Production Planning & Control involves the organization of an overall manufacturing

system to produce a product. The various activities involved are:

 Designing a product
 Determining the equipment & capacity requirements
 Designing layout of physical facilities.
 Designing material handling system
 Designing sequence of operations
 Provide the production of parts, assemblies & products of required quantity and
quality at the required time
 Co-ordinate, monitor and feedback to manufacturing management, the result of
production activities, analyzing and interpreting there importance and taking
correct actions
 Provide optimum utilization of all resources
 Achieve the broad objectives of low cost production and reliable customer
service

Factors determining Production Planning and control Procedures are

The three major factors determining production-planning procedures are:
1. Volume of production: The amount & intensity of production planning is
determined by the volume and character of the operations & nature of
manufacturing process. Production planning is expected to reduce manufacturing
costs.
2. Nature of production Process: In job shop ,the production planning may be
informal and the development work methods is left to individual workman who is
highly skilled
3. Nature of operations: Detailed production planning is required for repetitive
operations for example continuous production of single standardized product
Factors Determining Production Control procedures
1. Nature of Production: The manufacturing firms are classified as Intermittent,
continuous, or composite production firms, depending upon length of processing
time
2. Complexity of operations: Generally Complexity increases with increase in the
variety of operations
a. Number of ultimate parts in the product
b. No of different operations
c. Extent to which processes are dependent on previous operations.
d. Variation in production rates of machines used in the process
e. Receipt of may small lot orders
3. Magnitude to operations:
 The size of operation, (time taken to complete operation) and the distance
traveled by the parts from operations to operations are important in establishing
proper production control procedures.
  Generally the need is greater for centralized production control organization and
the formal procedures as the size of the operations increases and dependent
operations are more physically separated

Elements of PPC

There are basically four elements in PPC, which are stared as below:
1.Routing
2.Scheduling
3.Dispatching
4.Follow up

Routing

Routing is the planning process, which is undertaken to find the best possible path for
manufacturing a certain product. It determines what work will be done on a product
and how it will be done. It establishes the operations, their path and sequence, and the
proper class of machines that require performing specific operations. Routing prescribes
the flow of work in the plant and it is related to the considerations of layout, temporary
location for raw materials and components and material handling system. The main aim of
routing is to determine the best and cheapest Production Planning and control. Routing
procedure involves the following different activities:

1. An analysis of the article to determine what to make and what to buy.

2. To determine the quality and type of material
3. Determining the manufacturing operations and their sequence.
4. A determination of lot sizes
5. Determination of scrap factors
6. An analysis of cost of the article

The next step after routing is scheduling. Scheduling is the allocation of resources
applying the limiting factors of time and cost to perform a collection of tasks. It involves
the assignment of starting and completion times for the various operations to be
performed. Therefore scheduling can bring productivity in shop floor by providing a
schedule/ routine for processing a set of jobs. Scheduling finds the total time needed
for manufacturing of a product. It also finds the time required in each machines to
perform each task. The purpose of scheduling is to execute a customer’s order well in
time. For example, if we order for a car, the manufacturer will estimate the time
required for its production and then will give us the delivery date. Scheduling is that
phase of production and control, which rates the work in order of its priority and then
provide for its release to the plant at the proper time and in correct sequence. Thus,
scheduling is concerned with when the work shall be performed on a product. Routing
and scheduling activities are complementary to each other. One cannot route properly
without having previously designed schedule and scheduling is impossible without the
knowledge of required routing.

Scheduling
The essence of scheduling is to make allocation decisions pertaining to the starting and
finishing times for tasks. Scheduling can be classified into Single machine scheduling,
Flow shop scheduling and Job shop scheduling.
Scheduling is mainly concerns with time element and priorities of a job. The pattern of
scheduling differs from one job to another which is explained as below:
Production schedule: The main aim is to schedule that amount of work which can easily
be handled by plant and equipment without interference.
Master Schedule: Scheduling usually starts with the preparation of the master schedule
which is weekly or monthly break-down of the production requirement for each product
for a definite time period. This would enable the production manager to shift the
production from one product to another as per the changed production requirements.
This forms a base for all subsequent scheduling acclivities. A master schedule is
followed by operator schedule which fixes total time required to do a piece of work
with a given machine or which shows the time required to do each detailed operation of
a given job with a given machine or process.
Best scheduling is not always possible because of the following conditions:

 Physical plant facilities of the type required to process the material being
scheduled.
 Personnel who possess the desired skill and experience to operate the equipment
and perform the type of work involved and,
 Necessary materials and purchased parts.

While preparing schedules, the types of orders and their promised delivery dates must be
taken into consideration. Some orders may call for overtime work because they have to
be delivered soon. Such rush orders should receive priority over repeat orders, which
can be scheduled for completion in the normal course.

Dispatching

Dispatching is the transition from planning phase to action phase. In this phase, the
worker is ordered to start manufacturing the product. Dispatching involves the actual
granting of permission to proceed according to plans already laid down. In dispatching,
orders are issued in terms of their priority.
The dispatch section of the PPC is responsible for the following task:

 Checking the availability of material and then taking appropriate action to have it
transferred from the main stores to the point at which it is needed.
 Ensuring that all production aid is ready when needed and then having them issued
to manufacturing departments.
 Obtaining specific drawings from the drawing office.
  Informing the process section that production is commencing.
 At the conclusion of the manufacturing, ensure that all the drawings, layout and
tools are withdrawn and returned to their correct location.

Dispatching is an important step as it translates production plans into actual

production.

Follow up or Expediting

Once production has been set in motion, it is necessary to check that it is proceeding
according to the plan. Every production programme 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 defects in routing and
scheduling, misunderstanding of orders and instruction, under loading or overloading of
work etc. All problems or deviations are investigated and remedial measures are
undertaken to ensure the completion of work by the planned date. Generally production
is assumed to progress as expected.

But there may be differences which may arise due to the following reasons:

 Materials may be delivered late or may not be delivered at all.

 Associated departments may have fallen behind in their own production.
 There may be excessive absenteeism on the part of the worker.
 The customer may insist on changing the specification or delivery date.
 Machines may break down.
 There may be errors in drawings.
 There may be too many rejections due to poor material quality.

Other things related to production are inspection and corrective actions.

Inspection: This is mainly to ensure the quality of goods. It can be required as effective
agency of production control.
Corrective measures: 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, poor performance of the employees.
Certain personnel decisions like training, transfer, demotion etc. may have to be taken.
Alternative methods may be suggested to handle peak loads

Advantages and limitations of PPC

Production planning and control function is the nerve centre or heart of the production
system because of the following reasons.

 It coordinates all phases of the production / operating system.

 An efficient system of production planning and control results into better quality,
optimum utilization of resources, lower level of inventories, reduction in
 production cycle time, faster delivery, more efficient customer service, lower
costs of production, and lower capital investment etc.
 It also leads to more efficient use of resources which results into higher
productivity, economy in production, quality of goods or services, and timely
delivery etc.
 It results into higher sales, more profits, increase in market share, increase in
competitive advantage etc.
 As a result of systematic planning and control which has been integrated with
maintenance plans, equipment breakdowns are minimized, maintenance is
improved, excess capacity and idle time is minimized and steady flow of products is
maintained.
 It contributes significantly increasing the good will and image of the organization.

In spite of several benefits of production planning and control, it has certain limitations.
These are as follows

 Production planning and control is based upon certain assumptions or forecasts

about level of demand, availability of materials, technological progress, govt.
policies etc. If these assumptions go wrong the production planning and control
function may turn out ineffective.

 It is a time-consuming exercise.

 It becomes a difficult exercise especially when external environmental factors

changes very rapidly.

 The employees may resist changes when planning involves several changes.

Principles of PPC

1. Types of production determines the kind of production planning & control.

2. Number of parts involved in the product affects expenses of PPC.
3. Time is common denominator for all scheduling activities.
4. Cost control should be a by product of PPC function.
5. The size of the plant has relatively little to do with the type of PPC system
needed.
6. The highest efficiency in production is obtained by manufacturing the required
quantity of a product

PRODUCTION SYSTEM

The production system of an organization is that part, which produces products of

an organization. It is that activity whereby resources, flowing within a defined system,
are combined and transformed in a controlled manner to add value in accordance
with the policies communicated by management.

1. A simplified production system has the following characteristics:

 2. Production is an organized activity, so every production system has an objective.
3. The system transforms the various inputs to useful outputs.
4. It does not operate in isolation from the other organization system.
5. There exists a feedback about the activities, which is essential to control and
improve system performance.

Classification of Production System

Production systems can be classified as Job Shop, Batch, Mass and Continuous
Production systems.

JOB SHOP PRODUCTION

Job shop production are characterised by manufacturing of one or few quantity of

products designed and produced as per the specification of customers within prefixed
time and cost. The distinguishing feature of this is low volume and high variety of
products. A job shop comprises of general purpose machines arranged into different
departments. Each job demands unique technological requirements, demands processing
on machines in a certain sequence.

Characteristics

The Job-shop production system is followed when there is:

1. High variety of products and low volume.

2. Use of general purpose machines and facilities.
3. Highly skilled operators who can take up each job as a challenge because of
uniqueness.
4. Large inventory of materials, tools, parts.
5. Detailed planning is essential for sequencing the requirements of each product,
capacities for each work center and order priorities.

Advantages

Following are the advantages of job shop production:

1. Because of general purpose machines and facilities variety of products can be

produced.
2. Operators will become more skilled and competent, as each job gives them learning
opportunities.
3. Full potential of operators can be utilised.
4. Opportunity exists for creative methods and innovative ideas.

Limitations

Following are the limitations of job shop production:

1. Higher cost due to frequent set up changes.

2. Higher level of inventory at all levels and hence higher inventory cost.
3. Production planning is complicated.
4. Larger space requirements.

BATCH PRODUCTION

Batch production is defined by American Production and Inventory Control Society

(APICS) “as a form of manufacturing in which the job passes through the functional
departments in lots or batches and each lot may have a different routing.” It is
characterised by the manufacture of limited number of products produced at regular
intervals and stocked awaiting sales.

Characteristics

Batch production system is used under the following circumstances:

1. When there is shorter production runs.

2. When plant and machinery are flexible.
3. When plant and machinery set up is used for the production of item in a batch and
change of set up is required for processing the next batch.
4. When manufacturing lead time and cost are lower as compared to job order
production.

Advantages

1. Following are the advantages of batch production:

2. Better utilisation of plant and machinery.
3. Promotes functional specialisation.
4. Cost per unit is lower as compared to job order production.
5. Lower investment in plant and machinery.
6. Flexibility to accommodate and process number of products.
7. Job satisfaction exists for operators.

Limitations

Following are the limitations of batch production:

1. Material handling is complex because of irregular and longer flows.

2. Production planning and control is complex.

MASS PRODUCTION

Manufacture of discrete parts or assemblies using a continuous process are called mass
production. This production system is justified by very large volume of production. The
machines are arranged in a line or product layout. Product and process standardisation
exists and all outputs follow the same path.

Characteristics

Mass production is used under the following circumstances:

1. Standardisation of product and process sequence.

2. Dedicated special purpose machines having higher production capacities and output
rates.
3. Large volume of products.
4. Shorter cycle time of production.
5. Lower in process inventory.
6. Perfectly balanced production lines.
7. Flow of materials, components and parts is continuous and without any back tracking.
8. Production planning and control is easy.
9. Material handling can be completely automatic.

Advantages

1. Following are the advantages of mass production:

2. Higher rate of production with reduced cycle time.
3. Higher capacity utilisation due to line balancing.
4. Less skilled operators are required.
5. Low process inventory.
6. Manufacturing cost per unit is low.

Limitations

Following are the limitations of mass production:

1. Breakdown of one machine will stop an entire production line.

2. Line layout needs major change with the changes in the product design.
3. High investment in production facilities.
4. The cycle time is determined by the slowest operation.

CONTINUOUS PRODUCTION

Production facilities are arranged as per the sequence of production operations from
the first operations to the finished product. The items are made to flow through the
sequence of operations through material handling devices such as conveyors, transfer
devices, etc.

Characteristics

Continuous production is used under the following circumstances:

1. Dedicated plant and equipment with zero flexibility.

2. Material handling is fully automated.
3. Process follows a predetermined sequence of operations.
4. Component materials cannot be readily identified with final product.
5. Planning and scheduling is a routine action.

Advantages

Following are the advantages of continuous production:

1. Standardisation of product and process sequence.

2. Higher rate of production with reduced cycle time.
3. Higher capacity utilisation due to line balancing.
4. Manpower is not required for material handling as it is completely automatic.
5. Person with limited skills can be used on the production line.
6. Unit cost is lower due to high volume of production.

Limitations

Following are the limitations of continuous production:

1. Flexibility to accommodate and process number of products does not exist.

2. Very high investment for setting flow lines.
3. Product differentiation is limited.

In short, production planning and control function are concerned with decision making
regarding

1. What to Produce?

Product planning and development, including product design.

2. How to Produce?

Process planning, material planning, tool planning etc.

3. Where to Produce?

Facilities planning, capacity planning and sub-contracting planning.

4. When to Produce?

Production scheduling and machine loading.

5. Who will produce?

Manpower planning.

6. How much to produce?

Planning for quantity, economic batch size etc.

Relationship between Planning and control

“Planning is required at the very outset of management whereas control is required at

the last stages. If planning is looking ahead, control is looking back.”
Production control and planning are interrelated so closely that they cannot be
separated from each other. Without control all the planning is fruitless because control
consists of the steps taken to ensure that the performance of the organization
conforms to the plans. In other words control is concerned with the actual
performance in relation to the standards set in advance and the correction of deviations
to ensure attainment of objectives. Planning is required at the very outset of
management whereas control is required at the last stages.
If planning is looking ahead, control is looking back. In fact, control is the process of
checking to determine whether or not proper progress is being made towards the
objectives and goals set by management while doing planning. Often it is said that
planning is the basis, action is the essence, delegation is the key, information is the guide
and control is the lifeblood of the success of any business enterprise. Organizational
objectives cannot be achieved without planning and planning alone cannot be
successful. If extra efforts are put in planning and control is ignored, a business may
suffer from a number of administrative problems. These difficulties may be highly
detrimental for the business in the long run. Effective control through efficient
superiors can only be a guarantee for success. The control system must be appropriate
to the needs and circumstances of the enterprise.

Control is a fundamental management function that ensures work accomplishment

according to plans. The purpose of control is to ensure that everything in an
organization occurs in conformity with pre-determined plans. Control also ensures that
there is no kind of indiscipline and incompetence in the organization and employees are
not able to put undue pressure on the management.
Some people are not in favor of control because they feel that control is always used
against the employees. They advocate automatic control rather than forced one. But a
balanced viewpoint is that both the management and the employees should be put under
some kind of control. Control should be engrained in the basic policies of any type of
business organization.

Dispatching

Dispatching is nothing but issuing orders and instructions to start a particular work,
which has already been planned under routing and scheduling.

Functions of Dispatching

 Assignment of work to individual man, machine or work place.

 Release necessary order and production firm.

 Authorize for issue of materials, tools, jigs, fixtures, gauges, dies for various jobs.

 Required materials are authorized to move from stores or from operation to

operation.

 Issue m/c loading and schedule chart, route sheet, etc.

 To fix up the responsibilities of guiding and controlling the materials and

operation processes.

 To issue inspection order.

 Issue of time tickets, drawing, instruction cards.

Dispatch procedure
The product is broken into different components. For each component, operations are
mentioned in order as shown in Figure aside.

Route sheet for

component C

Material-

Operation 1-

Operation 2-

The various steps of dispatch procedure for each operation are listed below:

1. Store issue order: Authorise store department to deliver required material.

2. Tool order: Authorise tool store to release the necessary tools. The tools can be
collected by the tool room attendant.

3. Job order: Instruct the worker to proceed with operation.

4. Time tickets: It records the beginning and ending time of the operation and forms
the basis for workers pay.

5. Inspection order: Notify the inspectors to carry out necessary inspections and
report the quality of the component.

6. Move order: Authorize the movement of materials and components for one
facility to another for further operation.

In addition, there are certain dispatch aspects such as:

1. All production information should be available beforehand.

2. Various order cards and drawing with specification should be ready. Equipment
should be ready for use.

3. Progress of various orders should be recorded.

4. All production records should be on Gantt chart.

The dispatch section of the PPC is responsible for the following task:

 Checking the availability of material and then taking appropriate action to have it
transferred from the main stores to the point at which it is needed.

 Ensuring that all production aid is ready when needed and then having them issued
to manufacturing departments.

 Obtaining specific drawings from the drawing office.

  Informing the process section that production is commencing.

 At the conclusion of the manufacturing, ensure that all the drawings, layout and
tools are withdrawn and returned to their correct location.

Dispatching is an important step as it translates production plans into actual

production.

Centralized and decentralized dispatching

Centralized Dispatching:

In centralized dispatching system, a central dispatching department orders directly to

the work stations. It maintains a full record of the characteristics and capacity of each
equipment and work load against each machine. The orders are given to the shop
supervisor who runs his machine accordingly. In most of the cases, the supervisor can
also give suggestions as regards to loading of machines under him. A centralized system
has the following advantages:

1. A greater degree of overall control can be achieved.

2. Effective coordination between different facilities is possible.

3. It has greater flexibility.

4. Because of urgency of orders, changes in the schedule can be made easily without
upsetting the whole system.

5. Progress of orders can be readily assessed at any time because all the information
is available is available at a central place.

6. There is effective and better utilization of manpower and machines.

Decentralized Dispatching:

In decentralized dispatching system, the shop supervisor performs the dispatch

function. He/she decides the sequence of handling different orders. He/she dispatches
the orders and materials to each equipment and worker, and is required to complete the
work within the prescribed duration. In case he/she suspects delay, he/she informs the
production control department. A centralized dispatching system has the following
advantages:

1. Much of red tape (excessive adherence to official rules) is minimized.

2. Shop supervisor knows the best about his shop.

3. Communication gap is reduced.

4. It is easy to solve day to day problem.

Levels of Dispatch office:

 At plant manager’s level.

 At shop superintendent level.

 At shop supervisor’s level.

 At specialist level.