1. PRODUCTION PLANNING AND
CONTROL-AN INTRODUCTION
 Production planning
 Production control
 Sub functions of production planning and control
 Types of production system
 Summary

2. Production planning is a managerial function which is concerned with the following
important issues.
1) What production facilities are required.
2) How these production facilities should be laid out in the space available for
production? And
3) How they should be used to produce the desired products at the desired rate of
production?

3. PRODUCTION PLANNING
 Production planning is dynamic in nature and always
remains in fluid state as plans may have to be changed
according to the changes in circumstances.
 Production planning is usually done at the following
three horizon levels
 Long term ( Capacity planning )
 Medium term (aggregate planning)
 Short term (operational planning)

4. PRODUCTION PLANNING
HORIZONS
 Long term (capacity planning)
- Upto 5 years or more
- will deal with strategic/ business issues
- will reflect in the choice of processes

5. PRODUCTION PLANNING
HORIZONS
 Medium term (aggregate planning)
 Up to 2 years ahead
 How can demand be met from existing facilities and
resources?

6. PRODUCTION PLANNING
HORIZONS
 Short term (operational planning)
 Monitoring and correction of day to day activities
versus plan

7. REQUIREMENTS OF PRODUCTION
PLANNING
 It should be based on accurate data.
 It must be flexible
 It must satisfy a set of pre defined production
objectives (economy, quality etc)
 It must be simple and straight forward.
 It should have a reporting system, so that right
information reaches at right place and at right time.
 It should not have any weak link.

8. PRODUCTION CONTROL
 Production control is a mechanism to monitor the
execution of plans. It has several important functions.
 Making sure that production operations are started at
planned places and planned times.
 Observing progress of the operations and recording it
properly.
 Analyzing the recorded data with the plans and
measuring the deviations.

9. PRODUCTION CONTROL
 Taking immediate corrective actions to minimize the
negative impact of deviations from the plans.
 Feeding back the recorded information to the
planning section in order to improve future plans.

10. OPEN LOOP CONTROL SYSTEM
 Resources products and services
 Objectives
 An open loop system with no control
Transformation
process (value
addition)

11. CLOSED LOOP CONTROL SYSTEM
 Corrective action Measure
 Resources products and services
 Objectives
• comparizon
 An closed loop system with control function
Transformation
process (value
addition)

12. PRODUCTION CONTROL
 Control involves the monitoring and correction (where
necessary) of operations to ensure that plans and
objectives are being met.

13. PRODUCTION CONTROL
 Many different forms of production control
 Quality control
 Stock control
 Order processing/ chasing against schedules
 Cost control (budgeting)
 People and the labour productivity

14. FUNCTIONS OF PRODUCTION
PLANNING AND CONTROL
 Product planning-product engineering, product
design and development, functional and quality
considerations and quality considerations.
 Forecast planning-quantity forecast, demand pattern
forecast.

15. FUNCTIONS OF PRODUCTION
PLANNING AND CONTROL
 Process planning:- technology selection, process
selection, machine selection, tool selection, process
parameter selection, operation sequencing etc.
 Equipment planning:- Type of equipments, no: of
equipments, machine capability analysis, maintenance
planning.

16. FUNCTIONS OF PRODUCTION
PLANNING AND CONTROL
 Materials planning:- material specifications, material
volumes, economic lot sizing, inventory planning,
store planning
 Loading, scheduling and sequencing:-machine
loadings, operations scheduling and job sequencing
etc.

17. Definition of a production system
 A production system can be defined as a
transformation system in which a saleable product or
service is created by working upon a set of inputs.
Inputs are usually in the form of
men, machine, money, materials etc. it can be
classified on the basis of the following:

18. Definition of a production system
 Type of production: (job production, batch
production, mass production)
 Size of plant
 Type of product
 Physical flow of materials
 Nature of order/demand pattern
 Variety of jobs

19. JOB SHOP PRODUCTION
 Characterized by make to order strategy
 There are 3 possible situations
Product is manufactured only once
Small quantities of product are repeated in irregular
time intervals
Small quantities of product are repeated in regular
time intervals

20. JOB SHOP PRODUCTION
 End product is different at every time (most of the
time).
 No standard methods, time standards can be
developed.
 As product is changing every time, machines and
other resources should be of general purpose and
flexible.
 Highly skilled workforce is needed to work on varying
product designs.

21. JOB SHOP PRODUCTION
 In-process inventory is usually very high.
 Machines are grouped according to their functional
capabilities.
 System is very flexible.
 Planning and control is very difficult
 Product cost is usually very high
 Delivery dates are only estimated due dates.

22. BATCH PRODUCTION
 A batch of identical articles are manufactured.
 Demand rate < rate of production
 There are 3 possible situations
A batch is manufactured only once (made-to-order)
A batch is repeated at irregular time intervals (made-
to-order)
A batch is repeated at regular time intervals (made-to-
stock)

23. BATCH PRODUCTION
 Final product is usually standard or belong to same
family.
 Customer may be external or internal
 Batch size is determined either by forecasting or order
size.
 Machines may be either general purpose or semi
automated.

24. BATCH PRODUCTION
 Machines are grouped as per their functions
 Skilled labor is required
 Less supervision is required
 Less flexible than job shop type
 Planning and control is less complex

25. MASS PRODUCTION
 Demand rate > rate of production
 Product is standard
 Standard methods, time standards etc can be
generated
 It is a capital intensive system and needs elaborate
planning

26. MASS PRODUCTION
 Semi skilled labor can be employed for supervision
only
 Day to day planning and scheduling need not be
elaborate
 It is a rigid system