Production Planning & Control

An Introduction

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 Maximising output: maximum output with minimum input Quality control: Product/service quality meets planned quality specifications Minimise throughput time: conversion of RM to FG in minimum time

Objectives (continued)
Capacity: full utilisation of men & machines Minimise 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 Maximise profit: minimise cost Production schedules: as per plan Routes & schedules: to optimise 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 & sceduling

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; labour 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 organisational structure Delegation of authority Reliable, up-to-date feedback Standardisation 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 1 2 Parallel structure 1 2

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 judgement

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