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Om 0017

Om 0017

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OM0017-Unit-01-Production Planning and Control Concepts
Unit-01-Production Planning and Control Concepts
 1.1 IntroductionObjectives1.2 Functions/Tasks of Production Planning1.3 Levels of Production Planning1.4 Systems/Aids for Production Control1.5 PPC Coordination with Other Functions and Role of Production1.6 PPC Coordination & Interfacing with Marketing1.7 PPC as an Integrated Function1.8 PPC for Different Systems of ManufacturingPPC for mass or continuous productionPPC for batch or intermittent productionPPC for job shop production1.9 Functions of PPC in Plant / Facilities Planning1.10 Summary1.11 Glossary1.12 Terminal Questions1.13 Answers1.14 Case Study
1.1 Introduction
 It is very well known that an industry can achieve the highest efficiency in production by manufacturing therequired quantities of products. In order to coordinate all manufacturing activities across all processes, themanagement deploys the production planning and control department. This department is responsible fororganising the production process.Production is a transformation process. Here, all the material inputs are processed to get the desired product. Theproduction planning and control section, hereafter referred to as PPC, controls and monitors the whole productionprocess. It follows two processes. First is the transformation by disintegration, which involves converting the rawmaterials to different sizes, states and geometric shapes, and second is the transformation through integration,which involves but the assembly of components to form the main product.In this unit, you will study about the functions of production planning along with its levels. Later, you will bestudying about production planning and control (PPC) coordination with other functions and as an integratedfunction. At the end, we will discuss about the PPC for different systems of manufacturing and PPC functions inplant facility.
After studying this unit, you should be able to:· Analyse the integrated systems in PPC and System/Aids used.· Devise production planning for mass, batch & job type productions through Aggregate and Master ProductionSystems.· Define the functions, different levels and procedures adopted in PPC· Assess how PPC works as an integrated system and the positioning policy.· Distinguish between planning and control functions.
1.2 Functions/Tasks of Production Planning
 Before we discuss about the functions/tasks of production planning, let us first understand the meaning ofproduction planning. Production planning is a process that covers the performance of some critical functions likeplanning, routing, scheduling, and loading.Manufacture planning and control involves the procurement and allocation of limited resources over a specifiedtime horizon to carry out production activities so as to satisfy the demands of the customer. Planning and controlproblems are characteristically optimisation problems. Here, the objective is to come up with a plan that meetsdemand at a minimum cost or that fulfills the demand which maximises profit.The manufacturing planning and control deals with the decisions of utilisation, acquisition, and resourcesallocation because it is important to satisfy the customer requirements in a cost effective and efficient way.Usually, decisions taken include the level of work force, production lot sizes, assignment of overtime, andsequencing of production runs.Following are the essential functions/tasks of production planning.
 Production planning is defined as the technique of anticipating every step in a long series of separate operations.It helps the entrepreneur to calculate the quantity of material, manpower, machinery, and capital required forproducing a planned level of output in a specified time period.
 The main purpose of routing is to find out the best and cheapest sequence of operations and to make sure that thisorder is exactly followed. Routing involves the following different activities.· Evaluating the document to determine what components to make and what components to buy.· Ascertaining the quality and type of material.· Establishing the sequence of manufacturing operations.· Determining lot sizes.· Finding out the scrap factors.· Analysing the cost of the article.· Organising the different production control forms.
This means evaluating the time that would be required to carry out each function and also the time needed toperform the entire series. It is primarily concerned with the time element and priorities of a job. The model ofscheduling differs from one job to another which is explained as below:
Production schedule:
The main purpose of production schedule is to schedule the amount of work, which can beeasily handled by the plant and equipment without any hindrance. It is not an independent decision, as it takesthe following factors into account.· Physical plant facilities required to process the material being scheduled.· Employees who possess the skills and experience to perform the type of work involved and operate theequipment.· Required materials and purchased parts.
Scheduling typically begins with the preparation of the master schedule, which is weekly ormonthly categorisation of the requirement of production for each product for a specified time period. This helpsthe entrepreneur to shift the production from one product to another according to the changed production needs.An operator schedule follows a master schedule. It fixes the total time required to do a specific task on a givenmachine or it shows the time needed to do each detailed activity of a given job with a particular machine orprocess.
Manufacturing schedule:
It is organised on the basis of the type of manufacturing process involved. It is veryuseful when manufacturing a single or few products continually at regular time period. Thus, it would give an ideaabout the required quantity of each product and the order in which the same is to be operated.
cheduling of job order manufacturing:
A job order is an order for a product received from a customer or a clientor from an internal section of an organisation. Scheduling is a process followed to ensure the speedy execution ofjob order manufacturing. Scheduling attains greater importance in job order manufacturing. For a small scaleindustry, scheduling is of prime importance, as it brings out efficiency in the operation and reduces cost. The smallentrepreneur should maintain four types of schedules ³ namely an enquiry schedule, a production schedule, ashop schedule, and an arrears schedule. Out of the above four, a shop schedule is the most important and mostsuited to the needs of a small scale industry, as it enables a foreman to see the following at a glance.· The section load ³ that is, the load at any given section.· The sequence of operation.· The phase that a job has touched.
 It entails the assignment of work to the operators/workers at their work places. Therefore, loading determineswho will do the work, as scheduling determines when it shall be done. Routing determines where the loading hasto be done. Small industries usually make use of Gantt charts to find out the present load on the system and alsoto evaluate how fast a job can be done. The advantage of using this technique is that it gives a picture of what hasbeen done and what is to be done. Then you can make a comparison between the two.Many small scale enterprises fail due to non-adherence to delivery schedules. Therefore, to be successful, theyshould have the ability to make the delivery of goods on time, without compromising on product quality. It isimportant for the entrepreneur to judge ahead of time as to what should be done, where and when.
elf Assessment Questions
 1. The objective of routing is to determine the best and cheapest sequence of operations. (True/False)?2. Scheduling normally starts with preparation of _______________.3. For a small scale industry scheduling is not important. (True/False)?

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