production planning and inventory control

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PRODUCTION PLANNING AND PRODUCTION PLANNING AND CONTROL CONTROL

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Page 1: production planning and inventory control

PRODUCTION PLANNING AND PRODUCTION PLANNING AND CONTROLCONTROL

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PPCPPC

PRODUCTION PLANNING AND PRODUCTION PLANNING AND CONTROL OPTIMISES THE PROCESS CONTROL OPTIMISES THE PROCESS OF CONVERSION OF INPUT OF CONVERSION OF INPUT (MATERIALS,MACHINES,LABOUR) (MATERIALS,MACHINES,LABOUR) INTO OUTPUT (FINISHED GOODS)INTO OUTPUT (FINISHED GOODS)

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PPCPPC

INPUTTRANSFORMATION

PROCESSOUTPUT

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PPCPPC

PPC ACTIVITIES INCLUDEPPC ACTIVITIES INCLUDE• SELECTING PROCESSESSELECTING PROCESSES• ARRANGING LAYOUTSARRANGING LAYOUTS• SELECTING AND LOCATING FACILITIESSELECTING AND LOCATING FACILITIES• MEASURING PERFORMANCEMEASURING PERFORMANCE• SCHEDULINGSCHEDULING• MANAGING INVENTORYMANAGING INVENTORY• PLANNING PRODUCTIONPLANNING PRODUCTION

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BATCH PRODUCTIONBATCH PRODUCTION

PROCESS MANY PROCESS MANY DIFFERENT JOBS AT THE DIFFERENT JOBS AT THE SAME TIME IN BATCHESSAME TIME IN BATCHES

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MASS PRODUCTIONMASS PRODUCTION

PRODUCES LARGE PRODUCES LARGE VOLUMES OF STANDARD VOLUMES OF STANDARD PRODUCT FOR A MASS PRODUCT FOR A MASS

MARKETMARKET

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CONTINUOUS CONTINUOUS PRODUCTIONPRODUCTION

PRODUCES VERY HIGH PRODUCES VERY HIGH VOLUME COMMODITY VOLUME COMMODITY

PRODUCTS PRODUCTS

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PROJECTPROJECT

ONE AT A TIME ONE AT A TIME PRODUCTION OF A PRODUCTION OF A

PRODUCT TO CUSTOMER PRODUCT TO CUSTOMER ORDERORDER

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PRODUCT PROCESS MATRIXPRODUCT PROCESS MATRIX

PROJECT

BATCH PRODUCTION

MASS PRODUCTION

CONTINUOUSPRODUCTION

STANDARDISATION

VOLUME

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PPCPPC

PRODUCTION ENGINEERS DEAL WITH PRODUCTION ENGINEERS DEAL WITH PEOPLE, TECHNOLOGY, AND PEOPLE, TECHNOLOGY, AND DEADLINES.DEADLINES.

THESE PEOPLE NEED GOOD THESE PEOPLE NEED GOOD TECHNICAL,CONCEPTUAL, AND TECHNICAL,CONCEPTUAL, AND BEHAVIOURIAL SKILLS.BEHAVIOURIAL SKILLS.

THEIR ACTIVITIES ARE CLOSELY THEIR ACTIVITIES ARE CLOSELY INTERCONNECTED WITH OTHER INTERCONNECTED WITH OTHER FUNCTIONAL AREAS OF A FIRMFUNCTIONAL AREAS OF A FIRM

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PPCPPC

PPC FUNCTION IS AKIN TO PPC FUNCTION IS AKIN TO THE FUNCTION OF THE THE FUNCTION OF THE

BRAIN IN A HUMAN BODYBRAIN IN A HUMAN BODY

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PRODUCTION PLANNING AND PRODUCTION PLANNING AND CONTROL HAS TWO IMPORTANT CONTROL HAS TWO IMPORTANT FUNCTIONS.FUNCTIONS.

PPCPRODUCTION PLANNING AND

CONTROL

PLANNING (METHODS)

CONTROLLING (PROGRAMMING)

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PLANNING SECTION MAIN FUNCTIONS ARE:PLANNING SECTION MAIN FUNCTIONS ARE:

MAKE OR BUY DECISIONMAKE OR BUY DECISIONSELECTING PROCESSSELECTING PROCESSFACILITY PLANNINGFACILITY PLANNINGPLANT LAYOUTPLANT LAYOUTMETHODISINGMETHODISINGJIGS AND FIXTURES REQUIREMENT PLANNINGJIGS AND FIXTURES REQUIREMENT PLANNINGSTANDARD TOOLSSTANDARD TOOLSMATERIAL REQUIREMENT(BOM)MATERIAL REQUIREMENT(BOM)OPERATION DRAWINGSOPERATION DRAWINGSPRODUCT COST ESTIMATION AND QUOTATIONPRODUCT COST ESTIMATION AND QUOTATIONCREATING AND MAINTAINING EDMCREATING AND MAINTAINING EDMCODIFICATION FOR PARTSCODIFICATION FOR PARTSFIRST OFF PROVINGFIRST OFF PROVING

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PROGRAMME ENGG

SCHEDULING PROGRESS

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SCHEDULINGSCHEDULING

IT IS A TIME TABLE OF PRODUCTION IT IS A TIME TABLE OF PRODUCTION PLAN TO MEET THE CUSTOMER PLAN TO MEET THE CUSTOMER DEMANDDEMAND

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SCHEDULINGSCHEDULING

1.1. LAUNCHING OF PRODUCTS BASED LAUNCHING OF PRODUCTS BASED ONON

A.A. CAPACITY AVAILABLECAPACITY AVAILABLE

B.B. DELIVERY SCHEDULEDELIVERY SCHEDULE

C.C. LEAD TIMELEAD TIME

D.D. BUILD SEQUENCEBUILD SEQUENCE

E.E. BATCH QTYBATCH QTY

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SCHEDULINGSCHEDULING

BASIC DOCUMENTS USEDBASIC DOCUMENTS USED

A.A. PRODUCTION PLANPRODUCTION PLAN

B.B. DELIVERY SCHEDULEDELIVERY SCHEDULE

C.C. MASTER SCHEDULEMASTER SCHEDULE

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SCHEDULINGSCHEDULING

MASTER SCHEDULES ARE DRAWN FORMASTER SCHEDULES ARE DRAWN FOR• RELEASE OF JOB CARDSRELEASE OF JOB CARDS

• DUE FOR LOADINGDUE FOR LOADING• DUE FOR COMPLETIONDUE FOR COMPLETION

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SCHEDULINGSCHEDULING

WORK ORDERSWORK ORDERS

ASSIGNED TO EACH PROJECT FOR ASSIGNED TO EACH PROJECT FOR • COST COLLECTIONCOST COLLECTION

• MATERIAL AND LABOUR MATERIAL AND LABOUR ACCOUNTINGACCOUNTING

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SCHEDULINGSCHEDULING

JOB ORDER DOCUMENTSJOB ORDER DOCUMENTS

• JOB TICKETJOB TICKET• ROUTE CARDROUTE CARD

• PROGRESS CARD PROGRESS CARD • MATERIAL REQUISITION(DETAIL/ASSY)MATERIAL REQUISITION(DETAIL/ASSY)

• JOB ORDERS ARE PRINTED ON LINE JOB ORDERS ARE PRINTED ON LINE BASING ON THE EDM DATABASING ON THE EDM DATA

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PROGRESSPROGRESS

PARTS ARE LOADED FOR MANUFACTURING PARTS ARE LOADED FOR MANUFACTURING COVERING VARIOUS PROJECTS BASING ON DUE COVERING VARIOUS PROJECTS BASING ON DUE FOR LOADING SCHEDULEFOR LOADING SCHEDULE

JOB PREPARATION IS DONE IN ADVANCE FOR JOB PREPARATION IS DONE IN ADVANCE FOR PROGRAMMED PARTS BY CHECKING AVAILABILITY PROGRAMMED PARTS BY CHECKING AVAILABILITY OF :OF :

- DRAWINGS- DRAWINGS - TOOLS- TOOLS - MATERIALS- MATERIALS - MACHINE- MACHINE

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PROGRESSPROGRESS

CLOSE FOLLOW UPS WITH THE CLOSE FOLLOW UPS WITH THE MANUFACTURING SHOPS ARE MAINTAINED MANUFACTURING SHOPS ARE MAINTAINED TO ENSURE COMPLETION OF PARTS AS PER TO ENSURE COMPLETION OF PARTS AS PER PLANPLAN

PERIODIC PRODUCTION HOLDUP REPORTS PERIODIC PRODUCTION HOLDUP REPORTS ARE GENERATED ARE GENERATED

- MATERIAL SHORTAGES- MATERIAL SHORTAGES - NON AVAILABILITY OF TOOLS- NON AVAILABILITY OF TOOLS - MACHINE BREAKDOWN- MACHINE BREAKDOWN

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PROGRESSPROGRESS

AFTER THE COMPLETION AND AFTER THE COMPLETION AND TAGGINGTAGGING

• THE PARTS ARE STORE CREDITEDTHE PARTS ARE STORE CREDITED• AND THE CORRESPONDING WORK AND THE CORRESPONDING WORK

ORDERS ARE CLOSEDORDERS ARE CLOSED

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THE PROGRAMME ENGG GROUP’S THE PROGRAMME ENGG GROUP’S MAIN FUNCTIONS ARE:MAIN FUNCTIONS ARE:

SCHEDULINGSCHEDULING

PROGRESSPROGRESS

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Production Tool Stores

Finance

Management Services

Inspection

Receiving Stores

Holding Stores

Customer Support

Methods Material Control Purchase

Production Control

Scheduling

Tool Engineerin

g

External Sources Manufacturing/

Assembly shop

Labour, WLS

PDO’s

STAC

MDP

QMS

STAC

STAC

SLIM, STAC, SDG

SDG, PPRS

SDG

STORE ACCOUNTING

PRD COST EST

BILL OF MATLS

WOC

SDG, PPRS

SDGSTAC

MDP

ORDER PROCESSING SYSTEM

BOM

MDP

MDP, BOM, QMS

MPAC

POPS

POPS

WIP, WLS

TMS

WIP

LABOUR BOM

MDP

MDP

POPS

BOM, SDG PPRS

MDP

STORE A/C

STAC

PRODUCTION PLANNING AND CONTROL SYSTEM

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PPC SYSTEMPPC SYSTEMMDP – MASTER DATA PROCESSORMDP – MASTER DATA PROCESSORPPRS – PLANNED PARTS REQUIREMENT SYSTEMPPRS – PLANNED PARTS REQUIREMENT SYSTEMBOM – BILL OF MATERIALSBOM – BILL OF MATERIALSSDG – SHOP DOCUMENT GENERATORSDG – SHOP DOCUMENT GENERATORMPAC – MATERIAL PROVISIONING ACCOUNTING AND CONTROLMPAC – MATERIAL PROVISIONING ACCOUNTING AND CONTROLTMS – TOOL MONITORING SYSTEMTMS – TOOL MONITORING SYSTEMSTAC – STORE ACCOUNTINGSTAC – STORE ACCOUNTINGPCE – PRODUCT COST ESTIMATIONPCE – PRODUCT COST ESTIMATIONSLIM – SHELF LIFE INFORMATION MONITORINGSLIM – SHELF LIFE INFORMATION MONITORINGWLS – WORK LOAD SIMULATIONWLS – WORK LOAD SIMULATIONPDOs – PART DISPOSITION ORDERSPDOs – PART DISPOSITION ORDERSWIP – WORK IN PROGRESSWIP – WORK IN PROGRESSORP – ORDER PROCESSINGORP – ORDER PROCESSINGWOC – WORK ORDER CONTROLWOC – WORK ORDER CONTROLPOPS – PURCHASE ORDER PROGRESS SYSTEMPOPS – PURCHASE ORDER PROGRESS SYSTEMQMS – QUALITY MANAGEMENT SYSTEMQMS – QUALITY MANAGEMENT SYSTEM

Page 27: production planning and inventory control

EDM SYSTEMEDM SYSTEM

PRODUCTIONDOCUMENTS

PLANNINGBREAK DOWN

CYCLE TIMEFOR PARTS

LEAD TIMEFOR PARTS

PRICINGDETAILS

MATERIALSUMMARY

ASSEMBLYOPN SHEETS

WORK LOADDETAILS

TOOLINGINFORMATION

EDM

EDM FORMS THE HUB OF PPC SYSTEM

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CODIFICATION MASTERCODIFICATION MASTER

RATIONAL CODES ARE GENERATED RATIONAL CODES ARE GENERATED FORFOR

FABRICATED PARTSFABRICATED PARTS

BOUGHT OUT PARTSBOUGHT OUT PARTS

STANDARD PARTSSTANDARD PARTS

CONSUMABLESCONSUMABLES

FORGINGS AND CASTINGSFORGINGS AND CASTINGS

RAW MATERIALSRAW MATERIALS

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PART MASTERPART MASTER

RAW MATERIAL DETAILS INCLUDING SIZE RAW MATERIAL DETAILS INCLUDING SIZE AND SPECIFICATIONAND SPECIFICATION

REFERENCE DRAWING DETAILSREFERENCE DRAWING DETAILS

NEXT ASSEMBLY DETAILSNEXT ASSEMBLY DETAILS

DEPT,CATEGORY,QPA,LMS,STORE DETAILSDEPT,CATEGORY,QPA,LMS,STORE DETAILS

APPLICABALITY OF PARTS/ASSEMBLIESAPPLICABALITY OF PARTS/ASSEMBLIES

PART CODE/RAW MATERIAL CODEPART CODE/RAW MATERIAL CODE

SPECIAL INSTRUCTIONS APPLICABLE FOR SPECIAL INSTRUCTIONS APPLICABLE FOR PARTS PARTS

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ROUTING MASTERROUTING MASTER

DEPARTMENT WORK CENTRE DEPARTMENT WORK CENTRE DETAILSDETAILS

TOOLING DETAILSTOOLING DETAILS

OPERATION DETAILSOPERATION DETAILS

SEQUENCE OF OPERATIONSSEQUENCE OF OPERATIONS

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RATE FIXINGRATE FIXING

SETUP TIMESETUP TIME

UNIT TIMEUNIT TIME

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ASSEMBLY MASTERASSEMBLY MASTER

PARTS REQUIRED FOR ASSEMBLYPARTS REQUIRED FOR ASSEMBLY

CATEGORY AND QUANTITY PER ASSYCATEGORY AND QUANTITY PER ASSY

APPLICABILITY RESTRION OF PART APPLICABILITY RESTRION OF PART FOR THE ASSEMBLYFOR THE ASSEMBLY

PART CODEPART CODE

CONSUMABLESCONSUMABLES

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SCHEDULING

ORP EDM

SDG

WOC

BOM

SFM

WLS PPRSWIP

SCHEDULING SYSTEM IS AN INTREGRATION OF VARIOUS SUB MODULES MODULES ARE USER DRIVEN

SCHEDULING SYSTEM

BILL OF MATLS

PLANNED PARTSREQUIREMENT SYS

WORK ORDERCONTROL

SHOP DOCUMENTGENERATOR

ENGINEERINGDATA MASTER

ORDER PROCESSINGBILL OF MATLS

SHOP FLOORMANAGEMENT

WORK LOADSIMULATION

WORK IN PROG

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PPRS PPRS (PLANNED PARTS REQUIREMENT SYSTEM)

PPRS

BOM

EDM

SLT/CLT/CTSOS REPORT

DEL DATE

WIPMASTERSCHEDULE

BASED ON END PRODUCT DELIVERY DATE AND LEAD TIME OF MANUFACTURE, DETAILED PARTS MANUFACTURING SCHEDULES AREGENERATED BY COMPUTER

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ORDER PROCESSING ORDER PROCESSING MODULEMODULE

MODULE OPERATED BY CUSTOMER MODULE OPERATED BY CUSTOMER SERVICES AND SCHEDULING DEPTSSERVICES AND SCHEDULING DEPTS

MONITORS ORDER BOOK STATUSMONITORS ORDER BOOK STATUS

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BILL OF MATERIAL MODULEBILL OF MATERIAL MODULE

BILL OF MATERIAL FOR ANY END BILL OF MATERIAL FOR ANY END PRODUCTPRODUCT

CONSOLIDATED AS WELL AS DETAIL CONSOLIDATED AS WELL AS DETAIL MATERIAL SUMMARYMATERIAL SUMMARY

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PPRS MODULEPPRS MODULEGROSS AND NET REQUIREMENT OF PARTS ARE GENERATEDGROSS AND NET REQUIREMENT OF PARTS ARE GENERATEDBACKWARD SCHEDULING BASED ON END PRODUCT DELIVERY DATE BACKWARD SCHEDULING BASED ON END PRODUCT DELIVERY DATE

GENERATED WITH CYCLE TIME AND LEAD TIME DATAGENERATED WITH CYCLE TIME AND LEAD TIME DATAASSEMBLY SHORTAGES ARE GENERATEDASSEMBLY SHORTAGES ARE GENERATEDCOMPREHENSIVE DETAILED AND CONSOLIDATED MIS REPORTS COMPREHENSIVE DETAILED AND CONSOLIDATED MIS REPORTS

GENERATEDGENERATED 1. JIG LOADING PLAN1. JIG LOADING PLAN 2. DUE FOR RELEASE2. DUE FOR RELEASE 3.DUE FOR LOADING3.DUE FOR LOADING 4. DUE FOR COMPLETION4. DUE FOR COMPLETION 5. MODULES WISE/STAGEWISE/DEPTWISE SHORTAGE LISTS5. MODULES WISE/STAGEWISE/DEPTWISE SHORTAGE LISTS 6. SOS REPORTS 6. SOS REPORTS 7. ETC.7. ETC.

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SHOP DOCUMENT SHOP DOCUMENT GENERATORGENERATOR

USER DRIVEN SYSTEMUSER DRIVEN SYSTEM

GENERATES PRODUCTION GENERATES PRODUCTION DOCUMENTS ON LINEDOCUMENTS ON LINE

NO MANUAL MAINTAINANCE OF NO MANUAL MAINTAINANCE OF DOCUMENTSDOCUMENTS

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WIPWIP

MAINTAINS STATUS OF ALL WORK MAINTAINS STATUS OF ALL WORK ORDERS THROUGHOUT THE ORDERS THROUGHOUT THE PRODUCT CYCLE- WORK ORDER PRODUCT CYCLE- WORK ORDER RELEASE TO STORE CREDITRELEASE TO STORE CREDIT

AUTOMATIC WORK ORDER CLOSUREAUTOMATIC WORK ORDER CLOSURE

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SHOP FLOOR MANAGEMENTSHOP FLOOR MANAGEMENT

AUTOMATIC UPDATION OF WIP FILEAUTOMATIC UPDATION OF WIP FILE

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WORK LOAD SIMULATIONWORK LOAD SIMULATION

DEPT WISE/WC WISE LOAD IS DEPT WISE/WC WISE LOAD IS COMPUTED FOR PARTSCOMPUTED FOR PARTS

• DUE FOR LOADINGDUE FOR LOADING• PARTS ANTICIPATED FOR LOADINGPARTS ANTICIPATED FOR LOADING• AVAILABLE CAPACITY VS WORK LOADAVAILABLE CAPACITY VS WORK LOAD

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WHAT IS IN STORE FOR WHAT IS IN STORE FOR FUTURE ?FUTURE ?

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ERPERP

ERP INTEGRATES INFORMATION ERP INTEGRATES INFORMATION ACROSS DEPARTMENTS AND ACROSS DEPARTMENTS AND PROVIDE A SET OF TOOLS FOR PROVIDE A SET OF TOOLS FOR PLANNING AND MONITORING THE PLANNING AND MONITORING THE VARIOUS FUNCTIONS AND VARIOUS FUNCTIONS AND PROCESSES AND PROGRESS PROCESSES AND PROGRESS TOWARDS THE COMMON PURPOSE TOWARDS THE COMMON PURPOSE

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OTHERSOTHERS

LEANLEAN

SCMSCM

TQMTQM

KAIZENKAIZEN

INVENTORY MANAGEMENTINVENTORY MANAGEMENT

WORLD CLASS ORGANISATIONWORLD CLASS ORGANISATION