PRODUCTION PLANNING

AND CONTROL
L B Deshmukh
DEPARTMENT OF BUSINESS ADMINISTRATION & RESEARCH
Shri Sant Gajanan Maharaj College of Engg., Shegaon


Decision Making in POM
What to Produce Product Planning and Development including
product design

How to Produce Process Planning, Material Planning, Tool
equipment Planning

Where to Produce Facilities Planning, Capacity Planning and
Sub-contracting Planning

When to Produce Production Scheduling and machine Loading

Who will Produce Manpower Planning

How much to Produce Planning for quantity, economic batch
size etc.
3
POM - Critical Decisions
1. Managing quality
2. Design of goods and services
3. Process and capacity design
4. Layout design
5. Human resources
6. Location strategies
7. Supply-chain management
8. Inventory management
9. Scheduling
10. Maintenance
4
The Critical Decisions - 1
Quality management
Who is responsible for quality?
How do we define quality?
Goods and services design
What product or service should we offer?
How should we design these products and
services?
5
The Critical Decisions - 2
Process and Capacity design
What processes will these products require
and in what order?
What equipment and technology is necessary
for these processes?
6
The Critical Decisions - 3
Layout design
How should we arrange the facility?
How large a facility is required?
Human resources and job design
How do we provide a reasonable work
environment?
How much can we expect our employees to
produce?
7
The Critical Decisions - 4
Supply chain management and JIT Just-in-
time Inventory, Material Requirements
Planning
Should we make or buy this item?
Who are our good suppliers and how many
should we have?
How much inventory of each item should we
have?
When do we re-order?
8
The Critical Decisions - 5
Immediate, short term, and project scheduling
Is subcontracting production a good idea?
Are we better off keeping people on the payroll during
slowdowns?
Maintenance
Who is responsible for maintenance?
Location
Where should we put the facility
On what criteria should we base this location decision?

PRODUCTION PLANNING AND
CONTROL
Once the entrepreneur has taken the
decisions regarding the product design and
production processes and system, his next
task is to take steps for production planning
and control, as this function is essentially
required for efficient and economical
production
Objectives of PPC
Optimum Utilization of Capacity
Inventory control
Economy in production time
Ensure quality
to establish routes and schedules for
work


An effective PPC contributes to time, quality and cost
parameters of entrepreneurial success.
Production Planning and
Control Functions
Process Planning (Routing)
Loading
Scheduling
Combining Functions
Dispatching
Reporting or Follow up
Corrective Action
Re-planning
The determination of where each
operation on a component part,
subassembly, or assembly is to be
performed results in a route for the
movement of a manufacturing lot
through the factory.
Prior determination of these routes is
the job of the manufacturing
engineering function.
Production Planning and Control
Functions- Process Planning (Routing)

Once the route has been established, the work
required can be loaded against the selected
machine or workstation. The total time required
to perform the operation is computed by
multiplying the unit operation times given on the
standard process sheet by the number of parts to
be processed.
This total time is then added to the work already
planned for the workstation.
This is the function of loading, and it results in a
tabulated list or chart showing the planned
utilization of the machines or workstations in the
plant.
Production Planning and Control
Functions- Loading

Scheduling is the last of the planning functions.
It determines when an operation is to be
performed, or when work is to be completed; the
difference lies in the detail of the scheduling
procedure.
In a centralized control situation - where all
process planning, loading, and scheduling for the
plant are done in a central office- the details of
the schedule may specify the starting and
finishing time for an operation.
On the other hand, the central schedule may
simply give a completion time for the work in a
given department.
Production Planning and Control
Functions- Scheduling

While it is easy to define where as process planning,
how much work as loading, and when as scheduling,
in actual operations these three functions are often
combined and performed concurrently.
How far in advance routes, loads, and schedules
should be established always presents an interesting
problem. Obviously, it is desirable that a minimum of
changes be made after schedules are established.
This objective can be approached if the amount of work
scheduled for the factory or department is equal to or
slightly greater than the manufacturing cycle.
For optimum control, it should never be less than the
manufacturing cycle.
Production Planning and Control
Functions- Combining Functions

Production Planning and Control
Functions- Dispatching

Authorizing the start of an operation on the shop
floor is the function of dispatching.
This function may be centralized or decentralized.
Again using our machine-shop example, the
departmental dispatcher would authorize the start
of each of the three machine operations three
dispatch actions based on the foremans routing
and scheduling of the work through his
department. This is decentralized dispatching.
The manufacturing activity of a plant is said
to be in control when the actual
performance is within the objectives of the
planned performance.
When jobs are started and completed on
schedule, there should be very little, if any,
concern about the meeting of commitments.
Optimum operation of the plant, however, is
attained only if the original plan has been
carefully prepared to utilize the
manufacturing facilities fully and effectively.
Production Planning and Control
Functions- Reporting or Follow up

This is the keystone of any production
planning and control activity.
A plant in which all manufacturing activity
runs on schedule in all probability is not
being scheduled to its optimum productive
capacity.
With an optimum schedule, manufacturing
delays are the rule, not the exception.
Production Planning and Control
Functions- Corrective Action

Re-planning is not corrective action.

Re-planning revise routes, loads, and schedules; a
new plan is developed.

In manufacturing this is often required. Changes in
market conditions, manufacturing methods, or
many other factors affecting the plant will often
indicate that a new manufacturing plan is needed.
Production Planning and Control
Functions- Re-planning

Factors Affecting Production
Planning and Control
Type of Product


Type of Manufacturing
Production Planning Functions
Estimating
Routing
Scheduling
Loading
Production Control Functions
Dispatching

Expediting/Follow up/Progressing
Role of PPC in Different Types of
Manufacturing
Mass Production

Batch Production

Job Production
23
Process Types - Products
Project
Job
Batch
Mass
Continuous
Volume
V
a
r
i
e
t
y

L
o
w

H
i
g
h

Low High
Production planning

Production planning may be defined as the
technique of foreseeing every step in a long
series of separate operations, each step to be
taken at the right time and in the right place
and each operation to be performed in
maximum efficiency. It helps entrepreneur to
work out the quantity of material manpower,
machine and money requires for producing
predetermined level of output in given period
of time.

Routing

Under this, the operations, their path and
sequence are established. To perform these
operations the proper class of machines and
personnel required are also worked out. The
main aim of routing is to determine the best
and cheapest sequence of operations and to
ensure that this sequence is strictly followed.


Routing procedure

An analysis of the article to determine what to
make and what to buy.
To determine the quality and type of material
Determining the manufacturing operations and
their sequence.
A determination of lot sizes
Determination of scrap factors
An analysis of cost of the article
Organization of production control forms.

Scheduling
It means working out of time that should be required
to perform each operation and also the time
necessary to perform the entire series as routed,
making allowances for all factors concerned. It
mainly concerns with time element and priorities of
a job.

Production schedule
It takes into account following factors.
Physical plant facilities of the type required to
process the material being scheduled.
Personnel who possess the desired skills and
experience to operate the equipment and perform
the type of work involved.
Necessary materials and purchased parts.



Master Schedule
Scheduling usually starts with preparation of
master schedule which is weekly or monthly
break-down of the production requirement
for each product for a definite time period, by
having this as a running record of total
production requirements the entrepreneur is
in better position to shift the production from
one product to another as per the changed
production requirements.

Manufacturing schedule
It is prepared on the basis of type of
manufacturing process involved. It is very
useful where single or few products are
manufactured repeatedly at regular intervals.
Thus it would show the required quality of
each product and sequence in which the same
to be operated

Scheduling of Job order
manufacturing
Scheduling acquires greater importance in job order
manufacturing. This will enable the speedy execution of
job at each center point.
As far as small scale industry is concerned scheduling is of
utmost importance as it brings out efficiency in the
operations and reduces cost price. The small entrepreneur
should maintain four types of schedules to have a close
scrutiny of all stages namely an enquiry schedule, a
production schedule, a shop schedule and an arrears
schedule out of above four, a shop schedule is the most
important most suited to the needs of small scale industry
as it enables a foreman to see at a glance.
The total load on any section
The operational sequence
The stage, which any job has reached.


Loading
The next step is the execution of the schedule plan as per the route chalked
out it includes the assignment of the work to the operators at their machines
or work places. So loading determines who will do the work as routing
determines where and scheduling determines when it shall be done. Gantt
Charts are most commonly used in small industries in order to determine
the existing load and also to foresee how fast a job can be done. The
usefulness of their technique lies in the fact that they compare what has
been done and what ought to have been done.

Production control
Production control is the process of planning
production in advance of operations, establishing
the extract route of each individual item part or
assembly, setting, starting and finishing for each
important item, assembly or the finishing production
and releasing the necessary orders as well as
initiating the necessary follow-up to have the
smooth function of the enterprise.

Dispatching
Dispatching involves issue of production orders for
starting the operations. Necessary authority and
conformation is given for:
1. Movement of materials to different workstations.
2. Movement of tools and fixtures necessary for each
operation.
3. Beginning of work on each operation.
4. Recording of time and cost involved in each operation.
5. Movement of work from one operation to another in
accordance with the route sheet.
6. Inspecting or supervision of work

Dispatching is an important step as it
translates production plans into
production.

Follow up
Every production program involves determination of the progress
of work, removing bottlenecks in the flow of work and ensuring that
the productive operations are taking place in accordance with the
plans.
It spots delays or deviations from the production plans. It helps to
reveal detects in routing and scheduling, misunderstanding of
orders and instruction, under loading or overloading of work etc.

Inspection
This is mainly to ensure the quality of goods. It can
be required as effective agency of production
control.

Corrective measures
Corrective action may involve any of those activities
of adjusting the route, rescheduling of work
changing the workloads, repairs and maintenance
of machinery or equipment, control over inventories
of the cause of deviation is the poor performance of
the employees. Certain personnel decisions like
training, transfer, demotion etc. may have to be
taken.

Operations Scheduling
Work Center
Defined
A work center is an area in a business in which
productive resources are organized and work is
completed
Can be a single machine, a group of machines,
or an area where a particular type of work is
done
Capacity and Scheduling
Infinite loading (Example: MRP)
Finite loading
Forward scheduling
Backward scheduling (Example: MRP)
Types of Manufacturing Scheduling Processes
and Scheduling Approaches
Continuous
process
Type of Process Typical Scheduling Approach
High-volume
manufacturing
Med-volume
manufacturing
Low-volume
manufacturing
Finite forward of process, machine
limited
Finite forward of line, machined limited
Infinite forward of process, labor and
machined limited
Infinite forward of jobs, labor and some
machine limited
Typical Scheduling and Control Functions
Allocating orders, equipment, and
personnel
Determining the sequence of order
performance
Initiating performance of the scheduled
work
Shop-floor control
Work-Center Scheduling Objectives
Meet due dates
Minimize lead time
Minimize setup time or cost
Minimize work-in-process inventory
Maximize machine utilization
Priority Rules for Job Sequencing
1. First-come, first-served (FCFS)
2. Shortest operating time (SOT)
3. Earliest due date first (DDate)
4. Slack time remaining (STR) first
5. Slack time remaining per operation (STR/OP)

Example of Job Sequencing: First-Come First-
Served
Jobs (in order Processing Due Date Flow Time
of arrival) Time (days) (days hence) (days)
A 4 5 4
B 7 10 11
C 3 6 14
D 1 4 15
Answer: FCFS Schedule
Jobs (in order Processing Due Date
of arrival) Time (days) (days hence)
A 4 5
B 7 10
C 3 6
D 1 4
Suppose you have the four
jobs to the right arrive for
processing on one machine
What is the FCFS schedule?
No, Jobs B, C,
and D are
going to be late
Do all the jobs get done on time?
Example of Job Sequencing: Shortest
Operating Time
Jobs (in order Processing Due Date
of arrival) Time (days) (days hence)
A 4 5
B 7 10
C 3 6
D 1 4
Answer: Shortest Operating Time Schedule
Jobs (in order Processing Due Date Flow Time
of arrival) Time (days) (days hence) (days)
D 1 4 1
C 3 6 4
A 4 5 8
B 7 10 15
Suppose you have the four
jobs to the right arrive for
processing on one machine
What is the SOT schedule?
No, Jobs A
and B are
going to be
late
Do all the jobs get done on time?
Example of Job Sequencing: Earliest Due Date
First
Jobs (in order Processing Due Date
of arrival) Time (days) (days hence)
A 4 5
B 7 10
C 3 6
D 1 4
Answer: Earliest Due Date First
Jobs (in order Processing Due Date Flow Time
of arrival) Time (days) (days hence) (days)
D 1 4 1
A 4 5 5
C 3 6 8
B 7 10 15
Suppose you have the four
jobs to the right arrive for
processing on one machine
What is the earliest due date
first schedule?
No, Jobs C
and B are
going to be
late
Do all the jobs get done on time?
Example of Job Sequencing: Critical Ratio Method
Jobs (in order Processing Due Date
of arrival) Time (days) (days hence)
A 4 5
B 7 10
C 3 6
D 1 4
Suppose you have the four
jobs to the right arrive for
processing on one machine
What is the CR schedule?
No, but since
there is three-
way tie, only
the first job or
two will be on
time
In order to do this schedule the CRs have be calculated
for each job. If we let today be Day 1 and allow a total of
15 days to do the work. The resulting CRs and order
schedule are:
CR(A)=(5-4)/15=0.06 (Do this job last)
CR(B)=(10-7)/15=0.20 (Do this job first, tied with C and D)
CR(C)=(6-3)/15=0.20 (Do this job first, tied with B and D)
CR(D)=(4-1)/15=0.20 (Do this job first, tied with B and C)
Do all the jobs get done on time?
Example of Job Sequencing:
Last-Come First-Served
Jobs (in order Processing Due Date
of arrival) Time (days) (days hence)
A 4 5
B 7 10
C 3 6
D 1 4
Answer: Last-Come First-Served Schedule
Jobs (in order Processing Due Date Flow Time
of arrival) Time (days) (days hence) (days)
D 1 4 1
C 3 6 4
B 7 10 11
A 4 5 15


No, Jobs B
and A are
going to be
late
Suppose you have the four
jobs to the right arrive for
processing on one machine
What is the LCFS schedule?
Do all the jobs get done on time?
Scheduling Low-Volume Systems
Loading - assignment of jobs to
process centers
Sequencing - determining the order
in which jobs will be processed
Job-shop scheduling
Scheduling for low-volume
systems with many
variations
in requirements
Gantt Load Chart
Gantt chart - used as a visual aid for
loading and scheduling
Work
Center
Mon. Tues. Wed. Thurs. Fri.
1 Job 3 Job 4
2 Job 3 Job 7
3 Job 1 Job 6 Job 7
4 Job 10
Figure 15.2
Infinite loading
Finite loading
Vertical loading
Horizontal loading
Forward scheduling
Backward scheduling
Schedule chart
Loading
Sequencing
Sequencing: Determine the order in
which jobs at a work center will be
processed.

Workstation: An area where one
person works, usually with special
equipment, on a specialized job.
Example of Job Sequencing: Johnsons Rule
(Part 1)
Suppose you have the following five jobs with time requirements in two
stages of production. What is the job sequence using Johnsons Rule?
Time in Hours
Jobs Stage 1 Stage 2
A 1.50 1.25
B 2.00 3.00
C 2.50 2.00
D 1.00 2.00
Example of Job Sequencing: Johnsons Rule (Part 2)
First, select the job with the
smallest time in either stage.
That is Job D with the smallest
time in the first stage. Place that
job as early as possible in the
unfilled job sequence below.
Drop D out, select the next smallest time (Job A), and place it 4th in the job
sequence.
Drop A out, select the next smallest time. There is a tie in two stages for
two different jobs. In this case, place the job with the smallest time in the
first stage as early as possible in the unfilled job sequence.
Then place the job with the smallest time in the second stage as late as
possible in the unfilled sequence.
Job Sequence 1 2 3 4
Job Assigned D A B C
Time in Hours
Jobs Stage 1 Stage 2
A 1.50 1.25
B 2.00 3.00
C 2.50 2.00
D 1.00 2.00
Shop-Floor Control:
Major Functions
1. Assigning priority of each shop order
2. Maintaining work-in-process quantity
information
3. Conveying shop-order status information to the
office
Shop-Floor Control:
Major Functions (Continued)
4. Providing actual output data for capacity
control purposes
5. Providing quantity by location by shop order
for WIP inventory and accounting purposes
6. Providing measurement of efficiency,
utilization, and productivity of manpower and
machines
Input/Output Control
Input Output
Planned input should never exceed planned output
Focuses attention on bottleneck work centers
Work
Center
Principles of Work Center Scheduling
1. There is a direct equivalence between work
flow and cash flow
2. The effectiveness of any job shop should be
measured by speed of flow through the shop
3. Schedule jobs as a string, with process steps
back-to-back
4. A job once started should not be interrupted
Principles of Job Shop Scheduling
(Continued)
5. Speed of flow is most efficiently achieved by
focusing on bottleneck work centers and jobs
6. Reschedule every day
7. Obtain feedback each day on jobs that are not
completed at each work center
8. Match work center input information to what
the worker can actually do
Principles of Job Shop Scheduling
(Continued)
9. When seeking improvement in output, look for
incompatibility between engineering design and
process execution
10. Certainty of standards, routings, and so
forth is not possible in a job shop, but
always work towards achieving it
Personnel Scheduling in Services
Scheduling consecutive days off
Scheduling daily work times
Scheduling hourly work times
Thank You