production planning mar 11

8/6/2019 Production Planning Mar 11

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Production Planning and ControlTo answer all these questions?

a) What to produce : Product design, characteristics

b) How to produce : Process Planning, Material planning, tool planning

c) Where to produce : Facilities planning, capacity planning, Sub-contract

d) When to produce : Production Scheduling, Machine loading

e) Who will produce : Man power planning

f) How much to produce : Planning for quantities, Economic Batch size


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LEVELS OF PRODUCTION PLANNING

Strategic Planning

Tactical Planning

Supervisory Planning

Operational Planning


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Production Planning & Control

A management tool, that coordinates all

manufacturing activities.

PPC may be defined as the planning, direction

and coordination of the firms material and

physical facilities towards the attainment of pre-

determined production objectives in the mosteconomical manner.


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Classification of PPC function

1. Materials : Procure, Store, Issue & Inventory

Control

2. Methods :Processes & their sequences

3. Machines & Equipments : Utilisation

4. Routing : Flow of Work

5. Estimating :Operation times

6. Loading & Scheduling


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Classification of PPC function

7. Dispatching : Authorising the start of

operations

8. Expediting & Progressing

9. Inspection : Checking Quality; Efficiency in

Operations, Process, Methods

10. Evaluating or Controlling


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Production Planning & Production

Control

Objectives of operation planning is to provide

a physical system together with a set of

operating guidelines for efficient conversation

of raw materials, human skills and other

inputs into finished products.

Factors:

Volume of production

Nature of production process

Nature of operations

Product Planning & Process Planning


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PRODUCTION CONTROL

Importance :

To maintain quality, quantity at required time

To provide for optimum utilisation of all resources Low cost production & Reliable customer services

Measure, Monitor & Control all processes,

Methods


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Benefits of Production Control

1. Competitive Advantages Reliable delivery to customers

Delivery schedule

Lower production cost Greater pricing flexibility

Orderly planning & improved products

2. Improvements in profits

By reducing Inventory cost

Reducing Scrap & rework cost

Reducing Set-up & indirect cost

Increasing productivity ; Machine, Man, Space


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Elements of Control

1. Control of planning

2. Control of material

3. Control of tooling

4. Control of manufacturing capacity

5. Control of activity

6. Control of material handling

7. Quality control

8. Control of Due dates

9. Control of Information


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Limitation of PPC

PPC is ineffective, If demand forecast data, are

not reliable

Employees may resist the rigid plans Time consuming exercise

Environmental factors may change,

Technology, Customers taste, Powerscheduling, natural calamity may disrupt the

supply chain


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Production Planning Hierarchy

Master Production SchedulingMaster Production Scheduling

Production Planning and Control SystemsProduction Planning and Control Systems

Pond DrainingPond Draining

SystemsSystems

Aggregate PlanningAggregate Planning

PushPush

SystemsSystems

PullPull

SystemsSystems

Focusing onFocusing on

BottlenecksBottlenecks

LongLong--Range Capacity PlanningRange Capacity Planning


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Production Planning HorizonsProduction Planning HorizonsProduction Planning HorizonsProduction Planning Horizons




SystemsSystems


PushPush

SystemsSystems

PullPull

SystemsSystems



LongLong--Range Capacity PlanningRange Capacity PlanningLongLong--RangeRange

(years)(years)

MediumMedium--RangeRange

(6(6--18 months)18 months)

ShortShort--RangeRange

(weeks)(weeks)

VeryVery--ShortShort--RangeRange

(hours(hours -- days)days)


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Production Planning: Units of MeasureProduction Planning: Units of MeasureProduction Planning: Units of MeasureProduction Planning: Units of Measure




SystemsSystems


PushPush

SystemsSystems

PullPull

SystemsSystems



LongLong--Range Capacity PlanningRange Capacity PlanningEntireEntire

Product LineProduct Line

ProductProduct

FamilyFamily

SpecificSpecific

Product ModelProduct Model

Labor, Materials,Labor, Materials,

MachinesMachines


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Pond-Draining Systems

Emphasis on holding inventories (reservoirs)

of materials to support production

Little information passes through the system As the level of inventory is drawn down,

orders are placed with the supplying

operation to replenish inventory

May lead to excessive inventories and is rather

inflexible in its ability to respond to customer

needs


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Push Systems

Use information about customers, suppliers,

and production to manage material flows

Flows of materials are planned and controlledby a series of production schedules that state

when batches of each particular item should

come out of each stage of production

Can result in great reductions of raw-materials

inventories and in greater worker and process

utilization than pond-draining systems


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Pull Systems

Look only at the next stage of production and

determine what is needed there, and produce

only that

Raw materials and parts are pulled from the

back of the system toward the front where

they become finished goods

Raw-material and in-process inventories

approach zero

Successful implementation requires much

preparation


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Focusing on Bottlenecks

Bottleneck Operations

Impede production because they have less

capacity than upstream or downstream stages

Work arrives faster than it can be completed

Binding capacity constraints that control the

capacity of the system

Optimized Production Technology (OPT)

Synchronous Manufacturing


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Operations performance measured by

throughput (the rate cash is generated by sales)

inventory (money invested in inventory), and operating expenses (money spent in converting

inventory into throughput)


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System of control based on:

drum (bottleneck establishes beat or pace for

other operations)

buffer (inventory kept before a bottleneck so it is

never idle), and

rope (information sent upstream of the

bottleneck to prevent inventory buildup and tosynchronize activities)


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Make or Buy Decision

Economic Consideration

Non-economic Consideration

Availability of supply, Control of trade secrets,Design secrets, Quality and Reliability

Consideration, R&D Facilities available in house,

Delivery schedule to be met, employee

preference, availability of in-house capacity,

Lead-time required for procurement,


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Make or Buy Decision

When to make : Lower cost, assurance of

availability, Better control on quality,

Availability of app manufacturing equipment

and expertise, Desire to preserve trade

secrets, design secrets, savings on

transportation costs

When to Buy : Vendor supply at lower cost,higher quality, faster delivery times, demand is

in low numbers, Patent held by the vendor,

when opportunity costs are much higher than


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Wrap-Up: World-Class Practice

Push systems dominate and can be applied to

almost any type of production

Pull systems are growing in use. Most oftenapplied in repetitive manufacturing

Few companies focusing on bottlenecks to

plan and control production.

production planning mar 11

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