Production Planning & Control

The Concept
Planning: consideration of all input variables to

achieve predetermined output goals; a preproduction activity to determine optimal production schedule, operation sequence, economic batch quantity, etc. Control: remedial action to prevent variance of output from planned levels; tracking operations to ensure compliance with planned levels

Production Planning Stages

Defining objectives
Setting priorities to attain objectives Examining internal & external environments of

planned system Determining achievable targets Determining inputs needed to achieve targets

Objectives
Effectiveness: goods to fulfill customers needs
Maximizing output: maximum output with

minimum input Quality control: Product/service quality meets planned quality specifications Minimize throughput time: conversion of RM to FG in minimum time

Objectives (continued)
Capacity: full utilization of men & machines Minimize cost: minimum cost of production

Maintaining inventory: optimal inventory

Flexibility: flexibility in production operations Coordination: between men & machines

Objectives (continued)
Capacity: plan for current & future needs Reduce bottlenecks: solve production problems

early Maximize profit: minimize cost Production schedules: as per plan Routes & schedules: to optimize use of men, material & machinery Maintain performance: maintain standards

Functions of Production Planning

Product selection & design Process selection & planning Facility location Facility layout & materials handling Capacity planning Systems & procedures Estimating quantity/costs of production, men Routing operation sequence Job scheduling & loading

Functions of Production Control

Inventory control: MRP; JIT
Time management Quality control Maintenance & Replacement Cost reduction & cost control Dispatch Expediting/Follow-up/Progressing

Scope of Production Planning & Control

Material: RM, components, spares; right quantity;

right time Methods Machines & equipments Manpower Routing Estimating Loading & scheduling

Scope of Production Planning & Control (continued)

Dispatching
Expediting Inspection Evaluating Cost control

Phases in Production Planning & Control System Planning: Pre-planning product planning &
development; demand forecasting; resource planning; facilities planning; plant location & layout Active planning quantity planning; product mix; routing; scheduling; material planning; process planning; capacity planning; tool planning

Phases (continued)
Action phase: execution dispatching; progress

function Control phase; status reporting; material control; tool control; inventory control; quality control; labor output control; cost control

Benefits of Production Planning & Control

Higher quality
Better resource utilization Reduced inventory Reduced manufacturing cycle time Faster delivery Better customer services Lower production costs

Benefits (continued)
Lower capital investment Higher customer service Improved sales turnover Improved market share Improved profitability Competitive advantage Flexibility Dependability Lower prices

Limitations of Production Planning & Control

Based on assumptions
Resistance to change Time consuming Difficult due to rapid environment changes

Measuring Effectiveness of Production Planning & Control

Delivery
Inventory levels Production/Operations Management

Requirements for Effective Production Planning & Control

Sound organizational structure Delegation of authority Reliable, up-to-date feedback Standardization Trained people Flexibility to adapt Appropriate management policies Accurate assessment of manufacturing/procurement lead times Adequate plant capacity

Techniques
Planning & Control of Reserves;

deterministic/non-deterministic systems Network analysis: PERT Project Evaluation & Review Technique CPM Critical Path Method Reliability Theory: probability Series structure Parallel structure

Planning & Control in Different Production Systems

Job Production:

Difficult no standardised routing of job orders Orders assigned to workstations as available Scheduled on relative priority of job order Scheduled on assessed production times; estimates of judgment

Different Production Systems (continued)

Batch:

Produced once Repeated at irregular intervals as needed Produced periodically at known intervals Solution depends on: External customers orders Internal consumption sub-assembly

Production Planning and Control

General Framework
Resources Planning Rough-cut Capacity Planning Detailed Capacity Planning Production Planning Master Production Scheduling Demand Management

Detailed Material Planning Material and Capacity Plans

Shop Floor Systems

Purchasing