Lecture # 8Lecture # 8

PPC and ProcurementPPC and Procurement

……PPC…PPC…

PPC stands forPPC stands for

– Production Planning and controlProduction Planning and control– Production planning and co-ordinationProduction planning and co-ordination

……PPC…PPC…

““Production Planning and Control” is Production Planning and Control” is usually considered the process by usually considered the process by which the raw material, partly which the raw material, partly finished and finished goods are finished and finished goods are planned, regulated and monitored.planned, regulated and monitored.

Planning …Planning …

There are three typesThere are three types– SchedulingScheduling– Aggregate planningAggregate planning– Long term planningLong term planning

Responsibilities of departmentResponsibilities of department

Allocating work in a most profitable Allocating work in a most profitable wayway

Adjusting the production schedules Adjusting the production schedules to meet the changing circumstancesto meet the changing circumstances

Provide information about the Provide information about the progress of ordersprogress of orders

Different Tasks…Different Tasks…

Drafting guidelinesDrafting guidelines Evaluate production capacityEvaluate production capacity Make long term production plansMake long term production plans Schedule productionSchedule production Originate orders for raw materialsOriginate orders for raw materials Load orders as requiredLoad orders as required Monitor progressMonitor progress Provide an information exchangeProvide an information exchange

……Be Aware…Be Aware…

Mostly, in textile and clothing Mostly, in textile and clothing industry, PPC department is industry, PPC department is undervalued and considered as a undervalued and considered as a clerical activityclerical activity

……Planning…Planning…

It may be divided into two parts.It may be divided into two parts.

– Production Planning Production Planning – Material PlanningMaterial Planning

Scope in Textile…Scope in Textile…

SpinningSpinning

WeavingWeaving

KnittingKnitting

Dyeing and FinishingDyeing and Finishing

Scope in Clothing…Scope in Clothing…

The most complex processThe most complex process– Pattern makingPattern making– Spreading and cuttingSpreading and cutting– Bundling and numberingBundling and numbering– Many operations of sewingMany operations of sewing– Under/ top pressingUnder/ top pressing– Final inspection and PackingFinal inspection and Packing

Operator’s skill has a great effect on Operator’s skill has a great effect on productivityproductivity

Scope in Clothing…Scope in Clothing…

Quality service and work study are Quality service and work study are also involved in flow processalso involved in flow process

The range of complexity and rate of The range of complexity and rate of style change differs widelystyle change differs widely

Production Planning…Production Planning…

Functions of productions planning areFunctions of productions planning are– Long term planningLong term planning

The long term view: Where we are going.The long term view: Where we are going.

– SchedulingSchedulingWork will be allocated to production Work will be allocated to production

according to the agreed planaccording to the agreed plan

– Controlling / MonitoringControlling / MonitoringProduction rarely goes according to the Production rarely goes according to the

schedulescheduleMake changes accordinglyMake changes accordingly

Scheduling and controlling…Scheduling and controlling…

Key factors areKey factors are– Throughput timeThroughput time– Work In ProcessWork In Process– Critical pathsCritical paths– Bottleneck operationsBottleneck operations– Plant utilizationPlant utilization– Effect of changesEffect of changes– Waste percentageWaste percentage

Material Planning…Material Planning…

It comes under the department of It comes under the department of “Purchasing” or Procurement“Purchasing” or Procurement

……MRP…MRP…

MRP stands for “Material MRP stands for “Material Requirement Planning” Requirement Planning”

MRP also stands for “Manufacturing MRP also stands for “Manufacturing Resource Planning”Resource Planning”

Material Requirement PlanningMaterial Requirement Planning

This is an information system which This is an information system which is based on the requirements of is based on the requirements of material in terms of type, Volume material in terms of type, Volume and the dates etcand the dates etc

There are two approachesThere are two approaches– RegenerationRegeneration– Net changeNet change

Purchase Department…Purchase Department…

The basic function of purchase The basic function of purchase department is to provide the right department is to provide the right material, at right quality, at right material, at right quality, at right time and price.time and price.

As material’s cost have a significant As material’s cost have a significant weight in the price of a clothing weight in the price of a clothing product, so it is very much product, so it is very much important.important.

Functions…Functions…

Look for the suppliersLook for the suppliers Price, quality and in time deliveryPrice, quality and in time delivery Speculative buyingSpeculative buying StorekeepingStorekeeping Stock managementStock management Purchase orderPurchase order

SuppliersSuppliers

The purchasing department must The purchasing department must ensure that the supplier is stable and ensure that the supplier is stable and reliable.reliable.

Particularly, in case when you are Particularly, in case when you are dealing with a supplier who does not dealing with a supplier who does not have a known track record. have a known track record.

Price…Price…

Quality and quantity of material is Quality and quantity of material is dictated by the operations dictated by the operations department.department.

The purchase must be at the most The purchase must be at the most advantageous terms for the advantageous terms for the company. (e,g, freight cost, company. (e,g, freight cost, insurance, discounts and credits etc)insurance, discounts and credits etc)

In time Delivery…In time Delivery…

The purchase department must The purchase department must ensure the in time delivery of the ensure the in time delivery of the materials.materials.

Because the late or no delivery may Because the late or no delivery may cause the stoppage of your cause the stoppage of your production lines.production lines.

Verification…Verification…

On arrival of material to the mill’s On arrival of material to the mill’s premises, purchasing department premises, purchasing department should check the product.should check the product.

The storekeeper checks the The storekeeper checks the quantitiesquantities

The quality people check the The quality people check the material against the different quality material against the different quality parameters.parameters.

Speculative buying…Speculative buying…

When market conditions are When market conditions are favorable, purchasing department favorable, purchasing department may suggest for buying of commonly may suggest for buying of commonly used materialsused materials

This is mostly applied in case of This is mostly applied in case of importsimports– Price will risePrice will rise– Things would be difficult to obtain Things would be difficult to obtain

Store Keeping…Store Keeping…

Receiving GoodsReceiving Goods Checking of goodsChecking of goods Storage of goodsStorage of goods Issuance of materialIssuance of material

Purchase Order (PO)Purchase Order (PO)

Purchase order is a contractual Purchase order is a contractual documentdocument

This document should be clear This document should be clear enoughenough– Delivery as soon as possibleDelivery as soon as possible– Price to be agreedPrice to be agreed

Payment Invoice

Request for Quotation

Inspection

Purchase Order

Comparison

Purchasing Procedure