PRODUCTION PLANNING & CONTROL

Group

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GROUP 7034 HARSH PATHAK035 GAURAV MISHRA 036 YASHU PANDEY037 SACHLIN SINGH038 TANU SHREE MAITI040 CHETAN HEDGE

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The need for Production Planning Demand Forecasting Aggregate Production Planning Strategies of Aggregate Planning Workforce Planning Materials Requirement Planning Capacity Planning Production Control using JIT Shop-Floor Control

Topics to be covered

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Addresses decisions on

AcquisitionUtilizationAllocation of limited production resources

Resources include the production facilities, labor and materials. Constraints include the availability of resources, delivery times for the products and management policies.

The need for Production Planning

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The need for Production Planning

Main objective is to take appropriate decisions.

Typical decisions

Work force levelProduction lot sizesAssignment of overtimeSequencing of production runs

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The need for Production Planning

Process Planning

Scheduling

Loading

Combining Functions

Dispatching

Follow – up

Corrective Action

Re-planning

Functions of PPC

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Objective

To predict demand for planning purposes

Qualitative Demand Forecasting

Prediction MarketDelphi Technique

Demand Forecasting

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Aggregate Production Planning

Objective

To generate a medium-term production plan To establish rough product mixTo anticipates bottlenecksTo align capacity and workforce plans.

It is usually done for next 2 to12 months.

Demand changes over a period of time at a faster rate than the resources. Aggregate planning offers strategies to absorb these fluctuations.

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Aggregate Production Planning

Guidelines for Aggregate Planning

Determine demand for each periodConsider company policies that may have impactDetermine capacities for each period Regular time, overtime, subcontracting, etc.Identify backorder or inventory amountDetermine costs of operationContinue through time horizon to calculate total costDevelop alternate plans and compute cost for eachSelect the plan that meets objectives Apr 7, 2023

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Aggregate Production Planning

Assumptions in Aggregate Planning

The regular output capacity is the same in all periods. Cost is a linear function composed of unit cost and number of units. Plans are feasible : sufficient inventory capacity exists to accommodate a plan, subcontractors with appropriate quality and capacity are standing by, and changes in output can be made as needed.

Contd…Apr 7, 2023

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Aggregate Production Planning

Assumptions in Aggregate Planning

All costs associated with a decision option can be represented by a lump sum or by unit cost that are independent of the quantity involvedCost figures can be reasonably estimated and are constant for the planning horizon Inventories are built up and drawn down at a uniform rate and output occurs at a uniform rate throughout each period

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Aggregate Production Planning

Output of Aggregate Planning

Production quantity from regular time, overtime and subcontracted timeInventory held for determination of how much warehouse space and working capital is neededBacklog or stock-out quantity for determining the customer service levels

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Level plans

Use a constant workforce & produce similar quantities each time periodUse inventories and backorders to absorb demand peaks & valleys

Chase plans

Minimize finished good inventories by trying to keep pace with demand fluctuations

Strategies in Aggregate Planning

Strategies in Aggregate Planning

ProductionDemand

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Uni

ts

Time

Level plans

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Strategies in Aggregate PlanningU

nit

s

Time

Series1

ProductionDemand

Chase plans

Series1

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Strategies in Aggregate Planning

Hybrid or Mixed Strategies

Build-up inventory ahead of rising demand and use backorders to level extreme peaksLayoff or furlough workers during lullsSubcontract production or hire temporary workers to cover short-term peaksReassign workers to preventive maintenance during lullsInfluencing Demand

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Workforce Planning

To find out and direct

Right peopleRight placeRight timeRight price

Workforce Planning

Issues

Basic Staffing Calculations and labor hoursWorking EnvironmentFlexibility/AgilityQuality

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Materials Requirement Planning

MRP is a production planning and inventory control system used to manage manufacturing processes.

An MRP system has 3 major objectives

Ensure materials are available for production and products are available for delivery to customersMaintain the lowest possible level of inventoryPlan manufacturing activities, delivery schedules and purchasing activities

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Materials Requirement Planning

MRP steps

Takes output from the planning phase (master plan)Combines that with the information from the inventory record and product structure recordsDetermines a schedule of timing and quantities for each item

The basic idea is to get the right materials to the right place at the right time.

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Materials Requirement Planning

•Master plan

•MRP

•Capacity Req. plan

Materials Requirement Planning

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Capacity Planning

The process of determining the production capacity needed to meet changing demands

Maximum amount of work that an organization is capable of completing in a given period of time

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Capacity Planning

Wrong Capacity

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Capacity Planning

Classes of capacity planning

Lead strategy Lag strategyMatch strategy

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Capacity Planning

Issues

Stand-alone capacities and congestion effects Capacity StrategyMake-or-BuyFlexibilityScalability and learning curves

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JIT is the technique for reducing inventories and elimination of waste in the production system.

Objectives

To eliminate wasteTo improve qualityTo minimize lead timeTo reduce costsTo improve productivity

Production Control using JIT

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Pull production and kanban

JIT is associated with pull systems.

Toyota was the first developer of kanban system.

Examples

McDonalds'Office Xerox Paper

Production Control using JIT

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Issues

JIT InterdependenciesImplementing IssuesJIT purchasingExpected Outcomes

Production Control using JIT

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Shop floor Control

Objective

To control flow of work through plant and coordinate with other activities (e.g., quality control, preventive maintenance, etc.)

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Shop floor Control

WIPTracking

CapacityFeedback

QualityControl

Material FlowControl

ThroughputTracking

StatusMonitoring

WorkForecasting

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Functions

Gross Capacity Control

Match line to demand by staffing (workers/shifts)Varying length of work week (or work day)Using outside vendors to augment capacity

Shop floor Control

Contd…32

Functions

Bottleneck Planning

Handling of bottlenecksCost of capacity is the keyStable bottlenecks are easier to manage

Span of Control

Physically or logically decompose systemSpan of labor and process management

Shop floor Control

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Issues

Customization

SFC is often the most highly customized activity in a plant.

Information Collection

SFC represents the interface with the actual production processes and is therefore a good place to collect data.

Shop floor Control

Contd…34

Issues

Simplicity

Departures from simple mechanisms must be carefully justified.

Shop floor Control

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