CHAPTER 1 INTRODUCTION

A. INTRODUCTION TO MANUAL The manual that follows has as its goal the explanations, considerations and
objectives of a formal program of Production Forecasting, Planning. Scheduling.

Loading and Control (hereafter referred to as "Production Control") and to outline procedures to be followed in obtaining its goals. This manual is only a guide, and like a street sign, it can only show you direction; it cannot get you to where you are going unless its directions are followed. The lust pages of the manual will provide an overview of a production control system. The rest of the manual deals with those specific procedures and forms with which you will come in contact daily. We have tried to be specific. Most of the problems or questions that you would have will be covered: however. the
examples used will only he fm - ease of explanation. To be effective, all pages must he read and digested; and the information given must be used and improved upon

at all times.
B. PRODUCTION CONTROL CONSIDERATIONS Because synchronous and modular manufacturing are no longer a buzzwords you

should plan your production control system to provide customer quick response.
This would include using the Theory of Constraints popularized by Eli Goldratt,

author of The Goal. Keep away from unit loading and controls. Instead, consider loading and controlling in Standard Allowed Hours which will allow you to better

productivity. This assures that the supervisors meet scheduled completion dates

using a balanced and timely program without constraints. ht addition, because of the need to satisfy customer demands and keep the lines balanced, Control function should be responsible
the Production

for ptility Opsratora, if you don't have

utility operators now you will need to consider them to make your system work better). C: OVERVIEW OF AN ENTIRE PRODUCTION CONTROL SYSTEM
Production Control's function is to

produce products with minimum total cost in

the required planned delivery timcframe.Theproduction plan should_perlit one every individual product . to anticipate the progress of the production of any and _ the raw material to the shipment of the order. . . "Me production ('rout the receipt of plan should also permit one to anticipate the itemized and total cost of producing control performance and delivering the product, The efficiency of the production is equal the precision ofthe time and cost anticipation. The greater the
cost figures, the poorer the production

deNiation from the scheduled time and

control performance.

Production control is composed of a sequence of five activities: 1.

Analyzing: Is the process of determining the quality specifications of the

product. The analysis provides the specifications for the following elements of production: a. b. c. raw materials; production equipment and tools; Production personnel; that will yield the durability, utility, and emotional appeat,(style factors) required for the garment.

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control process. An in-depth discussion on supervisory development is beyond the scope of this manual'. We will therefore only cover the role suPervisors should and should not have in a meaningful production control process. Traditionally, supervisors are asked to control production and keep the work
I

moving. Experience has shown the inefficiency of this approach. Because the supervisor is usually busy moving bundles, the supervisors have little time to deal ' one-on-one with their people to help them improve their production, etc. This makes direct labor much more expensive then it should be or could he. To reduce costs and improve production and quality it is suggested that the supervisor's job should be divided into two parts; people and data. Thedata part
7

associated with directing and controlling the work-in-process activities (i.e.

bundle people, production reports, etc.) should become the responsibility of Production Control. This will' give the supervisors more time to deal with their primary job which is to see that everyone of their operators earn a minimum of one hour for every hour they work. Line supervisors are one of the keys to balanced operations. lu traditional, progressive bundle factories, supervisors usually have little or no training in how to correctly balance lines and it is precisely here that Production Control can aid the supervisor. By providing timely information to the supervisor, Production Control can help guide the production lines toward an ominium level or

A Professional Series Supervisory Development Training Manual is available from Gene Levine Associates. Call (561)-637-S139 for further information.

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The entire Production Planning and Control System is optional. In addition Production Planning could be used without the Production Control section or vice versa, or Planning and Control could be used without Production Costing. The main objectives ofthe Production Planning System arc: 1. To assist in the planning and recording of over-all production requirements. This includes analysis of production plan to orders, stock on hand or sales budgets to ensure that the plan is reasonable in relation to requirements. To assist in the translation of the over-all requirement into a production schedule. Material Requirement Planning ("M.R.P.") to enable the user to correctly schedule the ordering of raw materials. M.R.P. combines the Production Plan with the Bill of Materials structure to arrive at material requirements. Resource Capacity Planning to enable the user to analyze physical capacity of men and machines against capacity required by the onler situation or the actual production plan. To provide facilities to plan the production schedule in detail and ensure that production resources are fully utilized without unnecessary under or over-utilization. To launch Production Jobs with required documentation (Job Cards, Material Requisition Forms, Bundle Tickets, etc.). These will detail to production personnel the jobs to he carried out, the materials required to be drawn for these jobs, and the activities to be performed in the production process. To capture and monitor details of work in progress and production quantities. To maintain a tracking history of job progress. To report on exceptional conditions to ensure that jobs progress according to plan. To capture and record the true cost of production and to record abnormal costs such as reprocessing costs. etc. To report on the costs and efficiencies of completed jobs in the following categories:

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5.

6.

7. 8. 9. 10. 1 I.

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CHAPTER I
This presents the quality measuring scale for the product. The anal sis also gives the basis of quantitative production capacity of each_operation, job, or process. This is one of the requirements for forecasting the anticipated load of production per unit time. Forecasting: Forecasting is tlje_process of estimating the future_ sales volume, Monte of sales, and the rate of deliiteryi 3. Planning (organizing and scheduling): Planning is the activity __ of organizing the sequence of communications and material processing. Every production process must be initiated or curtailed by some communication. Without such governing devices there could be no precision scheduling. Scheduling is the second half of the planning activity; it adds the lyten't_to organizing.rwhatnami-allore." 4. Routing: Routing consists of assigning the "who" to_ planning and accenting the what, where, and when. 5. Controlling: . Controlling is the activity with which the production manager inspects and corrects the execution of the production plan. It is the action that must be taken to change the plan whenever production is behind 'the .planned,scheduje_because of improper_phmning, unforeseen emergencies, or unpredicted occurrences. D. WHAT DOES A PRODUCTION CONTROL SYSTEM ENTAIL? Pr uetion Control System are generally split into two main sub-systems. 1. 2. Production Planninc! and Resource Planning. Production ControLand.Cost Production Reporting.

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Planned quantities versus quantities actually produced.

So, production planning, scheduling and control generally involve, the. organization and planning
of

the manufacturing process.' Specifically, these

activities consist of initial planning of workload capacity versus sales, scheduling, dispatching, and inspection coordination. included are control of materials, methods, machines, tooling, and operation times.
The ultimate objective of all

these activities is the organization of the supply and movement of materials and ) r,machine utilization and related activities In order to help manufbcture &lir -cost customer orders or stock) in the most efficient time, at the lowest possible and with the highest quality.

Production Control involves people and activities that striveto plan, schedule, . _ coordinate, monitor work flow and control production within manufacturing factory. Its duties include reviewing master production schedules and work orders . and revising schedules according to availability of workers, materials, and 1.$) as a basis for determining equipment. We use Standard Allowed flours (S.A.1 _ consistent flow while satisfying customer demand. Through this system, Unbalanced conditions can
factor. be located easily before becoming an excess cost

Production Control also aids the supervisor in guiding his/her line toward an
optimum level of productivity in order to assure that scheduled completion dates are achieved. Production Control assures that products arc being manufactured on a balanced

and timely program.

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FUNCTIONS OF PRODUCTION CONTROL

It is necessary to specifically define what functions belong in the category of production control. There is to be a clear distinction between production control and actual manufacturing; i.e., the same personnel will not be utilized by both. -Do not have a mistaken impression that, first, there are numerous varieties of production control systems; second, that there arc definitely standard systems which apply directly to certain types of products and, third, that setups can be 'Copied bodily from other companies and, when . introduced, will work with corresponding success. Organized production control is necessary for the most successful operation; but the methods_installed must be definitely adapted to the particular factories in which they are to,buised.

Production control is a facilitating service to manufacturing manned by staff personnel, Production control coordinates all of the necessary production
I

information and production aids,....including_methods, times, materials, and

attachmepts: it directs and checks on the course and progress of work, and closes
the reeords . when work on an order has been completed. It has sgmetimcsbeen called the "paper work" of manufacturing, although this term is too limited to cover all its duties. In general, it relieves the factory manager of non-operating responsibilities and removes from the supervisor the burden of preliminary planning and recording duties.

The spread of production control department functions should be designed to work with (1) the nature of your business and (2) the way in which your organizational activities arc divided. ...Your engineering department should prepare fundamental data; drawings, specifications of material and or operations on each . piece, lists of parts, inspection standards, and similar technical data. Your

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engineering department is also charged with process maintenance, continually studying improvements in processes. The starting point is design. and development. It may be merely a sketch or drawing from which samples or patterns are prepared. Much analytical work falls to both the production control and engineering departments. In one department or another, someone must analyze the proposed product into its components, determine the quality and quantity of material, specify standards of quality for the product, and provide all the necessary technical data on which accurate planning must rest.
F. WHY PRODUCTION CONTROL?

As customer bases grow, there arc more and more style variations within -product groups. Style variations also bring about situations where lines should be loaded in hours rather than units. Ever-changing demands make it more difficult for lines to maintain their balance or meet schedules. It becomes apparent that a closer
,

check on the production is necessary. As you will see, using control points in each line you can to correct any excessive buildups or deficits that would cause lines to be out of balance or would have adversely affect producation and/or shipping. Today, production control should be responsible for the scheduling; loading. --control ling and reporting of balance conditions, lines and the attainment of scheduled completion dates.
G. FACTORS DETERMINING CONTROL PROCEDURES

Control procedures are determined by several conditioning factors: . 2.

3.

Varied or repetitive character of operations.

Nature of manufacturing processes.

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Magnitude of operations.

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There is a basic pattern used for developing a production control organization and a basic line of procedure that production control activities must follow. TheSe have to be adapted, not only to the kind of product, but to the specific factory. The apparently wide difference between the method of planning and operation from one factory to another arises solely front the way in which the production control activities are necessarily carried on, not from fundamental variations in the "what,
why, when,

where, and how" of such activities, Various systems of production

control represent adaptations and should not be regarded as totally different conceptions of the control functions and procedures.
AMED AND REPETITIVE OPERATION:

In general, variety of operations

complicates the problem of planning and control, whereas repetitive operations, since they reduce variety, tend to simplify the problem. In practice, there are all sorts of ;variants between these two extremes. These may 4 :71 71 111

be

represented by the continuous production of a single standardized product on

the one hand and the completely special-order business on the other. Some of the
principal variants are: I. not be repeated at regular Manufacturing to order, which may or may nm intervals. 2. Manufacturing for stock, where the product is made up of parts but the processes are not optional. Custom orders may be intermingled. Factors tending to a complex control system are:

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3.

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a. b.

Number of ultimate parts in the product. Number of different operations on each part.

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c. Extent to which processes arc dependent, that is, processes which cannot be performed until previous operations have; hr , eompleted.

4.

Variations in capacity of maeltines_for differeat_chksse.s..otworkExample: speed of machines varies according to the nature of the material being work on. Degree to which subassembly exists. Occurrence of cuStomer orders containing specific delivery dates. Receipt of orders for many small lots. Factors tending to simplicity of planning and control are: a. Degree to which repetitive work Occurs, that is, when the same wOrsUiFfie OVEr and bVellig niiiicin the same way, preferably in cycles. Absence of special dates for spi...vial_items,_ as when everything is made for stock. Fixed capacity of machines or processes. Invariable method of operation of machines or processes. Absence of discreet parts and assembly. f. Completely balanced production in which capacity of every process is strictly proportional to flow of work.

5. 6. 7. 8.

h. c. d.

NATURE OF MANUFACTURING: The degree to which production control is developed varies with product(s). It is at a minimum where a single homogeneous
product is treated by a fixed sequence of processes in a continuous flow.

Examples on a vast scale are afforded in factories that manufacture aspirins, Coke Cola Bottles or underwear. Flow sheets at these factories exhibit a continuous stream of production in which many operations are performed, materials added, and by-products or wastes eliminated, but without break in flow or exceptions in work or processes. Very

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little production control is required in these factories since it has already been embodied in the product and equipment itself. On the other hand, quality control is highly developed and long-range planning for raw materials, finished inventory levels, and markets is extremely important. In contrast to the continuous industries arc repetitive operations in factories making many products and/or lots at the same time. Here, a great variety of materials are used in many ways and for many purposes. There are hundreds of parts where one or many processes take place on each part on different machines. To bring these together in proper sequence, at the right time and place, pushes planning and control functions to the utmost. Sometimes the situation is made even more difficult when custom orders and manufacturing for stock are intermingled. in custom manufacturing less accurate planning is possible than when manufacturing for stock. In many cases, however, it is possible to forecast prObable business rather closely, based on past experience and known trade conditions. While definite scheduling is not possible the raw material situation
can be surveyed in the light of probable demands. Custom orders usually require a certain time, over and above actual operating t ime, to pass through the factory.

This time lag gives Opportunity for IlLa?1:11?F, scheduling being effected irnmediatel on recciptof order. In sonic industries, such as certain textile industries, orders arc taken on samples made up in advance of the season, each
sample being accepted by many customers in varying quantities. When the bulk of such orders is in, a consolidation is made

and the yardage of each pattern found.

These orders are then treated as being manufactured for stock.

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In mixed stock and custom manufacturing, either stock or custom orders may be the main feature. The routine will vary somewhat. If (I) the stock-manufacturing situation prevails...surplus_machine_capacity aseertained--from-machine load charts and custom orders are scheduled to absorb it. If (2) the custom manufacture predominates, the reverse is true; stock manufacturing is litted_into whatever ork. Course (1) above may mean slow machine capacity is left over from custom work. _ delivery of custom - orders; course (2) an uncertain output of -stock. A middle course is generally advisable, stock production being interrupted at times convenient for custom orders, yet not so often or at such moments as to hinder efficient output. A certain amount of stock manufacturing to fill gaps in machine loading is a useful accompaniment of custom work. MAGNITUDE OF OPERATIONS: Scale of operations has an important bearing on the nature of the problem. In a small-scale enterprise, control is more informal because it is more personal and direct. As businesses increase in size, new techniques such as this program had to be devised.
The degree to which

the performance of any activity must be decentralized

depends upon the scope of operations and the convenience of their location ; In larger factories, activities associated with warehousing, processing operations, and custody of finished goods must of necessity be carried on in numerous locatirms.
,

The issue then becomes one of determining whether authority and control over these various operations shall be centralized. When performance must be decentralized, however, centralized authority has to be buttressed with supporting forms of organization and procedures for rapid two-way communication, if it is to provide effective control.

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CHAPTER 1
H. PRODUCTION PLANNING AND CONTROL

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There arc certain basic elements or functions in a system of production planning and control. These functions may be listed and defined as follows:

1.

Production Forecasting/Planning:
Coordinates the production department with other departments of the, business. Considering future sales requirements, it determines what manufacturing must produce, the quantities involved, when the products must be available, and the time and quantity requirements for materials, parts, labor, and facilities. It presents production data to inventory control, purchasing, personnel, engineering, and administrative groups in the manner that Most effectively synchronizes their contribution to production activities.

2.

Production Control:
Promotes effective factory operation through its control of activities within the production department itself. This control may involve routing, the decision on facilities and sequence for each operation; loading and scheduling, the relationship between available capacity and current and future orders; dispatching, the final placement of the order at a work station with all the materials, trim, and instructions necessary to perform required operations; and follow-up. Production Control compares progress with plans, to discover potential delays and to promote action that prevents or minimizes them. The importance of control functions, and procedures will vary from factory to factory. This variation stems from differences in:
1. 2. The degree of control required. The control organization.
4.

The market served.

The manufacturing process.

5.

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Factory Management.

6.

The product complexity.

Once the general forms of production control requirements are outlined, it can is necessary to develop the detailed procedures through which control be achieved. These procedures will involve both data and people.

I.

ROUTING
Routing really begins at the determination of the sequence of operations. Methods
of work and machine analysis are preliminary .to it_ Routing can be performed

iliar (usually industrial properly only by people who are thoroug hly fam enginter ing) with the character of the work to be done and with the resources available for doing it. . -The sequence of operations adopted for any product may have a noticeable effect on the time and cost of production. Changing the position of a single operation in . - the sequence often changes the performance of all other operations on the part. Simply stated this means that there are many factors that may be involved in routing and most of them come from Industrial Engineering, for example: 1. A study of the product to determine the possible methods of processing and to select the best method. 2. A study of methods to determine what, if any, special equipment is necessary to carry them out. 3. An analysis of the capacity of the machines and equipment available for the process. 4. 5.
I

The establishment of the sequence of operations. A decision as to speeds at which operations shall he performed.

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The determination of the S.A.H.s (Standard Allowed Hours) required for each operagsa. The factors covered include machine setttp_thoachine operating time, and alkiwances for in-process inspection time and work handling.

7.

The preparation of Operational Breakdowns listing the sequence of operations. It is often desirable to incorporate on such Operational Breakdowns detailed information regarding some of the decisions arrived at under factors (1 to 5).

8.

Grouping Operational Breakdowns (where applicable) into subassemblies and major assemblies to insure that the components will be started in process at such times as will insure their being completed simultaneously.

9.

The preparation of Specification Sheets to ensure quality Meets specifications.

Because of the overlap of the first six functions with Industrial Engineering, the last three will be considered as distinctly the responsibility of the production control department. ; J. PREPARATION OF OPERATIONAL BREAKDOWNS AND PRODUCTION ORDERS Operational breakdowns deal...with ditspecificopetations and sequence required to manufacture the product. In larger factories, operational breakdowns arc sometimes departmental; where operations in each department are listed separately. The data usually included on an operational breakdown and production order is as follows:

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1. 2. 3. 4. 5.

Number and other identification of product group. Style number. Number of pieces/dozens to be made. If put through in lots, the number in each lot Operational data including: a. b. c. d. List of operations on the product. Departments in which the work is to be done. Machine to be used for each operation. Fixed sequence in any of the operations.

6.

Standard Allowed Hours (S.A.H.$) per piece, dozen or bundle (as noted on the operational breakdown sheet).

K. LOADING AND SCHEDULING. Loading and scheduling are concerned with the flow of work to the factory and the relationship between the S.A.H.s r utrectly ) production orders and available . S.AHsinthelToadgscheulinftomaybseupgiv any desired degree of control over factory operations. However, it is impossible to ' establish a realistic schedule without some knowledge of the S.A.H. load. It is in this area of loading and scheduling procedures that the widest varieties of

computer programs exist. In line with the type and amount of control desired, loading decisions must be reached on:

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The units and required accuracy of loading data The use of graphic controls-charts or boards and the form they Si.
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The design of control records. Duplicating requirements. Computer programs to sort and tabulate data.

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Filing procedures. The mariner in which communication should be handled.

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LOADING AND SCHEDULING PROCEDURES.

e

Loading and scheduling procedures usually vary widely from company to company. Because of all these variances, it is beyond the scope of this manual to
44.

discuss all the different types of production control systems and which ones) are best for each type of manufacturing process requirement. Suffice it to say thatt.his manual should and can provide the springboard for your system. Keep in mind what is required in a proper production control system. It is the ability to use facts to make immediate knowing decisions. The companies who are able to master this problems thereby art and science will act far enough in advance to avoid satisfying their customers wants and needs. While some of these differences in method are merely those of detail,
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major

differences stem from variations in the kind of manufacturing 'situation and in the degree of control required. There are two general class of intermittent manufacturing and two types of continuous production that will he discussed.

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Loading and scheduling procedures from various kinds of manufacturing situations will illustrate some of these differences. None of these procedures is ' presented as an "ideal" method. No such procedure exists. Each merely represents one example taken from a broad spectrum of possible choices, and differs somewhat from all the others. I.
Procedures for Intermittent Manufacture

Loading and scheduling for intermittent manufacture usually include three different steps or stages:
a.

Scheduling within the order or product. It is necessary to determine relative dates at which each process on each part or lot shall be started and finished.

b.

Scheduling of order in relation to other orders. In custom work this will depend on the delivery date of the order; in stock manufacturing, on the relative dates at which each component should be completed for stock. The sequence in which each order or lot should be assigned to machines is thus determined.

c.

Scheduling to machines or machine loading. With the required completion date for an order or lot at hand, reference to a schedule of relative processing dates will show when each process should be started. Reference to machine load records will then give the nearest available date for starting. When all processes on all parts or lots have been assigned to machines, scheduling is complete.

2.

Custom Order Manufacture

Wherever future production depends on outside factors (as opposed to stock production), scheduling often becomes a compromise between the

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time at which a job should be done and the day at which it can be done in view of previous commitments. Where work is put through in comparatively large lots and where the manufacturing program is made up . monthsaed,culigbsneofrhdiamucesr operation. When companies manufacture to order they cannot carry finished inventory. This absence of a stock of finished products means that the planning and production requirements of an order cannot be undertaken until that order has been received. The interval involved in filling the order corresponds to the total planning and manufacturing interval. Moreover, in this type of work it is usually important that delivery commitments, Once given, be maintained as closely as possible. All these factors emphasize the need for fairly tight control of production. With no inventory to serve as a buffer between the factory and the customer and under pressure to meet delivery promises closely, schedule must make many different moves and operations throughout the factory., Under these conditions, factories must be kept flexible and must have at hand sufficiently accurate load data to make such detailed scheduling
II

possible. 3. Production for Stock Even though production still moves in lots through separate process departments, control problems are simplified when pi -eduction for stock (inventory) becomes possible. This is particularly, true where inventories of finished products can be built up.

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The same effect occurs on a more limited scale when items can be stocked in a partially finished state. Finished or finished inventories sharply reduce the interval between the receipt of an order and its delivery to the customer. When the production departments operate to replenish inventories, some of the pressure on them is eased. Although schedules must stiff be maintained to avoid shortages and unbalanced stocks, short, delays are not likely to be as serious as they are - when they hold up final delivery dates. For these reasons, somewhat looser control may be. perfectly adequate when production for stock is possible.

4.

Procedures for Continuous Manufacture

Loading and scheduling procedures, for continuous manufacture arc simpler than those required for intermittent manufacture. On the Miler hand, the careful planning required to coordinate production with sales, inventory levels, purchasing, engineering,
and financing operations

becomes extremely important because of the high and continuous rate of production. M. COSTS AND BENEFITS OPPRODUCTION CONTROL.
control department, it is is

In evaluating the costs and benefits of a production. r

necessary to recognize that in every production organization, someone

. performing the planning and control functions. Koepke (Plant Production Control) says:

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"In any manufacturing enterprise, someone must perform the various functions of production control; whether it is done by a group of specialists or whether it is done by the superintendents, forenwn, and workmen is a matter for

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each organization to decide, alter a consideration of the costs of each method as related to the results obtained." Therefore, since production control is being paid for, either as a specialist function or a hidden cost, it is necessary to decide which method is most efficient. Although no standard method for budgeting the cost of a production control group is available, a simple budgeting method that limits the cost is reported by Moore (Production Control). He uses a ratio of factory man-hourS to production control hours on a weekly basis. Acknowledging that the production control workload varies in proportion to the number of orders it processes rather than the hours of production load further imodifies this ratio. Moore points out further that the .. most important offset to the costs of production control; however, istheieduction in manufacturing costs. The costs of poor production control can be summed up as low rates of production, high costs, high inventory of materials in process and finished stock, poor morale and disappointed customers. MacNiece (Production Forecasting, Planning, and Control) classifies the benefits and advantages of production control as exerting influence on five segments of society. He summarizes these segments and their benefits as follows: The consumers: a. b. c. Increased productivity. Better values. On time deliveries.
4

The producers: a. b. c. Adequate wages. Stable employment. Job security.

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'd: c. f. g. 4.

Improved working conditions. Increased personal satisfaction. Security of investment. Adequacy of return.

The community: &anorak and social stability.

5.

The nation: a. b. Security Prosperity.

Sehleusener and Maddox (Factory Management, vol. 114) report these specific advantages of production control; ". . Better schedules mean better use of men and machines for higher efficiency.. .. Set-up costs cut by [proper] scheduling. In-process inventory minimized by [proper] scheduling." MacNiece points out that good control procedures can direct the attention of the sales department to theamasasfactory where the work load is lowest and, therefore, encourage the sales division to concentrate their efforts on products that utilize thessa, A unique advantage of production control is used by the Aeroquip Radio Manufacturing Company in the training of personnel for supervisory and lower level executive positions. Beaky (Factory Management, Vol. ill) points out that the company wants its trainees productive, and since a good control system has a ._

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