ppc unit i (1)
TRANSCRIPT
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1.0 Introduction
“The highest efficiency in
production is obtained
by
manufacturing the required
quantity of product, of the required quality, at the required time, by the best and cheapest
method.”
To
attain
this
target,
management
employs
production
planning
and
control,
the
tool
that
coordinates
all
manufacturing
activities.
The
four
factors
namely;
quantity
,
quality,
time
and
price
encompass
the
production
system,
of
which
production
planning
and
control
is
the
brain.
Three
distinct
stages
comprise
every
activity
in
such
a
system:
Planning, Operations and ontrol.
Planning begins with an analysis of the given data, on the basis of which a scheme for the
utili!ation
of
the
firm"s
resources
can
be
outlined
so
that
the
desirable
target
may
be
mostefficiently
attained.
The production plan
sets
sub#targets for the various departments in
terms of predetermined time periods and these sub#targets are so defined that in achieving
them
the
over#all
aim
is
reali!ed.
Operations
are
performed
in
accordance
with
the
details
set
in
the
production
plan.
Control initiates and supervises operations with the aid of a control mechanism that feeds
bac$ information about the progress of the wor$.
This mechanism is also responsible for
subsequently ad%usting, modifying and redefining plans and targets in order to ensure the
attainment of the first goal.
2.0 Functions of Production Planning and Control
&pecifically, the functions of Production, Planning and ontrol 'see fig.() can be classified
in
ten
categories.
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*
Materials:
+aw
materials,
as
well
as
standard
finished
parts
and
semi#finished
products,
must
be
available
when
required,
to
ensure
that
each
production
operation
will
start
on
time
.
uties include the specification of materials 'both with respect to dimensions and quality),
quantities and
availability,
delivery dates,
standardi!ation and
reduction of
variety
,
procurement and
inspection.
This function also
covers the procurement of semi#finished
products from subcontractors.
Methods:
The
purpose
of
this
function
is
to
analy!e
possible
methods
of
manufacture
and
to
try
to
define
the
best
method
compatible
with
a
given
set
of
circumstances
and
facilities.
This
analysis
covers
both
the
general
study
and
selection
of
production
processes
for
the
manufacture of components or assemblies and the detailed development and specifications
of methods of application.
&uch a study results in determining the sequence of operations
and
the division
of the
product into assemblies and
subassemblies,
modified by
t
he
limitations
of
e-isting
layout
and
wor$
flow.Machines and Equipment:
ethods
of
manufacture
have
to
be
related
to
available
production
facilitie
s,
coupled
with
a detailed
study
of equipment
replacement
policy. aintenance
polic
y,
procedure
and
schedules are
also
functions
connected
with
managerial responsibility
for
equipment, since the whole problem of brea$downs and reserves can be seriously reflected
in
halts
in
production. Tool
management,
as
well
as
problems
both
of
design
and
economy of %igs and fi-tures, constitutes some of the ma%or duties of production planning
and
control.
Routing:
Once the overall
methods and
sequence of operations have been
laid
down,
each
stage in production is bro$en down to define each operation in detail, after which the issue
of production orders can be planned.
+outing prescribes the flow of wor$ in the plant and
is
related
to
considerations
of
layout,
of
temporary
storage
locations
for
raw
materials
and
components
and
of
materials
handling
systems.+outing
is
fundamental
production
function on which all subsequent planning is based.
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Estimating:
/hen
production
orders and detailed operation
sheets are
available
w
ith
specifications of feeds, speeds and use of au-iliary attachments and methods, the operation
times
can
be
wor$ed
out.
This
function
involves
the
e-tensive
use
of
operation
analysis
in
0
con%unction with methods and routing,
as well as wor$ measurement,
in order to set up
performance standards. The human element figures prominently in wor$ measurement
because it is sensitive to systems of wor$ ratings and wage incentive schemes. 1ence, it
may
consequently
reflect in
a wide scatter
of
operation
times and in
unduly
la
rge
fluctuations
and
perhaps
instabilities
in
time
schedules.
oading and !cheduling:
achines
have
to
be
loaded
according
to
their
capability
of
performing
the
given
tas$ and according to their capacity.
achine
loading
is carried out
in con%unction
with
routing,
to
ensure
smooth
wor$
flow, and
with
estimating,
to
ensure
that the
prescribed
method, feeds and speeds are best utili!ed.
&cheduling is perhaps the toughest %ob facing a
production manager because it determines the utili!ation of equipment and manpower and
hence
the
efficiency
of
the
plant.
&cheduling
must
ensure
that
operations
are
properl
y
dovetailed, that semi#finished components
arrive
at their ne-t station in time, t
hat
assembly wor$
is
not delayed
and
that
on
the
other hand
the
plant is
not
unnecessaril
y
loaded both
physically
and financially
with
wor$ in
process i.e.,
with
semi#
finished
components waiting for their ne-t operation. This calls for a careful analysis of process
capacities,
so
that
flow
rates
along
the
various
production
lines
can
be
suit
ably
coordinated.
2n
machine
loading,
appropriate
allowances
for
setup
of
machines,
process
of
ad%ustments and maintenance down time have to be made,
and
these allowances form a
vital part of the data constantly used by the scheduling function.
"ispatching:
This
function
is
concerned
with the
e-ecution of
the
planning
functio
ns.
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ispatching is “the routine of setting
productive activities in
motion,
through
release of
orders and instructions and in accordance with previously planned times and sequences as
embodied
in
route sheets and
loading schedules”. ispatching authori!es the start o
f
production
operations
by
reali!ing
materials,
components,
tools,
fi-tures
and
instructionsheets
to
the
operator
and
ensures
that
material
movement
is
carried
out
according
th
e
planned routing sheets and to schedules.
E#pediting:
This control tool is the e-ecutive arm that $eeps a close watch on the progress of
the wor$.
3-pediting, or “follow#up” or “progress” as it is sometimes called, is a logical
step
after dispatching.
ispatching
initiates
the
e-ecution
of production
plans,
whereas
e-pediting
maintains
them
and
sees
them
through
to
their
successful
completion.
This
4
function has to $eep close liaison with scheduling, in order to provide efficient feedbac$
and prompt review of targets and schedules.
Inspection:
5nother
ma%or
control
function
is
that
of
inspection. 5lthough
the
control
of
quality
is
often
detached
from
the
production
planning
and
control
department,
its
findings
and criticisms are of supreme importance both in the e-ecution of current plans and in the
planning
stage
of
future
underta$ings,
when
the
limitations
of
processes,
methods
an
d
manpower are $nown.
These limitations can form a basis for
further
investigations i
n
evaluating,
with the
view
to
improving
production
methods
or
indicating
the
c
ost
implications
of
quality
at
the
design
stage.
E$aluating:
Perhaps the most neglected function, but an essential lin$ between control and futur
e
planning
is
that
of
evaluating.
The
e-ecutive
tas$s
of
dispatching
and
e-pediting
ar
e
concerned with the immediate issues of production and with measures that will ascertain
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the fulfillment of set targets. 6aluable information is gathered in this process, but th
e
feedbac$ mechanism is rather limited in nature and unless provision is made so that all this
accumulated
information
can
be
properly
digested
and
analy!ed,
valuable
data
may
be
irretrievably
lost.
This
is
where
the
evaluating
function
comes
in:
to
provide
a
feedbac$ mechanism on a longer term basis so that past e-perience can be evaluated with the view
to improving utili!ation of methods and facilities. any firms consider this functio
n
important
enough
to
divorce part
of
it from production
planning
and
control and
to
establish it as a separate department in its own right, in which wider aspects of production
management
can
be
studied,
using
modern
tools
of operations
research.
/hatever th
e
scope of evaluating in the production planning and control department, this process is an
integral part of the control function.
%.0 &'(ecti$es and ad$antages of production planning and control
7efore starting any wor$, it is necessary to plan the things properly for getting best
results.
&imilarly
for
production,
planning
in
advance
is
very
necessary
and
if
there
is
no
planning
then
how
shall
we
control8
2t
is
the
planning
department,
which
decides
about
each
element
of
the
%ob
in
anticipation
that
what
wor$
shall
be
done,
where,
how
and
when
it
shall
be
done.
9
%.1Functions:
The functions of planning are grouped as under:
# 2nvestigation
about
the
complete
details
and
requirements
of
the
product
to
b
e
manufactured.
# Pre#determination of future achievements.
# Planning the design of product going to be manufactured.
# Planning
about
the
quality
and
quantity
of
materials
which
are
to
be
consumed.
# Planning
about
the
standard
of
quality
of
products
to
be
manufactured.
# Planning about the sequence of operations.
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# Planning about the capacity of equipments.
# Planning about internal transportation.
2n broad terms, production planning means, planning of a production.
Production
planning can be defined
as the
means by which a manufacturing plan is determine
d,
information issued for its execution, and
data collected and
recorded,
which will enable
the plan to be controlled through all its stages.
%.2 &'(ects of Production Planning:
(. To determine the capacity of manufacturing departments and to plan systematically
co#ordinated and related production activities to meet sales requirements.
*. To
plan
for
manufacturing
requirements
li$e
materials
so
that,
they
are
available
inright quality and quantity at the right time.
0. To translate sales orders into the orders on the wor$s department.
4. The co#ordinate with different departmental groups so that line balance of activities
is maintained.
9. To promote full utili!ation of plant capacity.
. To
maintain
a
record
of
material
in
stoc$
in
such
a
way
so
as
to
enable
to
anticipate
future requirements.
. Prepare schedule of requirements.
%.% Production Control:
1enri
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%.%.2 Fields of Production Control:
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• To maintain fle-ibility in manufacturing operation so that emergency rush can b
e
accommodated.
%.* +d$antages of Production Planning and Control:
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=
).0 +cti$ities of Production Planning
This section includes eight distinct activities.
,i-
Production 'udget office:
/here the
incoming orders are obtained and recorded in
the
order
boo$
where
the
budget
requirements
in
connection
with
the
e-ecution
of
the
order
are
wor$ed
out.
elivery
dates
are
estimate
after
the
planning
of
schedules
is
completed.
,ii- Materials records office: where planning engineers can obtain information about
materials available in the stores, so that action can be ta$en to “free!e” or allocate the
required
amounts
and
to
sanction
the purchases of
those materials
which
are
n
ot
available.
5llocation of materials in the stores is an important step at an early stage of
the proceedings, a chaotic situation as stoc$s of materials are liable to
change before
production is due to start, and if the required materials are issued in the interim period
for
other
purposes,
a
chaotic
situation
may
arise. Precisely
for
the
same
reaso
n,
records have to be $ept up to date, to ensure that the picture they present is realisti
c
and reliable.
,iii-Methods planning: whose responsibility is to asses the potentialities of available
processes and select the most suited
for
the production
of each
component of t
he
product. ethods
engineers
also
decide
how the product
should
be divided
int
o
assemblies,
the
sequence
of
operations
for
each
part,
and
the
methods
of
assembling.
ethods" planning is an important %ob, as it lays the foundation for all subseque
nt
planning
and
control activities.
The
methods
engineer must
be
conversant
not onl
y
with
the multitude of
manufacturing
processes
that are in
use,
their merits a
nd
limitations,
and
their
technological
and
economical
significance,
but
he
must
be
also
familiar
with
newly
developed
processes
and
new
materials
that
are
introduced
into
the
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mar$et practically every year. Obviously these require that he $nows
fundamenta
l
motion
A economy
principles, in
order to
ensure that
his prescribed methods a
re
basically
sound,
wor$able,
and
efficient.,i$- achines
records,
from
which
information
can
be
obtained
on
the
followi
ng
questions.
• 1ow many machines are there8 /hat is their accuracy, their range of speeds
,
feeds, etc.8
• /hat maintenance or over#all repair schedules do they have8
?
• /hat is the frequency of brea$downs 'from past e-perience)8 /hat alternatives
are
available in case of brea$down8
•
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planning
stage.
echanical aids,
especially
%igs
and
fi-tures,
can
sometimes
be
re
#
used,
either
in
whole
or
in
part.
2n
such
cases
not
only
the
cost
is
reduced,
but
lea
d
times
also
can
be
considerably
shortened.
This
aspect
of
repeated
use
of
productionaids
demands
much
thought
and
careful
planning
of
their
functional
fle-ibility
at
the
design stage.
5 large number of components, from which these aids are constructed,
can in
fact
be
standardi!ed
and
constantly
$ept in
stoc$
so
that they
are read
ily
available
when a
new
fi-ture,
position,
etc.,
has
to be
designed or assembl
ed.
5dvanced standardi!ation of mechanical aids requires great s$ill and in the part of tool
and
%ig
designers,
especially
when
the
plant
is
engaged
manufacturing
a
variety
o
f
products on
a batch production basis
and
when
short lead
times for planning
a
re
desirable in order to ascertain short delivery dates.
,$i-Operation layout and routing office, which is responsible for e-pressing the production
plans in a form understandable to those who have to carry them out. Process charts are
translated
into
route
sheets
and
operation
sheets,
and
the
operations
are
described
in
great
detail.
5ll
the
tools,
%igs,
and
fi-tures
that
should
be
used
for
each
operation
are
specified.
,$ii- Time estimating office, where operation times are wor$ed out from the given data in
the operation sheets.
These times include:
(@
• alculations of actual production times based on speeds, feeds, etc.
• Con productive times, which cover chuc$ing, or loading, setting, and unloading of
the machines
• Times for additional tas$s fo the operators, during which the machine is n
ot
effectively
employed.
• 5llowances for delays, stoppages, interference, personal fatigue, etc.
,$iii- &cheduling,
where
machines
are
loaded
against
their
available
capacity
and
all
the
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planning details and calculations are integrated into a final sequential
pattern o
f
target
forecast,
which sets the pace for production and for its
completion can b
e
specified
and
an
assessment
can
be
made
on
the
plant
over#all
available
capacity,delivery dates, effects of new orders on schedules,
).1 +cti$ities of Production Control:
,i- ispatching Office, which has is responsible for the release of production orders. The
dispatches have to be acquainted not only with the %ob but also with the men in order to
ensure
that
tas$s
are
smoothly
allocated
and
properly
understood.
,ii- 3-pediting center, which has to maintain, with the aid of e-peditors or progress men,
an
effective
communication
system
between
the
shop
floor
on
one
hand
and
in
scheduling
office
on
the
other,
and
which
regulates materials flow
in
the shop
an
d
secures conformity of the plan and practice. This communication system can mar$ the
success
or
failure
of
the
schedule,
and
it
therefore
calls
for
alertness,
s$ill
and
a
thorough
$nowledge
of
the
details
of
the
schedule
and
flow
of
materials.
*.0 &rganiation of PPC "epartment
The demarcation
of responsibility
in
industry
between
the
departments
variety
considerably with the type of production, si!e of plant, the importance higher management
attributes of certain functions and the effects of personalities in the organi!ation.
5 brand,
though by no
means rigid division of industrial engineering
functions
is suggested in the
accompanying chart.
((
I/"!RI+ E/I/EERI/ F/CI&/!
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Production Planning 3 Control Methods Engineering
aterials: records, availability
procurement, storage, issue, control.
ethods:
onfined
to
choice
fromavailable facilities for manufacture of
given products; tool and %ig design.
achines: &pecifications, availability,
loading.
+outing, 3stimating, &cheduling,
ispatching.
2nspection: Only concerned with
inspection results, but not with its
e-ecution.
3-pediting: all responsibilities.
3valuation: oncerned with immediate
lessons derived from production control,
but analysis of data for long term
planning is performed by the methods,
3ngineering epartment.
otion study: Operations analysis
storage, 'method of study), micro
motion study, wor$ place layouts.
Process
3valuation:
omparison
of
processes, new processes.
achines:
3quipment policy,
maintenance,
and
renewal.
Dayout:
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• 5 demarcation of authority and responsibility, which clearly specifies t
he
mechanism of facts, evaluation and decision ma$ing.
5
typical
organi!ation
chart
is
shown
in
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Departmental sectionalization:
The
planning
and
control
department
normally
consists
of
three
sections
'see
fig.0).
• The planning section; the head of which is in charge of all the planning functions.
• The
control
section,
the
head
of
which
is
concerned
with
all
control
functions
from
the
word “go”.
• The inventory section, which deals with all problems connected with materials and
their
requisition
and
storage.
4.0 Centralied and "ecentralied Production Planning and Control:
2n
multi
plant
establishment
the
organi!ation
of
the
production
planning
an
d
control functions presents several difficult problems.
On the one hand all the activities of
production planning and control have to be coordinated in order to attain unity of purpose
as e-pressed
by top management policy.
This is reflected
in management
planning with
respect
to
budgeting,
allocation
of
facilities,
e-pansion
and
plant
renewal policy. 2t
becomes
particularly
important
when
production
schedules
have
to
be
coordinate
d,
especially when the end
product of one plant is feed
to
another. On
the other ha
nd,
production planning and control functions are closely related to the production activities of
each plant, and it is neither efficient nor practical to rely on “remote control”.
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(4
These
two
aspects
have
essentially
led
to
two
different
systems
for
organi!ing
production
planning
and
control
in
multi
plant
establishments:
a
centrali!ed
and
a
decentrali!e
d
organi!ation,
as
shown
in
fig.
4
and
9.
5part
from
the
natural
desire
of
individual
plants
to
be
self
sufficient,
and
have
a
complete
production
planning
and
control
organi!ation
of
their own, versus the tendency on the part of some top managements to over centrali!e in
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order to have every thing “under control” there are obviously
ob%ective argume
nts
(9
production
and
control each
type
of organi!ation
and
the
arguments
will
depend
on
the
particular case that
is being
considered.7ut
even
under circumstances of
full
plant
autonomy, some form of centrali!ed planning is necessary to provide a master production
schedule
and
to
set
performance
targets.
Those
functions
of
production
control
which
are
associated
with
everyday
problems
of
dispatching
and
e-pediting
are
vital
in
the
plant
,
even
in
a
centrali!ed
organi!ation
setup.These
aspects
are
clearly
shown
in
the
organi!ation
charts
in
fig.(
and
*
and
between
these
two
a
wor$ing
framewor$
can
b
e
constructed to suit the particular needs of various multi plant establishments.
5.0 Production s6stem
Production:
Production
is an organi!ed
activity
of converting
raw materials into
useful
products, by organi!ed utili!ation of
natural
resources,
men,
money,
materials an
d
machines.
/hereas
in
the
input.
onversion
A
output
sequence,
the
smallest
unit
of
productive activity, is termed as operation.
Therefore an operation is some step in th
e
overall process of producing a product or service that heads to final output.
Production
can
also
be
defined
as
follows.
• Production is a sequence of technical process, requiring either directly or indirectly the
mental and
physical s$ill
of
craftsman
and
consists
of
changing
the
shape,
si!e
an
d
properties of materials and ultimately converting them into more useful articles.
• Production is a process developed to transform a set of inputs li$e men, material
s,
money,
machinery,
and
energy
into
a
specified
set
of
outputs
li$e
finished
products
and
services
in
desired
quantity and
quality
in
order
to
achieve
the
ob%ectives of the
enterprise.
Production includes manufacture of goods and services, which has four recogni!ed factors
namely.
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'i)
natural resources including land 'ii) labour, 'iii) capital i.e., factory building, machine,
tools, raw
materials, etc., 'iv) organi!ation. Production involves a wide range activities
starting from selection of site to the pac$ing of products for distribution.
Production system consists of inputs at one end and the output as the other.
The
inputs
F
outputs
are
connected
by
a
serious
of
operations
or
processes,
storage
and
inspections.
5 simple production system is shown.
(
5.1 6pes of Production:
ifferent types of production can be placed under two categories, namely.
(. 2ntermittent production
*. ontinuous production.
2n
intermittent
production
machinery
is
used
for
a
short
duration
of
time
f
or
producing
an
item,
and
then
changed
to
produce
another
item. /hile
in
continuous
production, setup of production is filed F used to produce same item.
5.1.1 7o' Production:
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This is the oldest method of production on a
very small scale.
/ith this method
individual requirements of the consumers can be met.
3ach %ob order stands alone and is
not li$ely to be repeated.
This type of production has a lot of fle-ibility of operation and
hence general purpose machines are required.
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machines F remaining are general purpose machines.
5s in this type of production, two or more types of products are manufactured in
lots 'i.e., batches). 5t regular interval, therefore this is $nown a 7atch production.
ost of
the 3ngineering
concerns
are adopting
7atch
production. 2n
this
type of productio
n,different products are manufactured and stoc$ed and then sold on receipt of orders.
+d$antages:
• /hile comparing with mass production it requires less capital.
• 2f demand for one product decreases then production for another product may
be
increased,
thus
the
ris$
of
loss
is
very
less.
• omparing with %ob production, it is more advantageous commercially.
"isad$antages:
• omparing with mass production cost of sales and advertisement per unit is more.
• +aw materials to be purchased are in less quantity than that in mass producti
on.
Therefore,
it
is
slightly
costlier
than
that
of
mass
production.
(=
5.1.% Mass Production:
This type of production is a large scale production F is a continuous production.
2n %ob production,
factory wor$s only when orders are received and when orders are not
received
for
some
time
then
for
that
period
wor$
may
come
to
a
stand
still.
7ut
m
ass
production is a continuous production and it does not have any non producing tim
e.
This type of production requires specially planned layout, one purpose machinery
and costly pigs F fi-tures etc.
2n this method with the use of automatic machines, articles
automatically move forward from one stage to the ne-t stage of manufacturing operation.
2n mass production, simplification F standardi!ation of products are made.
/ith
the help of speciali!ed 'one purpose) machines, articles of standardi!ed nature can easily
and economically be produced on a large scale. Dayout of the plant is such that it can be
used
for
only
one
type
of
product.
&equence
of
flow
of
the
product
during
manufacturing
remains same.
2n this type of production, different machines are assigned a definite nature
of wor$.
Throughout the run of the plant, only one type of product can be manufactured.
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To avoid the problem of
material handling,
use of
mechanical means such a
s
converges of different types, cranes etc. can be used.
+d$antages:
•
ass
production
gives
better
quality
F
increased
production.• /astage is a minimum.
• 5s raw material are purchased on a large scale, higher margin of profits are available,
while
purchasing
them.
• &ales promotion and advertising do not prove to be costly as their e-penses are spread
over thousands of articles produced; hence cost per unit is low.
• Only few s$illed and rest semi#s$illed wor$ers are required hence labour cost is reduced.
"isad$antages:•
uring
the
period
of
less
demand
heavy
losses
on
the
invested
capital
may
ta$es
place.
• 7ecause of all the machines used are one purpose machines therefore, this type
of
production is not changeable to other types of production.
• ost of the wor$ers handle only particular operation. They may get s$ill in their %ob
but after sometime they feel bored with the repetition of some type of wor$.
•
5s
their
type
of
production
is
on
large
scale,
therefore
it
cannot
be
fulfill
individual
taste.
2t produces things of standardi!ation form which are demanded on a large scale.
(?
5.1.) Process production:
2n
this
type
of
production,
the
plant
and
its
equipment
and
layout
have
been
primarily designed to manufacture the desired product. 3-amples of such production are
automobiles, chemical
plants, fertili!er plants
etc.
Bnli$e other production
system
s,
switchover
to
other
product
is
very
difficult
and
e-pensive
and
required
change
of
layout.
The
change
in
product
becomes
e-tremely
difficult
and
costly
affair
especially
whe
n
special
purpose
machines
and
comple-
material
handling
systems
are
involved.
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*@
9uestions from Pre$ious papers:
(.
'a) efine Production Planning F ontrol 'PP).
'b) Production Planning F ontrol &ystem is factory"s nervous system”. >ustify
the statement with logical e-planation.
*.
'a) &tate the ob%ectives for which PP department is established in a factory
system.
'b)
3-plain
the
characteristics
of
various
types
of
production
systems.
0.
3-plain various
functions
of production
control department. raw inte
rnal
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organi!ation chart of Production planning department.
4. 'a) Dist out the planning functions and controlling functions separately.
'b) /hat are differences between %ob shop, batch type and continuous production
systems8
9.
'a)
iscuss
the
ob%ectives
of
PP.'b) /hat do you understand by control phase8 3-plain the activities under this phase.
. 'a) escribe the elements of Production control.
'b)
3-plain
the
various
functions
of
PP.
. 'a) /ould operations planning and control in service industries be different from PP
in manufacturing industries8 iscuss.
'b) iscuss centrali!ation and decentrali!ation in the conte-t of PP.
=.
'a) /hat are the main types of production systems8 3-plain.
'b) /rite a note on the organi!ation of PP department.
?.
3-plain various elements of production control.
(@. 'a) 3-plain characteristics of %ob shop production system.
'b)
Give
internal
organi!ation
chart
for
%ob
shop
production
system.
((.
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*(