Production Planning and

Control
 Introduction
• Production Planning and Control (PPC) is the
organisation and planning of the manufacturing
process.
• It coordinates supply and movement of materials
and labour, ensures economic and balanced
utilisation of machines and equipment as well as
other activities related with production to achieve
the desired manufacturing results in terms of
quantity, quality, time and place.
 PPC
• Coordinates supply and movement of
materials and labour,
• Ensures economic and balanced
utilisation of machines and equipment as
well as other activities related with
production
 PPC aims
• To achieve the desired manufacturing
results in terms of
– quantity,
– quality,
– time and
– place.
 PPC
• In other words, PPC aims to provide
– The right quality
– In the right quantity
– At the right time
– At the right place.
 Production Planning implies
• Formulation, coordination and
determination of activities in a
manufacturing system necessary for the
accomplishment of desired objectives.
 Production Control is
• The process of maintaining a balance
between various activities evolved during
production planning providing most
effective and efficient utilisation of
resources.
 PPC: Objectives
• Determining the nature and magnitude of various input
factors to manufacture the desired output.
• To coordniate labour, machines and equipment in the
most effective and economic manner.
• Establishing targets and checking these against
performance.
• Ensuring smooth flow of material by eliminating
bottlenecks, if any, in production.
• Utilisation of under employed resources.
• To manufacture the desired output of right quality and
quantity at right time.
 PPC
• Factors determining the nature of PPC
operations in a manufacturing system:
– The interdependence of various activities/operations
involved in the transformation process.
– The number of operations, parts and sub-assemblies
required to get the final product.
– The nature and magnitude of variation in the capacity
of different kinds of machines and equipment.
– The size of orders and the production run.
– The nature of the manufacturing system.
 Importance of PPC
• Reduces cost of production by minimising
wastage of material and economic utilisation of
resources.
• Leads to lower investment by means of efficient
and balanced utilisation of resources.
• Promotes employee morale by avoiding all sorts
of bottlenecks.
• Enhances customer satisfaction and confidence.
 Scope of PPC
• Liaison with purchase department for efficient
and effective procurement of inputs.
• Liaison with marketing department to determine
the nature and magnitude of the output.
• To plan the layout of the operations indicating in
detail the places/points in the system where
various production activities/operations are to be
performed…
 Scope of PPC
• Establishment of time schedules for
various stages/levels of production by
setting up necessary standards.
• Ensuring continuous inspection over the
quality of goods manufactured.
• Instituting necessary controls to complete
the work according to schedule.
Production Planning
Production Planning: Objectives
• Systematic coordination and regulation of
various activities, keeping in view the
capacity of the resources and the
objective of the organisation.
• To maintain proper balance of the
activities for efficient production.
• Determination of raw material, machines,
equipment, etc., and other input
requirements for the desired output…
Production Planning: Objectives
• Anticipation of business changes and
reacting to them in proper manner.
• To have optimum use of the resources
with optimum cost and time by having
most economical combination.
• To provide alternative production
strategies in the case of emergencies.
 Production Planning Components
• Routing
• Scheduling
• Loading
 Production Planning Components
• Routing. Prescribes the sequence of
operations required to transform inputs
into desired ouptut.
• Scheduling. When and where each
operation of the production process is to
be performed.
• Loading. Studies relationship between
load and capacity of work centres in the
system.
 Routing
• Means determination of the path or route
over which each piece is to travel in being
transformed from raw material into
finished product.
• Simple in continuous manufacturing
systems; complex in intermittent systems.
 Routing
• Prescribes the amount of material, types
of equipment and machines and the
number of skilled and unskilled workers
required to perform a particular job or
operation.
• Routing is the basis of scheduling and
loading.
 Routing
• Consists of the following decisions:
– Whether to make or buy.
– The form and shape of the material.
– The division of work to be done into operations.
– The choice of mahcines/work centres on which each
operation should be done.
– The sequence in which operations are to be
performed.
– The division of operations into work elements.
– The choice of special tooling.
 Routing: Advantages
• Efficient use of available resources.
• Reduction in manufacturing costs.
• Improvement in quantity and quality of the
output.
• Provides a basis for scheduling and
loading.
Scheduling