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Program:
BE(Mechanical)
Class: BE
Course: Industrial
Engineering
Unit IV: PRODUCTION
PLANNING AND
CONTROL
Lecture I: Introduction

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DEPARTMENT OF MECHANICAL
OF ENGINEERING
ENGINEERING
& MANAGEMENT
 Introduction 3

• Industrial Engineering
• Industrial and systems engineering is concerned with the design,
improvement and installation of integrated systems of people,
materials, information, equipment and energy.
• It draws upon specialized knowledge and skill in the mathematical,
physical, and social sciences together with the principles and methods
of engineering analysis and design, to specify, predict, and evaluate the
results to be obtained from such systems.
• The branch of engineering that deals with the creation and
management of systems that integrate people, materials and energy in
productive ways.
• Industrial engineers determine the most effective ways to use the basic
factors of production—people, machines, materials, information, and
energy -- to make a product or provide a service.

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 PRODUCTION PLANNING AND CONTROL 4

• PRODUCTION PLANNING AND CONTROL ( PPC )

• PPC may be defined as the direction and co-ordination of the firms materials and physical facilities towards the
attainment of pre-specified production goals in the most efficient and economical way.

• 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.

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 PRODUCTION PLANNING AND CONTROL 5

•FUNCTION OF PPC:

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 PRODUCTION PLANNING AND CONTROL 6

• Explanation of each Function

• Forecasting: Estimation of quality & quantity of future work.
• Order writing: Giving authority to one or more persons to do a particular job.
• Product design information: Collection of information regarding specification, bill of materials, drawing.
• Process planning and routing: Finding the most economical process of doing work and then deciding how
and where the work will be done?
• Materials planning: It involves the determination of materials requirement.
• Tools planning: It involves the requirements of tools to be used.
• Loading: Assignment of work to men & m/c.
• Scheduling: When and in what sequence the work will be carried out. It fixes the starting and finishing time
for the job.
• Dispatching: It is the transition from planning to action phase. In this phase the worker is ordered to start the
actual work.
• Progress reporting:
• Data regarding the job progress in collected.
• It is compared with the present level of performance.
• Corrective action: Expediting the action if the progress deviates from the planning.

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 PRODUCTION PLANNING AND CONTROL 7

• AGGREGATE PRODUCTION PLANNING:

• It is associated with the determination of production, inventory, and
personnel levels to fulfill varying demand over a planning perspective
that ranges from a period of six months to one year. Aggregate
production plans are needed to exploit workforce opportunity and
represent a crucial part of operations management.
• Aggregate production plans facilitate matching of supply and demand
while reducing costs. Process of Aggregate production planning applies
the upper-level predictions to lower-level, production-floor scheduling
and is most successful when applied to periods 2 to 18 months in the
future.
• Plans generally either "chase" demand, adjusting workforce accordingly,
or are "level" plans, meaning that labor is comparatively constant with
fluctuations in demand being met by inventories and back orders.

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 PRODUCTION PLANNING AND CONTROL 8

•Steps in general procedure for aggregate planning:

• Determine demand for each period.
• Determine capacities (regular time, overtime, subcontracting) for
each period.
• Identify company or departmental policies that are pertinent (e.g.,
maintain a safety stock of 5 percent of demand, maintain a
reasonably stable workforce).
• Determine unit costs for regular time, overtime, subcontracting,
holding inventories, back orders, layoffs, and other relevant costs.
• Develop alternative plans and compute the cost for each activity.
• If satisfactory plans emerge, select the one that best satisfies
objectives. Otherwise, return to step 5.

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 PRODUCTION PLANNING AND CONTROL 9

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 PRODUCTION PLANNING AND CONTROL 10

•Example:-
Week I II III IV V
Demand(tons) 35 40 50 60 55

•Regular Production Capacity=35 tons, Overtime Capacity=5

tons,
•Regular production cost/Ton=Rs.10, 000
•Overtime cost/Ton=Rs.15, 000
•Subcontracting cost/Ton=Rs.20, 000
OUTPUT
WEEK Requirements Regular production Overtime Subcontracting
(35 tons) (05 tons) (in Tons)
I 35 35 - -
II 40 35 5
III 50 35 5 10
IV 60 35 5 20
V 55 35 5 15

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 PRODUCTION PLANNING AND CONTROL 11

OUTPUT COST (Rs)

WEEK

Requirements Regular production Overtime Subcontracting Rs.

(35 tons) (05 tons) (in Tons)

I 35 35x10,000 - - 35000

II 40 35x10,000 5x15,000 1,10,000

III 50 35x10,000 5x15,000 10x20,000 3,10,000

IV 60 35x10,000 5x15,000 20x20,000 5,10,000

V 55 35x10,000 5x15,000 15x20,000 4,10,000

TOTAL 12,75000

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 PRODUCTION PLANNING AND CONTROL 12

• Master Production Schedule ( MPS )

• It follows aggregate planning. It expresses the overall plans in
terms of specific end items or models that can be assigned
priorities. It is useful to plan for the material and capacity
requirements.
• Flowchart of aggregate plan and master production schedule is
shown in the following figure. Time interval used in master
scheduling depends upon the type, volume, and component lead
times of the products being produced. Normally weekly time
intervals are used. The time horizon covered by the master
schedule also depends upon product characteristics and lead
times. Some master schedules cover a period as short as few
weeks and for some products it is more than a year.

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 PRODUCTION PLANNING AND CONTROL 13

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 Functions of Master Production 14

Schedule
• Functions of Master Production Schedule
• Master Production Schedule (MPS) gives a formal detail of the production plan and converts this plan into
specific material and capacity requirements. The requirements with respect to labor, material and equipment
are then assessed. The main functions of MPS are:
•
To translate aggregate plans into specific end items: Aggregate plan determines level of operations that
tentatively balances the market demands with the material, labor and equipment capabilities of the company.
A master schedule translates this plan into specific number of end items to be produced in specific time period.
• Evaluate alternative schedules: Master schedule is prepared by trial and error. Many computer simulation
models are available to evaluate the alternate schedules.
• Generate material requirement: It forms the basic input for material requirement planning (MRP).
• Generate capacity requirements: Capacity requirements are directly derived from MPS. Master scheduling is
thus a prerequisite for capacity planning.
• Facilitate information processing: By controlling the load on the plant. Master schedule determines when the
delivery should be made. It coordinates with other management information systems such as, marketing,
finance and personnel.
• Effective utilization of capacity: By specifying end item requirements schedule establishes the load and
utilization requirements for machines and equipment.

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 Summary 15

•Introduction to Production Planning and Control ( PPC )

•Functions of PPC

•AGGREGATE PRODUCTION PLANNING:

•Master Production Schedule ( MPS )

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•Thank You!

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