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 .

material & machinery  Maintain performance: maintain standards .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.

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 .

right quantity.Scope of Production Planning & Control  Material: RM. components. spares. right time  Methods  Machines & equipments  Manpower  Routing  Estimating  Loading & scheduling .

Scope of Production Planning & Control (continued)  Dispatching  Expediting  Inspection  Evaluating  Cost control .

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

Phases (continued)  Action phase: execution – dispatching. status reporting. quality control. progress function  Control phase. material control. tool control. cost control . labor output control. inventory 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 .

deterministic/non-deterministic systems  Network analysis: PERT – Project Evaluation & Review Technique CPM – Critical Path Method  Reliability Theory: probability Series structure Parallel structure .Techniques  Planning & Control of Reserves.

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 .

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