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PLANNING CONTROL
PRODUCTION PLANNING
AND CONTROL (PPC)
PRODUCTION

• PRODUCTION- Transformation of materials in to desirable • Production planning is a pre-production activity. It is a pre-

outputs/products. determination of manufacturing requirements such as manpower,
materials, machines and processes.

• Production planning and control is a tool of management to

achieve the stated objectives. • Inspite of planning with minute details, there may be some
deviation in actual production due to,

• Production planning starts with the analysis of given data like

demand of product, delivery schedule etc. • Non availability of materials
• Plant, equipment and machine breakdown
• On the basis of information available, a scheme of utilization • Changes in demand and rush orders
of firms resources are worked out to obtain the targets in the • Absenteeism of workers
most economical way. • Lack of coordination between functional areas
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OBJECTIVES OF PRODUCTION PLANNING

Decision Making vs. Decision Support
1.To determine the requirements of men, material and equipment.

• PPC system does not make decisions or manage the 2.Arranging production schedules according to the needs of marketing demand.
operations
3.Arranging various inputs at a right time and in right quantity.

• Managers perform these activities 4.Making most economical use of various inputs.

5.To achieve coordination among various departments relating to production.

• PPC system provides support for decision making
6.To make all arrangements to remove possible obstacles in the way of smooth
production.

7.To achieve economy in production cost and time.

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8.To operate plant at planned level of efficiency.
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Activities Supported by PPC Costs and Benefits of PPC Systems

 Materials Planning  PPC requires a large no of indirect people

 Purchasing
 Raw Material Inventory Control
 Capacity Planning  Companies with ineffective PPC system will have poor
 Scheduling Machine and People customer service, excessive inventories, low equipment
 WIP Inventory Control and people utilization, high rate of part obsolescence, large
 Coordinate Customer Orders number of expediters
 Finished Goods Inventory Control

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Limitations of production planning and control

3. Difficult for Small Firms: - This process is time consuming and

1. Based on Assumptions: - Production planning and control is small firms may not be able to make use of production planning
based on certain assumptions. In case the assumptions prove and control.
correct then the planning and control will go smoothly, otherwise
it may not. The assumptions generally are about plant capacity,
orders, availability of raw materials and power etc. if these
assumptions go wrong then the process of planning and control
will go weak. 4. Costly: - It is a costly device as its implementation requires
separate persons to perform the functions of planning,
dispatching, expediting etc. Small firms cannot use the services of
2. Rigidity: - Under production planning and control the things are specialists due to cost factor.
pre-decided and fixed. There is rigidity in the behavior of
employees and it may not help in smoothening the flow of work.

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TIME DIMENSIONS Production Planning Activities

Capacity Planning Long-term

1. Facility Size (years)
2. Equipment Procurement
 Long Range Planning; is done annually and focus on a
planning horizon greater than one year. Aggregate Planning Intermediate-term
(6 to 18 months)
1. Facility Utilization
2. Personnel needs
3. Subcontracting
 Medium Range Planning; usually covers a period from 6
months to 18 months, with monthly or sometimes quarterly time Master Production Scheduling Short-term
(weeks)
increments. 1. MRP
2. Disaggregation of master plan

 Short Range Planning; covers a period from one day or less to Short-term Scheduling Very Short-term
1. Work center loading (hours – days)
six months, with weekly time increment usually. 2. Job sequencing
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PRODUCTION PLANNING
Production Planning: Units of Measurement

Entire  PLANNING
Long-Range Capacity Planning Product Line

Product
 ROUTING
Aggregate Planning Family
 SCHEDULING
Specific
Master Production Scheduling Product Model
 LOADING
Labor, Materials,
Production Planning and Control Systems Machines

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PLANNING PHASE PLANNING PHASE

• ACTIVE PLANNING
• PRIOR PLANNING

• Process Planning and Routing

• Forecasting
 Economic Process, How to do, Where to Work
 Type, Quantitiy,Quality
• Materials and Tools Control
• Product Design
 Requirements, Controls
 Specifications,Bill of Materials
• Loading
• Order Writing
 Assignment of Work, Manpower, Machinery
 To undertake a particular job.
• Scheduling
 Time Phase, Sequence of Work
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PLANNING PHASE
Loading, Sequencing and Scheduling
• ACTION PHASE
• Dispatching
The production-schedules are developed by
 Ordering to start the working
performing the following functions:
• CONTROL PHASE
• Progress Reporting
Loading
 Data Reporting, Performance Comparison
• Corrective Phase Sequencing
 Expediting, Replanning Scheduling
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Loading, Sequencing and Scheduling (continued) Loading

Loading: Which department is going to do what work?
Sequencing: What is the order in which the work will be done?
Scheduling: What are the start and finish times of each job?
 Loading, also called shop loading assigns the work to
various facilities like divisions, departments, work
centers, load centers, stations, machines and people.
 We will often use the term “machines” in this
presentation when we refer to a facility.
 Loading is done for both manufacturing and services.

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Loading vs. Aggregate Planning
 Aggregate planning is based on forecasts.
 However, the loading function loads the real jobs and not the forecast.
 If the aggregate scheduling job was done well, then the appropriate kinds
and amounts of resources will be available for loading.
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Sequencing
 Sequencing models and methods follow the discussion of loading models and
methods.
 Sequencing establishes the order for doing the jobs at each facility.
 Sequencing reflects job priorities according to the way that jobs are arranged in
the queues.
 Say that Jobs x, y, and z have been assigned to workstation 1 (through loading
function).
 Jobs x, y, and z are in a queue (waiting line). Sequencing rules determine which
job should be first in line, which second, etc.
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Loading Objectives
 Each facility carries a backlog of work, which is its ‘‘load’’—hardly a case of
perfect just-in-time in which no waiting occurs.
 The backlog is generally much larger than the work in process, which can be
seen on the shop floor.
 The backlog translates into an inventory investment which is idle and
receiving no value-adding attention.
 A major objective of loading is to spread the load so that waiting is
minimized, flow is smooth and rapid, and congestion is avoided.
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Sequencing (continued)
 A good sequence provides less waiting time, decreased delivery delays,
and better due date performance.
 There are costs associated with waiting and delays.
 There are many other costs associated with the various orderings of jobs,
for example, set up cost and in-process inventory costs.
 The objective function can be to minimize system’s costs, or to minimize
total system’s time, or (if margin data are available) to maximize total
system’s profit.
 We discuss several objective functions later in the presentation.
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Sequencing (continued) Scheduling

 Total savings from regularly sequencing the right way, the first time, can
accumulate to substantial sums.  A production schedule is the time table that specifies the times at which
the jobs in a production department will be processed on various
machines.
 Re-sequencing can be significantly more costly. When there are many jobs
and facilities, sequencing rules have considerable economic importance.
 The schedule gives the starting and ending times of each job on the
 Sequencing also involves shop floor control, which consists of machines on which the job has to be .processed.
communicating the status of orders and the productivity of workstations.

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Types of Scheduling Assumptions for scheduling

 Single machine scheduling • The set of jobs is known

• Jobs are available at t=0
 Flow shop scheduling • Setup time is independent of processing sequence
• Setup time and processing time are deterministic
• No job interruption
 Job shop scheduling
• There will be no interruptions in processing such as:

• Machine breakdowns
• Accidents
• Worker illness
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Scheduling terms Objective Functions

 Processing time (tj) we will focus on the following objectives.

 Ready time (rj)
 Due date (Dj)  Minimize make-span
 Completion time (cj)  Minimize average flow time (or job completion time)
 Average number of jobs in the system
 Flow time (Fj)
 Minimize average tardiness
 Lateness (Lj)
 Minimize maximum tardiness
 Tradiness (Tj)  Minimize number of tardy jobs

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Example: SPT
Priority Rules Job (j) 1 2 3 4 5
Processing 15 4 5 14 8
• FCFS - first come, first served
time (tj)
• SPT - shortest processing time Completion 15 19 24 38 46
time (cj)
• EDD - earliest due date
Sequence with SPT
• Rush - emergency Top Priority
Job (j) 2 3 5 4 1
Processing 4 5 8 14 15
time (tj)
Completion 4 9 17 31 46
time (cj)
Average flow time = (4+9+17+31+46)/6 = 21.4 hrs
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Example: FCFS Example: SPT

Job Job Processing time Flow time Due date Tardy
Processing time Completion Due date Tardy
(days) time (days) (days) (days) (days) (days) (days) (days)
A 2 2 7 0 A 2 7

B 8 10 16 0 B 8 16
C 4 14 4 10 C 4 4
D 10 24 17 7 D 10 17
E 5 29 15 14 E 5 15
F 12 41 18 23 F 12 18
Total 41 120 54 Total 41

Average flow time = 120/6 = 20 days Average flow time = days

Average tardiness = 54/6 = 9 days Average tardiness = days
Makespan = 41 days Makespan = days
Average number of jobs at the work center = 120/41 = 2.93 33 Average number of jobs at the work center = 34

Example: SPT Example: EDD

Job Processing time Completion Due date Tardy Job Processing time Flow time Due date Tardy
(days) time (days) (days) (days) (days) (days) (days) (days)
A 2 2 7 0 A 2 7
C 4 6 4 2 B 8 16
E 5 11 15 0 C 4 4
B 8 19 16 3 D 10 17
D 10 29 17 12 E 5 15
F 12 41 18 23 F 12 18
Total 41 108 40 Total 41
Average flow time = 108/6= 18 days Average flow time = days
Average tardiness = 40/6= 6.66 days Average tardiness = days
Makespan = 41 days Makespan = days
Average number of jobs at the work center = 2.63 35 Average number of jobs at the work center = 36

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Example: EDD Example comparison

Job Processing time Completion Due date Tardy Average
(days) time (days) (days) (days) Average Average Number of
C 4 4 4 0 Flow Time Tardiness Jobs at the
A 2 6 7 0 Rule (days) (days) Work Center
E 5 11 15 0
FCFS 20.00 9.00 2.93
B 8 19 16 3
SPT 18.00 6.67 2.63
D 10 29 17 12
EDD 18.33 6.33 2.68
F 12 41 18 23
Total 41 110 38
Average flow time = 110/6=18.33 days
Average tardiness = 38/6= 6.33 days
Makespan = 38 days
Average number of jobs at the work center = 110/41= 2.68 37 16-38

Two Work Center Sequencing Johnson’s Rule Conditions

• Johnson’s Rule: technique for minimizing completion time • Job time must be known and constant
for a group of jobs to be processed on two machines or at two
work centers. • Job times must be independent of sequence

• Minimizes total idle time • Jobs must follow same two-step sequence

• Several conditions must be satisfied • Job priorities cannot be used

• All units must be completed at the first work
center before moving to second

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Johnson’s Rule Optimum Sequence Johnson’s rule problem

1.List the jobs and their times at each work center Processing time (hrs)
Job Work center 1 Work center 2
2.Select the job with the shortest time
A 5 6

3.Eliminate the job from further consideration B 4 3

C 8 9
4.Repeat steps 2 and 3 until all jobs have been scheduled
D 2 7
E 6 8
F 12 15
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Sequence of the jobs

Johnson’s rule problem
D A E C F B
Processing time (hrs)
Processing time (hrs)
Job Work center 1 Work center 2 Job Work center 1 Work center 2
A 5 6 D 2 9
B 9 12 A 7 15
C 17 26 E 13 23
D 19 33 C 21 32

E 25 41 F 33 48
B 37 51
F 37 56
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PRODUCTION CONTROL PRODUCTION CONTROL

 Production control; is the process of planning production in

•DISPATCHING advance of operations, establishing the extract route of each
individual item part or assembly, setting, starting and finishing
•FOLLOWING UP for each important item, assembly

•INSPECTION
 The finishing production and releasing the necessary orders as
•CORRECTIVE well as initiating the necessary follow-up to have the smooth
function of the enterprise.

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PRODUCTION CONTROL
• INSPECTION
 To ensure the quality of goods. It can be required as
effective agency of production

• CORRECTIVE MEASURES
 involve any of those activities of adjusting the route,
rescheduling of work changing the workloads, repairs and
maintenance of machinery or equipment, control over
inventories of the cause of deviation is the poor
performance of the employees

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