production and control planning

7/28/2019 Production and control planning

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Gaafar 2005Production and Inventory Control- Introduction(1)Production and Inventory Control- Introduction(1)

Production Planning & Control

Submitted to:-Mrs. Vandana Mittal

Asst. Professor

Presented by:-

Rajat Sharma (078)Rajeev Mahour (079)

Rajkumar Gupta (080)

Ramesh kr. Pal (081)

Rishi Singh (083)

Rishutosh Jaiswal

(084)


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Gaafar 2005Production and Inventory Control- Introduction(2)

Overview

Introduction PPC system.

Qualitative/quantitative forecasting

Aggregate planning

Material requirement planning & Scheduling

Inventory management & its types.

Supply Chain & Facilitating Goods.

Its Objectives & Related Costs.

Dashinanchal vidhyut nigam PPC.


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Production Planning

All manufacturing and service operations requireplanning and controlling, although the formality anddetail may vary. Some operations are more difficult to

plan than others. Those with high unpredictability canbe difficult to plan. Some are more difficult to controlthan others. The day to day running of manufacturingand service system rests with Production Planning.

The purpose of the production planning is to ensurethat manufacturing run effectively and efficiently and

produces products as required by customers.


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Production Planning Activities

Capacity Planning

1. Facility Size

2. Equipment Procurement

Aggregate Planning

1. Facility Utilization2. Personnel needs

3. Subcontracting

Master Production Scheduling

1. MRP2. Disaggregation of master plan

Short-term Scheduling

1. Work center loading

2. Job sequencing

Long-term(years)

Intermediate-term(6 to 18 months)

Short-term(weeks)

Very Short-term(hours days)


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Production Planning and Control

Demand

forecasting

Sales and

order entry Customer

Production

Inventory Vendors

Aggregate

planning

Inventory

management

Shipping

and

receiving

Materials

requirement

planning

Shop-floor

scheduling

and control

The Production Control System


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Main FunctionsForecastingto predict customer demand on various productsover a given horizon.

AggregatePlanningto determine overall resources needed.

Mater ials Requirement Planningto determine all required

components and timing.

I nventory Managementto decide production or purchasequantities and timing.

Schedulingto determine shop-floor schedule of various

components.


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PurposeEffectively utilize limited resources in the production of

goods so as to satisfy customer demands and create a profit

for investors.

Resources include the production facilities, labor and

materials.

Constraints include the availability of resources, delivery

times for the products, and management policies.


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HighProfitability

Low

Costs

Low Unit

Costs

High

Throughput

Less

Variability

High

Utilization

Low

Inventory

Quality

Product

High

Sales

Many

products

Fast

Response

More

Variability

High

Inventory

Low

Utilization

Short

Cycle Times

High Customer

Service

Production Objectives


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Throughput

WIP

Cycle timeService quality

Profit

Performance Measures


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Forecasting

Objective: predict demand for planning purposes.

Laws of Forecasting:

1. Forecasts are always wrong!

2. Forecasts always change!3. The fur ther into the future, the less rel iable the

forecast wil l be!

Forecasting Tools:

Qualitative: Delphi, Analogies

Quantitative: Causal and time series models


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Workforce Planning

How much and what kind of labor is needed to support

production goals?

Issues:

Basic Staff ing Calculations: standard labor hours

adjusted for worker availability.Working Environment: stability, morale,

learning.

Flexibility/Agility: ability of workforce to

support plant's ability to respond to shortand long term shifts.

Quality: procedures are only as good

as the people who carry them out.


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Capacity/Facility Planning

How much and what kind of physical equipment is

needed to support production goals?

Issues:

Basic Capacity Calculations: stand-alone capacities

and congestion effects (e.g., blocking)

Capacity Strategy: lead or follow demand

Make-or-Buy: vendoring, long-term identity

Flexibility: with regard to product, volume, mix

Speed: scalability, learning curves


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Demand Management

Objective: establish an interface between the customer

and the plant floor, that supports both competitive

customer service and workable production schedules.

Issues:

Customer Lead Times: shorter is more competitive.

Customer Service: on-time delivery.

Batching: grouping like product families can reduce lost

capacity due to setups.

I nterface with Scheduling: customer due dates are are

an enormously important control in the overall

scheduling process.


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Material Requirement Planning

Objective: Determine all purchase and production

components needed to satisfy the

aggregate/disaggregate plan.

Issues: Bi ll of M aterials: Determines components, quantities

and lead times.

I nventory Management: Must be coordinated with

inventory.


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Sequencing and Scheduling

Objective: develop a plan to guide the release of workinto the system and coordination with needed resources

(e.g., machines, staffing, materials).

Methods:

Sequencing:

Gives order of releases but not times.

Scheduling: Gives detailed release times.


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Inventory Management

Inventory-A physical resource that a firmholds in stock with the intent of selling it or

transforming it into a more valuable state.

Inventory System- A set of policies andcontrols that monitors levels of inventory anddetermines what levels should be maintained,when stock should be replenished, and howlarge orders should be


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Types of Inventories Raw Materials

Works-in-Process

Finished Goods

Distribution Inventory

Supplies: Maintenance, Repair and Operating (MRO)


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Inventory Positions in theSupply Chain

Supply Chain:-

Raw

MaterialsWorks

in

Process

Finished

Goods

Finished

Goods

in Field


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Understocking (too few) results in missed deliveries, lostsales, dissatisfied customers, and production bottlenecks(idle workers or machines).

Resulting underage cost.

Overstocking (too many) ties up funds that might bemore productive elsewhere.

Resulting overage cost.

Goal: matching supply with demand!

Inadequate control of inventories can result

in both under- and overstocking of items.


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Objectives of InventoryControl

1) Maximize the level of customerservice by avoiding understocking.

2) Promote efficiency in production andpurchasing by minimizing the cost ofproviding an adequate level of customer

service.


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Inventory Related Costs

Procurement Costs: Order processing Shipping Handling

Carrying (Holding) Costs Capital (opportunity) costs Inventory risk costs Space costs Inventory service costs

Out-of-Stock Costs Lost sales cost Back-order cost


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THANK YOU.

production and control planning

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