production planning & control-abridged

7/28/2019 Production Planning & Control-Abridged

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Production/Operations Planning & control

(A)


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Production/Operations Planning & control

Production planning / Operation planning:

Involves the organization of an overall manufacturing / operatingsystem to produce a product.

Various activities involved are i) designing the product

ii) determining the equipment & capacity requirements,

iii) designing the layout of physical facilities & MH system,iv) determining the sequence of operations to be performed

along with time requirements (standard times) &

v) specifying certain production quantity & quality levels

Objective is to provide a physical system together with a set of

operating guidelines for efficient conversion of raw materials,

human skills & other inputs in to finished products


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Production/Operations Planning & control-contd(1) Volume of production- The Production Planning is expected

to reduce manufacturing costs.

In case of custom order job shop, the planning of production is

limited to planning for purchase of raw materials &components & determination of work centers which havethe capacity of manufacturing the product

In high volume operations, extensive production planning isnecessary in planning for design of both the product & theproduction processes in order to achieve substantial costreduction when large number of products are produced.

(2) Nature of production processes

In job shop- Production planning may be informal & the

development of methods is left to the individual workmanwho is highly skilled.

In high volume production- many product designers, equipmentdesigners, process designers & method engineers areinvolved in designing the product & manufacturing process.


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Production/Operations Planning & control-contd

Market Requirements Product Research

Product DevelopmentProduct specifications

Final Product DesignProduct Ideas

Process DesignProcess R&D

Work Flow AnalysisWork Station Selection

Operation Design

Operation MethodOperation Control

Process Planning System

Product Planning System

Sequence FeedbackProduction Plannin S stem


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Production Control:- Importance of control function:-The function of production control is to:

i) Provide for the production of parts, assemblies & products of required quality& quantity at the required time.

ii) Coordinate, monitor & feed-back to manufacturing management, the resultsof the production activities, analyzing & interpreting their significance &taking corrective action if necessary.

iii) Provide for optimum utilization of all resources.

iv) Achieve the broad objectives of the low cost production & reliable customerservice.

Benefits of Production Control-

!) Improvement in profits through-

a) Maintenance of balanced inventory of materials, parts, w.i.p & finishedgoods

b) Balanced & stabilized productionc) Maximum utilization of men, machines & equipments & space

d) Minimum investment in inventory

e) Reduction in indirect & set-up costs

f) Reduction in scrap & rework costs

g) Reduction in inventory costs contd-next slide


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Benefits of Production Control- contd

2) Competitive advantage-

a) Reliable delivery to customers.

b) Shortened delivery schedule to customers

c) Lower production costs & greater pricing flexibility

d) Orderly planning & marketing of new or improved products.

Elements of Production Control-

1) Control of planning 2) Control of materials

3) Control of tooling 4) Control of Manufacturing activities

5) Control of activities 6) Control of Quantity7) Control of material handling 8) Control of due dates

9) Control of information


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Production Planning & control

(B)


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Production Planning & control-(PPC)

This function is concerned with decision making regarding-

a) What to produce- Product Planning & development includes

product design

b) How to produce- Process planning, materials planning, tools

planning etc

c) Where to produce- Facilities planning, capacity planning, sub-contracting planning

d) When to produce- Production scheduling & machine loading.

e) Who will produce- Man-power planning

f) How much to produce- Planning for quantity & economic batch

size etc


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Production Planning & control

Production Planning & control function essentially consistsof planning in a manufacturing organization before actual

production activities starts& exercises control activities to ensure that the plannedproduction is realized in terms of quality, quantity,delivery schedule & cost of production.

Objectives of Production Planning & control :1 Delivery of quality goods in required quantities tocustomer in the required delivery schedule

2 Maximum utilisation of all resources.

3 Production of quality goods

4 Minimise product throughput time or production /manufacturing cycle time.

5 Maintain optimum inventory level.

6 Maintain flexibility in manufacturing operations

7 Coordination between labour, m/cs, & supporting deptts.


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Production Planning & control-contd

Objectives of Production Planning & control-contd

8 Plan for plant capacity for future requirements

9 Remove bottle-neck at all stages, & solve production relatedproblems

10 Effective cost reduction & cost control

11 Prepare production schedule & delivery by scheduled dates.

12 Produce effective results for least total cost .

13 Establish routes & schedules for work that will ensure

optimum utilisation of labour, equipments & machines, &

provide the means for ensuring the operation of the plant in

accordance with these plans.

14 Ultimate objective is to contribute to the profit of the

enterprise.


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Scope of Production Planning & control- It encompasses

1) Materials: Planning for procurement of RM, components/ parts

in right quantities/specifications, right time, from right source& at the right price.

Other activities associated with the materials are purchasing,

storage, inventory control, standardization, variety reduction,

value analysis & inspection.2) Methods: Choosing the best method of processing from several

alternatives, including the best sequence of operations

(Process Planning) & planning for tooling /Jigs/Fixtures.

3) Machines & equipments : Manufacturing methods are related toproduction facilities available in the production system. It

involves facilities planning, capacity planning, allocation &

utilization plant & equipments, machineries etc It also

involves equipment replacement policy, maintenance

schedules, Tools manufacturing & maintenance etc.


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Scope of Production Planning & control contd

4) Manpower: Planning for Human resources (labour, supervisory,

& managerial levels) having appropriate skills & expertise.5) Routing: Determining the flow of work, material handling in the

plant, sequence of operations or processing steps. This is

related to considerations of appropriate shop layout, temporary

storage locations for raw materials, components & semi-

finished goods & material handling systems.

6) Estimating: Estimating operations time leading to fixation of

performance standards both for workers & machines.

7) Loading & scheduling: Machine loading is allocation of jobs to

the machines in conjunction with due consideration for capacity

of machines & priority for jobs in order to utilize the machines to

the maximum possible extent.


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Phases in PPC Function:

(1) Planning phase- (a) Pre-planning (b) Active planning.

(a) Pre-planning- Involves Product planning & development,

demand forecasting, facilities planning, plant planning,

Plant location & plant layout.

(b) Active planning-Involves planning for quantity,

determination of product-mix, routing, scheduling,materials planning, process planning, capacity planning, &

tools planning

(2) Action Phase-Execution or implementation phase includes

the dispatching & progressing function.(3) Control Phase- Includes status reporting, materials control,

tools control, inventory control, quality control, labour out-

put control & cost control.


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P d ti Pl i & t l td


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1) Long

Range

(Strategic

Planning)

2)Interme--diate

range

(Tactical

plan)

3) Short

Range

(Operatio

nal Plan)

i) Long Range demand

forecast

ii) Availability of fund &

Business analysis

iii) Capacity data & Analysis

Intermediate Rangedemand forecast

i) Short Range demand

forecastii) On hand customer orders

iii) Other orders ( Intra-

Company)

iv) Availability of material from

suppliers

Long range

capacity plan

Aggregatecapacity

plans

i) Master

productionschedule

ii) Capacity

requirement

Planning

iii) Material

requirementplanning

i) Production capacity plans. (Plant

location, layout, size, capacities

etc

ii) Major sub contracting plans.

iii) Major machinery & process plans.

i) Employment planii) Machinery & utility plans

iii) contract & material supply contract

iv) Facility modification plan

i) Short range production schedule for

end products

ii) Short range production schedule for

parts, components, sub-

assemblies & final assembly

iii) Short range plan for purchasing

materials

iv) Short range shop-floor plans

Levels of Planning in a Production Planning System

Planning

HorizonInputs

Plans /

Schedules Out-Puts


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PP&C-contd Information required for PPC

1 Production programme

Quantity to be produced Delivery date

Variety / different models & spl features

2 Quality standards-specs &

tolerance

3 Production materials

Type of materials Quality & quantity

Procurement lead-time Stock position

4 Toolings

5 Operational details

Sequence of operations,

Process capability of machines/ equipmentsJigs & Fixtures needed

Cutting parameters/ Process parameters

6 Standard times for operations/ set-up

time

7 Starting & finishing dates.

8 Progress/Status of work

1-The sales order or the

order accepted bymarketing

2-Design deptt which

translate customer needs

in to specifications

3-Drawing & Bill ofmaterials (BOM), Material

stock card

4-Standard & special tools

5-Process sheets

Load charts

Process capability study

6-Work measurement

Data

7-M/c load & sch. Chart

8-Production report

1-Marketing

deptment

2-Engg, purchase

& stores

3-PPC deptt

4 PPC deptt

5 Industrial Engg

deptt

6 PPC deptt

7 Production

8 Prroduction

Information required Source of Information Department


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Preparation of production Budget FIN/PRODUCTION

Preparation of details by Engg Deptt (Drg/BOM/Spec

Production Planning- supplies data to dispatch section

Authorisation for production- despatch of prodn order

Control function- compare progress with plan continuously

Inspection, Quality control

Evaluation of Production System- feedback for improvement

Finished goods stock

Dispatch to customer

Sales forecast

ManagementCustomer

Feedback

Production

Procedure


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Production Planning & control-contd-Typical Organization for PPC in a manufacturing firm

G.M. (Plant)

MaintenanceQuality

ControlPPCProductionR & D

Scheduling ProgramDispatchingTools

Control

Material

Control

Order

preparation

production planning & control-abridged

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