INTRODUCTION

UNIT -1

Meaning and Objective of Production Planning &

Control, Functions
Production planning and control is a tool available to the management to achieve the stated objectives.
Thus, a production system is encompassed by the four factors. i.e., quantity, quality, cost and time.
Production planning starts with the analysis of the given data, i.e., demand for products, delivery schedule
etc., and on the basis of the information available, a scheme of utilization of firms resources like machines,
materials and men are worked out to obtain the target in the most economical way.

Once the plan is prepared, then execution of plan is performed in line with the details given in the plan.
Production control comes into action if there is any deviation between the actual and planned. The
corrective action is taken so as to achieve the targets set as per plan by using control techniques.

Thus production planning and control can be defined as the “direction and coordination of firms’
resources towards attaining the prefixed goals.” Production planning and control helps to achieve
uninterrupted flow of materials through production line by making available the materials at right time
and required quantity.

The present techno-economic scenario of India emphasize on competitiveness in manufacturing. Indian

industries have to streamline the production activities and attain the maximum utilization of firms’
resources to enhance the productivity. Production planning and control serves as a useful tool to
coordinate the activities of the production system by proper planning and control system. Production
system can be compared to the nervous system with PPC as a brain.

Production planning and control is needed to achieve:

1. Effective utilization of firms’ resources.

2. To achieve the production objectives with respect to quality, quantity, cost and
timeliness of delivery.
3. To obtain the uninterrupted production flow in order to meet customers varied demand
with respect to quality and committed delivery schedule.
4. To help the company to supply good quality products to the customer on the continuous
basis at competitive rates.

Need of Production Planning and Control

Production planning is a pre-production activity. It is the pre-determination of manufacturing

requirements such as manpower, materials, machines and manufacturing process. Ray wild defines
“Production planning is the determination, acquisition and arrangement of all facilities necessary for
future production of products.”
It represents the design of production system. Apart from planning the resources, it is going to organize
the production. Based on the estimated demand for company’s products, it is going to establish the
production programme to meet the targets set using the various resources.

Production Control

Inspite of planning to the minute details, most of the time it is not possible to achieve production 100
per cent as per the plan. There may be innumerable factors which affect the production system and
because of which there is a deviation from the actual plan. Some of the factors that affect are:

1. Non-availability of materials (due to shortage, etc.);

2. Plant, equipment and machine breakdown;

3. Changes in demand and rush orders;

4. Absenteeism of workers; and

5. Lack of coordination and communication between various functional areas of business.

Thus, if there is a deviation between actual production and planned production, the control function
comes into action. Production control through control mechanism tries to take corrective action to
match the planned and actual production. Thus, production control reviews the progress of the work,
and takes corrective steps in order to ensure that programmed production takes place. The essential
steps in control activity are:

1. Initiating the production,

2. Progressing, and
3. Corrective action based upon the feedback and reporting back to the production
planning.

Following are the objectives of production planning and control

functions:
1. Systematic planning of production activities to achieve the highest efficiency in
production of goods/services.
2. To organize the production facilities like machines, men, etc., to achieve stated
production objectives with respect to quantity and quality time and cost.
3. Optimum scheduling of resources.
4. Coordinate with other departments relating to production to achieve regular balanced
and uninterrupted production flow.
5. To conform to delivery commitments.
6. Materials planning and control.
 7. To be able to make adjustments due to changes in demand and rush orders.

Roles & Responsibilities of PPC Manager

• Manage production control activities to reduce outages and incidents.

• Manage production planning and scheduling for on-time delivery.

• Recommend process improvements for high quality, cost effectiveness and excellent
customer services.

• Evaluate system performance and recommend improvements.

• Supervise team members in their assigned job duties.

• Organize job trainings to employees to achieve production objectives.

• Ensure that team follows security and safety policies.

• Review the job orders with customers and production team to determine pricings and
schedules.

• Monitor execution of job orders and adjust job schedule to meet the deadlines.

• Communicate the status of job orders to customers on regular basis.

• Attend daily meetings to prioritize and plan production activities to maintain on-time
delivery.

• Review daily reports to identify and address equipment malfunctions, material

shortages and other factory problems.

• Determine equipment, materials and staff needs to meet production schedule.

• Coordinate with Department Manager to develop company policies and procedures.

• Perform inventory management for timely delivery and for minimizing transportation
charges.

Forecasting Different Techniques of Production

Forecast
 1. Brainstorming Technique

Brainstorming technique is used to forecast demand, especially for new products. In this method, many
experts sit together and each expert gives his own idea (forecast) and reason for it. One idea leads to many
more ideas. The group of experts will develop much more ideas than one person. Based on these ideas,
demand can be forecasted.

2. Goal Oriented Forecast Technique

In this technique, a goal is first fixed. Then the technological developments which are required for
achieving that goal is identified. Later, a forecast is made about when these technological developments
would take place in the future So, an estimate is made about the timing of these technological
developments in an upcoming future. This method is used by large companies, which have their own
research and development departments.

3. Graphic Charting Technique

Graphic charting technique is used to forecast future technological developments by plotting past
technological developments on a logarithmic scale. This technique is based on the assumption that
knowledge expands. This technique estimate, when the next major (big) technological development is
likely to take place.

4. Matrix Technique

Matrix is a combination of two or more matters relating to the production process. A matrix is prepared
with technological developments, product functions and time factor. Matrix technique is comprehensive.
It is flexible and so it can adjust with the changing times. This technique is used only by large companies.

5. Nominal Group Technique (NGT)

In nominal group technique (NGT), the group members think independently. Each group member
contributes his own ideas. This technique does not allow interaction between the group members at an
early stage. Interaction takes place only when the ideas are presented by every single member of the
group.

6. Delphi Technique

Delphi technique is very much similar to the brainstorming technique. The only difference between
brainstorming and Delphi technique is that in a Delphi method, group members don’t interact personally.
Here, such personal interaction is impossible because group members are physically present at different
places.

7. Simple Average Technique

In simple average technique, forecasts are based on the average value for a given period of time.

A simple average (SA) is the average of demand (sales) for all previous periods. The demands of all periods
are equally weighted.
SA equals ‘Sum of Demands for all periods’ divided by ‘Number of periods.’

Average calculations are made at different intervals in order to reduce error due to seasonal variations.
Instead of taking the simple average of the full year’s sales, quarterly averages or monthly averages are
taken. This gives realistic trends. Averaging reduces the chances of being misled by gross fluctuations that
may take place in any single period. However, if the underlying pattern changes over time, simple
averaging will not detect the change.
 UNIT-2

PROCESS OF PRODUCTION PLANNING AND CONTROLING

Capacity planning: Concept, Types

Capacity planning refers to determining what kind of labour and equipment capacities are required and
when they are required. Capacity is usually planned on the basis of labour or machine hours available
within the plant. Thus, capacity planning is planning for quantity or scale of output.

There are four major considerations in capacity planning:

1. Level of demand

2. Cost of production

3. Availability of funds

4. Management policy.

Production has no meaning unless its products can be sold at a remunerative price. Generally, the capacity
of plant is limited by the level of current demand. Stable demand makes the task of capacity planning
simple while fluctuations in demand create problems concerning the acquisition of resources and
matching them up with demand levels. Estimation of demand is, therefore, the first step in capacity
planning. Size of the market depends upon the sales potential rather than on the geographical areas.

Importance of Capacity Planning

Capacity planning is important due to the following reasons:

1. Capacity limits the rate of output. Therefore, capacity planning determines the ability of an
enterprise to meet future demand for its products and services.

2. Capacity influences the operating costs. Capacity is determined on the basis of estimated demand.
Actual demand is often different from estimated demand. As a result, there arises excess capacity
or under capacity. Excess or idle capacity increases the cost per unit of output. Whereas under
capacity results in the loss of sales.

3. Capacity decisions leave a direct impact on the amount of fixed investment made initially.

4. Capacity decisions result in long-term commitment of funds. Such long-term decisions cannot be
reversed except at major costs.

The following concepts of capacity are involved in capacity planning:

 1. Design Capacity: It refers to the maximum output that can possibly be produced in a given period
of time. It is the ideal situation.

2. Effective Capacity: Refers to the maximum possible output, given the changes in product
mix, machine maintenance, schedulingand operating problems, labour problems, etc. It is usually
less than the design capacity.

3. Actual Output: It is the rate of output actually achieved. It cannot exceed effective capacity due to
machine breakdowns, labour absenteeism, irregular supply of raw materials, unusual delay in
supply of equipment, power breakdown, etc.

The effectiveness of a production system (system effectiveness) can be measured in two ways:

1. Efficiency which is the rate of actual output to effective output, and

2. Utilization which implies the rate of actual output to the design capacity.

Capacity Planning Classification

Capacity planning based on the timeline is classified into three main categories long range, medium range
and short range.

Long Term Capacity: Long range capacity of an organization is dependent on various other capacities like
design capacity, production capacity, sustainable capacity and effective capacity. Design capacity is the
maximum output possible as indicated by equipment manufacturer under ideal working condition.

Production capacity is the maximum output possible from equipment under normal working condition
or day.

Sustainable capacity is the maximum production level achievable in realistic work condition and
considering normal machine breakdown, maintenance, etc.

Effective capacity is the optimum production level under pre-defined job and work-schedules, normal
machine breakdown, maintenance, etc.

Medium Term Capacity: The strategic capacity planning undertaken by organization for 2 to 3 years of a
time frame is referred to as medium term capacity planning.

Short Term Capacity: The strategic planning undertaken by organization for a daily weekly or quarterly
time frame is referred to as short term capacity planning.

Plant capacity
1. Facilities

The design of production facilities is the most important determinant of effective capacity. Design
includes the size and also the provision for expansion of the facilities. Design facilities should be such that
the employees should feel comfortable at their work place. Location factors such as distance from the
market, supply of labour, transport costs, energy sources are also important. Layout of the work
area determines how smoothly the work can be performed. Environmental factors such as lighting,
ventilation, etc., influence the effectiveness with which employees can perform the assigned work.

2. Products or Services

Design of the company’s products or services exerts a significant influence on capacity utilization. When
more uniform is the output, greater can be the standardization of materials and methods and greater can
be the utilization of capacity. For instance, a restaurant that offers a limited menu, can prepare and serve
meals at a faster rate. Product mix should also be considered because different products have different
rates of output.

3. Process

Quantity capacity of a process is the obvious determinant of effective capacity. But if quantity of output
does not meet the quality standards, the rate of output is reduced due to the need for inspection and
rework activities.

4. Human factors

Job design (tasks that comprise a job), nature of the job (variety of activities involved), training and
experience required to perform the job, employee motivation, manager’s leadership style, rate of
absenteeism and labour turnover are the main human factors influencing the rate of output.

5. Operational Factors

Materials management, scheduling, quality assurance, maintenance policies and equipment breakdowns
are important determinants of effective capacity. Late delivery and low acceptability of materials will
reduce effective capacity. Inventory problems are a major hurdle in a capacity utilization. Similarly, when
the alternative equipment has different capabilities there may be scheduling problems.

6. External Factors

Product standards (minimum quality and performance standards), pollution control regulations, safety
requirements and trade union attributes exercise tremendous influence on effective capacity. Generally,
the external factors act as constraints in capacity utilization.

Capacity Planning Strategies

There are three primary strategies companies use to perform capacity planning. Each comes with its own
set of advantages and drawbacks, so you’ll need to think carefully about which one is most appropriate
for your company:

• Lead Strategy: The Lead Strategy is the most aggressive of the three approaches to
capacity planning. Here, the company increases its production capacity in advance of
anticipated increases in demand. Some companies use the Lead Strategy as a way to lure
customers away from competitors, especially if a competitor is vulnerable to inventory
shortages when demand skyrockets. The big risk with the Lead Strategy is that the
anticipated increase in demand never materializes and you are stuck with excess
inventory.

• Lag Strategy: The Lag Strategy is much more conservative than the Lead Strategy.
Instead of increasing capacity in anticipation of suspected increases in demand, the Lag
Strategy responds to actual increases in demand by boosting capacity after the operation
is running at full steam. Although you won’t accumulate excess inventory, the time it
takes to ramp up production can result in the loss of customers to the competition.

• Match Strategy: The Match Strategy is the middle road between the Lead and Lag
Strategies. Rather than substantially boosting capacity based on expected or actual
increases in demand, the Match Strategy emphasizes small, incremental modifications
to capacity based on changing conditions in the marketplace. Even though this strategy
takes more effort and is harder to accomplish, it is much more risk-averse than other
capacity planning options.
Routing Procedure

Routing is the purpose of the pathway of movement of raw materials through various machines and
operations from the beginning of the manufacturing process to the completion of product in its finished
form. It is laying out the sequence of machines, process, and operations that are the most desirable and
efficient. It is determining the exact route or path a product has to follow right from raw material till its
completion.

Routing is a systematic process. The routing procedure for a new product or part may consist of the
following steps:

1. Determination of what to make and what to buy

An analysis of the product is made to determine whether to manufacture a component in the factory or
to purchase it from outside.

2. Determination of material requirements

Each item in the product line is divided into its components and parts required for its manufacturing.
Routing section prepares a parts list which includes the drawings, specifications, standards of quality, and
identification symbols of parts. Its combined with a bill of materials. This will show each part name,
quantity required and the kind and amount of material required for each part. From this list, the inventory
control section can determine the adequacy of the materials in stock or on order. To determine the
material requirements, the “ parts short list” is also prepared. It lists only those parts which are short and
hence must be obtained to complete the product.
 3. Determination of manufacturing operations and their sequence

Routing section now analyses the production standards and estimates together with data on machine
capacities and characteristics. From these facts, it establishes the operations necessary to manufacture the
article and lists them in their proper sequence on the route sheet. The route sheet indicates for each
operation its standard process time, the type of a number of machines used, materials and tools required.

4. Determination of lot sizes

Routing section also determines the number of units to be produced in any one lot. If products are made
to customer’s order, the lot size is generally equal to it. Where production is done to stock replacing
depleted inventories, the lot size to be manufactured will usually be based on the principle of “economic
lot quantities”. Where production is done on a weekly or monthly schedule, the quantity to be
manufactured for the period will be based on the influx or backlog of sales orders subject to any limitations
in the manufacturing capacity.

5. Determination of scrap factors

In most production processes, it is reasonable to expect some scrap. This happens because of
manufacturing defects or wastage these defective pieces are called scraps. Routing section should take this
scrap factor into account when determining lot size of various components parts of the final assembly, it
is important to know where scrap is most likely to occur- whether it occurs progressively or all at once
after a certain operation. Hence, it is necessary to establish a standard scrap factor at every stage of
production. The scrap factors can be estimated on the basis of experience or scrap history.

6. Determination of the cost of the article

The routing section may also contribute to cost estimating, although it is the prime responsibility of the
cost mange accounting department. Cost of the component parts and final product largely depend on the
materials and manpower required for manufacturing. Direct material and labor costs are computed, and
specific and general indirect expenses are allocated to the product to arrive at the cost estimate

7. Organization of production control forms

The types of production have much influence upon the forms required by the plant departments.
production control is organized around schedule from in case of mass manufacturing. Job order
manufacturing requires the use of a number of control forms such as job cards, shop orders, labor cards,
for performing the operations. It should be remembered that production control forms in themselves are
costly to use. Hence, these should be reduced to minimum consistent with the degree of control desired.
Material flow pattern

“Flow Pattern” means the system to be adopted, for the movement of raw materials, from the beginning
and up to the end of manufacturing. The overall-objective of the ‘Flow Pattern’ is to plan for the
economical movement of the raw materials throughout the plant.

The Flow Pattern affects the following:

(i) Materials handling cost.

(ii) Amount of work-in-process.

(iii) Capital and space tied up by work-in-process.

(iv) Length of total production time.

(v) The rate of the performance and coordination of operations.

(vi) Amount of physical and mental strain on the operators.

(vii) Supervision and control mechanisms.

Quite often a plant layout design starts with the flow system around which services and other facilities
are added and building design are modified accordingly but sometimes the flow must be adopted to suit
existing buildings.

Factors Governing Flow Pattern:

(i) External transport facilities.

(ii) Number of products to be handled.

(iii) Number of operations on each product.

(iv) Number of units to be processed.

(v) Number of sub-assemblies made up ahead of assembly line.

(vi) Size and shape of available land.

(vii) Necessary flow between work areas.

Types of Flow Pattern:

The flow patterns can be classified into horizontal and vertical. The horizontal flow system is adopted on
a shop floor while vertical flow is adopted where material has to move in a multi-storey building.

1. Horizontal Flow Lines:

There are five basic types of horizontal flow line:

(i) I-Flow or Line Flow.

(ii) L-Flow.

(iii) U-Flow.

(iv) S-Flow.

(v) O-Flow.

2. Vertical Flow Lines:

This type of flow is for multi-storey buildings. In order to have the materials handling systems and control
mechanisms to operate effectively, following six basic aspects of vertical flow systems are in use.

(i) Processing downward or upward.

(ii) Centralized or Decentalized elevation.

(iii) Unidirectional or Retractional flow.

(iv) Vertical or Inclined flow.

(v) Single or Multi-flow.

(vi) Flow between buildings.

(i) Processing Downwards or Upwards:

In downward processing, the materials are fed from the top floor and in upward processing the materials
are fed from the bottom floor while the finished product is received at the top floor.

In processing downward much gravity handling system such as roller lines, chutes, pipes, buckets, hand
operated lifts etc. can be used. These are economical in installation, operation, maintenance etc.

(ii) Centralized or Decentralized Elevation:

In a centralized elevation all the material handling devices are installed at one central place of the
building. Therefore, this system is economical in supervision and maintenance. It sometimes reduces
installation cost also. This method is usually employed when the flow on each floor is a U-flow.

A decentralized elevation method is more costly in installation, maintenance and space, but by this
method handling on each floor can be greatly reduced and more flexibility in design of the flow lines is
possible

(iii) Unidirectional or Retractional Flow:

In retractional type of flow, material has to come back on the floor which had already passed previously.
This is done purposely to achieve better utilisation of available space and machines.

(iv) Vertical or Inclined Flow:

This type of flow is more economical and carried on with material handling devices such as elevators,
chutes, buckets etc. In addition, inclined flow may also be carried out by conveyor belts as used in coal
handling plants and chain system to move boiler grates etc. and similar other tasks.

(v) Single or Multi-flow:

In a single flow, there is only one flow line of materials while in multi-flow, there will be several flow
lines and all these feed one assembly line.

(vi) Flow between Buildings:

When one production line is executed in several adjacent buildings, the flow of goods may be achieved
either on an elevated floor or a ground floor. Ground floor is cheaper but requires more handling than an
elevated floor. Elevated flow frees the ground for traffic and storage purposes.

Scheduling: Production scheduling

Production scheduling has become a must for manufacturing operations that wish to take their production
facility to the next level. Production scheduling is the allocation of resources, events, and processes to
create goods and services.

A business can adjust its production scheduling based on the availability of resources and client orders.
The goal of a production schedule is to adequately balance customer needs with the resources that are
available whilst operating in a cost-effective manner.

4 Components of Production Scheduling

The four components of production scheduling include the following:

• Planning: The planning component of production scheduling is by far the most

important. The planning component pertains to deciding in advance what should be
done in the future – which is the most crucial step in production scheduling. Without
a plan, production scheduling can not even begin or take place. Preparing a plan
through charts, production budgets, or various others visual representations can
provide a sound basis for steps down the road pertaining to production.

• Routing: Production routing is the process that pertains to determining the route or
path that a product must follow. This route entails the path from raw materials until it
transform into a finished product. The main objective of this component is to locate
and perform the most economical and enhanced sequence of operations in the
production process.

• Scheduling: Scheduling coincides with the time and date that the operation must be
completed. Scheduling is an essential and crucial portion of production scheduling and
lays the foundation and groundwork for all of the steps within the production process.
There are three types of scheduling that an operations utilize, such as master
scheduling, manufacturing or operation scheduling, and retail operation scheduling.
Overall, scheduling is key for a manufacturing operation to proceed.

• Dispatching: Dispatching relates to the process of initiating production with a

preconceived production plan. Dispatching is concerned with giving a practical shape
to an overall production plan. This will also include issuing any orders and instructions
and other important information pertaining to production.
Machine Scheduling

Single-machine scheduling or single-resource scheduling is the process of assigning a group of tasks to a

single machine or resource. The tasks are arranged so that one or many performance measures may be
optimized.
Performance measures
The performance measures of the tasks in the single machine scheduling problem include:
Tardiness – {\displaystyle max(0,receipt\;date-due\;date)}max(0, receipt\;date – due\;date)
Earliness – {\displaystyle max(0,due\;date-receipt\;date)}max(0, due\;date – receipt\;date)
Lateness – {\displaystyle receipt\;date-due\;date}receipt\;date – due\;date
Flowtime – {\displaystyle end\;date-start\;date}end\;date – start\;date
Solution techniques
Many solution techniques have been applied to solving single machine scheduling problems. Some of
them are listed below.
Heuristics
Shortest processing time (SPT)

The SPT schedule is optimal if the objective is to minimize the average flowtime.
SPT-order is an order based on processing time. The sequence of remaining jobs in sorted based on non-
decreasing processing time.

Earliest due date (EDD)

The EDD schedule is optimal if the objective is to minimize the maximum tardiness.
EDD-order is an order based on due date. The sequence of remaining jobs in sorted based on non-
decreasing due date.
Note: “Lateness” is any deviation from the due date. Positive lateness is “tardiness,” negative lateness is
“earliness”

Hodgson’s algorithm

Hodgson’s algorithm gives an optimal solution if the objective is to minimize the number of jobs with
tardiness greater than zero.

Computational
• Genetic algorithms
• Neural networks
• Simulated annealing
• Ant colony optimization
• Tabu search
Line Balancing

“Line Balancing” in a layout means arrangement of machine capacity to secure relatively uniform flow at
capacity operation.

It can also be said as “a layout which has equal operating times at the successive operations in the process
as a whole”. Product layout requires line balancing and if any production line remains unbalanced,
machinery utilisation may be poor.

Let us assume that there is a production line with work stations x, y and z. Also assume that each machine
at x, y and z can produce 200 items, 100 items, and 50 items per hour respectively. If each machine were
to produce only 50 items per hour, then each hour the machines at x and y would be idle for 45 and 30
minutes respectively. Such a layout will be unbalanced one and the production line needs balancing.

As an another example, a bakery would not be in balance, if the oven continuously baked loaves at the
rate of 600 per hour and wrapping machine could only wrap 400 loaves per hour Hence the production
line requires balancing.

Methods of Line Balancing:

(i) The one possibility in the right direction, as far as balancing the line is concerned, would be to increase
the output.

(ii) The second possibility is that another product may be sent close to the first one so that some idle
machines may be used jointly.

(iii) The third possibility may be to estimate the output of the last work station. This can be taken as the
minimum output of all the intermediate work stations.

A balanced layout eliminates bottleneck operations as well as preventing the unnecessary duplication of
equipment capacity. Line balancing is a major consideration in layout because a lack of balance can most
easily hinder the production.

For balancing it is not essential that output of each operation should be same but the essential is to see
that output of fastest machine should be multiple of the output of the remaining other machines.
Loading: Process, Strategies

A load means the quantity of work, and allocating the quantity of work to the processes necessary to
manufacture each item is called loading.

It is performed in the CRP (Capacity Requirements Planning) of the manufacturing planning. Each item
planned in MRP is first explored to the processes necessary to manufacture it, which is usually called
process explosion. Next loading is performed for the explored process. In loading, each load is usually
piled up by time (hour), by which a setup time and a real operating time are determined. The real
operating time may be set by manufacturing lot or by real operating time per item unit. In the former
case, the time of hour is piled up as load, while in the latter case, loading is performed after calculating
the real operating time per manufacturing unit by multiplying the number of manufacturing items by
real operating time.

In addition, the calculated load is piled up for a certain period, which is determined by selecting either
the earliest start date or the last start date as a base date. This method enables loading for each process or
each period.
Relationship between capacity and Loading

Load is the amount of work that MUST be done, amount of work scheduled ahead of a manufacturing
facility.

Capacity is the amount of work that CAN be done, and measures the highest output of work expressed as
a rate with current product specifications, work force, plant, equipment etc.

PPC: Job, Batch, Mass (Assembly) and continuous

Batch Process

Batch process refers to a process that consists of a sequence of one or more steps that should be performed
in a defined order. A finite quantity of the product is produced at the end of the sequence, which is
repeated in order to produce another product batch.

Generally, batch is a process that results in the production of limited quantities of material through
subjecting quantities of raw materials to a set of processing activities over a significant period of time with
the use of one of more piece of equipment. Processing of successive batches must wait until the completion
of the current batch.

A flexible assembly system is appropriate when:

• A wide variety of products and/or parts is to be manufactured on the same equipment

• Products have a short life cycle.
• Environmental uncertainties are taken into account in order for a firm to accommodate
internal changes and external influences.
• Offshore competition can produce products at much lower costs than can traditional
manufacturing methods.
• Parts can be easily damaged by over-handling through manual cells.
• A high degree of accuracy and repeatability is required.
• Parts are too intricate to be assembled efficiently with considerable human
intervention.
• Volumes are moderate to high, i.e., cycle time rates are not dependent on the slowest
worker.
• Ergonomics is a significant factor.
• The assembly task requires less than roughly 10 seconds.
Continuous Process

A continuous process, on the other hand, refers to a processing that involves moving a single work unit
at a time between every step of the process without any breaks in time, substance, sequence or extend.
As the name suggests, the flow of product or material is continuous. Every machine operates in a steady
state and performs a certain processing function.

For majority of applications, continuous flow saves costs, energy and time. When this process is properly
implemented, it can reduce waste, improve quality by making it easier to identify and correct errors,
increase productivity and adapt to the needs of customers more efficiently than batch processing.
 UNIT-3

AGGRIGATE PLANNING

Aggregate Planning: Meaning, Strategies and Cost

Aggregate planning is the process of developing, analysing, and maintaining a preliminary, approximate
schedule of the overall operations of an organization. The aggregate plan generally contains targeted sales
forecasts, production levels, inventory levels, and customer backlogs. This schedule is intended to satisfy
the demand forecast at a minimum cost. Properly done, aggregate planning should minimize the effects
of short sighted, day-to-day scheduling, in which small amounts of material may be ordered one week,
with an accompanying layoff of workers, followed by ordering larger amounts and rehiring workers the
next week. This longer-term perspective on resource use can help minimize short-term requirements
changes with a resulting cost savings.

In simple terms, aggregate planning is an attempt to balance capacity and demand in such a way that costs
are minimized. The term “aggregate” is used because planning at this level includes all resources “in the
aggregate;” for example, as a product line or family. Aggregate resources could be total number of workers,
hours of machine time, or tons of raw materials. Aggregate units of output could include gallons, feet,
pounds of output, as well as aggregate units appearing in service industries such as hours of service
delivered, number of patients seen, etc.

Aggregate planning does not distinguish among sizes, colours, features, and so forth. For example, with
automobile manufacturing, aggregate planning would consider the total number of cars planned for not
the individual models, colours, or options. When units of aggregation are difficult to determine (for
example, when the variation in output is extreme) equivalent units are usually determined. These
equivalent units could be based on value, cost, worker hours, or some similar measure.

Aggregate planning is considered to be intermediate-term (as opposed to long- or short-term) in nature.

Hence, most aggregate plans cover a period of three to 18 months. Aggregate plans serve as a foundation
for future short-range type planning, such as production scheduling, sequencing, and loading. The master
production schedule (MPS) used in material requirements planning (MRP) has been described as the
aggregate plan “disaggregated.”

Steps taken to produce an aggregate plan begin with the determination of demand and the determination
of current capacity. Capacity is expressed as total number of units per time period that can be produced
(this requires that an average number of units be computed since the total may include a product mix
utilizing distinctly different production times). Demand is expressed as total number of units needed. If
the two are not in balance (equal), the firm must decide whether to increase or decrease capacity to meet
demand or increase or decrease demand to meet capacity. In order to accomplish this, a number of options
are available.
Options for situations in which demand needs to be increased in order to match capacity
include:

1. Varying pricing to increase demand in periods when demand is less than peak. For
example, matinee prices for movie theaters, off-season rates for hotels, weekend rates
for telephone service, and pricing for items that experience seasonal demand.
2. Advertising, direct marketing, and other forms of promotion are used to shift demand.
3. Back ordering. By postponing delivery on current orders demand is shifted to period
when capacity is not fully utilized. This is really just a form of smoothing demand.
Service industries are able to smooth demand by taking reservations or by making
appointments in an attempt to avoid walk-in customers. Some refer to this as
“partitioning” demand.
4. New demand creation. A new, but complementary demand is created for a product or
service. When restaurant customers have to wait, they are frequently diverted into a
complementary (but not complimentary) service, the bar. Other examples include the
addition of video arcades within movie theaters, and the expansion of services at
convenience stores.

Options which can be used to increase or decrease capacity to match current demand include:

1. Hire/lay off. By hiring additional workers as needed or by laying off workers not
currently required to meet demand, firms can maintain a balance between capacity and
demand.
2. By asking or requiring workers to work extra hours a day or an extra day per week,
firms can create a temporary increase in capacity without the added expense of hiring
additional workers.
3. Part-time or casual labour. By utilizing temporary workers or casual labour (workers
who are considered permanent but only work when needed, on an on-call basis, and
typically without the benefits given to full-time workers).
4. Finished-goods inventory can be built up in periods of slack demand and then used to
fill demand during periods of high demand. In this way no new workers have to be
hired, no temporary or casual labour is needed, and no overtime is incurred.
5. Frequently firms choose to allow another manufacturer or service provider to provide
the product or service to the subcontracting firm’s customers. By subcontracting work
to an alternative source, additional capacity is temporarily obtained.
6. Cross-training. Cross-trained employees may be able to perform tasks in several
operations, creating some flexibility when scheduling capacity.
7. Other methods. While varying workforce size and utilization, inventory build-
up/backlogging, and subcontracting are well-known alternatives, there are other, more
novel ways that find use in industry. Among these options are sharing employees with
counter-cyclical companies and attempting to find interesting and meaningful projects
for employees to do during slack times.
Concept of Aggregate Planning
Aggregate Planning Strategies

There are three types of aggregate planning strategies available for organization to choose from. They are
as follows.

1. Level Strategy

As the name suggests, level strategy looks to maintain a steady production rate and workforce level. In
this strategy, organization requires a robust forecast demand as to increase or decrease production in
anticipation of lower or higher customer demand. Advantage of level strategy is steady workforce.
Disadvantage of level strategy is high inventory and increase back logs.

2. Chase Strategy

As the name suggests, chase strategy looks to dynamically match demand with production. Advantage of
chase strategy is lower inventory levels and back logs. Disadvantage is lower productivity, quality and
depressed work force.

3. Hybrid Strategy

As the name suggests, hybrid strategy looks to balance between level strategy and chase strategy.

Long-Term Decisions

The size of the company will determine the length of your long-term decisions made through the
aggregate planning concept. Long term aggregate planning usually involves a time frame of two to 10
years. Long-term decision making should start with the company examining goals and objectives for the
time period.

The term of this decision relates to product and service selection and includes all aspects of production.
Long-term aggregate planning includes product and market planning, financial planning and resource
planning. The resource planning identifies facilities and personnel needed to accomplish the long-term
production objectives.

Intermediate Decisions

Intermediate decisions affect the level of employment within the organization. Specifically, through
intermediate aggregate planning the organization will examine the output capacity of the workforce. This
planning also affects the capacity of short-term decision making.

Intermediate aggregate planning also covers many additional aspects of the company, including
production planning and stipulating output requirements. Further, intermediate aggregate planning looks
at the major product groups and quantifies the labor hours needed to manufacture the product groups.
Intermediate aggregate planning will typically look at time horizons totalling 12 to 18 months.

Short Term Decisions

Once a company has made long-term and intermediate decisions, it should create its short-term aggregate
plan. Short-term aggregate planning decisions include materials planning, capacity requirement planning,
final assembly scheduling and production activity control. Short-term decisions help the organization to
ensure the end product is manufactured without delay to meet the projected goals of the intermediate
and long-term aggregate plans.

Capital Intensive
Prof. Harvey Leibenstein, Paul Baran, Rostow, Hirschamn Maurice Dobb and Mahalanobis are the chief
advocators of capital-intensive technique. They consider that this technique is indispensable for
accelerating the process of growth. Prof. Paul Baran has the strong opinion about the necessity of using
the capital intensive in less developed countries.

He observed that such countries should make use of their ability to draw upon the scientific and
technological advancement of the more developed countries if they want to industrialize at a faster rate.
Capital intensive technique refers to that technique in which larger amount of capital is comparatively
used. In such a technique the amount of capital used per unit of output is larger than what it is in case of
labour intensive technique.

To quote Prof. Myint, “the capital intensive or labour intensive methods of producing a particular
commodity are classified by the modern factory methods of producing consumer goods and mechanized
methods of constructing roads, irrigation works and other projects. Here, because of lower labour costs
and higher productivity, the net output per unit of capital may be comparatively higher.” Capital intensive
technique has been shown in diagram 2.

In this diagram isoquant Q represents the initial. level of output, using OL amount of labour and OC
amount of capital. With the introduction of new technique, a higher level of output is shown by labour
(OL) but with greater dose of capital (OC1). Therefore, capital intensive technique is using more capital
with the same amount of labour.

Labor Intensive
In simple words labour intensive technique is that which uses comparatively larger amount of labour and
small doses of capital. It is that technique by which more of labour and less of capital is required for the
process of production. However, it can be defined as one in which a large amount of labour is combined
with a smaller amount of capital. According to Prof. Myint, “labour intensive methods of production are
those that require a large quantity of labour with a given unit of capital.” With this method of production,
it is possible to raise output by using the same amount of capital but greater amount of labour.

This technique fulfils two objectives of capital formation and skill. It raises agriculture production through
the use of minor irrigation, better seeds, manure, implements and the introduction of short duration crops.
Labour intensive technique has been illustrated with the help of diagram I. In this diagramme, isoquant
Q shows the initial level of output which is being produced by using OL labour and OC amount of capital.
With the adoption of new technology a higher level of output is represented by the isoquant Q1; can be
produced by the same amount of capital i.e. OC. In this case, greater amount of labour is OL This shows
that the technique is labour intensive.
Fashion Industries Aggregate Planning

The selection of merchandise is a critical part of retail management. Assortment planning aims to ensure
that an appropriate mix and quantity of retail inventory is stocked to meet customer demand. It involves
gathering and evaluating historical data related to customer demand for various categories of goods to
reduce inventory out-of-stock and overstock problems. The collaborative efforts of retailers and vendors
assists in synchronizing the market orientation process in assortment planning for the garment or apparel
industry.

Strategic Business Objectives

Strategic business objectives (SBO) play a key role in assortment planning. SBOs are the specific,
measurable goals and objectives set by a business. This is developed at various levels within an
organization and is generally tied to a clearly discernible target market. Market research related to an
apparel retailer’s target market will impact the inventory selection process. Keep in mind that SBOs and
product assortment planning also will be shaped by budgets.

Product Category

Merchandising categories for the garment industry include basics, fashion basics and fashion. The
procedures generally used for assortment planning differ between each category. For example, the “basics”
category in ladies apparel might represent products with extended life cycle, such as a traditional black
skirt. “Fashion basics” represents standard seasonal variations in color and fabric. The “fashion” category
includes the newest designs and trends. The fashion basics and fashion categories typically have shorter
demand windows.

Style Placeholders

The early process for assortment planning generally involves creating style placeholders, which are
established within each product category to allow forecasting prior to the completion of final product
specification. This defines the further assortment attributes that might be included, such as style, price
points, sizes, colors, units and SKU counts.

Forecasting

Financial and sales reports provide a garment retailer with historical performance data segmented by
product category that can be analyzed to identify historical, current and future trends. Analyze data
variances, for example, based on historical sell-through data by category, to uncover order patterns and
the fill rates for product categories. Retailers may also track gross margin, inventory turns and end-of-
season excess inventory to assist in planning for effective inventory assortment.

Aggregate planning involves projecting market demand and evaluating production capacity to ensure that
a firm is sufficiently equipped to meet demands for a given period. Production rates for a range of products
or services are generally examined in the aggregate planning process, which also seeks to influence
demand for overall outputs. Workforce size and financial resources are both key variables in this
inventory management process.

Informal Tools

The aggregate planning process, which compares market demand projections against existing and
potential inventory capacity, uses basic tables, charts and other graphics aligned to data processing
systems. These tools are used in aggregate planning to compare an assortment of alternative ways of
achieving a company’s supply management goals. When using these types of informal methodologies
alone, one disadvantage identified is that they might not provide the most optimum aggregate plan,
according to Lin Pan and Brian H. Kleiner in their essay “Aggregate Planning Today.”

Mathematical Techniques

Mathematical techniques are used in the aggregate planning process. For example, production rates and
human resource requirements might be evaluated as linear program problems. This involves choosing and
expressing values for known and unknown variables, quantities to be minimized or maximized and
constraints. One of the disadvantages with using mathematical techniques, such as the linear
programming method, in aggregate planning is the assumption of determinism generally factored into its
application.

Heuristic Methods

Heuristic methods can accelerate the aggregate planning process based on the experience and knowledge
of the planning team. Examples of heuristic techniques include making judgments based on past
experience or using known industry best practices. It is used in aggregate planning because the process is
driven by the organization’s decision-makers who draw upon their knowledge and experience. For
example, the framework used for planning production might involve heuristic techniques to, in part,
establish production ratios based on production management’s experience with specific inventory areas
at varying production levels.

Budget Considerations

A firm’s budget significantly shapes estimates for production capacity. Generally, budgets are developed
using factors that are also used in the aggregate planning process — for example, existing inventory levels
and valuations, historical purchasing patterns and human resource production capabilities. Additionally,
aggregate plans must operate within the constraints imposed by the revenue allocations earmarked for
production of various products or services. In this sense, aggregate planning and preparing budgets are
closely related business functions.
Materials requirements Planning (MRP I)
In manufacturing, developing a plan for your resources is vital to your operation. Without resource
planning, your operation will have a much more challenging time managing various areas within your
supply chain such as inventory, production, and output. This is why utilizing a materials requirement
planning (MRP) system can efficiently manage materials within production, making it much easier for
project managers to order and organize materials waiting to be assembled.

Through materials requirement planning (MRP), the need for manual materials planning is eliminated
and the system is able to successfully carry out an efficient strategy. MRP has become a vital component
in allowing manufacturers to keep up with a consistently growing demand.

Material Requirement Planning (MRP) Functions

Utilizing a systemic approach, the system is able to efficiently keep production up to schedule through
data analysis and simple integration. Although the system cannot run a production facility all on its own,
it still is able to maintain a steady flow of materials throughout the supply chain through decision-making
capabilities. Various functions of an MRP system include the following:

• Inventory Management: Arguably the main objective of an MRP system, the feature is
to ensure that materials are available at a moment’s notice. This eliminates the need for
manual-entered data and is able to carry out material orders with ease. It also is able to
alert the facility when products are ready to be delivered.
• Cost Reduction: In correlation with inventory management, cost is reduced
significantly. Through ensuring a steady flow of inventory, holding and untimely-
delivery cost are reduced, ultimately bringing more revenue into the operation.
• Production Optimization: Although the main goal of MRP is to oversee and manage
materials, it benefits the rest of the system as well. As materials are flowing throughout
the supply chain, equipment and employees are able to work at a much faster and
efficient rate as well.

Implementing an MRP system can be extremely beneficial to your production facility, but as mentioned
previously, the system is not enough by itself. As manufacturers are looking for ways to enhance
production, many are coming to the same solution – advanced planning and scheduling software (APS).

Advanced Planning and Scheduling (APS) with Materials Requirements Planning (MRP)

Advanced planning and scheduling software (APS) can be integrated with an MRP system with ease.
Through diverse features, APS software offers as an extension of your MRP system and can efficiently
optimize production within your facility. Various features of APS include the following:

• Resource Scheduling
• Schedule Optimization
• Capacity Planning
• Order Management
Manufacturing resource planning (MRP II)
Manufacturing resource planning (MRP II) is a comprehensive type of planning for manufacturing
companies. It is a sort of extension to the original material requirements planning (MRP) concept. It
emerged in the 1980s to help companies deal with dynamic processes. Both of these, MRP and MRP II,
are related to the enterprise resource planning (ERP) system, which is a top-level business information
system that helps companies to plan better and work more efficiently.

Manufacturing resource planning may include various software tools as well as support processes. It is an
overarching concept for business management. The tools may include master production schedules,
advanced invoicing, production resources, inventory tools and more. The support processes may include
contract management, shop floor data collection, sales analysis and more.

Through the use of diverse new technologies, companies can adjust how they work to improve
productivity and efficiency. Inventory control systems are a good example — by aggregating big data and
analyzing them for business intelligence, companies can reduce warehouse inventory levels, to save on
maintenance cost. This is just one way that MRP works for businesses; another way involves improving
supply chains as well as other parts of the production cycle.

Master Production Schedule

A Master Production Schedule is a Schedule of the completions of the end items and these completions
are very much planned in nature. Master production schedule acts as a very distinct and important linkage
between the planning processes. With the help of this schedule, one can know the requirements for the
individual end items by date and quantity. In companies, MPS are generally produced in order to know
the number of each product that is to be made over some planning horizon. This schedule forms a very
unique part of the company’s sales program which deals with the planned response to the demands of the
market.

A master production schedule is also in management language referred to as the master of all the schedules
as this schedule provides the production, planning, purchasing & top management, the most needed
information required for planning and control of the whole manufacturing process or the operation.

Master production scheduling plays an important role in the balancing of demand with the supply i.e.
satisfying customers according to the limits of the factory and the supplier’s base. MPS is used to know
the number of the items that are to be produced, the planned inventories of raw materials, finished
products and parts etc.

MPS tells the company what is to be made or produced and also refers to the time in which this production
of the products is to be completed. It must be kept in mind that MPS does not act as a sales forecast or as
a manufacturing schedule or a wish list or a final assembly schedule. MPS can be linked only with the
final products and not with the planning involving the production of parts or the components, as these
listings require very detailed planning – so these are left to the other plans that will follow this schedule.

In MPS, inputs are used to draw a master production schedule and the inputs used are – orders from
customers, production plan from aggregate planning, forecast, resources that are available, inventory
levels and the capacity constraints. While drawing a MPS, quantities of individual items must be equal to
the aggregate quantities from the production plan and also the total requirements for a product must be
allocated overtime in a very good manner.

MPS outputs include – the amounts that are to be produced, due dates, quantity that is available to promise
with the projected available balance. MPS is a schedule that expresses the operations plan of production
for a specific period of time only and is stated in terms of the end items, which may be either shippable
products or the highest level assemblies used to make them.

The main steps in master production schedule can be summarized as –

1. Forming a preliminary MPS.
2. Performing rough–cut capacity planning.
3. Resolving differences.

Objectives of Master Production Schedule (MPS)

1. Keeping the inventories at the desired level by making perfect use of the resources that
are available with the company.
2. Setting up due dates for the availability of the end items and also providing the
required information regarding resources and also the materials – which act as the
supporting pillars of the aggregate planning.
3. Maintaining properly, the desired level of customer service.
4. Setting particular schedules for the production of the parts and the components that
are used as the inputs to materials requirements planning, in the end items.

Enterprise Resource Planning (ERP)

Enterprise resource planning (ERP) is a process used by companies to manage and integrate the important
parts of their businesses. Many ERP software applications exist to help companies implement resource
planning by integrating all of the processes it needs to run a company with a single system. An ERP
software system can integrate planning, purchasing inventory, sales, marketing, finance, human
resources, and more.

You can think of an enterprise resource planning system as the glue that binds together the different
computer systems for a large organization. Without an ERP application, each department would have its
own system optimized for that division’s particular tasks. With ERP software, each department still has
its own system, but all of the systems can be accessed through one application with one interface.

ERP applications also allows the different departments to communicate and share information more easily
with the rest of the company. It collects information about the activity and state of different divisions,
making this information available to other parts, where it can be used productively.

ERP applications can help a corporation become more self-aware by linking information about
production, finance, distribution, and human resources together. Because it connects different
technologies used by each individual part of a business, an ERP application can eliminate costly duplicate
and incompatible technology. The process often integrates accounts payable, stock-control systems,
order-monitoring systems, and customer databases into one system.
ERP offerings have evolved over the years from traditional software models that make use of physical
client servers to cloud-based software that offers remote, web-based access.

Special Considerations
An ERP system doesn’t always eliminate inefficiencies within the business. The company needs to rethink
the way it’s organized, or else it will end up with incompatible technology.

ERP systems usually fail to achieve the objectives that influenced their installation because of a company’s
reluctance to abandon old working processes that are incompatible with the software. Some companies
are also reluctant to let go of old software that worked well in the past. The key is to prevent ERP projects
from being split into many smaller projects, which can result in cost overruns.

ERP Solutions Providers

Some familiar names are leaders in ERP software. Oracle Corp. (ORCL) originally supplied a relational
database that integrated with ERP software developed by SAP (SAP) before entering the broader
enterprise market in a big way in the early 2000’s. Microsoft (MSFT) has long been an industry leader,
with many customers using multiple software applications from the company.

As cloud-based solutions have grown in popularity in recent years, the traditional ERP industry leaders
have seen challenges from upstarts such as Bizowie and WorkWise.

• ERP software can integrate all of the processes needed to run a company.
• ERP solutions have evolved over the years, and many are now typically web-based
applications that users can access remotely.
• An ERP system can be ineffective if a company doesn’t implement it carefully.
 UNIT-4
Waste Management:
Value and Waste
Waste management is the process of collection, transportation, processing or disposal, managing and
monitoring of waste to avoid its adverse effects in human health and environment also. Waste
management is a very important issue in the today’s modern business world. According to the Wikipedia
“waste management is the generation, prevention, characterization, monitoring, treatment, handling,
reuse and residual disposition of solid waste”.

Waste management is the process of collection, transportation, processing or disposal, managing and
monitoring of waste to avoid its adverse effects in human health and environment also. Waste
management is a very important issue in the today’s modern business world. According to the Wikipedia”
waste management is the generation, prevention, characterization, monitoring, treatment, handling,
reuse and residual disposition of solid waste.

Concept of Waste

In general, waste are the things or items which we (people and industries) don’t need and we discard
these things. Sometimes law does not permit to us to use the things /items; they are prohibited by the law
because they can be harmful to the society as well as environment. Generally waste can be liquid(storm
water, water from home, liquids used for industry cleaning and waste detergents etc.) and solid(garbage,
plastics materials, old newspapers, broken furniture even food waste etc.) .Both liquid and non-liquid
waste type also has grouped into reusable and recyclable waste not all the wastes are hazardous or harmful
to health and environment). Growing proliferation of waste led to the many serious disease such as
bubonic plague, cholera and typhoid led to suffering and death.

Waste management

There are various type of solid waste including municipal(residential, institutional,

commercial)agricultural and special health care household hazardous waste” The waste management
concept is mainly refers to the ‘3Rs’-Reduce, Reuse and Recycle. This concept gives focus on the waste
reduction plans, re-cycle the waste by different processed and re-use the waste for different purpose i.e.
producing the other products like compost etc. The waste is the problem and waste management is the
solution.

There are various sources of waste they are briefly discussed below:

• Municipal sources of waste: This includes the waste produce by households, School
College, market place and restaurant and public places. They include daily items like
food debris, plastic bags, water bottle etc.
• Medical/hospital sources of waste: It includes surgical items, pharmaceuticals, blood,
body parts dressing material and needles, syringes etc.
 • Agricultural sources of waste: This includes like horticulture, fruit growing, seed
growing, livestock, market gardens and nurseries etc. produced by agricultural
activities.
• Industrial sources of waste: includes leather, textile, electronics, food, plastics and metal
products etc. produced by the different manufacturing houses.
• Construction sources of waste: includes waste resulting from the construction of the
building, road, bridge etc.
• Electronic waste sources: waste from electronic and electronic devices like TV, music
players, telephone, computers, vacuum cleaners and other electrical stuff. For e.g.
contains lead, cadmium, and mercury etc. which may be harmful to people and
environments.

Waste Management from the Environmental perspective

Waste management is the major challenge to not only the rural and urban but also to the developed and
under developed Nations. There are some techniques can be used for waste management. They are:

1. Landfill: The most common and traditional methods of waste disposal is landfill.
According to this method water is burying or dumping in the land. It is an inexpensive
way to get rid of waste. Before it is placed into the certain process used that eliminates
the danger and odors of waste. This method is becoming less useful these days. Due to
the lack of sufficient space availability and strong presence of the methane and landfill
gasses, both of which may cause various contamination problems. Hats why enough
care should be taken to ensure that waste that does not harm the environment is
dumped in landfill.
2. Combustion: The combustion is another type of waste management techniques in
which municipal or local government solid waste are burned at high temperature in
order to convert waste in to the residue and gaseous products. Major advantage of this
techniques is that it can reduces the column of the solid waste 20% to 30 % of the
original volume it also reduces the burden of landfills .Japan has applied this techniques
to manage the waste.
3. Recycling: The recycle is the process of converting the waste products in to the new
products to prevent the consumption and usages of the raw material. It is the modern
techniques of waste management. The main idea behind recycling is to reduce usage of
energy and reduces the volume of the landfills, water pollution, reduce the green house
and preserve the natural resources for the future generation.
4. Composting: Composting is a waste management method in which all organic waste
like food, plant, paper etc. are decomposed (breakdown) and recycle then as compost
for use in agricultural and landscaping applications.
5. Waste to Energy (WET): It is a process in which converting the non-recyclable waste
items into the usable heats, electricity, and fuel by using the different process. This
types of energy is renewable energy sources (can be use again and again to create the
energy).The advantages of this method is recuing the carbon emission by offsetting the
 need for energy from fossil sources, it is most popular and widely used methods in
managing the wastage.

Thus, the waste management has become the parts of our human life. If we have to live, we will produce
the waste. If we don’t treat waste, it will choke us.

Waste Management from the business perspective

The waste management is very important for the business organization also. The business organization
has been producing the some kinds of commercial waste by knowingly or unknowingly. The waste
volume and types can be differing business to business. The business waste management is somewhat
different from the residential or household. Generally manufacturing industries produces more waste
than service industry, for example Construction Company produces more waste than banks. The waste
creates the unnecessary cost burden and increases the environmental footprint and can make business
vulnerable to the risk, regulation and fines. Waste management for the company is reducing the
environmental impact of organizational activities and simiutenously reducing the costs.

To manage the waste in the business in better ways the organization should follow the different ideas.
Some of the business waste management ideas are discuss below:

1. Conduct the waste audit: waste audit is the formal and systematic process in order to
know the know or quantify the amount and types of waste being generated by the
company in particular time period. Info form audit will help to identify the current
waste practice and how they can be improved. Being waste-wise mean-a more
efficient and effective company, reduces the costs, better use of the resources.
2. Grab company waste bill and call the company that services your locations to ask
them: It is another way of reducing the waste in the business. The company should
ask the service provider for unjustified bills unnecessary, amount(cost) to be removed
from your bill such as vague and unclear “environmental fee or fuel charge etc. ”and
company should identifies the other ways like reducing the no of service time and
other recycling process etc.
3. Better inventory management: The Company should keep minimum stock to serve the
customer. They should avoid keeping too many stocks that may expire or become
useless and will increase the cost.
4. Scrutinize the products you purchase for unnecessary packaging: unnecessary
packaging will only increase the waste and cost of the business so the business
organization should avoid purchasing the disposable products and tools and purchase
the product with less packaging and work with vendor to take back and reuse the
packaging.
5. Donate extra food and gently used the items instead of throwing them away: another
way of managing the waste is donating the extra food to the society‘s needy people.
6. Work with neighboring business to implement recycling: to reduce the business waste
the organization should work with other similar company to reduce the costs through
scale by sharing equipment and selling quantizes of valuable recyclable products.
 7. Standardize the recycling equipment: The business organization should purchase the
standardize recycling equipment in order to process waste. The equipment should
have certain standard for operations.
8. Engage with your employee, customer and community: The Company should provide
the training to the employee and asking for their suggestions and creating the waste
reduction incentives. Similarly, the business organization should engage with the
society customer to provide the proper information about the products through social
media.

Thus, waste management is most important to the business in order to protect the environment and
reducing the costs and adding value to the business.

Types of Waste
1. Liquid Waste

Liquid waste is commonly found both in households as well as in industries. This waste includes dirty
water, organic liquids, wash water, waste detergents and even rainwater.

You should also know that liquid waste can be classified into point and non-point source waste. All
manufactured liquid waste is classified as point source waste. On the other hand, natural liquid waste is
classified as non-point source waste.

2. Solid Rubbish

Solid rubbish can include a variety of items found in your household along with commercial and industrial
locations.

Solid rubbish is commonly broken down into the following types:

• Plastic waste– This consists of bags, containers, jars, bottles and many other products
that can be found in your household. Plastic is not biodegradable, but many types of
plastic can be recycled. Plastic should not be mix in with your regular waste, it should
be sorted and placed in your recycling bin.
• Paper/card waste– This includes packaging materials, newspapers, cardboards and other
products. Paper can easily be recycled and reused so make sure to place them in your
recycling bin or take them to your closest Brisbane recycling depot.
• Tins and metals– This can be found in various forms throughout your home. Most
metals can be recycled. Consider taking these items to a scrap yard or your closest
Brisbane recycling depot to dispose of this waste type properly.
• Ceramics and glass– These items can easily be recycled. Look for special glass recycling
bins and bottle banks to dispose them correctly.
 3. Organic Waste

Organic waste is another common household. All food waste, garden waste, manure and rotten meat are
classified as organic waste. Over time, organic waste is turned into manure by microorganisms. However,
this does not mean that you can dispose them anywhere.

Organic waste in landfills causes the production of methane, so it must never be simply discarded with
general waste.

4. Recyclable Rubbish

Recyclable rubbish includes all waste items that can be converted into products that can be used again.
Solid items such as paper, metals, furniture and organic waste can all be recycled.

If you’re unsure whether an item is recyclable or not, look at the packaging or the diagrams on the lid of
your yellow recycling bin. Most products will explicitly state whether they are recyclable or not.

5. Hazardous Waste

Hazardous waste includes all types of rubbish that are flammable, toxic, corrosive and reactive.

These items can harm you as well as the environment and must be disposed of correctly. Therefore, I
recommend you make use of a waste removal company for proper disposal of all hazardous waste.

Waste can be classified into five types of waste which is all commonly found around the house. These
include liquid waste, solid rubbish, organic waste, recyclable rubbish and hazardous waste. Make sure
that you segregate your waste into these different types to ensure proper waste removal.

5S Techniques of Eliminating Wastes

Ever notice how much better you work when the space you work in is organized? The 5S approach is a
Japanese process that’s about promoting an efficient, effective workplace that helps companies eliminate
waste. There are five steps in the 5S approach, outlined in detail in the lesson The 5S Approach to Waste
Elimination for Lean Businesses. The steps are:

1. Sort
2. Set
3. Shine
4. Standardize
5. Sustain
Often, these steps are represented on a process chart where the first four steps are located around the
perimeter of the chart and the fifth step (sustain) is placed inside the process. This is because the first four
steps lead into each other, while ”sustain” is something that must be done at every step.

There are five 5S phases. They can be translated from the Japanese as “sort”, “set in order”, “shine”,
“standardize”, and “sustain”. Other translations are possible.

Sort (Seiri)

Seiri is sorting through all items in a location and removing all unnecessary items from the location.

Goals:

• Reduce time loss looking for an item by reducing the number of items.
• Reduce the chance of distraction by unnecessary items.
• Simplify inspection.
• Increase the amount of available, useful space.
• Increase safety by eliminating obstacles.

Implementation:

• Check all items in a location and evaluate whether or not their presence at the location
is useful or necessary.
• Remove unnecessary items as soon as possible. Place those that cannot be removed
immediately in a ‘red tag area’ so that they are easy to remove later on.
• Keep the working floor clear of materials except for those that are in use to production.

Set in order (Seiton)

Seiton is putting all necessary items in the optimal place for fulfilling their function in the workplace.

Goal:

• Make the workflow smooth and easy.

Implementation:

• Arrange work stations in such a way that all tooling / equipment is in close proximity,
in an easy to reach spot and in a logical order adapted to the work performed. Place
components according to their uses, with the frequently used components being nearest
to the workplace.
• Arrange all necessary items so that they can be easily selected for use. Make it easy to
find and pick up necessary items.
• Assign fixed locations for items. Use clear labels, marks or hints so that items are easy
to return to the correct location and so that it is easy to spot missing items.

Shine/Seiso

Seiso is sweeping or cleaning and inspecting the workplace, tools and machinery on a regular basis.

Goals:

• Prevent deterioration.
• Keep the workplace safe and easy to work in.
• Keep the workplace clean and pleasing to work in.
• When in place, anyone not familiar to the environment must be able to detect any
problems within 50 feet in 5 sec.

Implementation:

• Clean the workplace and equipment on a daily basis, or at another appropriate (high
frequency) cleaning interval.
• Inspect the workplace and equipment while cleaning.

Standardize (Seiketsu)

Seiketsu is to standardize the processes used to sort, order and clean the workplace.

Goal:

• Establish procedures and schedules to ensure the repetition of the first three ‘S’
practices.

Implementation:
 • Develop a work structure that will support the new practices and make it part of the
daily routine.
• Ensure everyone knows their responsibilities of performing the sorting, organizing and
cleaning.
• Use photos and visual controls to help keep everything as it should be.
• Review the status of 5S implementation regularly using audit checklists.

Sustain/Self-discipline (Shitsuke)

Shitsuke or sustain the developed processes by self-discipline of the workers. Also translates as “do
without being told”.

Goal:

• Ensure that the 5S approach is followed.

Implementation:

• Organize training sessions.

• Perform regular audits to ensure that all defined standards are being implemented and
followed.
• Implement improvements whenever possible. Worker inputs can be very valuable for
identifying improvements.
• When issues arise, identify their cause and implement the changes necessary to avoid
recurrence.

Lean process to minimize wastages

Warehouses must work harder than ever to achieve overall efficiency and to control costs. An effective
strategy is to adopt lean manufacturing principles.

Lean is characterized by waste reduction by more effective management, engaging all team members to
find ways to increase efficiency and productivity, and finding ways to compress time frames.

Each operation will benefit from lean in unique ways, but here are four common ways lean can help
decrease warehouse waste:

1. Reduce waste caused by excess inventory and over-production. In the lean

manufacturing model, any inventory that isn’t directly required to fulfill specific
customer orders is a potential waste. Compare existing inventory with sales data before
production to decrease the volume of excess inventory. Also reset production processes
to manufacture only sufficient inventory to meet short-term sales goals. If possible,
adjust production processes to manufacture product based on customer demand, rather
than on maintaining excess inventory in the warehouse.
 2. Minimize labor expenditures related to unnecessary motion. Reducing overproduction
can help reduce labor costs by eliminating unnecessary movement of goods. If only
sufficient quantities of product are manufactured to satisfy customer demand, then
employees aren’t needed to move excess in and out of inventory. Unnecessary labor
costs can also be eliminated with effective project planning to ensure that equipment
usage and usage times are accurately estimated. This decreases the time employees
spend waiting for equipment.
3. Decrease transportation-related waste. There’s no question that transportation is a key
competitive differentiator. However, transportation processes can be a major source of
waste. Reduce waste by routing deliveries via the most direct, most time-efficient route.
Choose the modality that is most cost effective and reliable. This will help eliminate
the need to rush orders to compensate for poor planning. Transportation processes
should be aligned closely with customer service and inventory strategies so the entire
process runs smoothly and you meet customer expectations.
4. Reduce over-processing waste. Over-processing waste typically happens when extra
work is required to rectify problems that would not have occurred if the proper
processes had been in place. Following lean manufacturing principles, processes are
analyzed and tracked individually, with considerable attention paid to determining
whether they work properly in sequence. They are then refined to close gaps and
eliminate unnecessary steps.

Although analyzing processes may seem like a job for engineers or executives, employees are often the
best candidates to suggest ways to improve warehouse processes. They know first-hand what works,
which tasks or steps in a process are wasteful, and often, how to make the process operate more smoothly
and efficiently. Lean also empowers them to make a difference, which can motivate them to continue to
keep their eyes open to ways the warehouse can operate more efficiently.

The solution to the problem of how to operate more efficiently and cut costs — especially in an era of
fierce competition, faster fulfillment, and greater demand for customized products and service — may lie
within your own processes. Use lean manufacturing principles to evaluate your operations, identify and
eliminate waste, and continuously work to improve processes. The return will be a warehouse that
contributes to the overall success of your company.
 UNIT-5
Control System
Product Control Systems
Production is necessary for consumer satisfaction and enhancement of firms in competitive business
climate. It has been revealed in studies that production is the main activity of manufacturing enterprises.
The success of firms depends on the efficiency of this activity therefore it is important to have complete
control over it (Singla, 2010). Production control is defined as actions involved in handling materials,
parts, assemblies, and subassemblies, from their initial stage to the finished product stage in a structured
and efficient way. It may also consist of activities such as planning, scheduling, routing, dispatching,
storage. According to Henry Fayol, production controlis an art and science of ensuring that all activities
occurs are in accordance with the rules established and instructions issued (Singla, 2010). Once the
industrialist has taken the decisions regarding the product design and production processes and system,
the next job is to take steps for production planning and control. Under production control, an effort is
made to ensure that production should by timely in proper quantity, premium quality and it should be
achieved at minimum cost with low wastage. Under production control, the decision taken with regard
to what, where, how are to be given practical shape and it is the main purpose of production control
(Singla, 2010).

Production control utilizes typical control techniques to achieve best performance out of the production
system as to accomplish overall production planning targets. Production control is basically a process of
planning production in advance of operations, establishing the extract route of each individual item partor
assembly, setting, starting and finishing for each important item, assembly or the finishing production
and releasing the necessary orders as well as initiating the required follow-up to have the smooth function
of the enterprise. The production control is intricate in small industries. The production planning and
control department can function at its best in small scale unit only when the work manager, the purchase
manager, the personnel manager and the financial controller help in planning production activities. The
production controller directly reports to the works manager but in small scale unit, all the three functions
namely material control, planning and control are often performed by the industrialist himself.
Production control starts with dispatching and ends up with remedial actions.

It has been documented that production controls are strongly related to production planning and in all
production plans, control forms a place to check that targets are accomplished. There are various
production controls used in big firms (Nakkiran, 2006):

1. Progress control which is the control of production programs and schedules to ensure
that planned output is attained.
2. Cost control is the control of whole series of budgets that include aspects of material
cost control and labour cost control in order to ensure that original budget for cost of
production is observed.
3. Quality control is the control of quality and standard of the product.
4. Machine utilization control is the control of machine loading in order to ensure that
load is related to machine capacity.
 5. Stock control is the control of stock and store in order to ensure that supplies are
available as required and their availability will not interrupt production schedule.
6. Computer control is control of some operations which is fully automatic.

The objectives of production control are as follows:

The major objective of production control is to gain maximum output from minimum input of resources.
Production control regulates the orderly flow of material from raw stage to finish stage. It highlights
control mechanism on the basis of flow of material throughout the organization. Another objective of
Production control is proper tooling and plant layout. A sequential arrangement of plant and machinery
leads to minimum delays and less wastage due to transfer of material from one place to another. It has an
objective of routing a work with in factory. Production control also regulates inventory management and
organizes the production schedules (Nakkiran, 2006).

Major functions of production control are to offer assemblies and products of needed quality and quantity
at precise time, and harmonize, scrutinize and feedback to manufacturing management, offer maximum
uses of resources, and accomplish major objective to cut down cost and trustworthy consumer services.

Importance of Production Control

First is that it ensures the execution of plans. Through the medium of production control, company
understand the difference between the standard and actual results. It makes it clear whether the work is
performed according to plan. If it deviates, corrective measure can be done.

Production control ensures the best utilization of human and physical resources.

It helps in coordination. In order to achieve the object of organization successfully, coordination among
all departments are essential. Through production control, it can be recognized whether the production
is going to meet the requirement of the orders received. If not received then effort is made to find out the
causes for variation and remedial action is taken. In this manner coordination between departments is
established.

It also helps in minimizing cost and improving quality. It helps in inventory control.

Production control in organization is highly important activity as it checks various undesirable activities
such as theft, corruption, delays, and non-cooperation. Consequently the production is safe, timely
delivery and wastage is reduced. Production control also gives advantage of psychological pressure on all
the persons concerned.

Techniques of production control in an organisation:

Production control ensures usual and smooth flow of material and synchronizes different manufacturing
operations through the methods of programming, Scheduling, dispatching, and progressing and inventory
control.

Programming:
Production programming controls the supply of finished product in desired amount at the due date
according with the production plan. Programming guarantees most efficient use of labour, equipment and
capital. In production programming, three main decisions are taken:

1. Nature of the product to be manufactured.

2. Amount of Quantities to be produced.
3. When to produce:

Objectives of Production Programming:

1. Reliable delivery to the customer: This depends on attainment of output target as per
production programme and on quoting the customer achievable delivery dates. When
delivery times are long, the annual production programme must be used, otherwise
short term programme is to be used. To realize reliable delivery it is necessary that
delivery promises should only be given if the production programme still contains
unallocated products for the period concerned.
2. Even loading of plant by ensuring production at an even rate throughout the year.
3. Even loading of labour in total man-hours per week
4. Well-organized use of capital: The production programmes are arranged such that
minimum capital is attached in stocks.

Layout of Production Programme: The particulars of the production programme are usually revealed in a
tabular form, where the first column specifies the nature of the products to be manufactured and the
columns of first row specify the periods which can be days, weeks, quarters or months. The quantity to
be produced for each type of product is written at the intersection of various rows and columns.

To prepare production programme some problems can be solved:

1. Smoothing of seasonal sales demand.

2. Choice of batch quantity and batch frequency for products required in small quantities
at irregular intervals,
3. The constant revision of the production programme to keep it in line with revision of
the sales programme.

Scheduling:

It refers to set time table for output indicating when each activity in proper sequence should take place.
The purpose of preparing time table is to determine the time to be taken by each process of production.
There are different types of schedules that include master schedule, operation schedule, and daily
operation schedule.

In order to have control over schedules, the help of the production control chart is taken such as Gantt
chart, bar chart load chart, man- machine chart (Singla, 2010).

Dispatching:
Dispatching is the practice of setting production activities in action through the discharge of order and
instructions according to previously planned times and sequence embodied in route sheets and schedule
charts. It considers each processing department one by one and plans the output from machines, tools and
other work centres so as to complete the orders by due date. After ordering, next step is to bring together
the inputs, that are plant, labour, special tools and material required for each production operation on
each part and assembly. The concerned operators are issued required instructions. The decision of
assigning different jobs to different machines is identified as Dispatching. It is one of the limited areas
where the foreman still exercises his judgment within the framework of a well-developed production
control system. A schedule usually sets general priorities on jobs and the date by which each job should
leave an area but the foreman takes.

There are various functions of Dispatching. Dispatching is involved in checking the immediate availability
of materials. It ensures that all production and inspection aids are available for use and to obtain the
appropriate drawing, specification or material list. The function of dispatching is to collate jobs, operation
layouts, routine etc. with the design, processing information or inspection schedule, assign the work to
definite machine, work place and men, to issue necessary materials, tools etc. to correct points for use, to
issue production order note stating the start and finish times, to inform the progress section about the
start of the work, give instruction to start the production, to return the acquired material and other aids
to the correct location and maintain all production records viz. time lost in production and the causes for
delay; incidence of machine breakdown; change in capacity. The dispatching function is significantly
affected by machine breakdowns, tooling breakdowns, material delays and absenteeism.

Important documents required in production control through dispatching:

1. Job order: It is issued to authorize the commencement of production on a batch

according to with previously planned dates and times entered on machine loading
charts, route sheets and control devices. The time taken to carry out an operation is
recorded on the job order.
2. A store requisition authorising the storekeeper to issue materials to departments for
performing operations.
3. Issue of tool orders to the tool department to keep ready the tools, jigs, fixtures.
4. Issue of time tickets, drawings, instruction cards etc. to the workers to commence
manufacturing operations.
5. Issue of inspection orders.
6. Compilation of time tickets, drawings and instruction cards at the end of each
operation.
7. Recording inactive times of machines and operators and reporting them to appropriate
authorities for necessary action or delays.
8. Internal delivery note -for delivering finished products, finished components or even
excess materials into stores.

Duties of dispatcher include allotting work to every machine, issue authority to receive tools and material,
to have control over the progress of material at every process, to allow the transfer of material from one
process to another, to issue inspection order, to maintain the record of idle time of machine and man and
record of actual production (Singla, 2010).
Inspection is also performed in production control. The aim is to maintain quality standard and reduce
wastage. The inspection include (Singla, 2010)

1. The inspection of raw material’s quality before use.

2. The inspection of machine before starting the production process.

• The inspection during the process of production.

1. The inspection of tools for better performance.

2. The inspection of finished products.

Progressing or Follow-up:

Follow-up is examining production activities methodically so that production may be done according to
plan. It is the measurement of output against plan, analysis of performance for deficits and following up
the line management to apply corrective action for excessive under performance. Progressing is the
function by which one can give an early warning when actual production diverges from planned
production and thus makes it possible to take remedial action. Follow-up is significant step of production
control. This step is to determine from time-to- time that the production operations are progressing
according to the plan. The follower is accountable for observing that any detail which is ignored or not
correctly executed is set right. This makes sure proper synchronization of production plan and to take
corrective measures if necessary. Follow-up can be performed at three stages, for materials, work-in-
progress and stage during assembly and execution. It determines causes of delay which may be loss-
making lot sizes; schedule beyond the capacity of the machine, underestimation of material, tools and
manpower, errors in processing and inspection. The need of progressing arises due to:

1. Failure to deliver materials on time.

2. Machines/power breaks down.
3. Workers absenteeism.
4. Faults of design, planning or human activity,
5. Unnecessary delays/bottlenecks.

Progress chasers are charged with the responsibilities of checking the progress continuously, Causes of
discrepancy, if any, in programmed and actual performance, authorizing and signing requisitions and
liaison with other departments supplying materials and components to the particular department of the
progress chaser.

The following are the steps in Progressing or Follow-up:

1. Flowcharts indicating the planned sequence of operations.

2. Production schedules to compare targets with performances.
3. Machine loading charts indicating different operations performed by each machine.
4. Inspection schedules to establish a programme for inspection.

Progressing can perform following tasks:

 1. Recording actual production.
2. Compare it with planned production.
3. Measure the variability in production.
4. Reporting the excessive variance to the authority responsible for execution of the
production plan.

Progressing can be in the form of Programme control, Order progressing, Progressing of shortages, Daily
plan progress, and Departmental progressing.

To summarize, production control entails the planning production in manufacturing companies before
the initiation of actual production activities and exercising control activities to ensure that the planned
production is realized in terms of quality, quantity, delivery schedule and rate of manufacture. It
maintains standard of quality through the production life cycle. The major benefits of production control
are that it makes certain a smooth flow of all production processes; ensure production cost savings thereby
improving the bottom line and control wastage of resources. Production control cannot be similar in all
firms. Production control is relied upon nature of production, job oriented, service oriented, and nature
of operation and size of operation.

Gantt Charts
A Gantt chart is a horizontal bar chart developed as a production control tool in 1917 by Henry L. Gantt,
an American engineer and social scientist. Frequently used in project management, a Gantt chart provides
a graphical illustration of a schedule that helps to plan, coordinate, and track specific tasks in a project.

Gantt charts may be simple versions created on graph paper or more complex automated versions created
using project management applications such as Microsoft Project or Excel.
A Gantt chart is constructed with a horizontal axis representing the total time span of the project, broken
down into increments (for example, days, weeks, or months) and a vertical axis representing the tasks
that make up the project (for example, if the project is outfitting your computer with new software, the
major tasks involved might be: conduct research, choose software, install software).

Horizontal bars of varying lengths represent the sequences, timing, and time span for each task. Using the
same example, you would put “conduct research” at the top of the verticle axis and draw a bar on the
graph that represents the amount of time you expect to spend on the research, and then enter the other
tasks below the first one and representative bars at the points in time when you expect to undertake them.
The bar spans may overlap, as, for example, you may conduct research and choose software during the
same time span. As the project progresses, secondary bars, arrowheads, or darkened bars may be added to
indicate completed tasks, or the portions of tasks that have been completed. A vertical line is used to
represent the report date.

Gantt charts give a clear illustration of project status, but one problem with them is that they don’t
indicate task dependencies – you cannot tell how one task falling behind schedule affects other tasks.

The PERT chart, another popular project management charting method, is designed to do this. Automated
Gantt charts store more information about tasks, such as the individuals assigned to specific tasks, and
notes about the procedures. They also offer the benefit of being easy to change, which is helpful. Charts
may be adjusted frequently to reflect the actual status of project tasks as, almost inevitably, they diverge
from the original plan.

Bar Chart
Diagrammatic Representation of Data
Data can be presented in the form of organized information, combined in tables or even graphically
represented. Imagine seeing a set of data in the written form or in tabular form versus a graph that gives
you the same information. Isn’t it simpler and quicker to comprehend data if we can visually see it?

It is for this purpose that data can be organized graphically for interpretation in a single glance in Statistics.
The two forms of graphical representation that we shall cover in this lesson are bar
diagram and histogram.

Bar Diagram

Also known as a column graph, a bar graph or a bar diagram is a pictorial representation of data. It is
shown in the form of rectangles spaced out with equal spaces between them and having equal width. The
equal width and equal space criteria are important characteristics of a bar graph.

Note that the height (or length) of each bar corresponds to the frequency of a particular observation. You
can draw bar graphs both, vertically or horizontally depending on whether you take the frequency along
the vertical or horizontal axes respectively. Let us take an example to understand how a bar graph is
drawn.

Sports No. of Students

Basketball 15

Volleyball 25

Football 10

Total 50

The above table depicts the number of students of a class engaged in any one of the three sports given.
Note that the number of students is actually the frequency. So, if we take frequency to be represented on
the y-axis and the sports on the x-axis, taking each unit on the y-axis to be equal to 5 students, we would
get a graph that resembles the one below.

The blue rectangles here are called bars. Note that the bars have equal width and are equally spaced, as
mentioned above. This is a simple bar diagram.
Histogram

A bar diagram easy to understand but what is a histogram? Unlike a bar graph that depicts discrete data,
histograms depict continuous data. The continuous data takes the form of class intervals. Thus, a
histogram is a graphical representation of a frequency distribution with class intervals or attributes as the
base and frequency as the height.

The key difference is that histograms have bars without any spaces between them and the rectangles need
not be of equal width. So, we will understand histograms using an example.

In this case, see that we are considering class intervals such as 0-5, 5-10, 10-15 and 15-20. These are
continuous data. In case, the class intervals given to you are not continuous, you must make it continuous
first.

Here, you can interpret the histogram using the information that the graph gives. Consider the frequency
to be as given on the left vertical axis and ignore the values on the right vertical axis. Thus, for the class
interval 0-5, the corresponding frequency is 3. Again, for 5-10, the frequency is 7, and so on.

Note that we have taken the simple case of a histogram with bars of equal width. But as mentioned, it
might not be the case if the class intervals are not even in size. In that case, you will get a histogram with
bars stuck to each other (without any space between them) but with different widths. It could look
something like this, but exactly how it will look depends on the data:
Production progress reporting and Performance
Analysis
First of all, there’s Progress. Progress lists employee’s accomplishments, finished items, and closed tasks.
This category gives a good assessment of how much work has been done.

Plans are immediate or long-term goals and Objectives. All of the items listed under Plans are potential
items of Progress. However, leave room for changes and accept that your Plans are not set in stone.

Third, there’s Problems. Problems lay out challenges and pitfalls. Some people leave correcting mistakes
for last, but it is highly recommended to do this throughout the project.

When you keep in mind these three things, you already have what it takes to write a simple report.
Furthermore, if you really want to succeed in communicating the details and nuances of progress reports,
you have to take note of three questions: Who, How and What.

Who

Reports need to be concise and focused, so you should understand what your colleagues want. To help
yourself with this task, ask a few questions:

• How are the readers connected to the project?

• Do they know the details and goals of the project?
• Are the readers comfortable with technical language?

How

Next, consider the tone of writing. Managers and executives may not understand the intricacies of
employees’ conversational style. Use longer, comprehensible sentences but also try to refrain from writing
essays. Ideally, there should be 5-7 keywords per sentence.

What
The one mistake people tend to make when writing a progress report is avoiding writing about mistakes
altogether. The purpose of progress reports is to objectively identify key difficulties and concerns and help
them along the way. Even if the problem was already addressed, it needs to be put into writing to help
avoid making the same kind of mistake in the future.

Secondly, keep in mind the relevance of your writing. Explain how every individual item connects and
compares to Progress.

Keep It Simple

Even when progress seems small and changes are minimal, keep updating your reports. It enables
transparency on all levels and can help assess challenges so you can plan your next actions accordingly.

Implementing Progress Reports

1. Make sure to explain benefits to employees

This one seems a bit obvious, but going ahead without explaining employee benefits risks employee buy-
in later. You need to explain the ‘whys’ to everyone. Some easy benefits to sell include: employees having
a voice within the organization, and raised productivity and focus on new plans.

2. Make sure that communication goes both ways

Create a culture that allows discussions to be held from both sides and allow team members to provide
feedback to their superiors as well as the other way around. Making a culture that encourages feedback
as the default model improves overall company communication and makes progress reports more
meaningful to employees and managers alike.

3. Spend less time in meetings by using progress reports as a substitute

Use progress reports (and other goal setting software ideas like OKRs) to decrease the amount of time
wasted at meetings by encouraging frequent updating through the web and mobile-based services. If your
status meetings stay in one place, you’ll save countless hours every month by writing instead of speaking.

4. Sign up with an online tool that offers you ready-made solutions

It may sound a little promotional, but online tools can make the implementation process so much easier.
Progress reporting can be done via e-mail, word document or spreadsheet, but the challenges are far
greater and you risk not having all of your information in one, easily accessible place. Combing through
Google docs and emails is a colossal waste of time, after all. One of the advantages online tools have is
that they automatically remind your team to fill their form, compile the received information, and then
present it to you in a way that’s both appealing and fun.

Implementing progress reports with a tool

1. Make the progress report meet your needs

Using a ready-made template does not mean that you have to adjust to its specifications. Actually, these
tools are flexible enough to meet your standards and needs.

2. Write down Objectives and Key Results

Before inviting your whole team, make sure you have set up Objectives. The goals that need to be reached
in a certain period and key results that help the team achieve these. Try this management technique used
by LinkedIn, Twitter and Google.

3. Invite your team

After you have set up all crucial information, it is time to invite your team. Send them an automatic e-
mail to sign up.

4. Contacting product support to give a quick demo for everyone

Explaining this new tool to everyone on the team might be a challenge. Especially when you are not too
familiar with it. No worries, that is exactly why product support people are here for. Remember, there is
no such thing as a dumb question. There are only dumb answers.

Performance Analysis

Reviewing the production performance of the reservoir is an important part of constructing a simulator
for two principal reasons. First, it will help determine the correct input data required. Second, it will give
direct clues as to the depletion processes, i.e., mechanisms occurring in the reservoir. In a number of
examples, this process could have avoided problems, and in some cases, production performance data was
useful in setting the scope of a simulation project.

Conceptual Model Reports

This is a process of putting together a consistent mental model. In the cases mentioned previously, some
of the inputs were simply wrong. The only way to tell is to look at all aspects of the problem and ask if all
the information adds up. This skill is essentially one of pattern recognition. Production performance data
can be used positively to ensure this isn’t overlooked, include a production performance evaluation as
part of the simulation reports.

In the next two sections, two situations involving misconceptions about reservoir mechanisms are
outlined. In the first case, a mistake was made in PVT data interpretation, and in the second case
conclusions were made about a reservoir based on early and incomplete data. The significance of the latter
case is previous interpretations often need to be scrutinized when subsequent work is done. The initial
interpretations were likely the best interpretations available at the time they were made using the limited
data available. The mistake is to continue these interpretations when they become inconsistent with
observed performance.
Production System feedback
Feedback information is used to control the operations system, by adjusting the inputs and transformation
processes that are used to achieve desired outputs. For example, a chef relies on a flow of information
from the customer, through the waiter, about the quality of the food. Adverse feedback might lead the
chef to change the inputs (for example by buying better quality potatoes) or the transformation process
(for example by changing the recipe or the cooking method).

Feedback is essential for operations managers. It can come from both internal and external sources.
Internal sources include testing, evaluation and continuously improving goods and services; external
sources include those who supply products or services to end-customers as well as feedback from
customers themselves.

Strategies for corrective action

Step 1: Understand System Requirements (Plan)

Seeking understanding before action is the first step in creating an effective corrective action system.
While quality standards spell out the various requirements, it may take some due diligence to understand
exactly what needs to be done.

Documentation needs and corrective action procedural requirements must be accurately assessed in order
to minimize implementation missteps.

Step 2: Plan the Process (Plan)

Planning is the design phase where decisions are made regarding the framework and mechanics of a
corrective action system, including how to integrate the system into current operations.

Planning should also address personnel duties for the corrective action process. More specifically,
procedures and conduits must be planned for completion of the following key tasks:

• Evaluating and assessing non-conformance triggers (customer complaints, audit

findings, process parameters, etc.)
• Identifying legitimate non-conformances and related issues
• Capturing and entering issues into the corrective action process
• Investigating and getting to the root cause of an issue
• Determining and implementing solutions
• Reviewing, checking, and verifying the effectiveness of a problem resolution
• Using risk management protocols to ensure major non-conformances are top priority
• Establishing personnel responsibilities at various stages of the corrective action process

Step 3: Develop and Document (Do)

In this development stage, a cohesive corrective action system is created according to a well-developed
plan. Teams are formed and given the authority and responsibility to fully develop the program.

Team duties include making sure the corrective action system is structured properly and is functional and
compatible with existing quality management elements that provide nonconformance alerts.

Activities at this stage also include formal documentation of policies, procedures, and responsibilities for
system caretakers and users.

Step 4: Conduct Training (Do)

Implementing any new system can significantly upset the norm, creating anxiety for those affected by
the change. For something as big as a corrective action system that reaches across business operations,
changes in management demand adequate training.

Training should involve interactive learning events that tie directly to job duties and should include
hands-on practice, with on-the-job learning sessions, tabletop simulations, case studies, or a mix of all
three.

If the plan is to use an electronic system to capture nonconformances, for example, then training must
cover how the system works, explain access details, and describe pertinent data fields. Plus, personnel
must be able to practice data entry using several different corrective action scenarios.

Effective training lays out the process from start to finish so that personnel gains the understanding, skills,
and knowledge needed to carry out corrective action tasks accurately and with confidence.

Step 5: Implement (Do)

After training, implementation of the corrective action system should take place as soon as possible to
lessen the gap between training and actual use of new skills and knowledge.

In this step, corrective action procedures go live, and system mechanisms are fully operational.
Instructions and methods are in place for designated personnel to thoroughly manage corrective actions.

Step 6: Test the System (Check)

After several corrective actions travel full circle, the next feat is to check that the system performed as
intended. The goal is to verify functionality and use. The check can happen by auditing a sampling of
corrective actions from system input to investigation, resolution, and closure.

Audit findings may contribute to future corrective actions and changes. Where changes are made, it is
important to notify and train affected personnel.

Step 7: Adjust and Improve (Act)

In a perfect world, everything goes according to plan. In the real world, glitches are likely. For this step,
adjustments are made to improve the corrective action process.

Actions are taken to fine-tune the system to the point that nonconformances are reliably detected,
evaluated, and resolved. The goal is to make corrective action management a consistent and effective
process through continuous improvement.

A proper corrective action system detects and resolves nonconformances. By including the Plan-Do-
Check-Act cycle in implementation efforts, launching a successful corrective action system is well within
reach.

Role of control rooms in Production plants

A control room or operations room is a room serving as a central space where a large physical facility or
physically dispersed service can be monitored and controlled. A control room will often be part of a larger
command centre.

A control room’s purpose is production control, and serves as a central space where a large physical facility
or physically dispersed service can be monitored and controlled. Central control rooms came into general
use in factories during the 1920s.

Control rooms for vital facilities are typically tightly secured and inaccessible to the general public.
Multiple electronic displays and control panels are usually present, and there may also be a large wall-
sized display area visible from all locations within the space. Some control rooms are themselves under
continuous video surveillance and recording, for security and personnel accountability purposes. Many
control rooms are manned on a “24/7/365” basis, and may have multiple people on duty at all times (such
as implementation of a “two-man rule”), to ensure continuous vigilance.

Other special-purpose control room spaces may be temporarily set up for special projects (such as an
oceanographic exploration mission), and closed or dismantled once the project is concluded.

Examples of control rooms

Control rooms are typically found in installations such as:

• Nuclear power plants and other power-generating stations, many oil refineries and
chemical plants
• Airlines, such facilities are often referred to as Operations Control Centers, responsible
for flight operations dispatch, monitoring, and support
• Major transportation facilities, such as bridges, tunnels, canals, airports, and rapid
transit systems, may have 24-hour manned control rooms to monitor and report on
traffic congestion, and to respond to emergencies
 • Various military facilities, ranging in scale from a missile silo to NORAD. The term
“operations room” is also used.
• NASA flight controllers work in one of several “flight control rooms” in mission control
centers; affiliated facilities such as the Jet Propulsion Laboratory have their own control
rooms;
• Computerized data centers, which often serve remote users in multiple time zones
worldwide
• Network operations centers
• Large institutions, such as universities, hospitals, major research facilities (such as
particle accelerator laboratories), high security prisons, and theme parks
• Emergency services, including police, fire service and emergency medical service
• Call centers may use a control room to monitor incoming and outgoing communications
of customer service representatives, and to provide general oversight of the call center.
• Rail Operations Centers, such as the Union Pacific Harriman Dispatch Center, control
rail operations over thousands of miles of railroad. Train dispatchers staff these facilities
24/7/365 to manage efficient rail operations. In the UK these are usually operated
separately by each Train Operating Company or by Network Rail and will include
traincrew and rolling stock resourcing on a 24/7 basis. Connection to individual
members of traincrew will usually be by mobile phone.

The control room concept is also used in non-emergency contexts:

• In television production, the master control is the technical hub of a broadcast

operation common among most over-the-air television stations, television networks,
and color suites.
• Sound recording studios typically each have their own control rooms where the
recording is actually made

Special hazards and mitigation

Control rooms are usually equipped with elaborate fire suppression and security systems to safeguard their
contents and occupants, and to ensure continued operation in emergencies. In hazardous environments,
the control room may also serve as an area of refuge for personnel trapped onsite. The rooms are typically
crammed with equipment, mounted in multi-function rack mount cabinets to allow updating. The dense
concentration of equipment often requires special electrical uninterruptible power supply (UPS) feeds
and air conditioning.

Since the control equipment is intended to control other items in the surrounding facility, these (often
fire-resistance rated) service rooms require many penetrations for cables. Due to routine equipment
updates these penetrations are subject to frequent changes, so that a control room maintenance program
must include vigilant firestop maintenance for code compliance.

Due to the nature of the sensitive equipment inside control room cabinets, it is useful to ensure the use
of “T-rated” firestops, that are massive and thick enough to resist heat transmission to the inside of the
control room. It is also common to place control rooms under positive pressure ventilation to prevent
smoke or toxic gases from entering. If used, gaseous fire suppressants must occupy the space that is to be
protected for a minimum period of time to be sure a fire can be completely extinguished. Openings in
such spaces must, therefore, be kept to a minimum to prevent the escape of the suppression gas.

A mobile control room is designated as particularly in high risk facilities, such as a nuclear power station
or a petrochemical facility.[further explanation needed] It can provided a guaranteed life support for the
anticipated safety control.