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Production/Operations Planning & control
Production planning / Operation planning: Involves the organization of an overall manufacturing / operating system 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
using the exiting facilities. It may begin with a product idea & a plan for the design of the product & the entire production / operating system to manufacture the product. It also includes the task of planning for the manufacturing of a modified version of an existing product. 3.major factors determining the planning procedures are: (1) Volume of production (2) Nature of production processes (3)Nature of operations. The wide difference between the planning procedures of one company from the other is primarily due to the differences in the economic & technological conditions under which the firms operate. Contd on next slide .Production/Operations Planning & control-contd Factors determining Production Planning procedures It differs from company to company.
process designers & method engineers are involved in designing the product & manufacturing process. In high volume production. the planning of production is limited to planning for purchase of raw materials & components & determination of work centers which have the capacity of manufacturing the product In high volume operations.The Production Planning is expected to reduce manufacturing costs.Production planning may be informal & the development of methods is left to the individual workman who is highly skilled. extensive production planning is necessary in planning for design of both the product & the production processes in order to achieve substantial cost reduction when large number of products are produced.Production/Operations Planning & control-contd (1) Volume of production. . In case of custom order job shop. (2) Nature of production processes In job shop.many product designers. equipment designers.
interrelated sub systems i) Product planning system & ii) Process planning system Refer the figure on the next slide . Variants in manufacturing approach are: i) Manufacture to order which may or may not be repeated at regular intervals.Production/Operations Planning & control-contd (3) Nature of OperationsDetailed production planning is required for repetitive operations. Ex . varies with the nature of the process. in case of a single standardized product.Chemicals. e. ii) Manufacturing to stock & sell (under repetitive batch or mass production).Manufacture of Automobiles. food products. yarn etc The degree to which production planning is carried. watches etc. Production planning system – has Two .. iii) Manufacturing to stock & sell (under continuous process manufacturing) Ex.g. soap.
Production/Operations Planning & control-contd Product Planning System Market Requirements Product specifications Product Ideas Process Planning System Process R&D Work Station Selection Operation Design Operation Control Operation Method Sequence Feedback Process Design Work Flow Analysis Product Research Product Development Final Product Design Production Planning System .
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 .p & finished goods b) Balanced & stabilized production c) Maximum utilization of men. analyzing & interpreting their significance & taking corrective action if necessary. the results of the production activities. iii) Provide for optimum utilization of all resources. monitor & feed-back to manufacturing management.Production/Operations Planning & control-contd Production Control:Importance of control function:The function of production control is to: i) Provide for the production of parts. parts. Benefits of Production Control!) Improvement in profits througha) Maintenance of balanced inventory of materials. iv) Achieve the broad objectives of the low cost production & reliable customer service. assemblies & products of required quality & quantity at the required time.i. ii) Coordinate. w.
Production/Operations Planning & control-contd Benefits of Production Control. b) Shortened delivery schedule to customers c) Lower production costs & greater pricing flexibility d) Orderly planning & marketing of new or improved products.contd 2) Competitive advantagea) Reliable delivery to customers. Elements of Production Control1) Control of planning 2) Control of materials 3) Control of tooling 4) Control of Manufacturing activities 5) Control of activities 6) Control of Quantity 7) Control of material handling 8) Control of due dates 9) Control of information .
Production Planning & control (B) .
tools planning etc c) Where to produce. subcontracting planning d) When to produce. materials planning. capacity planning.Planning for quantity & economic batch size etc .Production scheduling & machine loading.Man-power planning f) How much to produce. e) Who will produce.Facilities planning.Product Planning & development includes product design b) How to produce.Production Planning & control-(PPC) This function is concerned with decision making regardinga) What to produce.Process planning.
5 Maintain optimum inventory level. & supporting deptts.Production Planning & control Production Planning & control function essentially consists of planning in a manufacturing organization before actual production activities starts & exercises control activities to ensure that the planned production is realized in terms of quality. . delivery schedule & cost of production. Objectives of Production Planning & control : 1 Delivery of quality goods in required quantities to customer 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. quantity. m/cs. 6 Maintain flexibility in manufacturing operations 7 Coordination between labour.
& solve production related problems 10 Effective cost reduction & cost control 11 Prepare production schedule & delivery by scheduled dates. & provide the means for ensuring the operation of the plant in accordance with these plans. 12 Produce effective results for least total cost . 13 Establish routes & schedules for work that will ensure optimum utilisation of labour. 14 Ultimate objective is to contribute to the profit of the enterprise. .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. equipments & machines.
value analysis & inspection. Tools manufacturing & maintenance etc. from right source & at the right price. variety reduction. components/ parts in right quantities/specifications. . It involves facilities planning. Other activities associated with the materials are purchasing. inventory control. maintenance schedules. right time. storage.It encompasses 1) Materials: Planning for procurement of RM. including the best sequence of operations (Process Planning) & planning for tooling /Jigs/Fixtures. 3) Machines & equipments : Manufacturing methods are related to production facilities available in the production system. capacity planning.Production Planning & control-contd Scope of Production Planning & control. 2) Methods: Choosing the best method of processing from several alternatives. machineries etc It also involves equipment replacement policy. allocation & utilization plant & equipments. standardization.
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. 5) Routing: Determining the flow of work. components & semifinished goods & material handling systems.Production Planning & control-contd Scope of Production Planning & control – contd 4) Manpower: Planning for Human resources (labour. temporary storage locations for raw materials. & managerial levels) having appropriate skills & expertise. supervisory. This is related to considerations of appropriate shop layout. . material handling in the plant. sequence of operations or processing steps. 6) Estimating: Estimating operations time leading to fixation of performance standards both for workers & machines.
It is the release of orders & instructions for starting of production as per route sheets & schedule charts. It keeps a close liaison with scheduling in order to provide an efficient feed-back & prompt review of targets & schedules. It gives necessary authority to start a particular work already planned under routing & scheduling. process/labour performance evaluation for improvement) 12)Cost control: By waste reduction/ value analysis. . 11) Evaluating): Its objective is to improve the performance (m/cs.Production Planning & control-contd Scope of Production Planning & control – contd 8) Dispatching: It is concerned with execution of planning function. inventory control & efficient utilization of all resources. 10)Inspection: This relates to maintenance of quality in production (evaluating processes/methods/ workers for improvements) to achieve the quality standards set by product design. 9) Expediting: Means chasing. follow-up or progressing which is done after the dispatching function.
& tools planning (2) Action Phase-Execution or implementation phase includes the dispatching & progressing function.(a) Pre-planning (b) Active planning. plant planning. capacity planning. materials control. (a) Pre-planning. (3) Control Phase. inventory control.Production Planning & control-contd Phases in PPC Function: (1) Planning phase.Includes status reporting. tools control. determination of product-mix. quality control. routing. facilities planning.Involves Product planning & development. scheduling. materials planning. process planning. demand forecasting. Plant location & plant layout. labour output control & cost control. (b) Active planning-Involves planning for quantity. .
Production Planning & control-contd Main functions of PPC department are shown in the following figure. Production Planning & Control Production Planning Production Control i) ii) iii) iv) Estimating Routing Scheduling Loading i) ii) iii) iv) Dispatching Expediting/Follow-up Inspection Evaluating & Corrective action .
subassemblies & final assembly iii) Short range plan for purchasing materials iv) Short range shop-floor plans 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 Range demand forecast Long range capacity plan Aggregate capacity plans i) Short Range demand forecast ii) On hand customer orders iii) Other orders ( IntraCompany) iv) Availability of material from suppliers i) Master production schedule ii) Capacity requirement Planning iii) Material requirement planning . components. capacities etc ii) Major sub contracting plans. iii) Major machinery & process plans. i) Employment plan ii) 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.Production Planning & control-contd Levels of Planning in a Production Planning System Planning Horizon Inputs Plans / Schedules Out-Puts i) Production capacity plans. layout. (Plant location. size.
Process capability of machines/ equipments Jigs & Fixtures needed Cutting parameters/ Process parameters 6 Standard times for operations/ set-up time 7 Starting & finishing dates. 8 Progress/Status of work Source of Information 1-The sales order or the order accepted by marketing 2-Design deptt which translate customer needs in to specifications 3-Drawing & Bill of materials (BOM). Chart 8-Production report 6 PPC deptt 7 Production 8 Prroduction . purchase & stores 3-PPC deptt 4 PPC deptt 5 Industrial Engg deptt 6-Work measurement Data 7-M/c load & sch.PP&C-contd Information required for PPC Information required 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. Material stock card 4-Standard & special tools 5-Process sheets Load charts Process capability study Department 1-Marketing deptment 2-Engg.
despatch of prodn order Management Feedback Control function.Sales forecast Preparation of production Budget –FIN/PRODUCTION Preparation of details by Engg Deptt (Drg/BOM/Spec Production Planning.feedback for improvement Finished goods stock Dispatch to customer Production Procedure .compare progress with plan continuously Inspection. Quality control Evaluation of Production System.supplies data to dispatch section Customer Authorisation for production.
(Plant) R&D Production PPC Quality Control Maintenance Order preparation Material Control Tools Control Scheduling Dispatching Program .Production Planning & control-contdTypical Organization for PPC in a manufacturing firm G.M.
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