This document discusses production planning and control. It describes production planning and control as concerned with planning and controlling all aspects of manufacturing, including materials, scheduling machines and people. The objectives are timely supply of finished goods, maximum utilization of resources, and effective production control. Key functions of production planning and control include routing, scheduling, dispatching, and follow up to plan and monitor the production process. The document also distinguishes between batch and job production.
Production Planning and Control
Objective of PPC
Classification/Functions of PPC
Levels of PPC
Factors determining Production Planning Procedures
Production Planning System
Factors Determining PC procedures
Production Planning and Control
Objective of PPC
Classification/Functions of PPC
Levels of PPC
Factors determining Production Planning Procedures
Production Planning System
Factors Determining PC procedures
Production planning, routing, scheduling, Activating, MonitoringDarshan Shah
First Plan Your Work and then Work on Your Plan.
1. Planning is deciding in advance what to do, how to do it, when to do it and who is to do it.
Planning bridges the gap from where we are, to where we want to go. It makes it possible for things to occur which would not otherwise happen.
2. Routing may be defined as the selection of path which each part of the product will follow, which being transformed from raw material to finished products.
Routing determines the most advantageous path to be followed from department to department and machine to machine till raw material gets its final shape.
3. Scheduling determines the program for the operations. Scheduling may be defined as ‘the fixation of time and date for each operation’ as well as it determines the sequence of operations to be followed.
4. Activating is concerned with the starting the processes. Activating is ‘release of orders and instruction for the starting of production for any item in acceptance with the route sheet and schedule charts’.
5. Monitoring is related to report daily the progress of work in each shop in a prescribed proforma and to investigate the causes of deviations from the planned performance.
In this presentation, we will discuss production planning system, factors determining production control procedure, role of production planning and control in operations management, scope of production planning and control, its phases and principles. We will also talk about framework for strategy formulations and task control, PPC limitations, effectiveness, PPC in different systems, requirement of an effective PPC in a system and make or buy analysis.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
Production Planning and Control
Objective of PPC
There are three stages in PPC
Classification/Functions of PPC
Benefits of PPC
Limitations of PPC
Production Planning / Operations Planning
Factors determining Production Planning Procedures
Production Planning System
Production Control
Factors Determining PC procedures
Main Functions of Production Planning
& Control Department
Plant Planning & Facility Planning
This presentation covers:
Introduction to production planning and control
Objectives of production planning and control
PPC Techniques
Importance of PPC
Characteristics of production planning and control
rooting procedures
Scheduling and its Types
Production and planning control refers to the management of resources and processes to ensure efficient and effective production of goods or services. It involves coordinating all aspects of production, from scheduling and inventory management to quality control and shipment of finished products.
The main objective of production and planning control is to maximize productivity while minimizing waste, cost, and delays. Effective production planning requires a deep understanding of customer demand, available resources, production capacity, and lead times.
The production planning process typically involves the following steps:
Forecasting demand: This involves analyzing historical data, market trends, and other relevant factors to predict future demand for the product or service.
Creating a production plan: Based on the forecasted demand, the production plan outlines the necessary resources, schedules, and processes needed to meet that demand.
Scheduling production: This involves creating a detailed schedule for each step in the production process, including procurement of raw materials, assembly, and shipping.
Managing inventory: Effective inventory management is essential to ensure that materials and finished goods are available when needed and to avoid overstocking or stockouts.
Quality control: This involves monitoring the production process and finished products to ensure they meet quality standards and customer expectations.
Shipping and delivery: Once the products are completed, they are shipped and delivered to customers.
Effective production and planning control can improve efficiency, reduce costs, and increase customer satisfaction. It requires close collaboration between different departments, including production, procurement, logistics, and quality control, to ensure that all aspects of the production process are well-coordinated and optimized.
Production planning, routing, scheduling, Activating, MonitoringDarshan Shah
First Plan Your Work and then Work on Your Plan.
1. Planning is deciding in advance what to do, how to do it, when to do it and who is to do it.
Planning bridges the gap from where we are, to where we want to go. It makes it possible for things to occur which would not otherwise happen.
2. Routing may be defined as the selection of path which each part of the product will follow, which being transformed from raw material to finished products.
Routing determines the most advantageous path to be followed from department to department and machine to machine till raw material gets its final shape.
3. Scheduling determines the program for the operations. Scheduling may be defined as ‘the fixation of time and date for each operation’ as well as it determines the sequence of operations to be followed.
4. Activating is concerned with the starting the processes. Activating is ‘release of orders and instruction for the starting of production for any item in acceptance with the route sheet and schedule charts’.
5. Monitoring is related to report daily the progress of work in each shop in a prescribed proforma and to investigate the causes of deviations from the planned performance.
In this presentation, we will discuss production planning system, factors determining production control procedure, role of production planning and control in operations management, scope of production planning and control, its phases and principles. We will also talk about framework for strategy formulations and task control, PPC limitations, effectiveness, PPC in different systems, requirement of an effective PPC in a system and make or buy analysis.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
Production Planning and Control
Objective of PPC
There are three stages in PPC
Classification/Functions of PPC
Benefits of PPC
Limitations of PPC
Production Planning / Operations Planning
Factors determining Production Planning Procedures
Production Planning System
Production Control
Factors Determining PC procedures
Main Functions of Production Planning
& Control Department
Plant Planning & Facility Planning
This presentation covers:
Introduction to production planning and control
Objectives of production planning and control
PPC Techniques
Importance of PPC
Characteristics of production planning and control
rooting procedures
Scheduling and its Types
Production and planning control refers to the management of resources and processes to ensure efficient and effective production of goods or services. It involves coordinating all aspects of production, from scheduling and inventory management to quality control and shipment of finished products.
The main objective of production and planning control is to maximize productivity while minimizing waste, cost, and delays. Effective production planning requires a deep understanding of customer demand, available resources, production capacity, and lead times.
The production planning process typically involves the following steps:
Forecasting demand: This involves analyzing historical data, market trends, and other relevant factors to predict future demand for the product or service.
Creating a production plan: Based on the forecasted demand, the production plan outlines the necessary resources, schedules, and processes needed to meet that demand.
Scheduling production: This involves creating a detailed schedule for each step in the production process, including procurement of raw materials, assembly, and shipping.
Managing inventory: Effective inventory management is essential to ensure that materials and finished goods are available when needed and to avoid overstocking or stockouts.
Quality control: This involves monitoring the production process and finished products to ensure they meet quality standards and customer expectations.
Shipping and delivery: Once the products are completed, they are shipped and delivered to customers.
Effective production and planning control can improve efficiency, reduce costs, and increase customer satisfaction. It requires close collaboration between different departments, including production, procurement, logistics, and quality control, to ensure that all aspects of the production process are well-coordinated and optimized.
Production Planning and Control, Objective of production planning and control, Function of PPC, Types of the Production Systems, Process Planning, Sales Forecasting, Sequencing, Loading, and Scheduling, Line of Balance, Progress control, Economic Order Quantity (EQC), Goods Service Tax (GST)
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2. Contents
What is production planning and control?
Objectives of production planning and control
Functions of production planning and control
routing
scheduling
dispatching
follow-up
Scrap and surplus
Batch and job production
2
3. What is production planning and control?
A production planning and control system is concerned with planning
and controlling of all aspects of manufacturing, including materials,
scheduling machines and people.
3
4. Objectives of production planning and control
Timely supply of finished goods.
Maximum utilization of material and human resources.
Effective control of production process.
Helps to produce the goods on the basis of demand.
4
5. Process of Production Planning
Materials Planning
Operations Planning
Cost Planning
5
10. Production planning and control stages
• First step
• Related to production planningRouting
• Second step
• Related to production planningScheduling
• Third step
• Related to production controlDispatching
• Final step
• Related to production controlFollow-up
10
11. Routing
Determines the exact path which will be followed in production.
It is a selection of path from where each unit have to pass before
reaching the final stage.
The Stages from which goods are to pass are decided in this process.
11
12. Objectives of routing
Determines the sequence of manufacturing operations.
Ensures the strict adherence to the sequence determined.
Strives for the best possible and cheapest sequence of operstions.
Influences the design and layout of the factory building with a view
to get a quick and better production results.
Also influences the installation of plants and factory for better
results.
12
13. Routing procedure
Deciding what part to be made or purchased.
Determining materials required.
Determining manufacturing operations and sequence.
Determining lot sizes.
Determining scrap factors.
Analysis of cost of production.
Preparation of production control forms.
13
14. Scheduling
Scheduling is the determining of time and date when each operation is
to be commenced or completed. The time and date of manufacturing
each component is fixed in such a way that assembling for final product
is not delayed in any way.
Kimball and Kimball words:
The determination of the time that should be required to perform each
operation and also the time necessary to perform the entire series, as
routed, making allowances for all factors concerned.
14
15. Types of schedules
Master scheduling:
It is a breakup of production requirements.
It is prepared by keeping in view the order or likely sales order in
near future.
Manufacturing scheduling:
It is used where production process is continuous. The order of
preference for manufacture is also mentioned in the schedule for a
systematic production planning.
Detail operation scheduling:
It indicates the time required to perform each and every detailed
operations of given process.
15
16. Dispatching
Dispatching refers to the process of actually ordering the work to be
done. It involves putting the plan into effect by issuing orders. It is
concerned with starting the process and operation on the basis of route
sheets and schedule charts.
16
17. Dispatching procedures
Centralised dispatching:
Under this orders are directly issued to workmen and machine.
It helps in exercising effective control.
Decentralised dispatching:
Under this procedure all work orders are issued to the foreman
or dispatch clerk of the department or section. It suffers from
difficulties in achieving co-ordination among different
departments.
17
18. Follow up & expediting
Follow up or expediting is that branch of production control procedure
which regulates the progress of materials and part through the
production process.
Follow-up procedure:
progress may be assessed with the help of routine reports or
communication with operating departments. The follow up
procedure is used for expediting and checking the progress.
18
23. Scrap and surplus
Scrap:
Waste that either has no economic value or only the value of its
basic material content recoverable through recycling.
Scrap management:
Manufacturers do not intend or plan to make scrap, but
depending on the industry and the product, scrap is produced.
But depending on the type of scrap, it may be re- cycled back
into the production process or sold as a revenue generating product or
simply non-recyclable and the enterprise has to pay for an outside
contractor to dispose of the product.
23
25. Reasons for Generation of Scrap
Change in Design, Method or Product
Mistakes in procurement
Wrong planning decisions
Wasteful processes in production
Inevitable waste during the adjustment of the equipment
Overall absence of efficiency
25
28. Batch Production
A manufacturing process in which components or goods are produced in
groups (batches) and not in a continuous stream.
Characteristics:
1. Shorter production runs.
2. Plant and machinery are flexible.
3. Plant and machinery set up is used for the production of item in a batch and
change of set up is required for processing the next batch.
4. Manufacturing lead-time and cost are lower as compared to job order
production.
28
29. Job Shop Production
A job shop is a type of manufacturing process in which small batches of a
variety of custom products are made for other businesses.
Characteristics:
1. High variety of products and low volume.
2. Use of general purpose machines and facilities.
3. Highly skilled operators who can take up each job as a challenge
because of uniqueness.
4. Large inventory of materials, tools, parts.
5. Exhaustive planning is essential for sequencing the requirements of
each product, capacities for each work centre and order priorities.
29
FOH: factory over head
AOH: administrative over head
SOH: section over head
DOH: departmental over head
ROUTING IS A SPECIFICATION OF THE FLOW SEQUENCE OF OPERATIONS AND PROCESSES TO BE FOLLOWED IN PRODUCING A PARTICULAR MANUFACTURING LOT.
Benefits
1. Better utilisation of plant and machinery.
2. Promotes functional specialisation.
3. Cost per unit is lower as compared to job order production.
4. Lower investment in plant and machinery.
5. Flexibility to accommodate and process number of products.
6. Job satisfaction exists for operators.
Limitations
1. Material handling is complex because of irregular and longer flows.
2. Production planning and control is complex.
3. Work in process inventory is higher compared to continuous production.
4. Higher set up costs due to frequent changes in set up.
Benefits
1. Because of general purpose machines and facilities variety of products can be produced.
2. Operators will become more skilled and competent, as each job gives them learning opportunities.
3. Full potential of operators can be utilised.
4. Opportunity exists for Creative methods and innovative ideas.
Limitations
1. Higher cost due to frequent set up changes.
2. Higher level of inventory at all levels and hence higher inventory cost.
3. Production planning is complicated.
4. Larger space requirements.