session 6 & 7 production planning & control

8/9/2019 Session 6 & 7 Production Planning & Control

1/34

session 6

PRODUCTION

PLANNING & CONTROL


2/34

Planning includes the consideration of all inputvariables so that the predetermined output goals.can be achieved

Control means to take a remedial action to prevent

the variation of actual output from the desired.one


3/34

roduction Planning -is a pre production activitythat involves determination of optimal production

, ,schedule sequence of operation economic batch,quantity optimal job machine assignment and

.dispatching priorities for sequencing of jobs It also involves the determination andevaluation of the other inputs such as manpower

.and money

Control is a complementary activity to the,production planning which keeps track of theoperations that are being performed during the

.production phase


4/34

roduction Planning , -implies formulation coordination and determination of activities in a

manufacturing system necessary for the.accomplishment of desired objectives

roduction Controlis the process of maintaining abalance between various activities evolved during

production planning providing most effective and.efficient utilization of resources


5/34

roduction Planning


6/34

:Process of Production Planning Defining Objectives Setting priorities to attain the objectives ,Analyzing the internal external environment Determining attainable targets Determining the inputs required for

.achieving the targets


7/34

Functions of Production Planning:

Production Selection and Design: Ensure that the suitable kind ofproduct is selected which fulfils

.the market demands Ensures that design of the product is

according to the customer.requirements

Process Selection and Planning: To select the appropriate process that

includes selection of right kind of, ,technology machines material

handling systems and automation for.the production of a product Allows you to perform efficient process

.planning Facility Location:

Helps to choose a proper location for aplant in order to minimize the costs


8/34

Facility Layout and Materials Handling:

To facilitate the transfer of materialand processing of a product in themost efficient manner through the

shortest possible distance with.minimum time wastage

Capacity Planning: Helps to determine how much resource

should be kept to meet the current.market demand

Procedure Planning: Allows you to ensure that the product

being produced as per the specified.quality standard

Estimating: To determine the quantity of the

products and cost associated in the

production of the required quantityof product with the help of sales


9/34

Routing:

Helps determine the proper sequence ofoperations involved in the production.process to meet the production objectives

Process of determining operation sequence isknown as routing.

,For performing routing a route sheet is.prepared

Following information is stored in a route:sheet

Required operations and their propersequence

Machine to production requirements Approximate set up time and operation

.time required per piece of product Tools and fixtures required for

.manufacturing the products

Raw material specifications


10/34

Scheduling:

Helps in laying down time required formanufacturing a product and time requiredfor a product to move form one machine to.other

:Following are the objectives Avoid improper utilization of time

among departments and work centers Optimum utilization of labor and the

output is produced within the.prescribe time

Loading:

Helps determine which job should be assignedto which machine to obtain maximum and.desired output


11/34

roduction Control


12/34

Functions of Production Control: Success of anenterprise greatly depends on the performance of

.its production control department , ,Provision of raw material equipment machines

.and labor To organize production schedule in conformity

.with the demand forecasts Resources are used in the best possible

manner in such a way that the cost ofproduction is minimized and delivery date

.is maintained To ensure regular and timely supply of raw

material at the desired place and of

prescribed quality and quantity to avoid.delays in production -To perform inspection of semi finished and

.finished goods and use quality control It is responsible for product design and

.development


13/34

Importance of Production Control: Reduces cost of production by minimizingwastage of material and economic

.utilization of resources Leads to lower investment by means of

efficient and balanced utilization of.resources Promotes employee morale by avoiding all

.sorts of bottlenecks .Enhances customer satisfaction and confidence


14/34

roduction PlanningControl


15/34

Objectives of Production Planning and Control:

Effectiveness : production of right of goods Maximizing output : production of maximumgoods

Quality control : meet quality specifications Minimizing throughput time: reducing waiting

time and idle time Capacity Utilization: manpower and machine isfully utilized

Minimizing cost : cost of producing goods is.minimized

Maximizing Profit: maximize profit withminimize cost Minimizing throughput: minimum time to

production cycle Maintaining Inventory level: optimum level of

stock is maintained


16/34

Maintaining the performance: proper standards

are maintained by comparing the actual.results with the planned results Capacity planning: proper planning for the

future requirements Reducing bottlenecks: bottlenecks are removed

.from all the stages of production Preparing production schedules: timely

production is made Establishing routes and schedules: optimum

,utilization of materials labor and.equipments by preparing schedules for work


17/34

To ensure quality goods in requiredquantities in the required delivery

.schedule

.To ensure production of quality products To establish routes and schedules for work

that will ensure optimum utilization of.resources

To provide the means for ensuring theoperation of the plant in accordance with.these plans

-To minimize the product though put time or.production cycle time

.To maintain optimum inventory levels To maintain flexibility in manufacturing

.operations -To co ordinate between labor and machines

.and various supporting departments To plan for plant capacities for future


18/34

Determining the nature and amount of various

input factors to manufacture the desired.output - ,To co ordinate labor machines and equipment

.in the most effective and economic manner Establishing targets and checking these

.against performance

Ensuring smooth flow of material by, ,eliminating bottlenecks if any in

.production .Utilization of under employed resources To manufacture the desired output of right

.quality and quantity at right time


19/34

LANNING AND CONTROL DEPARTMENT

Product structure

Manufacturing Documents

Assembled Products

Finished Goods

R & D Department(Product Design)

Production Planning & Control Department

Manufacturing Departments

-Fabrication-Assembly

Final Inspection & Acceptance testing

Packing & dispatching of finished goods

Distribution to customer through channels of distribution

Inspection & Quality Control

Industrial Engineering DepartmentMarketing Department

Purchase Dept. and Stores Dept.

Maintenance Dept.


20/34

:ypes of Production Processes.1 Process Production.2 Mass and Flow Production.3 Batch Production

.4

Jobbing Production

.5 Project Production


21/34

.1 PROCESS PRODUCTION: A system for production where a similar product is

.produced continuously in large quantities : , ,Example steel cement sugar


22/34

Production planning and control in Process Industry:

n PPC .in process industry is relatively simple.Routing is automatic and uniformn Standard processes and specialized

.equipments are usedn As the products are standardized and goods

,are produced to stock and sell scheduling.is easyn Departmental schedules are derived from

.master production schedulesn PPC in process industry is to maintain a

continuous and uniform flow of work atthe predetermined rate in order to

utilize the plant and equipment fully and.to complete the production in time


23/34

Characteristics of PPC in Process Industry:

.I Sound organizational structure with mechanism forproper delegation of authority and fixation of.responsibility at all levels

.II Information feed back system should provide- -reliable and up to date information to all

.persons carrying out PPC functions.III ,Trained personnel for using the special tools

.equipments and manufacturing processes.IV Flexibility to accommodate changes and bottle

,necks such as shortage of materials mix and.inventory turnover

.V Accurate assessment of manufacturing lead times.and procurement lead times


24/34

.2 MASS AND FLOW PRODUCTION: A system designed to produce several standard

.products in mass quantities This system has capability to produce largequantities of products thereby providing the

management with the advantages of economies of.scale

: ,Example automobiles iron and steel parts


25/34

Production planning and control in continuousProduction( )mass and flow production :

n T he equipment need not be specially designed.for the component to be manufactured

n :Flow Production Plant and equipment andlayout have been primarily designed to

.manufacture a particular product


26/34

Characteristics of Planning and Control for

continuous production:1 Extensive effort is required for detailed planningbefore production status but both scheduling

.and control need not be elaborate usually2 Output is either limited by available capacity or

regulated within given limits to conform to.production targets on periodic sales forecasts


27/34

.3 BATCH PRODUCTION: A production process that is deployed in the

.cases where it is suitable to produce in batches To produce limited number of products with

.varying quantities at periodic intervals : ,Example pharmaceutical companies paint

.manufacturing companies


28/34

PPCin Batch Production:n Batch production is the manufacture of a

number of identical articles either to.meet a specific order

n The decisions regarding tooling and jigs andfixtures are dependent on the quantities

.involved in the production batch


29/34

Characteristics of PPCfor Batch production:

1 Planning and control become more simplified asquantities increase and as manufacture becomes.more regular

2 ,Before issuing manufacturing orders need for raw,materials overloading and under loading of

.particular machines must be anticipated3 Several orders are handled simultaneously in

different work centers scheduling and follow.up becomes a difficult task

4 Dispatching has to be done efficiently to avoid

delays and bottlenecks in the production.process


30/34

.4 JOBBING PRODUCTION: Jobbing production involves production of one or more

.numbers of products whose volume is generally small-The customer and producer work on pre decided

parameters in terms of specifications and cost of.products

: , .Example Tailoring shops Building contractors


31/34

Production planning and control in Job Production:

n , When the order is to be executed only oncethere is either scope for improvement ofproduction techniques by introducing

,intricate method studies special tools or.jigs and fixtures

n , &If the order is to be repeated jigs,fixtures tools as well as speciallydesigned inspecting gauges should becarefully considered to reduce the

.manufacturing cycle time


32/34

Characteristics of PPCfor Job Production:

1 Every job order is of different nature and have.different sequence of operations2 Specific job orders are assigned to different

.work stations as per availability of capacity3 Production schedules drawn depend on the relative

.priority assigned to various job orders4 Scheduling is dependent on assessment of

production times and estimating is based on.judgement


33/34

.5 PROJECT PRODUCTION: Project production can be described as a set of

.activities performed to produce a single productThe product here is immobile and different agencieswith different skill sets are deployed on that

.product to complete it : ,Example Road construction companies construction

companies


34/34

Difference between Production Planning and ProductionControl

.at help line functions in attaining the objectives

. ,ry This function of people in a pure staff capacity is to investigate

Production Planning ProductionControl

.e attainment of the organizational objectives

as being that relationship in which a superior exercises direct supervi