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Presented by:
Abdurrhaman Hamidullah
Arif Nadaf
Mohammad Nihad
Yakub Alshuka
Presented to:
Dr. Asiya Mahtab
M.Pharm, Ph.D
Jamia Hamdard university,
New Delhi.
▰ Production planning
▰ Objectives of production planning
▰ Production control
▰ Objectives of production control
▰ Production planning and control
▰ Characteristics of production planning and control
▰ Limitations of production planning and control
▰ Techniques of Production Planning and
▰ Significance
▰ Issues
▰ References
▰ 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.” -kimball
and kimball
▰ To determine the requirements of men, material and equipment.
▰ Arranging production schedules according to the needs of marketing
demand.
▰ Arranging various inputs at a right time and in right quantity.
▰ Making most economical use of various inputs.
▰ To achieve coordination among various departments relating to
production.
▰ To make all arrangements to remove possible obstacles in the way of
smooth production.
▰ To achieve economy in production cost and time.
▰ To operate plant at planned level of efficiency.
▰ Making efforts to achieve production targets in time.
▰ Providing for adequate stocks for meeting contingencies.
▰ 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
▰ To implement production plans by issuing orders to those who are supposed to
implement them.
▰ To ensure that various inputs like men, machine, materials etc. are available in
the required quantity and quality.
▰ Making efforts to adhere to the production schedules.
▰ To ensure that goods are produced according to the prescribed standards and
quality norms.
▰ To undertake the best and most economic production policies.
▰ To introduce a proper system of quality control.
▰ To ensure rapid turnover of production and minimizing of inventories of raw
materials and finished products.
▰ Production planning and control is concerned with directing
production along the lines set by the planning department.
▰ Definition:-
"Production planning and control is the co-ordination of
series of functions according to a plan which will economically
utilize the plant facilities and regulate the orderly movement of
goods through the entire manufacturing cycle from the
procurement of all materials to the shipping of finished goods at
a predetermined rate.” -Charles A. Koepke
▰ It is the planning and control of manufacturing process in an enterprise.
▰ Questions like-what is to be manufactured? when it is to be manufactured?
etc.
▰ All types of inputs like materials, men, machines are efficiently used for
maintaining efficiency of manufacturing process.
▰ Various factors of production are integrated to use them efficiently and
economically.
▰ The manufacturing process is organized in such a way that none of the work
centers is either overworked or under worked.
▰ The work is regulated from the first stage of procuring raw materials to the
stage of finished goods.
 For Increasing Production
 For Co-coordinating Plant Activity
 For Cost Control
 For Rationalization of Production Activities
 Consumers
 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.
 Rigidity :
Under production planning and control the things are pre-decided and
fixed. There is rigidity in the behavior of employees and it may not help in
smoothening the flow of work.
 Difficult for Small Firms :
This process is time consuming and small firms may not be able to make use
of production planning and control.
 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.
 Dependence on External Factors :
The external factors sometimes reduce the effectiveness of
production planning and control. The factors like natural calamities,
change in technology, change in fashion, breakdown of power,
government controls etc. limit the use of production planning and
control.
PRODUCTION
PLANNING
PLANNING
ROUTING
SCHEDULING
LOADING
PRODUCTION
CONTROL
DISPATCHING
FOLLOW UP
INSPECTION
CORRECTIVE
▰ PLANNING :
It is the first element of production planning
and control. Planning means deciding in advance what
is to be done in future. An organizational set up is
created to prepare plans and policies. Various charts,
manuals and production budgets are also prepared.
Planning provides a sound base for control. A separate
department is set up for this work.
▰ ROUTING :
Routing is determining the exact path which will
be followed in production. It is the selection of the 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.
▰ Definition:
“Routing is the specification of the flow sequence
of operations and processes to be followed in producing a
particular manufacturing lot.” -Alford & Beaty
▰ ROUTING PROCEDURE:
 Deciding what part to be made or purchased
 Determining Materials required
 Determining Manufacturing Operations and Sequences
 Determining of Lot Sizes
 Determining of Scrap Factors
 Analysis of Cost of the Product
 Preparation of Production Control Forms
▰ 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.
Definition :
“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.”(Kimball)
▰ TYPES OF SCHEDULES:
 Master Scheduling :
It is the breakup of production requirements. It is the start
of scheduling. 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 a given process
▰ LOADING:
The next step is Loading which is execution
of the scheduled plan as per the route chalked out. It
includes the assignment of the work to the operators
at their machines or work places.
▰ So Loading determines who will do the work.
▰ 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.
▰ Definition :
“Dispatches put production in effect by
releasing and guiding manufacturing order in the
sequence previously determined by route sheets and
schedules.” - John A. Shubin
▰ DISPATCHING PROCEDURES:
▰ Centralized Dispatching :
Under this, orders are directly issued to workmen
and machines. It helps in exercising effective control.
▰ Decentralized 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.
▰ FOLLOW UP & EXPEDITING :
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.
▰ Definition :
“Follow up or expediting is that branch of production
control procedure which regulates the progress of
materials and part through the production process.”
▰ INSPECTION :
 Inspection is the process of ensuring whether the products
manufactured are of requisite quality or not.
 Inspection is undertaken both of products and inputs. It is carried
on at various levels of production process so that pre-determined
standards of quality are achieved.
 Inspection ensures the maintenance of pre-determined quality of
products.
▰ CORRECTIVE MEASURES :
 Adjusting the route
 Rescheduling of work
 Changing the workloads
 Repairs and Maintenance of machinery or equipment,
 Control over inventories
 Certain personnel decisions like training, transfer, demotion etc.
 Alternate methods may be suggested to handle peak loads.
1. • Structured & Planned Process
2. • Increased Production
3. • Seamless Plant Activity
4. • Better Co-ordination
5. • Optimal Resource Utilization
6. • Cost Control
7. • Rationalization of production Activities
ISSUES IN PRODUCTION PLANNING AND CONTROL
1. Non-availability of materials (due to shortage, etc.)
:
Facing one problem while creating process order when we
do batch determination system is showing material is not
available in quantity this but when we check stock through
MMBE it shows there is sufficient stock in unrestricted use ,
also there is no safety stock , also there is no open reservation
for such quantity but at the time of process order system is
showing missing part message.
2. Plant, equipment and machine breakdown :
Equipment Breakdown:
Machinery Breakdown, boiler and pressure vessels, spoilage of food
and specific computer cover are not automatically included under LCA Property
Insurance. Coverage for these incidences is available at an additional cost as
requested.
Machinery Breakdown:
Breakdown is defined as the actual breaking, seizing or burning out or
explosion of any part of the machine whilst the machine is in use arising from either
mechanical or electrical defects in the machine causing sudden stoppage,
necessitating repair or replacement before further use.
ISSUES IN PRODUCTION PLANNING AND CONTROL
3.Optimum utilization of resources
The closest reference to the expression "optimal utilization of
resources" is "value-for-money". According to this universally-recognized
concept, all business processes are characterized by the use of a group of
inputs (resources), which are transformed (activities) into outputs (results).
The optimization of resources is based on three characteristics: economy,
effectiveness and efficiency.
 The economy of resources consists of acquiring resources of the required
quality, at a reasonable cost and in a timely manner.
 The effectiveness of resources is aimed at ensuring the adequacy of resources
relative to business needs and their appropriate use.
 The efficiency of resources is measured by the attainment of an organization’s
business objectives.
ISSUES IN PRODUCTION PLANNING AND CONTROL
4.Working capital capacity:
Working capital is the money needed to fund the
normal, day-to day operations of your business. It ensures you
have enough cash to pay your debts and expenses as they fall
due, particularly during your start-up period. Very few new
businesses are profitable as soon as they open their doors. It
takes time to reach your breakeven point and start making a
profit.
ISSUES IN PRODUCTION PLANNING AND CONTROL
5.Ensure the quality of products
In the manufacturing business, organization wants to make sure that
their produce a high level of quality in everything that they make! There are many
different ways to ensure the quality of products, which range from the physical
composition components of the product to the actual product performance itself.
Don't get overwhelmed when organization start to think about ensuring quality
control - there are a couple of different ways that organization can ensure the
quality of products.
 How to strike the balance between demand and supply of products.
 Changes in demand and rush orders.
ISSUES IN PRODUCTION PLANNING AND CONTROL
6.Absenteeism of workers
Employee absenteeism is one of the most common
workplace problems facing employers in today’s workplace.
Legitimate illnesses still account for the majority of employee
absences, but some studies have shown that less than one third
of absences from the workplace are related to poor health. Most
employers offer their workers vacation, sick leave, paid time off,
or other kinds of paid and unpaid leave.
ISSUES IN PRODUCTION PLANNING AND CONTROL
7.Lack of coordination and communication between various
functional :
Coordination is a managerial function in which different activities
of the business are properly adjusted and interlinked. Managers should
strengthen communication across all facets of the organization to increase
the level of integration between each moving part. If there is a lack of
coordination and communication between various functional areas of
business, there is a risk that responsibility will become dispersed and tasks will
be left unclaimed. Organizing accountability for every task helps to ensure
that efforts are tangibly coordinated and communication between various
functional areas of business.
ISSUES IN PRODUCTION PLANNING AND CONTROL
1. Operations Management by Russell & Taylor 7 th edition: Pages 495- 517
2. Production and operation management by Dr.K.C.Arora: Pages 393-407
3. Production & operations management , SNCHARY 2nd edition
4. http://www.tandfonline.com/toc/tppc20/current#.VTR8ktKqqko
5. http://www.worldcat.org/title/elements-of-production-planning- and
control/oclc/744532
6. http://en.wikipedia.org/wiki/Production_planning
Production Planning and Control in Pharmaceutical Industry

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Production Planning and Control in Pharmaceutical Industry

  • 1. Presented by: Abdurrhaman Hamidullah Arif Nadaf Mohammad Nihad Yakub Alshuka Presented to: Dr. Asiya Mahtab M.Pharm, Ph.D Jamia Hamdard university, New Delhi.
  • 2. ▰ Production planning ▰ Objectives of production planning ▰ Production control ▰ Objectives of production control ▰ Production planning and control ▰ Characteristics of production planning and control ▰ Limitations of production planning and control ▰ Techniques of Production Planning and ▰ Significance ▰ Issues ▰ References
  • 3. ▰ 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.” -kimball and kimball
  • 4. ▰ To determine the requirements of men, material and equipment. ▰ Arranging production schedules according to the needs of marketing demand. ▰ Arranging various inputs at a right time and in right quantity. ▰ Making most economical use of various inputs. ▰ To achieve coordination among various departments relating to production. ▰ To make all arrangements to remove possible obstacles in the way of smooth production. ▰ To achieve economy in production cost and time. ▰ To operate plant at planned level of efficiency. ▰ Making efforts to achieve production targets in time. ▰ Providing for adequate stocks for meeting contingencies.
  • 5. ▰ 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
  • 6. ▰ To implement production plans by issuing orders to those who are supposed to implement them. ▰ To ensure that various inputs like men, machine, materials etc. are available in the required quantity and quality. ▰ Making efforts to adhere to the production schedules. ▰ To ensure that goods are produced according to the prescribed standards and quality norms. ▰ To undertake the best and most economic production policies. ▰ To introduce a proper system of quality control. ▰ To ensure rapid turnover of production and minimizing of inventories of raw materials and finished products.
  • 7. ▰ Production planning and control is concerned with directing production along the lines set by the planning department. ▰ Definition:- "Production planning and control is the co-ordination of series of functions according to a plan which will economically utilize the plant facilities and regulate the orderly movement of goods through the entire manufacturing cycle from the procurement of all materials to the shipping of finished goods at a predetermined rate.” -Charles A. Koepke
  • 8. ▰ It is the planning and control of manufacturing process in an enterprise. ▰ Questions like-what is to be manufactured? when it is to be manufactured? etc. ▰ All types of inputs like materials, men, machines are efficiently used for maintaining efficiency of manufacturing process. ▰ Various factors of production are integrated to use them efficiently and economically. ▰ The manufacturing process is organized in such a way that none of the work centers is either overworked or under worked. ▰ The work is regulated from the first stage of procuring raw materials to the stage of finished goods.
  • 9.  For Increasing Production  For Co-coordinating Plant Activity  For Cost Control  For Rationalization of Production Activities  Consumers
  • 10.  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.  Rigidity : Under production planning and control the things are pre-decided and fixed. There is rigidity in the behavior of employees and it may not help in smoothening the flow of work.  Difficult for Small Firms : This process is time consuming and small firms may not be able to make use of production planning and control.
  • 11.  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.  Dependence on External Factors : The external factors sometimes reduce the effectiveness of production planning and control. The factors like natural calamities, change in technology, change in fashion, breakdown of power, government controls etc. limit the use of production planning and control.
  • 13. ▰ PLANNING : It is the first element of production planning and control. Planning means deciding in advance what is to be done in future. An organizational set up is created to prepare plans and policies. Various charts, manuals and production budgets are also prepared. Planning provides a sound base for control. A separate department is set up for this work.
  • 14. ▰ ROUTING : Routing is determining the exact path which will be followed in production. It is the selection of the 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. ▰ Definition: “Routing is the specification of the flow sequence of operations and processes to be followed in producing a particular manufacturing lot.” -Alford & Beaty
  • 15. ▰ ROUTING PROCEDURE:  Deciding what part to be made or purchased  Determining Materials required  Determining Manufacturing Operations and Sequences  Determining of Lot Sizes  Determining of Scrap Factors  Analysis of Cost of the Product  Preparation of Production Control Forms
  • 16. ▰ 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. Definition : “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.”(Kimball)
  • 17. ▰ TYPES OF SCHEDULES:  Master Scheduling : It is the breakup of production requirements. It is the start of scheduling. 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 a given process
  • 18. ▰ LOADING: The next step is Loading which is execution of the scheduled plan as per the route chalked out. It includes the assignment of the work to the operators at their machines or work places. ▰ So Loading determines who will do the work.
  • 19. ▰ 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. ▰ Definition : “Dispatches put production in effect by releasing and guiding manufacturing order in the sequence previously determined by route sheets and schedules.” - John A. Shubin
  • 20. ▰ DISPATCHING PROCEDURES: ▰ Centralized Dispatching : Under this, orders are directly issued to workmen and machines. It helps in exercising effective control. ▰ Decentralized 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.
  • 21. ▰ FOLLOW UP & EXPEDITING : 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. ▰ Definition : “Follow up or expediting is that branch of production control procedure which regulates the progress of materials and part through the production process.”
  • 22. ▰ INSPECTION :  Inspection is the process of ensuring whether the products manufactured are of requisite quality or not.  Inspection is undertaken both of products and inputs. It is carried on at various levels of production process so that pre-determined standards of quality are achieved.  Inspection ensures the maintenance of pre-determined quality of products.
  • 23. ▰ CORRECTIVE MEASURES :  Adjusting the route  Rescheduling of work  Changing the workloads  Repairs and Maintenance of machinery or equipment,  Control over inventories  Certain personnel decisions like training, transfer, demotion etc.  Alternate methods may be suggested to handle peak loads.
  • 24. 1. • Structured & Planned Process 2. • Increased Production 3. • Seamless Plant Activity 4. • Better Co-ordination 5. • Optimal Resource Utilization 6. • Cost Control 7. • Rationalization of production Activities
  • 25. ISSUES IN PRODUCTION PLANNING AND CONTROL 1. Non-availability of materials (due to shortage, etc.) : Facing one problem while creating process order when we do batch determination system is showing material is not available in quantity this but when we check stock through MMBE it shows there is sufficient stock in unrestricted use , also there is no safety stock , also there is no open reservation for such quantity but at the time of process order system is showing missing part message.
  • 26. 2. Plant, equipment and machine breakdown : Equipment Breakdown: Machinery Breakdown, boiler and pressure vessels, spoilage of food and specific computer cover are not automatically included under LCA Property Insurance. Coverage for these incidences is available at an additional cost as requested. Machinery Breakdown: Breakdown is defined as the actual breaking, seizing or burning out or explosion of any part of the machine whilst the machine is in use arising from either mechanical or electrical defects in the machine causing sudden stoppage, necessitating repair or replacement before further use. ISSUES IN PRODUCTION PLANNING AND CONTROL
  • 27. 3.Optimum utilization of resources The closest reference to the expression "optimal utilization of resources" is "value-for-money". According to this universally-recognized concept, all business processes are characterized by the use of a group of inputs (resources), which are transformed (activities) into outputs (results). The optimization of resources is based on three characteristics: economy, effectiveness and efficiency.  The economy of resources consists of acquiring resources of the required quality, at a reasonable cost and in a timely manner.  The effectiveness of resources is aimed at ensuring the adequacy of resources relative to business needs and their appropriate use.  The efficiency of resources is measured by the attainment of an organization’s business objectives. ISSUES IN PRODUCTION PLANNING AND CONTROL
  • 28. 4.Working capital capacity: Working capital is the money needed to fund the normal, day-to day operations of your business. It ensures you have enough cash to pay your debts and expenses as they fall due, particularly during your start-up period. Very few new businesses are profitable as soon as they open their doors. It takes time to reach your breakeven point and start making a profit. ISSUES IN PRODUCTION PLANNING AND CONTROL
  • 29. 5.Ensure the quality of products In the manufacturing business, organization wants to make sure that their produce a high level of quality in everything that they make! There are many different ways to ensure the quality of products, which range from the physical composition components of the product to the actual product performance itself. Don't get overwhelmed when organization start to think about ensuring quality control - there are a couple of different ways that organization can ensure the quality of products.  How to strike the balance between demand and supply of products.  Changes in demand and rush orders. ISSUES IN PRODUCTION PLANNING AND CONTROL
  • 30. 6.Absenteeism of workers Employee absenteeism is one of the most common workplace problems facing employers in today’s workplace. Legitimate illnesses still account for the majority of employee absences, but some studies have shown that less than one third of absences from the workplace are related to poor health. Most employers offer their workers vacation, sick leave, paid time off, or other kinds of paid and unpaid leave. ISSUES IN PRODUCTION PLANNING AND CONTROL
  • 31. 7.Lack of coordination and communication between various functional : Coordination is a managerial function in which different activities of the business are properly adjusted and interlinked. Managers should strengthen communication across all facets of the organization to increase the level of integration between each moving part. If there is a lack of coordination and communication between various functional areas of business, there is a risk that responsibility will become dispersed and tasks will be left unclaimed. Organizing accountability for every task helps to ensure that efforts are tangibly coordinated and communication between various functional areas of business. ISSUES IN PRODUCTION PLANNING AND CONTROL
  • 32. 1. Operations Management by Russell & Taylor 7 th edition: Pages 495- 517 2. Production and operation management by Dr.K.C.Arora: Pages 393-407 3. Production & operations management , SNCHARY 2nd edition 4. http://www.tandfonline.com/toc/tppc20/current#.VTR8ktKqqko 5. http://www.worldcat.org/title/elements-of-production-planning- and control/oclc/744532 6. http://en.wikipedia.org/wiki/Production_planning