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



Phases of Planning and Control Function:



1. Planning Phase
n Preplanning: Product planning, development,
demand forecasting, resource planning,
facilities planning
n Active Planning: planning for quantity,
determination of product-mix, routing,
scheduling, material planning, process
planning
2. Action Phase: Execution or implementation
3. Control Phase:
n material control
n tool control
n inventory control


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 Planning and Control 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.


Production planning and control in Batch Production:



n Batch production is the manufacture of a

number of identical articles either to
meet a specific order or to satisfy
continuous demand.
n The decisions regarding tooling and jigs and
fixtures are dependent on the quantities
involved in the production batch.


Characteristics of Planning and Control 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.


Production planning and control in continuous



Production (mass and flow production):

n Mass Production, a large no. of identical
articles is produced, but inspite of
advanced mechanization and tooling, 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.


Production planning and control in Process Industry:



n Production Planning and Control in process

industry is relatively simple. Routing is
automatic and uniform. Standard processes
and specialized equipments are used. AS
the products are standardized and goods
are produced to stock and sell, scheduling
is easy. 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.
 

 Production Planning and Production Control

Production Planning Production Control

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