Production Planning & Control

An Introduction
 The Concept
Planning: consideration of all input variables
to achieve predetermined output goals; a pre-
production 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