Professional Documents
Culture Documents
0 Introduction
The highest efficiency in production is obtained by manufacturing the required
quantity of product, of the required quality, at the required time, by the best and cheapest
method. To attain this target, management employs production planning and control, the
tool that coordinates all manufacturing activities. The four factors namely; quantity
,
quality, time and price encompass the production system, of which production planning
and control is the brain. Three distinct stages comprise every activity in such a system:
Planning, Operations and Control.
Planning begins with an analysis of the given data, on the basis of which a scheme for the
utilization of the firms resources can be outlined so that the desirable target may be most
efficiently attained.
terms of predetermined time periods and these sub-targets are so defined that in achieving
them the over-all aim is realized.
Operations are performed in accordance with the details set in the production plan.
Control initiates and supervises operations with the aid of a control mechanism that feeds
back information about the progress of the work. This mechanism is also responsible for
subsequently adjusting, modifying and redefining plans and targets in order to ensure the
attainment of the first goal.
2.0 Functions of Production Planning and Control
Specifically, the functions of Production, Planning and Control (see fig.1) can be classified
in ten categories.
2
Materials:
Raw materials, as well as standard finished parts and semi-finished products, must
be available when required, to ensure that each production operation will start on time
.
Duties include the specification of materials (both with respect to dimensions and quality),
quantities and availability, delivery dates, standardization and reduction of variety
,
procurement and inspection. This function also covers the procurement of semi-finished
products from subcontractors.
Methods:
The purpose of this function is to analyze possible methods of manufacture and to
try to define the best method compatible with a given set of circumstances and facilities.
This analysis covers both the general study and selection of production processes for the
manufacture of components or assemblies and the detailed development and specifications
of methods of application. Such a study results in determining the sequence of operations
and the division of the product into assemblies and subassemblies, modified by t
he
limitations of existing layout and work flow.
Machines and Equipment:
Methods of manufacture have to be related to available production facilitie
s,
coupled with a detailed study of equipment replacement policy.
Maintenance polic
y,
procedure and schedules are also functions connected with managerial responsibility for
equipment, since the whole problem of breakdowns and reserves can be seriously reflected
in halts in production. Tool management, as well as problems both of design and
economy of jigs and fixtures, constitutes some of the major duties of production planning
and control.
Routing:
Once the overall methods and sequence of operations have been laid down, each
stage in production is broken down to define each operation in detail, after which the issue
of production orders can be planned. Routing prescribes the flow of work in the plant and
is related to considerations of layout, of temporary storage locations for raw materials and
components and of materials handling systems.Routing is fundamental production
function on which all subsequent planning is based.
Estimating:
When
production
orders
and
detailed
operation
sheets
are
available
ith
specifications of feeds, speeds and use of auxiliary attachments and methods, the operation
times can be worked out. This function involves the extensive use of operation analysis in
3
conjunction with methods and routing, as well as work measurement, in order to set up
performance standards.
because it is sensitive to systems of work ratings and wage incentive schemes. Hence, it
may consequently reflect in a wide scatter of operation times and in unduly la
rge
fluctuations and perhaps instabilities in time schedules.
Loading and Scheduling:
Machines have to be loaded according to their capability of performing the given
task and according to their capacity. Machine loading is carried out in conjunction with
routing, to ensure smooth work flow, and with estimating, to ensure that the prescribed
method, feeds and speeds are best utilized. Scheduling is perhaps the toughest job facing a
production manager because it determines the utilization of equipment and manpower and
hence the efficiency of the plant.
y
dovetailed, that semi-finished components arrive at their next station in time, t
hat
assembly work is not delayed and that on the other hand the plant is not unnecessaril
y
loaded both physically and financially with work in process i.e., with semifinished
components waiting for their next operation. This calls for a careful analysis of process
capacities, so that flow rates along the various production lines can be suit
ably
coordinated. In machine loading, appropriate allowances for setup of machines, process of
adjustments and maintenance down time have to be made, and these allowances form a
vital part of the data constantly used by the scheduling function.
Dispatching:
This
ns.
function
is
concerned
with the
execution of the
planning
functio
f
production operations by realizing materials, components, tools, fixtures and instruction
sheets to the operator and ensures that material movement is carried out according th
e
planned routing sheets and to schedules.
Expediting:
This control tool is the executive arm that keeps a close watch on the progress of
the work. Expediting, or follow-up or progress as it is sometimes called, is a logical
step after dispatching.
expediting maintains them and sees them through to their successful completion.
This
4
function has to keep close liaison with scheduling, in order to provide efficient feedback
and prompt review of targets and schedules.
Inspection:
Another major control function is that of inspection.
of
quality is often detached from the production planning and control department, its findings
and criticisms are of supreme importance both in the execution of current plans and in the
planning stage of future undertakings, when the limitations of processes, methods an
d
manpower are known.
n
evaluating, with the view to improving production methods or indicating the c
ost
implications of quality at the design stage.
Evaluating:
Perhaps the most neglected function, but an essential link between control and futur
e
planning is that of evaluating.
e
concerned with the immediate issues of production and with measures that will ascertain
e
feedback mechanism is rather limited in nature and unless provision is made so that all this
accumulated information can be properly digested and analyzed, valuable data may be
irretrievably lost. This is where the evaluating function comes in: to provide a feedback
mechanism on a longer term basis so that past experience can be evaluated with the view
to improving utilization of methods and facilities. Many firms consider this functio
n
important enough to divorce part of it from production planning and control and
to
establish it as a separate department in its own right, in which wider aspects of production
management can be studied, using modern tools of operations research.
Whatever th
e
scope of evaluating in the production planning and control department, this process is an
integral part of the control function.
3.0 Objectives and advantages of production planning and control
Before starting any work, it is necessary to plan the things properly for getting best
results. Similarly for production, planning in advance is very necessary and if there is no
planning then how shall we control? It is the planning department, which decides about
each element of the job in anticipation that what work shall be done, where, how and when
it shall be done.
5
3.1Functions:
The functions of planning are grouped as under:
-
e
manufactured.
-
Planning about the quality and quantity of materials which are to be consumed.
2.
To plan for manufacturing requirements like materials so that, they are available in
right quality and quantity at the right time.
3.
4.
The co-ordinate with different departmental groups so that line balance of activities
is maintained.
5.
6.
7.
6
3.3.1 Objectives of Production Control:
1.
Issuing the necessary orders to the concerned personnel, so that the production plans
may be put into effect.
2.
nd
manpower in quantity and quality at a time as planned.
3.
To see that orders (instructions) are followed so that goods with required quality and
quantity may be manufactured and delivered at the promised time.
Control of activities:
t
plans at assigned time by means of dispatching.
(ii)
Control of materials movement: This requires observation of material from the time,
it is received from vendor, issuance to shop, and movement within the shop. This all
should be according to the plan.
(iii)
(iv)
Control of due data: To observe that the progress is as per schedule plan and there is
no effect of delays or stoppages on production schedule.
(v)
(vi)
(vii) Control of labour efficiency: This is done by comparing the actual time taken by the
workers for completing a job, with that of time allowed as per plan.
3.4 Objectives of PPC:
Objectives of production planning and control department are closely linked with
the objectives of the enterprise as a whole. Objectives of PPC, can be summarized
as
follows:
of
production.
e
accommodated.
3.5 Advantages of Production Planning and Control:
Following are the important advantages of production planning and control to t
he
enterprise and to the employees:
1.
2.
3.
Optimum utilization of plant capacity, this enables the utilization of capital investment.
4.
Optimum utilization of services and facilities available in the industry. Services and
utilities include electricity, water, air, steam, transport, material handling device etc.,
5.
6.
Improves safety.
e
properly planned, high level of safety are achievable.
7.
if
Production Planning and Control be properly implemented.
8.
be
achieved as workers are engaged for the works best suited for them. This also creates
interest working.
9.
Since the workers take interest and every aspect is planned, very less chances of delays
to materials, tools, equipment, delivery, etc.
This allows t
he
supervision to devote more time towards planning, coordination, feedback information
etc.
11. Motivated workers can help in generating new ideas for improvement in methods.
12. These factors results in reducing labour-turnover, and observation and develop team
spirit.
13. This reduces expenses due to proper maintenance of machinery, reduced level o
f
rejects the wastage of materials, and reduced handling.
8
4.0 Activities of Production Planning
This section includes eight distinct activities.
(i) Production budget office: Where the incoming orders are obtained and recorded in
the order book where the budget requirements in connection with the execution of the
order are worked out.
completed.
(ii) Materials records office: where planning engineers can obtain information about
materials available in the stores, so that action can be taken to freeze or allocate the
required amounts and to sanction the purchases of those materials which are n
ot
available. Allocation of materials in the stores is an important step at an early stage of
the proceedings, a chaotic situation as stocks of materials are liable to change before
production is due to start, and if the required materials are issued in the interim period
for other purposes, a chaotic situation may arise. Precisely for the same reaso
n,
records have to be kept up to date, to ensure that the picture they present is realisti
c
and reliable.
(iii)Methods planning: whose responsibility is to asses the potentialities of available
processes and select the most suited for the production of each component of t
he
product.
Methods engineers also decide how the product should be divided int
o
assemblies, the sequence of operations for each part, and the methods of assembling.
Methods planning is an important job, as it lays the foundation for all subseque
nt
planning and control activities.
y
with the multitude of manufacturing processes that are in use, their merits a
nd
limitations, and their technological and economical significance, but he must be also
familiar with newly developed processes and new materials that are introduced into the
l
motion economy principles, in order to ensure that his prescribed methods a
re
basically sound, workable, and efficient.
(iv) Machines records, from which information can be obtained on the followi
ng
questions.
,
feeds, etc.?
From past method studies, at what percentage of efficiency (actual working time
ratio to over-all time available) do these machines normally operate?
(v) Tool and jig design office, where all auxiliary aids are planned and designed
in
meticulous detail. Tool engineering is a specialized trade. It requires a through
knowledge of the production processes employed and the tool materials and thei
r
treatment.
is
needed for proper jig and fixture design, which can result in great economies of time
and effort on the part of both workers and supervisors. Tools, jigs, fixtures, mechanical
handling systems, and other mechanical aids to production crystallize and finalize
production methods to a curtain extent, and must therefore be very carefully a
nd
painstakingly planned. This means however, that design, manufacture, and inspection
of tools and mechanical aids may result in a substantial lead time required at t
he
planning stage.
d
times also can be considerably shortened.
aids demands much thought and careful planning of their functional flexibility at the
design stage. A large number of components, from which these aids are constructed,
can in fact be standardized and constantly kept in stock so that they are read
ily
available when a new fixture, position, etc., has to be designed or assembl
ed.
Advanced standardization of mechanical aids requires great skill and in the part of tool
and jig designers, especially when the plant is engaged manufacturing a variety o
f
products on a batch production basis and when short lead times for planning a
re
desirable in order to ascertain short delivery dates.
(vi)Operation layout and routing office, which is responsible for expressing the production
plans in a form understandable to those who have to carry them out. Process charts are
translated into route sheets and operation sheets, and the operations are described in
great detail. All the tools, jigs, and fixtures that should be used for each operation are
specified.
(vii) Time estimating office, where operation times are worked out from the given data in
the operation sheets. These times include:
10
Non productive times, which cover chucking, or loading, setting, and unloading of
the machines
Times for additional tasks fo the operators, during which the machine is n
ot
effectively employed.
(viii) Scheduling, where machines are loaded against their available capacity and all the
planning details and calculations are integrated into a final sequential pattern o
f
target forecast, which sets the pace for production and for its completion can b
e
specified and an assessment can be made on the plant over-all available capacity,
delivery dates, effects of new orders on schedules,
4.1 Activities of Production Control:
(i) Dispatching Office, which has is responsible for the release of production orders. The
dispatches have to be acquainted not only with the job but also with the men in order to
ensure that tasks are smoothly allocated and properly understood.
(ii) Expediting center, which has to maintain, with the aid of expeditors or progress men,
an effective communication system between the shop floor on one hand and
in
scheduling office on the other, and which regulates materials flow in the shop an
d
secures conformity of the plan and practice. This communication system can mark the
success or failure of the schedule, and it therefore calls for alertness, skill and
a
thorough knowledge of the details of the schedule and flow of materials.
5.0 Organization of PPC Department
The demarcation of responsibility in industry between the departments variety
considerably with the type of production, size of plant, the importance higher management
attributes of certain functions and the effects of personalities in the organization. A brand,
though by no means rigid division of industrial engineering functions is suggested in the
accompanying chart.
11
INDUSTRIAL ENGINEERING FUNCTIONS
Functions concerned with immediate
Functions
concerned
with
evaluation
of
Methods Engineering
Motion study: Operations analysis
storage, (method of study), micro
motion study, work place layouts.
Process Evaluation: Comparison of
processes, new processes.
loading.
Dispatching.
Engineering Department.
Incentive schemes: Wage incentives,
other incentives.
The purpose of a healthy organization structure to provide:
he
mechanism of facts, evaluation and decision making.
A typical organization chart is shown in Fig. 2.
13
Departmental sectionalization:
The planning and control department normally consists of three sections (see fig.3).
The planning section; the head of which is in charge of all the planning functions.
The control section, the head of which is concerned with all control functions from the
word go.
The inventory section, which deals with all problems connected with materials and
their requisition and storage.
On the other ha
nd,
production planning and control functions are closely related to the production activities of
each plant, and it is neither efficient nor practical to rely on remote control.
14
These two aspects have essentially led to two different systems for organizing production
planning and control in multi plant establishments: a centralized and a decentralize
d
organization, as shown in fig. 4 and 5. Apart from the natural desire of individual plants
to be self sufficient, and have a complete production planning and control organization of
their own, versus the tendency on the part of some top managements to over centralize in
order to have every thing under control there are obviously objective argume
nts
15
production and control each type of organization and the arguments will depend on the
particular case that is being considered.But even under circumstances of full plant
autonomy, some form of centralized planning is necessary to provide a master production
schedule and to set performance targets. Those functions of production control which are
associated with everyday problems of dispatching and expediting are vital in the plant
,
even in a centralized organization setup.These aspects are clearly shown in the
organization charts in fig.1 and 2 and between these two a working framework can b
e
constructed to suit the particular needs of various multi plant establishments.
7.0 Production system
Production:
of
productive activity, is termed as operation. Therefore an operation is some step in th
e
overall process of producing a product or service that heads to final output.
Production can also be defined as follows.
d
properties of materials and ultimately converting them into more useful articles.
s,
money, machinery, and energy into a specified set of outputs like finished products
and services in desired quantity and quality in order to achieve the objectives of the
enterprise.
Production includes manufacture of goods and services, which has four recognized factors
namely.
(i) natural resources including land (ii) labour, (iii) capital i.e., factory building, machine,
tools, raw materials, etc., (iv) organization. Production involves a wide range activities
starting from selection of site to the packing of products for distribution.
Production system consists of inputs at one end and the output as the other. The
inputs & outputs are connected by a serious of operations or processes, storage a
nd
inspections. A simple production system is shown.
16
Intermittent production
2.
Continuous production.
In intermittent production machinery is used for a short duration of time f
or
producing an item, and then changed to produce another item.
us
production, setup of production is filed & used to produce same item.
While in continuo
This is the oldest method of production on a very small scale. With this method
individual requirements of the consumers can be met. Each job order stands alone and is
not likely to be repeated. This type of production has a lot of flexibility of operation and
hence general purpose machines are required.
Factories
adopting
this
type
of
production, are generally small in size (ship building is an exception). The layout of such
factories is made flexible so that different types of works can be easily and efficientl
y
carried deal with slight adjustments.
Even in this age of industrialization, many things are produced on job production.
This type of production is used for things which cannot be produced on a Large Scale, e.g.
things of high artistic nature require max attention, die work and foundry work etc. Man
working in unit production gets an opportunity to produce large variety of products and he
can become expert in very short time.
17
Advantages:
It is the only method which can meet the individual requirements.
There is no managerial problem because of very less number of works.
This type of production requires less money and is easy to start.
There is less risks of loss of to the factory adopting this type of production.
Because of flexibility, there is no chance of failure of factory due to the reduction o
f
demand.
Disadvantages:
There is no scope of commercial economy.
As the purchase of raw materials is in less quantity hence cost of raw materials
is
slightly more.
For handling different types of Jobs, only skilled & intelligent workers are needed, thus
labour cost increases.
7.1.2 Batch Production:
This type of production is generally adopted in medium size enterprises.
Batch
production is a stage in Between Job Production & Mass Production Batch production is
bigger in scale than the Job production while it is smaller than that of Mass production.
Batch production requires more machines than that of Job production and less machines
than that of mass production. In Batch production, some of the machines are one purpose
n,
different products are manufactured and stocked and then sold on receipt of orders.
Advantages:
While comparing with mass production it requires less capital.
If demand for one product decreases then production for another product may
be
increased, thus the risk of loss is very less.
Comparing with job production, it is more advantageous commercially.
Disadvantages:
Comparing with mass production cost of sales and advertisement per unit is more.
Raw materials to be purchased are in less quantity than that in mass producti
on.
Therefore, it is slightly costlier than that of mass production.
18
7.1.3 Mass Production:
This type of production is a large scale production & is a continuous production.
In job production, factory works only when orders are received and when orders are not
received for some time then for that period work may come to a stand still.
But m
ass
production is a continuous production and it does not have any non producing tim
e.
This type of production requires specially planned layout, one purpose machinery
and costly pigs & fixtures etc. In this method with the use of automatic machines, articles
automatically move forward from one stage to the next stage of manufacturing operation.
In mass production, simplification & standardization of products are made. With
the help of specialized (one purpose) machines, articles of standardized nature can easily
and economically be produced on a large scale. Layout of the plant is such that it can be
used for only one type of product. Sequence of flow of the product during manufacturing
remains same. In this type of production, different machines are assigned a definite nature
of work. Throughout the run of the plant, only one type of product can be manufactured.
20
Questions from Previous papers:
1.
2.
(a) State the objectives for which PPC department is established in a factory
system.
(b) Explain the characteristics of various types of production systems.
3.
rnal
Explain
various
functions
of
production
control
department.
Draw
inte
(a) List out the planning functions and controlling functions separately.
(b) What are differences between job shop, batch type and continuous production
systems?
5.
6.
7.
(a) Would operations planning and control in service industries be different from PPC
in manufacturing industries? Discuss.
(b) Discuss centralization and decentralization in the context of PPC.
8.
9.
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