Tuning the planning and control system to product and process design: G3

Tuning the planning and control systems to
product and process design
Technology and Innovation

Contents
1 Introduction
2 The need for Production Planning
3 Planning
4 Aggregate Production Planning
5 Work Force Planning
6 Material Requirement Planning
7 Routing, Scheduling and Loading
8 Production Control and Production Control using JIT
9 Shop Floor control
10 Dispatching, Follow-up and Inspection
11 Corrective measures
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Introduction
• Production Planning may be said to be a technique of
forecasting ahead every step in the long process of
production, taking them at right time and in the right degree
and trying to complete operations at the maximum
efficiency.
• Production control is the process that keeps a watchful eye
on the production flow and size of resources along with the
location, of any deviation from the present action and to
arrange for the prompt adjustment so that the production
may run according to the original or revised schedule.
• Planned production is an important feature of the small
industry.
• Planning and control involve generally the organization and
planning of manufacturing process.
• The ultimate objective is the organization of the supply and
movement of materials and labor, machines utilization and
related activities.

Need for production planning
Addresses decisions on
 Acquisition
 Utilization
 Allocation of limited
production
resources
 Resources include the production
facilities, labor and materials.
 Constraints include the availability
of resources, delivery times for the
products and management policies.
 Optimum Utilization of Capacity
 Inventory control
 Economy in production time
 Ensure quality
 To sum up we may say that PPC is of
immense value to the entrepreneur
in capacity utilization and inventory
control.
 More importantly it improves his
response time and quality. As such
effective PPC contributes to time,
quality and cost parameters of
entrepreneurial success.

Production planning and Control

Aggregate production planning
Objectives:
• To generate a medium-term production plan
• To establish rough product mix
• To anticipates bottlenecks
• To align capacity and workforce plans.
• It is usually done for next 2 to12 months.
• Demand changes over a period of time at a faster rate than
the resources. Aggregate planning offers strategies to absorb
these fluctuations.

Aggregate production planning
Output of Aggregate Planning
 Production quantity from regular time, overtime
and subcontracted time.
 Inventory held for determination of how much
warehouse space and working capital is needed
 Backlog or stock-out quantity for determining the
customer service levels

Production
Demand
Unit
s
Time
Level plans
• Use a constant workforce and produce similar quantities each time period
• Use inventories and backorders to absorb demand peaks & valleys
Strategies in Aggregate production
planning

Unit
s
Time
Series1
Production
Demand
Chase plans
Series1
Minimize finished good inventories by trying to keep pace with
demand fluctuations
planning

Hybrid or Mixed Strategies
• Build-up inventory ahead of rising demand and use
backorders to level extreme peaks
• Layoff or furlough workers during lulls
• Subcontract production or hire temporary
• workers to cover short-term peaks
• Reassign workers to preventive maintenance during
lulls.
• Influencing Demand
planning

Work Force Planning
To find out and
direct:
• Right people
• Right place
• Right time
• Right price
Issues
• Basic Staffing
Calculations and labor
hours
• Working Environment
• Flexibility/Agility
• Quality

Hybrid or Mixed Strategies
• Build-up inventory ahead of rising demand and use
backorders to level extreme peaks
• Layoff or furlough workers during lulls
• Subcontract production or hire temporary
• workers to cover short-term peaks
• Reassign workers to preventive maintenance during
lulls
• Influencing Demand
planning

Material Requirement Planning
MRP is a production planning and inventory control system
used to manage manufacturing processes.
An MRP system has 3 major objectives
 Ensure materials are available for production and products are
available for delivery to customers.
 Maintain the lowest possible level of inventory
 Plan manufacturing activities, delivery schedules
and purchasing activities

Routing
• Under this, the operations, their path and sequence are
established.
• To perform these operations the proper class of machines
and personnel required are also worked out. The main
aim of routing is to determine the best and cheapest
sequence of operations and to ensure that this sequence
is strictly followed.
• Routing procedure involves following different activities.
• An analysis of the article to determine what to make and
what to buy.
• To determine the quality and type of material
• Determining the manufacturing operations and their
sequence.
• A determination of lot sizes
• Determination of scrap factors
• An analysis of cost of the article
• Organization of production control forms.

Scheduling
Types of scheduling
 Forward scheduling
 Backward scheduling
The pattern of scheduling differs
from one job to another which is
explained as below.
 Master Schedule
 Production Schedule
 Manufacturing Schedule
 Scheduling of Job Order
manufacturing

Production Control
“Production control is the process of planning
production in advance of operations,
establishing the exact route of each individual
item part or assembly, setting, starting and
finishing for each important item, assembly or
the finishing production and releasing the
necessary orders as well as initiating the
necessary follow-up to have the smooth
function of the enterprise.”

Production Control Using JIT
Pull production and kanban
JIT is associated with pull
systems.
Toyota was the first
developer of
kanban system.
Examples
 McDonalds'
 Office Xerox Paper
JIT is the technique for
reducing inventories and
elimination of waste in
the production system.
Objectives
 To eliminate waste
 To improve quality
 To minimize lead time
 To reduce costs
 To improve
productivity

Shop Floor Control
Pull production and kanban
JIT is associated with pull
systems.
Toyota was the first
developer of
kanban system.
Examples
• McDonalds'
• Office Xerox Paper
Objective
To control flow of work
through plant and
coordinate with other
activities (e.g., quality
control, preventive
maintenance, etc.)

Shop Floor Control
Material Flow
Control

Shop Floor Control
Functions
• Gross Capacity Control
• Match line to demand by staffing (workers/shifts)
• Varying length of work week (or work day)
• Using outside vendors to augment capacity
• Bottleneck Planning
• Handling of bottlenecks
• Cost of capacity is the key
• Stable bottlenecks are easier to manage
• Span of Control
• Physically or logically decompose system
• Span of labor and process management

Shop Floor Control
Issues:
• Customization
• SFC is often the most highly customized activity in
a plant.
• Information Collection
• SFC represents the interface with the actual
production processes and is therefore a good place
to collect data.

Dispatching
Dispatching involves issue of production orders for starting the
operations. Necessary authority and conformation is given for:
• Movement of materials to different workstations.
• Movement of tools and fixtures necessary for each
operation.
• Beginning of work on each operation.
• Recording of time and cost involved in each operation.
• Movement of work from one operation to another in
accordance with the route sheet.
• Inspecting or supervision of work

Follow Up and Inspection
• Every production program involves determination of
the progress of work, removing bottlenecks in the flow
of work and ensuring that the productive operations
are taking place in accordance with the plans.
• It spots delays or deviations from the production
plans. It helps to reveal detects in routing and
scheduling, misunderstanding of orders and
instruction, under loading or overloading of work etc.
• All problems or deviations are investigated and
remedial measurer are undertaken to ensure the
completion of work by the planned date.
• This is mainly to ensure the quality of goods. It can be
required as effective agency of production control.

Corrective Measure
Corrective action may involve any of those activities of
adjusting the route:
• rescheduling of work
• changing the workloads
• repairs and maintenance of machinery or equipment
• control over inventories of the cause of deviation is the
poor performance of the employees.
• Certain personnel decisions like training, transfer,
demotion etc. may have to be taken. Alternate
methods may be suggested to handle peak loads.

Tuning the planning and control system to product and process design: G3

Tuning the planning and control system to product and process design: G3

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