REPORT

On

Title: PRODUCTION PLANNING PROCESS IMPROVEMENT USING LEAN TECHNIQUES

Submitted by

Venkata Durga Swathi Naidu Varri

Register No: 20010161124

Under the Guidance of Prof: Mohanasundaram K

In Partial Fulfilment of the Course: Project Work

In Term – IV Executive Post Graduation Diploma in Management

Batch Of Jan 2020

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 DECLARATION

I undersigned, hereby declare that the project titled “Production Planning Process Improvement using
lean techniques” submitted in partial fulfilment for the award of Degree of Master of Business of A P J
Alliance University is a bonafide record of work done by me under the guidance of ” Prof.
Mohanasundaram K , “Lean Management “ .This report has not previously formed the basis for the
award of any degree, diploma, or similar title of any University.

Signature

Dt: 07/11/2021 Venkata Durga Swathi Naidu. Varri

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 Alliance University & Lean Management

(Institute Emblem)

CERTIFICATE

This is to certify that the report titled “Production Process Improvement suing Lean Techniques
“being submitted by Vekata Durga Swathi Naidu Varri, 20010161124 in partial fulfilment of the
requirements for the award of the Degree of Master of Business Administration, is a bonafide record of
the project work done by Vekata Durga Swathi Naidu Varri, of Alliance University & Lean
Management.

Name of Guide: Mohanasundaram K

Designation: Assistant Professor

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 Acknowledgements

Through this acknowledgement, I express my sincere gratitude towards all those people who helped me
in this project, which has been a learning experience.

This space would not be enough to extend my warm gratitude towards my project guide for efforts
in coordinating with my work and guiding in right direction.

I escalate a heartfelt regards to our Institution Director for giving me the essential hand in concluding this
work.

It would be injustice to proceed without acknowledging those vital supports I received from my beloved
classmates and friends, without whom I would have been half done.

I also use this space to offer my sincere love to my parents and all others who had been there, helping me
walk through this work.

Venkata Durga Swathi Naidu Varri

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 INDEX

1. INTRODUCTION TO COMPANY--------------------------------------------------06

2. INTRODUCTION TO PRODUCTION MANAGEMENT------------------------09

3. INTRODUCTION TO PPC ------------------------------------------------------------12

4. PRODUCTION CONTROLS----------------------------------------------------------14

5. OBJECTIVES OF PRODUCTION PLANNING AND CONTROL--------------16

6. PRODUCTION CONTROL SYSTEM-------------------------------------------------17

7. RODUCTION PLANNING AND CONTROL ---------------------------------------18

8. SCOPE OF PRODUCTION PLANNING----------------------------------------------22

9. FACTORS EFFETCING PRODUCTION PLANNING AND CONTROL-------29

10. LITERATURE REVIEW -----------------------------------------------------------------31

11. OBJECTIVE OF THE STUDY ----------------------------------------------------------32

12. RESEARCH METHODOLOGY----------------------------------------------------------34

13. CONCLUSION------------------------------------------------------------------------------43

14. BIBLIOGRAPHY---------------------------------------------------------------------------44

15. REFERENCES-------------------------------------------------------------------------------45

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 INTRODUCTION TO COMPANY

Established in 1974, Scion International LLC today comprises of 10 group companies across the globe.
Our corporate mission, which runs through everything we do, is to deliver the evocative pleasures of
fragrance and beauty products, to as many people’s lives as we can. We are primarily involved in the
design, turnkey manufacture, distribution and marketing of a range of perfume, colour cosmetics, hair
care, skincare, bath care and personal hygiene brands. In recent years, we have been heavily focusing on
the natural & clean beauty space. People are one of our most valuable assets and we employ over 1000
people worldwide, from over 20 nationalities. Some of our globally recognized brands include; Jean Paul
Dupont, Creation Lamis, Dorall Collection, Vegan Moi, Nomad Life, Bio Glow, CP Trendies and Paris
Collection, to name but a few.

Our brands have a truly global reach and are positioned to target various demographics and price points to
help us achieve our corporate mission. At the last count, our products were sold in 70 countries, spanning
6 continents. Therefore, we can happily say, we're a company with a truly global reach. In addition to
manufacturing under an assortment of our own-brands, we also manufacture for select private label
customers across the globe.

We provide full turnkey solutions, from concept design, to end-to-end sourcing, quality control,
manufacturing and final delivery to customer doorstep. Some notable brands we have done this for
include; Cristiano Ronaldo (CR7), Freeman Beauty, PDC Brands, Fog, Abercrombie & Fitch, Yardley,
Delta Goodrem, Royal Mirage, English Blazer, MTV, American Idol & Aldi. Headquartered in the UAE,
we have full-scale manufacturing facilities in the UAE & India.

We are going through a major expansion project in India, which will double our manufacturing
capacity. We also have sales, distribution and marketing companies in the USA, UK, Belgium & India
and sales offices in; New York, Paris and Mumbai.

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Specialties:
Research & development, Manufacturing, Perfumes, cosmetics, personal care manufacturing, Providing
full turnkey solutions, Innovation, Distribution, Quality control, Perfume production, Perfume
development, Establishing strong retailer connections, Marketing, Brand Building, Innovation,
International quality accreditations, R&D, Private Label, Production, Customer Service, Logistics, and
Health & Beauty products.

List of In-house Products:

 Aloe Vera
 lipstick

 oil
 Ayurveda hair shampoo
 Ayurveda creams

 Cosmetics product- rose perfume

 Sandal perfumes
 Soaps

Fig:List Of Products produced

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Global Expansion of Business:

The below shows the how the company expand their network globally.

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 INTRODUCTION TO PRODUCTION MANAGEMENT

Product is the primary factor for all consumers in a market. Product means want satisfying capacity of an
element. If a consumer is not satisfied with the product, it becomes meaningless for the producer who
produces the product. So product should have want satisfaction capacity in a market for the consumers
otherwise the marketing procedure will be meaningless. The production function of a business is
concerned with creation of either a product or a service required to satisfy a consumer need in the market.
It is impossible to have a product for the consumers without its production. Therefore, production
management is a separate branch of management, which deals with the production of goods and services
for the effective utilization of consumers in the market.

Production Function: Any process which involves conversion of raw material into finished
product for satisfaction of human wants is called as production. Production function refers to creation of
goods and services in order to satisfy human needs by converting resources into outputs. Otherwise, it is
the process of conversion of raw materials into finished product. Production function can be effective
when it satisfy the (A) the consumer demand relating to quality, quantity and price (B) permit the
production activity in an economical manner so that return in investment can be possible. It may be
concluded that production function not only limited to conversion of input to output but also deals with
transportation, storage, preservation and quality assurance for the consumers in the market.

Production management is called upon to develop and establish relationship between market
demand and production capability of an enterprise. It ensures accomplishment of twin organizational
objectives of production and satisfaction. Both these objectives can be fulfilled with planning,
organizing, directing, and controlling and inventory management. Production management is the
process of effectively coordinating and controlling the factors of production such as man, machine,
material, money and management in order to get satisfaction out of the product.

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 Production management is the process of transforming the input into output by creating
various utility, which can add value to those created output. While the input is transferred into output.

Various types of utility are created. Some of the utilities are:

 Form Utility: When the input is changed in size, weight, colour, shape and form while
converting into output for the benefit of the customers in the market it has form utility.
(Cotton changed into different dress materials).

 Place Utility: When the input is changed from the place of its availability to the place of
their use to be converted into output through transportation is known as place utility.
(Sugarcane to the factory for sugar production)

 Time Utility: When either the input or the output is preserved for storage purpose in order to
be utilized when there is a scarcity of that product to be utilized by the consumers.(Potato &
Tomato in cold storage)

 Service Utility: When some utility is created by rendering some service to the customer
either directly or indirectly for a definite time period it is called as service utility of the
product.( Doctors for the patient , lawyers for the clients, teachers for the students)

 Knowledge Utility: When some information was communicated to the customer by

imparting some knowledge about the product through presentation or advertisement.
(Advertisement for a product or service).

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 Below are the list of Key factors for Production Management

 Customer and needs focus. Product management teams that have a better understanding of their
customers, buyers and users – plus a consistent process for identifying the needs of those
audiences
Are more likely to create products that succeed in the market.

 Disciplined product investment spending. Highly successful product management orgs are more
likely to follow an objective, data-driven approach to product and portfolio investment decision-
making.

 Robust product lifecycle process. When a company has a defined process to take a product or
enhancement from idea to launch and when that process is detailed and followed by most
initiatives the resulting products are more likely to be successful.

 Product management functional roles and development. There is a correlation between high-
performing product management orgs, those in which the role of product management and its goals
are well understood, and those in which regular up skilling is provided to reinforce new skills and
learn new ones.

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 INTRODUCTION TO PRODUCTION PLANNING AND CONTRO

Definition of Production Planning: Production planning is the planning of production and

manufacturing modules in a company or industry. It utilizes the resource allocation of activities of
employees, materials and production capacity, in order to serve different customers.

And, “Production planning is a critical process that must be mastered to ensure your
sustainability, because the techniques used (bottleneck management, global management, pull system,
etc.) make it possible to avoid exceeding delivery times, minimize the risk of stock shortages and
maximize the use of human and material resources,”.

“The highest efficiency in production is obtained by manufacturing the required

quantity of a product, of the required quality, at the required time by the best and cheapest
method” – PPC is a tool to coordinate all manufacturing activities in a production system.

Production planning and control essentially consists of planning production in a

manufacturing organization before actual production activities start and exercising control
activities to ensure that the planned production is realized in terms of quantity, quality, delivery
schedule and cost of production.

Production planning involves the organization of an overall manufacturing / operating

system to produce a product. The various activities involved in production planning are designing
the product, determining the equipment and capacity requirement, designing the layout of physical
facilities and material and material handling system, determining the sequence of operations and
the nature of the operations to be performed along with time requirements and specifying certain
production quantity and quality levels.

Objective of production planning is to provide a physical system together with a set of operating
guidelines for efficient conversion of raw materials, human skills and other inputs into finished
products.

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Factors determining Production Planning Procedures

The production planning used, varies from company to company. Production planning may begin
with a product idea and a plan for the design of the product and the entire production/operating
system to manufacture the product. It also includes the task of planning for the manufacturing of a
modified version of an existing product using the existing facilities. The wide difference between
planning procedures in one company and another is primarily due the differences in the economic
and technological condition under which the firms operate. The three major factors determining
production-planning procedures are:

 Volume of Production:
The amount and intensity of production planning is determined by, the
volume and character of the operation and the nature of the manufacturing processes.
Production planning is expected to reduce manufacturing costs. The planning of production
in case of custom order job shop is limited to planning for purchase of raw materials and
components and determination of works centers, which have the capacity of manufacturing
the product.

 Nature of Production Processes:

In job shop, the production planning may be informal and the development of
work methods is left to the individual worker who is highly skilled. In high volume
production, many product engineers are involved and they put enormous amount of effort
in designing the product and the manufacturing processes.

 Nature of Operation:
Detailed production planning is required for repetitive operation. For example in
case of continues production of a single standardized product.

The variants in manufacturing approach are:

 Manufacturing to order, which may or may not be repeated at regular intervals.
 Manufacturing for stock and sell (under repetitive batch or mass
production).
 Example: Manufacture of automobiles, watches, typewriters etc.

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 PRODUCTION CONTROLS

Importance of Control Function: The function of production control are:

 Provide for the production of parts, assemblies and products of required

quality and quantity at the required time.
 Co-ordinate, monitor & feedback to manufacturing management, the
results of the production activities, analyzing and interpreting their
significance and taking correction action if necessary.
 Provide for optimum utilization of all resources.
 Achieve the broad objectives of low cost production and reliable customer
service.

Benefits of Production Control:

1. Improvement in profits through:

 Maintenance of a balanced inventory of material, parts. (WIP) Work in

process and finished goods.
 Balanced and stabilized production.

 Maximum utilization of equipment, tooling, labour (man power) and

manufacturing and storage space.
 Minimum investment in inventory.

 Reduction in direct costs.

 Reduction set up costs

 Reduction scrap and rework costs

 Reduction in inventory costs

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 2. Competitive advantages:

 Reliable delivery to customers

 Shortened delivery schedules to customers

 Lower production costs and greater pricing flexibility.

 Orderly planning marketing of new or improved products.

Elements of Production Controls:

 Control of planning: Assure receipt of latest forecast data from sales

and production, bill of materials data from product engineering and
routing information from process engineering.

 Controls of materials: Controls of inventory and providing foe issue of

material to the shop and movement of materials within the shop.

 Control of tooling: Check on the availability of tooling and provide foe

issue of tools to departments from tool cribs.

 Control of manufacturing capacity: Determine the availability of

equipment and labour capacities and issue realistic production schedules
and provide a means of recording completed production.

 Control of activities: Release order and information at assigned times.

 Controls of information: Distribute timely information and report showing

deviations from plan so that correction action can be taken and provide data
on production performance measurement for future planning.

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Objectives of Production Planning and Control

 To deliver quality goods in required quantities to the customer in the required

delivery schedule to achieve maximum customer satisfaction and minimum
possible cost.

 To ensure maximum utilization of all resources

 To ensure production of quality products

 To minimize the product through-put time or production/ manufacturing cycle

time
 To maintain optimum inventory levels.

 To maintain flexibility in manufacturing operation.

 To co-ordinate between labor and machines and various supporting

departments
 To plan for plant capacities for future requirements

 To remove bottleneck at all stages of production and to solve problems

related to production.

 To Ensure the Effective Cost Reduction Control

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 Production Control System

The production Control system consists of a group of procedural elements that operates as a
whole to fulfill the four functions listed under importance of control functions.

The elements of production control systems are:

 Means of setting the system in motion such as production orders.

 Methods to determine lead-time for production.

 Methods to control and monitor production operations including means to:

 Determine what and where work to be done

 Determine when work is to be done Issue orders to production shops and ensure that
work is completed.

 Techniques for measuring and recording data machine utilization, scrap and indirect
labour that can serve as a basis for manufacturing action leading to optimum
utilization of facilities and low cost operation.

 An information system for display, recording and retrieval as well as processing and
flow of data.

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Factors Determining Production control Procedures:

 Nature of Production: The manufacturing firms are classified as intermittent,

continuous or composite production firms, depending on the length of processing
time without set up changes.

 Complexity of Operations: Generally the complexity of production planning and

control function increases with the increase in the variety of operations.

 Magnitude of operations: The size of operation (i.e. the time taken to complete the
operation) and the distance traveled by the parts from operation to operation are
important in establishing proper production control procedures.

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 PRODUCTION PLANNING AND CONTROL

Production Planning and Control function essentially consists of planning production in a

manufacturing organization before actual production activities start and exercising control activities
to ensure that the planned production is realized in terms of quantity, quality, delivery schedule and
cost of production.

Three stages in Production Planning and Control function are:

 Planning – Choosing the best course of action among several alternatives.

 Operation – Execution as per plan

 Control - Maintaining the performance by comparing the actual results with

performance standards set and taking appropriate correction action if necessary to
reduce variance.

Phases PPC Functions:

1. Planning phase – a) Pre-planning; b) Active Planning.

 Pre-planning activity involves product planning and development, demand

forecasting, resource planning, facilities planning, plan planning, plant location
and plant layout.

 Active planning involves planning for quality, determination of product-mix,

routing, scheduling, material planning, process planning, facility planning,
capacity planning and tool planning.

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2. Action phase : Execution or implementation phase includes dispatching and
progressing function.

3. Control phase : Includes status reporting, material control, tool control, inventory
control, quality control, labour output control and cost control.

Fig: for phases Production Planning

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 Benefits of production planning and control function:

Production planning and control function is the nerve centre or heart of the production management
function. It coordinates all phases of the production system. An efficient production planning and
control function results in higher quality, better utilization of resources, reduced inventories,
reduced manufacturing cycle time, faster delivery, better customer service, lower production costs
and lower capital investment and higher customer satisfaction.

Efficient utilization of resources results in higher productivity and economy of production, timely
delivery and right quality of goods/services at the right cost will improve customer satisfaction.
Minimization of breakdown of machines, plant and equipment’s minimize idle time of equipment
is, labour, and ensures even flow of work through the Plant facilities. This will improve employee
discipline and morale in the organization.

An efficient production planning and control system enables the firm to improve its sales turnover,
market share and profitability and provides a competitive advantage for the firm due to balanced
inventory levels and higher quality, flexibility and dependability and lower prices which are the
performance factor for the firm.

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Limitation of Machine shop production planning and control function

 Production planning and control function is based on certain assumptions or

forecasts of customer’s demand, plant capacity, availability of materials, power
etc. If this assumption go wrong, PPC becomes ineffective.

 Employee may resist changes is production levels set as per production plans if
such plans are rigid.

 The production planning process is time consuming when it is necessary to

carry out routing and scheduling functions for and complex products consisting
of a large no of parts going into the product.

 Production planning and control function becomes extremely difficult when the
environmental factors change very rapidly such as technology, Customer’s
taste regarding fashion or style of products needed, government policy and
controls change frequently, stoppage of power supply by electricity boards due
power
Cuts break in supply chain due to natural calamities such as floods,
earthquakes, war etc.

Measuring Effectiveness of PPC Function:

The task of PPC department is mainly to coordinate the activities of various

departments, which supports production department viz., purchase, stores, industrial engineering,
quality control, design, maintenance etc. Hence, the effectiveness of PPC Department can be
generally measured by the company’s success in meeting the demand and its ability to produce
quality products and deliver. Them in the delivery schedules desired by the customers at a
reasonable price that is acceptable to customers and thereby achieve maximum customer
satisfaction.

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There are four specific areas in which effectiveness of PPC function can be measured. They are:

 Delivery : This can be measured by finding out the number of deliveries

effected on time and those got delayed over a period of time

 Inventory levels: The value of average inventory held annually value of

obsolete inventory, value of non-moving and surplus inventories and the
inventories and the inventory turnover ratio are indicators of efficiency in
inventory management.

 Production / operation management: Comparison of planned and actual

production indicates the performance of PPC function. Number of overtime
hours worked, machine utilization ratio etc. is also indicator of effectiveness of
PPC function.

 The expenditures incurred for carrying out the various function of PPC dept.
vis-à-vis the production values and sales revenue realized.

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 SCOPE OF PRODUCTION PLANNING

Production Planning and Control encompasses following areas:

 Materials: Planning for procurement of raw materials, components, and spare parts in
the right quantities and specifications at the right time from the right source at the right
price. Purchasing, storage, inventory control, standardization, variety reduction, value
analysis, and inspection are the other activities associated with material.

 Methods: Choosing the best method of processing form several alternatives. It also
including determining the best sequence of operations (process plans) and planning for
tooling, jigs and fixtures etc.

 Machines and equipment’s : Manufacturing methods are related to production

facilities available in the production systems. It involves facilities planning, capacity
planning, allocation, and utilization of plant and equipment, machines etc.

 Manpower: Planning for manpower (labor and managerial levels) having appropriate
skills and expertise.

 Routing: Determining the flow of work material handling in the plant, and sequence
of operations or processing steps. This is related to consideration of appropriate shop
layout and plant layout, temporary storage locations for raw materials, components
and semi-finished goods, and of materials handling systems.

 Route sheet : A route sheet is a document providing information and instruction for
converting the raw materials into finished parts or products. It defines each step of the
production operation and lays down the precise path or route through which the

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 product will flow during the conversion process.

Route sheet contains the following information:

 The operations required and their desired sequence.

 Machine or equipment to be used for each operation.

 Estimated set-up time and operation time per piece.

 Tools, jigs and fixtures required for the operation.

 Detailed drawing of parts, sub-assemblies and final assemblies.

 Specification, dimensions, tolerances, surface finishes and quality standards to be achieved.

 Specification of raw material to be used.

 Speed, feed etc. to be used on machine tools for the operations to be carried on.

 Inspection procedure and metrology tools required for inspection.

 Packing and handling instructions during movement of parts and subassemblies through the
operation stages.

 Estimating: Establishing operation times leading to fixation of performance standards

both for workers and machines. Estimating involves deciding the quantity of products
to be produces and cost involved in it based on sales forecast.
Estimating man power, machine capacity and materials required meeting the planned
production targets are the key activities before budgeting for resources.

 Loading: Machine loading is the process of converting operation schedules into

practice in conjunction with routing. Machine loading is the process of assigning
specific jobs to machines, men, or work centers based on relative priorities and
capacity utilization. Loading ensures maximum possible utilization of productive
facilities and avoids bottlenecks in production. It is important to avoid either
overloading or under loading the facilities, work centers or machines to ensure

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 maximum utilization of resources.

 Scheduling : Scheduling ensures that parts, sub-assemblies, and finished products

are completed as per required delivery dates. It provides a timetable of manufacturing
activities.

Objectives of scheduling are :

 To prevent unbalance use of time among work centers and departments.

 To utilize labour such that the output is produced within established
lead-time or cycle time to deliver the products in time and complete
production at minimum total cost.

 Dispatching: This is concerned with the execution of the planning functions. It

gives necessary authority to start a particular work, which has already been planned
under routing and scheduling functions. Dispatching is release of orders and
instructions for the starting of production in accordance with the route sheets and
schedule charts.

 Inspection: This function is related to maintenance of quality in production and of

evaluating the efficiency of the processes, methods and labour so that Improvements
can be made to achieve the quality standards set by product design.

 Evaluating : The objective of evaluation is to improve performance.

Performance of machines, processes and labour is evaluated to improve the same.

 Cost Control : Manufacturing cost is controlled by wastage reduction, value

analysis, inventory control and efficient utilization of all resources

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 BENEFITS OF PRODUCTION MANGEMENT

Production management is essential and beneficial different parties like:

 The Consumer: The benefit of production goes primarily to the customer. All the goods and
services are meant for the use of customers. A good production management system helps the
customer from higher productivity, better and reliable quality, reasonable price, satisfactory
service and timely delivery of goods and services. Therefore, the benefit of production
management system goes to the consumer in the society.

 The Employee: A good production management system benefits the employees of an

organization. Higher remuneration, job security, stable employment opportunity, better working
condition as well as job satisfaction can be possible when there is more and more production in a
systematic manner. It is said that productivity and satisfaction are inter relate to each other. On
the other hand high employee morale due to job satisfaction provides higher output.

 The Investor: Maximum return on investment is the objective of each and every investor.
Enterprise having good production management system ensures higher productivity which

Attracts the investors to invest more in this prosperous enterprise. More productivity ensures
higher value in market in terms of security and asset value which is one of the benefits for the
investors.

 The Supplier: Most of the large, small and medium companies depend on the suppliers in terms
of raw material, machine components, and allied services during the course of production.
Therefore, the role of a supplier is crucial in production management system.

A good production management system ensures that intercommunication and mutual

confidence between the producer and supplier can be better. More is the production better is the
partnership satisfaction of both the parties.
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  The Society: A better production management system will benefit the society as a whole. More
timely production of goods and services in better quality ensures community satisfaction which
leads to the society will benefit out of that. More productivity means better economic prosperity.
Economic prosperity leads to social prosperity and social prosperity leads to all round
development in the society.

CHALLENGES IN PRODUCTION PLNNING AND CONTROL

The following points explains Challenges in Production Planning and Control :

 Combining Functions: It is desirable that a minimum changes be made after

schedules are established. This objective can be approached if the amount of work
scheduled for the factory or department is equal or slightly greater than the
production cycle.

 Follow-up: When jobs are started and completed on schedule, there should be very
little concern about the meeting of commitments. Optimum operation of the plant is
attained only if the original plan has been carefully prepared to utilize the
manufacturing facilities fully and effectively.

 Re-planning: Often required in manufacturing. Changes in market conditions,

manufacturing methods, etc. affecting the plant will often indicate that a new
manufacturing plan is required.

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 FACTORS AFFECTING PRODUCTION PLANNING AND CONTROL

The following points explains Factors Affecting Production Planning and Control:

 Market Forecast: It will indicate future trends in demand for manufactured products.
Work shift policies, plans for an increase or decrease in manufacturing activity are based
upon the market forecast and in turn affect the production planning and control.

 Sales Order: It is a rewrite of the customer order specifying what has been purchased
(product, quantity and authorizing shipment of the goods to the customer). Variation or
changes in sales order will drastically affect production planning and control.

 Standard Process Sheet: It is prepared by process engineering group or process owner and
it is the source of basic data which may include type of machine to be used, time required
for processing, etc. For e.g. if any machine is under breakdown, the standard process sheet
will be disturbed which in turn affect production planning and control.

 Load Charts: These charts are prepared for each workstation or machine in the plant or
may be for groups of machines or departments.

 Project Planning Method: The product to be produced are manufactured in quantities and
their total processing time can be measured. The best-known methods are Critical Path
Method (CPM) and Program Evaluation and Review Technique (PERT).

Planning is the process of selecting and sequencing activities such that they achieve one or more goals
and satisfy a set of domain constraints. Schedules should reflect the temporal relationships between
activities and the capacity limitations of a set of shared resources. Master Production Schedule is main
driver and information source for further material requirements planning and accompanying calls or
supplies and allows making detailed production schedules for production system.

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 The high re-planning frequency in order to overcome the uncertainty induces the system
nervousness. The system nervousness can be defined as – State of a system when a minor changes in
Master Production Schedule creates significant changes in Materials Requirement Planning (MRP).

The following critical points can be considered in Master Production Schedule:

 Frequent changes in MPS result in due-date changes in open orders, quantity and timing
for planned order of products.

 Mentioned changes are translated into gross requirements changes for products and timing
of their delivery.

 Unexpected changes in MPS effect that materials, needed for a particular order may not be
available. The availability of materials is often limited because suppliers have similar
bottlenecks and schedules variations transmitted from sub-tier suppliers.

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 LITERATURE REVIEW

With the newly defined objectives of global companies and countries to reduce their supply chain
risks in the long-term and fix the broken value chains in the short-term, India has an exclusive
opportunity to emerge as the preferred destination during and after the COVID-19 pandemic. With its
strong macroeconomic fundamentals, favorable demographic dividend, improved ease of doing business,
and an economy expected to grow, albeit at a lower rate during this period, India can position itself as an
attractive investment destination for investors across the globe. This would require the government, local
bodies and the industry to leverage this opportunity optimally.

It is with this intent that EY, through the following sections of this report, examines

 The value chains of 15 key sectors in India.

 The disruptions in the sectoral value chains caused due to the COVID-19 pandemic.

 The opportunities and roadmaps to re-engineer and overhaul the Indian

business machinery to become an attractive destination for foreign and
domestic value chain investments.

Impact of pandemic on the Industry:

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 OBJECTIVE OF THE STUDY

During the pandemic situation arises the demand for rare production items such as ventilators, gloves, face
shields, masks, and sanitizers at a high rate . During this pandemic era, some of the manufacturing giants
such as SCION (Sunatara Cosmetics Pvtd Ltd) turn their production system to support the need of society
in terms of manufacturing Sanitizers variants along with the Cosmetics.

Therefore, a flexible manufacturing system is required to fulfil the requirement for such necessary items.
National government institutions, manufacturing organizations, health institutions should be prepared in
advance to tackle the pandemic situation to control the production of essential and nonessential items
during a pandemic. This means that they should have sufficient buffer plans to address the availability of
lifesaver stocks such as ventilators, vaccines, sanitizers, masks, and face shields.

Project Questions/Hypotheses
1. How to use Kaizen methods to increase the yield for the company?
2. How to find out the factor that has the most influence on the process?
3. How much will the company save after improvement?
4. How to maintain the outcome of improvement in control phase?

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 Limitations of the Project:
Due to pandemic unpredicted forecast report data collection and proper available raw materials to
produce the routine products as per the forecast demand and time limitation to reach the monthly
sales and team cooperation issue due to hygiene should follow for manpower which might cause
the unspecific results of the experiments contained in this project.

Key Objective For Production Planning:

In Order to handle the pandemic situations and to fulfill the customer demands by proper
production planning.

 To determine the capacity of manufacturing departments and to plan

systematically coordinated and related production activities to meet sales
requirements.

 To plan for manufacturing requirements like materials so that, they are available in
right quality and quantity at the right time.

 To translate sales orders into the orders on the works department.

 To coordinate with different departmental groups so that line balance of activities is

maintained.

 To prepare management in advance for tackling any problem which is likely to happen in
the way of achieving production targets.

 To promote fuller utilization of plant capacity.

 To maintain a record of material and component stock in such a way so as to anticipate

future requirements.

 Prepare schedule of requirement.

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 RESEARCH METHODOLOGY

In order to meet the changes of market demands and value add to the company needed to make
adjustments quickly and properly according to the capacity situation. To increase the overall
capacity became an opportunity and inevitability for improvement.
Keeping the current need into considerations and make use of available resources and liquidize
the stock and increase the revenue change in the production planning forecast demand. At present
the factory manufactures has to work based on the forecast demand + current need of the customers.

Production planning control for improvement:

Based on the Based on the current market and the strategy has been mainly look into the below key
factors:

 Long Range Planning Activities:

Sales forecast, plant requirement (No. and size), equipment planning, inventory
investment.

 Short Term Planning Activities:

Sales forecast, expansion of plant capacities, inventory levels, manpower levels,

production levels, addition of new product line and plant requirement and
inventory investments for it.

 Current Planning Activities:

Sales order processing progress of current orders forecast, production shipping

promises, order timing, inventory allocation, control of financial goods, work
force control.

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 DATA ANALYSIS -- PERFUME VS SANTIZIER

Based on the market trend show the week demand for perfume and current of customers is
Sanitizers.

Production mostly based on the Foremast Demand (Perfumes and Cosmetics) due to low
demand on perfume.

The graph shows the week demand for the perfume Vs Sanitizer due to pandemic
situation.

Fig: 1: Perfume market trend

The below fig.2: show the demand of the world is Hygiene due to pandemic. Keeping tab on the current
need into consideration.

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 Fig:2:Santizser market trend

Based on the above graph the which helps to thinking on the current need and make use of the all resource
available and to meet the market trend and customer needs.

Note: Exact Forecast figure cannot be relieved by the Company due to policy issues.

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PROCESS IMPROVEMENT TECHNIQUES USING LEAN MANUFACTURING TOOL AS
"KAIZEN"

“KAIZEN “ is Japanese word that means Continuous Improvement or Change for good. It is used to
increase the efficiency of the manufacturing processes.

The main objective of the KAIZEN is to eliminate waste without removing the value-added
activities in the existing manufacturing processes. This concept is applicable in not only manufacturing
but also in the business sector, accounting, and customer service sector.

There are 6 basic steps to improve any problem

 Identify the Problem

 Analyze the problem
 Develop solution
 Implement solution
 Analyse the results
 Standardize solutions

 Identify the Problem: It is the first step of the KAIZEN, which describes the wastage,
or improvement of a problem in the working area.

 Analyze problem: Relay on the one working method always unproductive, it closes the doors for
untapped potential possible ways of solving any problem. These analytical methods include
workflow analysis, time study, standardized work, and material flow analysis.

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 Develop solution: The development of any solution starts with the MVP strategy. MVP
standards for Minimum Viable Product. MVP gives the what strategy works best for the existing
issue without burning resources, time, and money. The non-suitable strategies can be eliminated
and working strategies take into consideration.

 Implement solution: It is the process of putting the idea from paper to the real world. There is
always some absolute gap that exists between the ideation and execution. This process rectifies
the possible better solutions.

 Analyse the results: Feedback is an opportunity to feed forward the process. The first product or
service is not going to be the final product. Because the final product needs several modifications
so that the solution fits the exact problem. Analyzing the results from the improvement solution
makes the product or service even faster. Hence, the overall productivity and efficiency are
increase.

 Standardize solutions: The last step in the KAIZEN is to repeat the process via standardizing
the solution. This is the best outcome from the existing problem in the manufacturing unit.
Standardization of solution helps the make the production faster with minimum defects because
the problem filter by the best possibility to increase the overall outcome. Adoption of KAIZEN
in the Sanitization Industry

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Adoption of KAIZEN in the Sanitization Industry as part of improvement

 Identify the Problem: The Covid virus disrupts all the industries in the current period. A
lot of industries have been shut down due to no demand for the manufactured goods. These
goods are stored in the warehouse only. Storing the goods also increases the stock
maintenance cost, which is negative cash flow for the manufacturing industries. Like this
body perfume industry also one of the industries with has low demand in currently over
hand sanitizer.

 Analyze problem: The production of perfumes has no demand and sanitizers have a high
demand. In case the perfume industry runs over time without changing the product there is a
high chance that the perfume industry can bankrupt.

 Develop solution: The perfume industry has to be changed according to the current demand.
Hand sanitizers have a high demand and also need high supply. Suppose the production of
perfume replaced with hand sanitizers with the same product of perfume tin with upgrades
can create the new product trends which are necessary too.

 Implement solution: Here the perfume production replaces with hand sanitizers with zero
waste of exiting supply chain, raw material, and workforce. The cash burning for rental of
industrial areas and maintenance of stock is also minimized. The production process of
perfume is just replaced with hand sanitizer with standardized packing.

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 Analyse the results: The results can be tested via MVP (Minimum Viable Product). This
MVP can be tested in the real world. So the gap expectations and reality assumption can
be resolved. The results not only the production process of hand sanitizer in the place of
perfume but also validity existence data of marketing adoptive conditions.

 Standardize solutions: Standardize the sequential process can make the production process
even faster rate with minimum defects. Hence, the overall cost also reduces to make the
product from initial sate to final stage.

Tabular format before and after change

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Before Improvement on the existing production system.

 Producing the perfume, will be done on the forecast demand and those will sits in the
warehouse until and stock will take time liquidize and difficult to adopt the current
pandemic situation.

 Leads to Financial crisis to the company.

 Unemployment and assets depreciation and the maintenance will be huge effect the
company finically and the employee.

 Waste of material and less usage of resources.

 No Value add to the company and to Employee

Benefits after implementing on the existing Production process.

 Less waste – inventory is used more efficiently as are employee skills.

 People are more satisfied – they have a direct impact on the way things are done.

 Improved commitment – team members have more of a stake in their job and are more
inclined to commit to doing a good job.

 Improved retention – satisfied and engaged people are more likely to stay.

 Improved competitiveness – increases in efficiency tend to contribute to lower costs

and higher quality products.

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 Improved consumer satisfaction – coming from higher quality products with fewer
faults.

 Improved problem solving – looking at processes from a solutions perspective allows

employees to solve problems continuously.

 No waste of the available raw materials and which ease of liquidities.

 Proper usage of the existing machinery and manpower

 Happy to BOOM new product without any promotions calls.

 Satisfying the customer with their forecast demand + current need, which make use of
organization not to downfall the turn over during the pandemic.

 Supporting the Workers during the pandemics by providing all the hygiene work
environment.

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 CONCLUSION

Thus, Production planning is the key activity for the Organization's efficiency, effectiveness,
timely delivery, Quality product, and Customer satisfaction. This is just like the steering wheel of
running vehicle, which drives you to destination.

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 BIBLIOGRAPHY

1. PRODUCTION PLANNING AND CONTROL - by V. Muralidhar

2. PRODUCTION AND OPERATIIONS MANAGEMENT - by

SudhakarJayachandran

3. OPERATIONS MANAGEMENT FOR COMPETITIVE

ADVANTAGE -- by Varalmathi K

4. PRODUCTION PLANNING AND INVENTORY CONTROL by

-----S. Jaminse Peter

5. ELEMENTS OF PPC --- by Samuel Eilon

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https://smallbusiness.chron.com/improve-production-planning-10447.html

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