whether the prices (cost + profit) proposed to be
offered by the company are competitive?
 What is the expected volume of sales?

37. 1.Design for Manufacturing (DFM)
Design for manufacturing (DFM) means the design of the product for
ease of manufacturing.
DFM Guidelines
1. Design parts with tolerances that are within process capability.
2. Design parts for multiuse.
3. Design for ease of assembly.
4. Design for ease of manufacturing
5. Shape parts & products for case of packaging.
6. Minimize flexible components.
7. Minimize the number of components.
8. Use standard commercially available components.
9. Use common parts across product lines.
10. Minimize handling.
11. Use modular design.

38. 2.Design for Assembly (DFA)
Design for assembly means the design of the product for ease of
assembly.
Guidelines for DFA
1. Minimize assembly surfaces.
2. Simplify design and reduce number of parts
3. Use standard components/parts.
4. Design for automated production.
5. Design for ease of fabrication
6. Minimize flexible parts and interconnections.
7. Eliminate adjustments as much as possible

39.  Taking the time to calculate the profit margin for a
product line or even for a company as a whole is
essential to determining if a company is growing,
maintaining its current market share, or is losing
customers and is in danger of not making a profit.
 Many companies choose to look at profit margin
ratios on a regular basis, just to make sure that
sales are headed in the right direction, and that
expenses are being contained in order to maximize
the returns from those sales.

40. Definition:
Standardization means producing maximum variety of products from the
minimum variety of materials, parts, tools and processes. It is the process of
establishing standards (or) units of measure by which extent, quality, quantity,
value, performance etc. may be compared and measured.
Role of standards
Standards play a critical role in,
1. Ensuring the safety, quality and reliability of products, processes and
services.
2. Efficient production.
3. Cost reduction through competition.
4. Supporting regulation.

41. Important foreign standards used in India
 BSS − BRITISH STANDARD SPECIFICATION
 ASTM − AMERICAN SOCIETY FOR TEST MATERIALS
 SAE − SOCIETY OF AUTOMOBILE ENGINEER
 DIN − GERMAN STANDARD
 JIS − JAPAN STANDARD
 NF − FRENCH STANDARD
Limitations
1. Reduced choice for customers because of reduced variety.
2. Too much standardization of operations and procedure will
reduce the interest of workers (loss of motivation).

42.  Simplification means making improvement in methods by
eliminating unnecessary parts of the job combining and
rearranging other elements of the job and making them easier
and safer to perform. It refers to the elimination of unnecessary
varieties and size etc.
 Specialization is concentration of effort in a particular area
or occupation. It is the natural outcome of simplification and
standardization. For example: Electricians, doctors, and
lawyers specialize in their chosen fields.

43. DEFINITION
The break even point is the point where the
gains equal the losses. The point defines when
an investment will generate a positive return.
The point where sales or revenues equal
expenses. The point where total costs equal
total revenues. There is no profit made or loss
incurred at the break even point. It is the lower
limit of profit when prices are set and margins
are determined.

45.  It refers to the ascertainment of level of
operations where total revenue equals to total
costs.
 Analytical tool to determine probable level of
operation.
 Method of studying the relationship among sales,
revenue, variable cost, fixed cost to determine the
level of operation at which all the costs are equal
to the sales revenue and there is no profit and no
loss situation.
 Important techniques in profit planning and
managerial decision making.

46. Problem 1.1
The following data refers to the business concern.
Fixed cost per annum F = Rs. 1,00,000 ⁄ −
Variable Cost per unit V = Rs. 6 ⁄ −
Sales price per unit S = Rs. 10 ⁄ −
Annual Production capacity is 50,000 units
From above data
 1. Fixed cost Rs. 1,00,000 is constant for any no. of units
produced.
 2. Total variable cost =Variable Cost Unit× No. of units
produced.
 3. Total Sales (or) Total Revenue =PriceUnit× No. of units
sold.
 4. Total cost = F + V.
 5. Profit = Total Sales − Total cost

48. From the above table, we can understand the following points.
 1. When the company does not produce any thing, the loss is Rs. 1,00,000,
which is equal to F (or FC).
 2. When there is an increase in production, the loss goes on reducing i.e.
when 5000 units are produced, the loss is Rs. 80,000. When 15,000 units
are produced, the loss is further reduced to Rs. 40,000/-.
 3. At a production level of 25,000 units, the unit makes no loss and no
profit. The production level, which makes neither profit nor loss, is
known as the BEP. At the BEP, the total sales are just sufficient to cover
the variable cost and recover fully the fixed cost.
 4. At production levels beyond the BEP, the company earns profits.
Higher level of production earns higher profits.
 5. The calculation are valid until the maximum capacity is reached i.e. up to
50,000 units, the calculations are valid. Beyond this level, even the fixed
costs will change due to additional infrastructure required and hence fresh
calculations have to be made.

50. Applications of Break Even Analysis
1. Pricing decision.
2. Make or buy decisions.
3. Products (or Sales) mix
4. Utilisation of limiting factors.
5. Alternative methods of production.
6. Discontinuance of product line.
7. Expansion of capacity.
8. Profit planning.
Limitations
1. Apart from Fixed Costs and Variable Costs, there are semi variable costs.
These are not taken into account in the BEA.
2. The fact that fixed costs remain unchanged is untrue practically.
3. Selling prices will not remain constant.
4. The BEA does not take into account the capital involved. Without
considering the capital cost, the decision making will be poor.