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session 6

PRODUCTION
PLANNING & CONTROL

Planning includes the consideration of all input


variables 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.

Production Planning is a pre-production activity


that 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 and
evaluation of the other inputs such as manpower
and money.

Control is a complementary activity to the


production planning, which keeps track of the


operations that are being performed during the
production phase.


Production
 Planning implies formulation, co-
ordination and determination of activities in a
manufacturing system necessary for the
accomplishment of desired objectives.

Production Control is the process of maintaining a


balance between various activities evolved during


production planning providing most effective and
efficient utilization of resources.

 Production Planning

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.

Functions of Production Planning:


 Production Selection and Design:


► Ensure that the suitable kind of
product 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 a
plant in order to minimize the costs

 Facility Layout and Materials Handling:


► To facilitate the transfer of material
and processing of a product in the
most 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 quantity
of product with the help of sales

 Routing:
► Helps determine the proper sequence of
operations involved in the production
process to meet the production objectives.
► Process of determining operation sequence is
known as routing.
► For performing routing, a route sheet is
prepared.
► Following information is stored in a route
sheet:
► Required operations and their proper
sequence
► 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

 Scheduling:
► Helps in laying down time required for
manufacturing a product and time required
for 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 assigned
to which machine to obtain maximum and
desired output.


Production Control
Functions of Production Control: Success of an

enterprise 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 of
production 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.

Importance of Production Control:


► Reduces cost of production by minimizing


wastage 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.


Production Planning
Control

Objectives of Production Planning and Control:


► Effectiveness : production of right of goods


► Maximizing output : production of maximum
goods
► Quality control : meet quality specifications
► Minimizing throughput time: reducing waiting
time and idle time
► Capacity Utilization: manpower and machine is
fully utilized
► Minimizing cost : cost of producing goods is
minimized.
► Maximizing Profit: maximize profit with
minimize cost
► Minimizing throughput: minimum time to
production cycle
► Maintaining Inventory level: optimum level of
stock is maintained

► 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.
► To ensure quality goods in required
quantities 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 the
operation 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

► 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.
 PLANNING AND CONTROL DEPARTMENT

R & D Department
(Product Design)

Marketing Department Product structure


Industrial Engineering Department
Production Planning & Control Department

Manufacturing Documents

Purchase Dept. and Stores Dept.


 Manufacturing Departments Inspection & Quality Control

-Fabrication
 -Assembly Assembled Products


Maintenance Dept.

Final Inspection & Acceptance testing
 Finished Goods

Packing & dispatching of finished goods

Distribution to customer through channels of distribution


 Types of Production Processes :


1. Process Production
2. Mass and Flow Production
3. Batch Production
4. Jobbing Production
5. Project Production

1. PROCESS PRODUCTION:


A system for production where a similar product is
produced continuously in large quantities.
Example: steel, cement, sugar

Production planning and control in Process Industry:


n PPC in process industry is relatively simple.


Routing is automatic and uniform.
n Standard processes and specialized
equipments are used.
n As the products are standardized and goods
are produced to stock and sell, scheduling
is easy.
n Departmental schedules are derived from
master production schedules.
n PPC in process industry is to maintain a
continuous and uniform flow of work at
the predetermined rate in order to
utilize the plant and equipment fully and
to complete the production in time.

Characteristics of PPC in Process Industry:


I. Sound organizational structure with mechanism for
proper 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.

2. MASS AND FLOW PRODUCTION:


A system designed to produce several standard
products in mass quantities.
This system has capability to produce large
quantities of products thereby providing the
management with the advantages of economies of
scale.
Example: automobiles, iron and steel parts

Production planning and control in continuous


Production
(mass and flow production):

n The equipment need not be specially designed


for the component to be manufactured.
n Flow Production: Plant and equipment and
layout have been primarily designed to
manufacture a particular product.

Characteristics
 of Planning and Control for
continuous production:
1 Extensive effort is required for detailed planning
before production status but both scheduling
and control need not be elaborate usually.
2 Output is either limited by available capacity or
regulated within given limits to conform to
production targets on periodic sales forecasts.

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.

PPC in 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 and
fixtures are dependent on the quantities
involved in the production batch.

Characteristics of PPC for Batch production:


1 Planning and control become more simplified as


quantities 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 anticipated.
3 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.

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.

Production planning and control in Job Production:


n When the order is to be executed only once,


there is either scope for improvement of
production 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 specially
designed inspecting gauges should be
carefully considered to reduce the
manufacturing cycle time.

Characteristics of PPC for Job Production:


1 Every job order is of different nature and have


different sequence of operations.
2 Specific job orders are assigned to different
work stations as per availability of capacity.
3 Production schedules drawn depend on the relative
priority assigned to various job orders.
4 Scheduling is dependent on assessment of
production times and estimating is based on
judgement.

5. PROJECT PRODUCTION:


Project production can be described as a set of
activities performed to produce a single product.
The product here is immobile and different agencies
with different skill sets are deployed on that
product to complete it.
Example: Road construction companies, construction
companies

 Difference between Production Planning and Production


Control
Production Planning Production Control

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