ME1202 - Engineering Management

Lecture 3: Production Planning and

Control
Part 1
LECTURER:
Muhammad Hazazi Rifaie bin Said
EMAIL: hazazi.said@pb.edu.bn

Engineering
School of Science and Engineering Management ME1202
 Objectives

By the end of the lesson, students should be able to:

➢ Understand concept of production and production
system
➢ Describe characteristic of production system
➢ Discuss the classification of production system
➢ Define production management
➢ Discuss objectives of production management

Engineering
School of Science and Engineering Management ME1202
 Production Planning and Control
Concept of Production
➢ Production function is ‘the part of an organisation, which is concerned
with the transformation of a range of inputs into the required outputs
(products) having the requisite quality level’.
➢ Production is defined as ‘the step-by-step conversion of one form of
material into another form through chemical or mechanical process to
create or enhance the utility of the product to the user’.

Engineering
School of Science and Engineering Management ME1202
 Production Planning and Control
Production System
➢ Part of an organisation, which produces products of an organisation.
➢ It can be viewed as a framework or skeleton of activities within the
creation of value can occur.
➢ Activity whereby resources, flowing within a defined system, are
combined and transformed in a controlled manner to add value in
accordance with the policies communicated by management.
➢ At one end of the production system are the
inputs and at the other end are outputs.
Connecting the inputs and outputs are a series
of operations or processes, storages and
inspections.

Engineering
School of Science and Engineering Management ME1202
 Production Planning and Control
Schematic Production System
Inputs:
Transformation Process:
• Men
• Product Design Outputs:
• Materials
• Process Planning • Products
• Machines
• Production Control • Services
• Information
• Maintenance
• Capital

Control:
• Inventory
• Quality
• Cost
Environment
Feedback Information

Engineering
School of Science and Engineering Management ME1202
 Production Planning and Control
Characteristics of Production System
➢ Production is an organised activity,
so every production system has an
objective.
➢ The system transforms the various
inputs to useful outputs.
➢ It does not operate in isolation
from the other organisation system.
➢ There exists a feedback about the
activities, which is essential to
control and improve system
performance.

Engineering
School of Science and Engineering Management ME1202
 Production Planning and Control
Characteristics of Production System

Continuous
Production/ Production
Operations Mass Production
Volume

Batch
Production

Job-Shop
Production

Output/Product Variety

Engineering
School of Science and Engineering Management ME1202
 Production Planning and Control
Job-Shop Production
➢ Characterised by manufacturing one or few quantity of products
designed and produced as per the specification of customers within
prefixed time and cost.
➢ This feature has low volume and high variety of products.
➢ Use of general purposed machines and facilities.
➢ Highly skilled operators who can take up
each job as a challenge because of
uniqueness.
➢ Large inventory of materials, tools and parts.
➢ Detailed planning is essential for sequencing
the requirements of each product, capacities
for each work center and order priorities.
Engineering
School of Science and Engineering Management ME1202
 Production Planning and Control
Job-Shop Production Layout

Engineering
School of Science and Engineering Management ME1202
 Production Planning and Control
Job-Shop Production
Advantages
Variety of products can be
produced
Operators become more skilled
and competent
Full potential of operators can be
utilised
Opportunity exists for creative
methods and innovative ideas
Limitations
Higher cost due to frequent set up
changes
Higher level of inventory at all
levels and hence higher inventory
cost
Production planning is
complicated
Larger space requirements

Engineering
School of Science and Engineering Management ME1202
 Production Planning and Control
Batch Production
➢ Form of manufacturing in which the job pass through the functional
departments in lots or batches and each lot may have a different routing.
➢ Characterised by the manufacturer or limited number of products
produced at regular intervals and stocked awaiting sales.
➢ Shorter production runs.
➢ Plant and machinery are flexible.
➢ Plant and machinery set up is
used for production of item in
a batch and change of set-up is
required for processing the
next batch.
➢ Manufacturing lead-time and cost are lower as compared to job-order
production.
Engineering
School of Science and Engineering Management ME1202
 Production Planning and Control
Batch Production Layout

Engineering
School of Science and Engineering Management ME1202
 Production Planning and Control
Batch Production
Advantages
Better utilization of plant and
machinery
Promotes functional specialization
Cost per unit is lower as compared to
job order production
Lower investment in plant and
machinery
Flexibility to accommodate and
process number if products
Job satisfaction exists for operators
School of Science and Engineering
Limitations
Material handling is complex because
of irregular and longer flows
Production planning and control is
complex
Work process inventory is higher
compared to continuous production
Higher set up costs due to frequent
changes in set up
Engineering
Management ME1202
 Production Planning and Control
Mass Production
➢ Manufacture of discrete parts or assemblies using a continuous process.
➢ Justified by very large production volume.
➢ Machines are arranged in a line or product layout.
➢ Product and process standardisation exists and all outputs follow the
same path.
➢ Shorter cycle time of production.
➢ Production planning and control
is easy.

Engineering
School of Science and Engineering Management ME1202
 Production Planning and Control
Mass Production
Advantages
Higher rate of production with
reduced cycle time
Higher capacity utilization due to line
balancing
Less skilled operators are required
Low process inventory
Manufacturing cost per unit is low
School of Science and Engineering
Limitations
Breakdown of one machine will stop
an entire production line
Line layout needs major change with
the changes in the product design
High investment in production
facilities
The cycle time is determined by the
slowest operation
Engineering
Management ME1202
 Production Planning and Control
Continuous Production
➢ Production facilities are arranged as per the sequence of production
operations from the first operations to the finished products.
➢ Items are made to flow through the sequence of operations through
material handling devices such as conveyors, transfer devices etc.
➢ Dedicated plant and equipment with zero flexibility.
➢ Material handling is fully automated.
➢ Process follows a predetermined
sequence of operations.
➢ Component materials cannot be
readily identified with final product.
➢ Planning and scheduling is a routine
action.
Engineering
School of Science and Engineering Management ME1202
 Production Planning and Control
Continuous Production
Advantages Limitations
Standardisation of product and process Flexibility to accommodate and process
sequence number of products does not exist
Higher rate of production with reduced Very high investment for setting flow
cycle time lines
Higher capacity utilisation due to line Product differentiation is limited
balancing
Manpower is not required for material
handling as it completely automatic
Person with limited skills can be used in
production line
Unit cost is lower due to high volume of
production
Engineering
School of Science and Engineering Management ME1202
 Production Planning and Control
Batch vs Continuous Production

Engineering
School of Science and Engineering Management ME1202
 Production Planning and Control
Batch vs Continuous Production

Engineering
School of Science and Engineering Management ME1202
 Production Planning and Control
Production Management
➢ A process of planning, organizing,
directing and controlling activities
of the production function.
➢ Combines various resources used
in the production subsystem of the
organization into value added
product.
➢ People refer to production
management as bringing together
the 6 ‘Ms’.

Engineering
School of Science and Engineering Management ME1202
 Production Planning and Control
Production Management Objectives

Right
Manufacturing
Cost

Production Right
Right Time
Management Quality

Right
Quantity

Engineering
School of Science and Engineering Management ME1202