SRM UNIVERSITY RAMAPURAM CAMPUS DEPARTMENT OF MANAGEMENT

UNIT - 1 Chapter1 - Overview of Production Management Chapter 2 - Production System

UNIT – II

By Mrs.VIJAYA RANI ANANDAN, MBA., M.Phil., (Ph.D)., Assistant Professor (OG) Department of Management studies SRM University Ramapuram Campus.

Chapter 1 - Product Design Chapter 2 – Process planning Chapter 3 – Make or Buy Decisions Chapter 4 – Modern production management ( CAD,CAM) UNIT - III Chapter 1 – Production Planning & Control Chapter 2 - Demand Forecasting Chapter 3 – Plant location Chapter 4 – Plant Layout Chapter 5 - Capacity planning Chapter 6 - Inventory control UNIT – IV Chapter 1 - Quality Control

STUDIES Study Material MBN 510 - Production and Operations Management
CONTENTS

Chapter 2 – Work Study ( method study/ time Study/ Work measurement) UNIT – V Chapter 1 – Maintenance Management Chapter 2 – Purchasing Chapter 3 – Store Keeping

MEANING OF PRODUCTION Production is an intentional act of producing something in an organized manner. It is the fabrication of a physical object through the use of men, material and some function which has some utility e.g. repair of an automobile, legal advice to a client, banks, hotels, transport companies etc. The main inputs are materials, Machines, Men ( Labour), Money and Methods.

Unit - 1 Chapter - 1 Overview of Production Management Synopsis Materials       Meaning of POM Scope of POM Objectives of POM Functions of POM Factors affecting POM POM relation with other functional areas Money Transformation Goods & services Machines Men OUTPUT INPUTS PROCESS

―Production management deals with decision making related to production process so that the resulting goods Production and operations management (POM) is the management of an organization‘s production system. • • • A production system takes inputs and converts them into outputs. The conversion process is the predominant activity of a production system. The primary concern of an operations manager is the activities of the conversion process.  MEANING OF PRODUCTION MANAGEMENT A few definitions of production management are being reproduced here under to understand the meaning of the term clearly: ―Production management is the process of effectively planning and regulating the operations of that part of an enterprise which is responsible for actual transformation of materials into finished products‖. Elwood S. Buffa has defined the term in a broader sense as:   or services are produced according to specifications, in amounts and by the schedules demanded and at a minimum cost‖. SCOPE OF PRODUCTION MANAGEMENT Specifying and accumulating the input resources, i.e., management, men, information, materials, machine and capital. Designing and installing the assembling or conversion process to transform the inputs into output, and Coordinating and operating the production process so that the desired goods and services may be produced efficiently and at a minimum cost. FUNCTIONS OF PRODUCTION MANAGEMENT a) Product selection and design: the product mix marks the production system either efficient or inefficient. Choosing the right products keeping the mission and overall objective of the organization in mind is the key to success. It is the design of the product, which makes the organization competitive or noncompetitive.

b) Activities relating to production system designing: decision related to the production system design is one of the most important activities of the production management. This activity is related to production engineering and includes problems regarding design of tools and jigs, the design, development and installation of equipment and the selection of the optimum size of the firm. All these areas require the technical expertise on the part of the production manager and his staff. c) Facilities location: the selection of an optimum plant location very much depends upon the decision taken regarding production engineering. A wrong decision may prove disastrous. Location should as far as possible cut down the production and distribution cost. There are diverse factors to be considered for selecting the location of a plant. d) Method study: the next decision regarding production system design concerns the use of those techniques, which are concerned with work environment and work measurement. Standard method should be devised for performing the repetitive functions efficiently.

suitable positioning of the workers for different processes should be developed. Such methods should be devised with the help of time study and motion study. The workers should be trained accordingly. e) Facilities layout and materials handling: plant layout deals with the arrangements of machines and plant facilities. The machine should be so arranged that the flow of production remains smooth. There should not be overlapping, duplication or interruption in

production flow. Product layout where machines are arranged in a sequence required for the processing of a particular product, and process layout, where machines performing the similar processes are grouped together are two popular methods of layout. The departments are layout in such a way that the cost of material handling is reduced. There should be proper choice of material handling equipment. f) Capacity planning: This deals with the procurement of productive resources. Capacity refers to a level of output of the conversion process over a period of time. Full capacity indicates maximum level of output. Capacity is planned for short-term as well as for long

Unnecessary movements should be eliminated and

Nevertheless. finished products. supplies etc should be purchased at right time. Tools for capacity planning are marginal costing (Break Even Analysis).term. tools. there are important differences between them. linear setting. and decision trees. ―Production control is the process of planning production in advance of operations. learning programming. specifying how the production resources of the concern are to be employed over some future time in response to the predicted demand for products and services h) Production control: after planning. stores. plan for maintaining the records of raw materials. right quality. assembly and the finished products. The line between product & services is not necessarily always clear. g) Production planning: the decision in production planning include preparation of short-term production schedules. starting and finishing dates for each important item. supplies. requiring in the long run. PRODUCTS VERSUS SERVICES The output is spoken as a ―bundle of products and services‖ . The raw materials. work-in-progress. from right source and at right price. . i) Inventory Control: inventory control deals with the control over raw-materials. where as services are intangible and perishable and are consumed in the process of their production. establishing the exact route of each individual item. and releasing the necessary orders as well as initiating the required follow-up to effect the smooth functioning of the enterprise. Products may be produced to inventory and made available ― off-the-shelf‖ whereas the availability of the services requires keeping the productive system that produces them in readiness managerial production function is to control the production according to the production plans because production plans cannot be activated unless they are properly guided and controlled. finished and semi-finished stock. in right quantity. the next curves. Process industries pose challenging problems in capacity planning. expansion and contraction of major facilities in the conversion process. and so is included in production management. part or assembly. Products are tangible things that we can carry away with us.

sub-goals lead to  accomplishment of goals. Location dependent on location      Large units that can take . In addition the person being served often participates in the productive process. clients and users OBJECTIVES MANAGEMENT OF PRODUCTION/ OPERATIONS PRODUCTS       Tangible Can be produced to inventory for-off theshelf‖ availability Minimal contact ultimate consumer with SERVICES  Intangible and perishable. properly structured and explicitly High contact with clients or stated. on hourly. contact between the producers and consumer. customers Simple processing In general terms. If an Markets served by productive organization can provide for these at a minimum cost then the system are usually local value of goods created or services rendered enhances and that Relatively small units to serve is the only way to remain competitive. certain objectives & goals to achieve since the objectives of an organization have hierarchical structure. national international by are and Demand commonly variable right quality as per schedule and at a minimum cost. the objectives of an organization may be to produce the goods/or services in required quantities and of    Complex and interrelated processing Demand on productive systems variable on weekly. and seasonal basis Markets served productive system regional. In product systems. consumed in the process of their production Every system (or organization) has a purpose. as they are needed. daily and weekly bases . Thus various objectives local markets can be grouped as. quality and time schedule are the objectives that determine the extent of customer satisfaction.performance objectives and cost objectives. monthly. to the achievement Availability achieved by keeping the of objectives and eventually the purpose or mission of an productive system open for organization . which contribute.to produce the services. Thus quantity.It is very important that these objectives should services be unambiguously identified. there is very little if any. advantage of economies of scale of local customers.

storage. machines etc. lost sales of Cost of delayed deliveries Cost of material handling Cost of inspection and Opportunity cost d) Lead times: Manufacturing lead-time or throughput time is the time elapsed in the conversion process? Minimization of idle time. we should consider the total relevant systems costs including visible and invisible. it is possible to satisfy a variety of customer needs. tangible and intangible costs some examples of these costs are:         Direct and Indirect labour cost Scrap/rework cost Maintenance cost Cost of carrying inventory Cost of stock outs.I. Performance Objectives The performance objectives may include: a) Efficiency or productivity expressed unit of input. Where efficiency may refer to ―doing things right‖. These could be tangible in economic terms or intangible in social cost terms. c) Quality: Quality is the extent to which a product or service satisfies the customer needs. The output has to conform to quality specifications laid down before it can be accepted as output per Attaining high degree of customer satisfaction on performance front must be coupled with lower cost of producing the goods or rendering a service. Costs can be explicit or implicit. While managing production systems we must consider the visible and invisible. waiting etc. back-logging. b) Effectiveness: It concerns expressed whether a right set of outputs is being produced. customer complaints etc.such as delayed supplies. II. Cost objectives For the purpose of managerial decision-making. A longer term cost . e) Capacity utilization: Percentage utilization manpower. Thus cost minimization is an important systems objective. delays. effectiveness may mean ―doing the right things‖. will reduce throughput time. f) Flexibility: If the conversion process has the flexibility of producing a combination of outputs. is calculated in order to enhance overall capacity utilization.

2. materials ect..implication rather than only short-term will help in arriving at better decision.. marketing research etc. machinery.Marketing Department – Making demand forecasting. Finance – Allocation Funds ( Money) for production department ( for purchasing land .) 3.Recruit people ( Labour) for production Department activities.Human Resource . Types of Production system POM RELATION WITH OTHER FUNCTIONAL AREAS 1. customer satisfaction. Batch Production Job Production Continuous Production Intermittent Production Mass production ( Flow) Process Production pr Assembly line Production Analytical Unit – I Chapter – 2 Production system TYPES OF PRODUCTION SYSTEM Synthetic .

Input and output are linked by certain process or operations or activities imparting value to the inputs. (2) Conversion process (3) Outputs (4) Storage (5) Transportation (6) Information . change in rate of production will affect inventory.e. CONTINUOUS OR FLOW SYSTEM : According to Buffa. g. operations or activities may be called production system. At one end of a system are inputs and at the other output. overtime hours etc. ―System is a regular interacting inter-dependent group of items forming a unified whole‖. The nature of production system may differ from company to company or from plant to plant in the same firm. These processes. Thus continuous or flow production refers to the manufacturing of large quantities of a single or at most a very few varieties of products with a standard of processes and sequences. identical products are produced.   The product design and the operations sequence are standardised i.According to Webster. A system may have many components and variation in one component is likely to affect the other components of the system e. Special purpose automatic machines are used to perform standardized operations. Production system is the framework within which the production activities of an organization are carried out. CHARATERISTICS OF CONTINUOUS OR FLOW SYSTEM:  The volume of output is generally large (mass production) and goods are produced in anticipation of demand. The mass production is carried continuously for stock in anticipation of demand. ELEMENTS OF PRODUCTION SYSTEM (1) Inputs TYPES OF PRODUCTION SYSTEMS There are two main types of production systems (1) Continuous system (2) Intermittent system I. Therefore a standard set of processes and sequences of process can be adopted‖. ―Continuous flow production situations are those where the facilities are standardised as to routing and flow since inputs are standardised.

DEMERITS OF CONTINUOUS OR FLOW SYSTEM :   Moreover it is essential to maintain stand-by equipments to meet any breakdowns resulting in production stoppages. it becomes necessary to avoid pilling up of work or any blockage on the line. The work can be done by semi. is very rigid and if there is a fault in one operation the entire process is disturbed. .   Due to continuous flow. Handling of materials is reduced due to the set pattern of production line. Mostly the materials are handled through conveyer belts. Machine capacities are balanced so that materials are fed at one end of the process and finished product is received at the other end. cost and output is simplified. overhead cranes etc.  Continuous system. Mass production system offers economies of scale as the volume of output is large. In a properly designed and equipped process. Product layout designed according to a separate line for each product is considered.   Fixed path materials handling equipment is used due to the predetermined sequence of operations. MERITS OF CONTINUOUS OR FLOW SYSTEM:     The main advantage of continuous system is that work in progress inventory is minimum. pipe lines. it will force the preceding as well as the subsequent stages to be stopped. Quality of products tend be uniform and high due to standardized and mechanization.skilled workers because of their specialisation. The quality of output is kept uniform because each stage develops skill through repetition of work. Any delay at any stage is automatically detected. however.   Control over materials. individual expertise plays less prominent role. TYPES OF CONTINUOUS PRODUCTION SYSTEM (A) MASS PRODUCTION : Mass production refer to the manufacturing of standardized parts or components on a large scale. roller conveyers. Unless the fault is cleared immediately. Thus investments in machines are fairly high.

Space should be provided for free movement of fork lifts. A manufacturing unit prefers to develop and employ assembly line because it helps to the efficiency of production. g. The finished product is . Process production is employed in bulk processing of certain materials. Machine and equipment should be arranged in such a manner that every operator has a free and safe access to each machine. coal gas . They are not labour–intensive and the worker is just an operator to monitor the system and take corrective steps if called for. change in the product design). II. crude oil is analysed into gas. (C) Assembly lines : Assembly lines a type of flow production which is developed in the automobiles industry in the U. In Analytical Process production. some components may be made for inventory but they are combined differently for different customers. each machine must directly receive materials from the previous machine and pass it directly to the next machine. petrol etc. Synthetic process of production involves the mixing of two or more materials to manufacture a product for instance.A. which deliver materials and collect finished products. myristic acid. naptha. Similarly. so the relative location of the operation must be a compromise that is best for all inputs considered together‖..INTERMITTENT PRODUCTION SYSTEM ACCORDING TO BUFFA. coal is processed to obtain coke. flow production may be classified in Analytical And Synthetic Production .S. trucks etc. In instances such as these. no single sequence pattern of operation is appropriate. In an assembly line. ―Intermittent situations are those where the facilities must be flexible enough to enough to handle a variety of products and sizes or where the basic nature of the activity imposes change of important characteristics of the input (e. a raw material is broken into different products e. On the basis of the nature of production process.(B) PROCESS PRODUCTION : Production is carried on continuously through a uniform and standardized sequence of operations highly sophisticated and automatic machines are used. In the industries following the intermittent production system. coaltar etc. stearic acid are synthesised to manufature soap.g. lauric acid. The typical processing industries are fertilizers plants. petrochemical plants and milk diaries which have highly automated systems and sophisticated controls.

are common examples of job production Intermittent system is much more complex than continuous production because every product has to be treated differently under the constraint of limited resources.  Transportation facilities between production centers should be flexible enough to accommodate variety of route different inputs. forecasting control and coordination. Each job production or product is different from the other and no repetition is involved. (A) JOB PRODUCTION : job production involves the manufacturing of single complete unit with the use of a group of operator and process as per the customer‘s this is a ― special order‖ type of production. No single sequence of operations is used and periodical adjustments are made to suit different jobs or batches. Intermittent system can be effective in situation which satisfy the following conditions: . Since production is partly for stock and partly for consumer demand. Customers do not make demand for exactly the same product on a continuing basis and therefore production become intermittent.  It should be provided with necessary storage facility. Each product is a class by itself and constitute a separate job for production process. Shipbuilding. The product is usually costly and nonstandardized. electric power plant dam construction etc. not continuous. there are problems to be met in scheduling. A wide variety of products are produced.  The production centers should be located in such a manner so that they can be handle a wide range of inputs.  Process layout is most suited. CHARACTERISITICS OF INTERMITTENT PRODUCTION SYSTEM :      The flow of production is intermittent. machines and equipments are used so as to be adaptable to a wide variety of operations. General purpose. The volume of production is generally small. TYPES OF INTERMITTENT PRODUCTION.heterogeneous but within a range of standardized options assembled by the producers.

press. This also results in a work. DEMERITS:  Job shop manufacturing is just most complex system of production e. each operation being carried out on the whole batch before any subsequent operation is performed‘ the batch production is mixture of mass production and job production and job production under it machines turn out different product at intervals.in.  A wide range of general purpose machines like grinders. ― The manufacture of a product in small or large bathes or lots at intervals by a series of operations. reduced. A fault in one operation does not result into complete stoppages of the process. shaper etc is used .progress inventrory. speed of work is slow and unit costs are high BATCH PRODUCTION : it is defined as. MERITS :  It is flexible and can be adopted easily to change in product design. drilling. g.  Variable path materials handling equipment are used.effective since the nature of the operation in a group are similar there is reduced materials handling since machines are close in a cell. in building a ship Both job production and batch production are similar in nature.CHARACTERISTICS :  The product manufacture is custom-made or non – standardized.  Volume of output is generally small. each product being produced for comparatively short tome using mass production methods. except that in batch production the quantity of product manufacture is comparatively large. Work loads are unbalanced.  it is cost effective and time.  The waiting period between operation is also (B)    thousand of individual parts must be fabricated and assemble. Raw materials and work-in-progress inventories are high due to uneven and irregular flow of work. . A complex schedule of activity is required to ensure smooth flow of work with out any bottleneck.

we can now make a comparative study of them as follows (1) MANUFACTURING COST : Cost of capital investment different from system.But both the sub-system of continuous production system i. the scale of operation is small in job production. (3) FLEXIBILITY IN PRODUCTION : in case of in demand of the product. it is lower in case of job production and comparatively higher in batch production. Unit cost in mass production is higher while it is lower than the batch production or job production.DEMERITS :   work-in-progress inventory is high and large storage space is required . The main problem in batch production is ideal time between one operation and other the work has to wait to until a particular operation is carried out on the whole batch. earlier . managerial ability plays plays an important role because it require higher ability for planning and coordinating several functions in mass and process production than in the case of job and batch production. mass production or process production employ single purpose machine in their manufacturing process. Hence the size of . (2) SIZE AND CAPITAL INVESTMENT : as stated batch production require high skilled technical foreman and other executives . the production facilities may be adjust very shortly with out increasing much expenses under the system of job or batch production . COMPARISON OF DIFFERENT PRODUCTION SYSTEM As we have discussed various system and sub-system in detail in the above lines. large in mass production and very large in process production. They can not adjust their production facilities so quickly and easily as is possible in job or batch production where general purpose machines are used (4) REQUIRED TECHNICAL ABILITY : both job and production per unit is lowest in process production while it is highest in job production because large scale continuous production is carried out under process production. Process production calls for the higher investment while mass production requires lesser amount of capital investment . but under mass production for process production systems.e. medium in batch production.

sugar refining. batch production is mostly used in mechanical engeering and consumer-goods industries like cotton. workers particularly unskilled worker are thrown out of job. On the contrary. jute . of different system is suitable in different industries depending upon the nature of work. The mechanisum of job production applies in products of construction and manufacturing industries like building . petroleum . mass and process production systems provide greater job security to worker because production operation are carried out continuously in anticipation of stable and continuous demand of the product. process production is most appropriate in chemical . milk processing industries etc. Unit – II (6) JOB SECURITY : job and batch system of Chapter – 1 Product Design MAJOR FACTORS IN PRODUCT DESIGN – – – – (7) INDUSTRIALS APPLICATION : the application – Cost Quality Time-to-market Customer satisfaction Competitive advantage production do not provide and type of job security to workers due to their intermittent character during odd times. mass production is found in automobiles. electricals goods etc. machine tools . divisional organization is preferred in mass product process production system due to the greater emphasis for centralization. On the other hand .(5) ORGANISATIONAL STRUCTURE : mostly shoe-making etc. PRODUCT DESIGN ACTIVITIES • • • • Translate customer wants and needs into product and service requirements Refine existing products and services Develop new products and services Formulate quality goals . refrigerators . bridges special purpose machines etc. functional organization is adopted in case of job and batch production systems.

Reverse engineering is the dismantling and inspecting of a competitor‘s product to discover product improvements. Reverse Engineering . Idea generation 2. Product specifications 4. Final Design – Final decision making of the product design after testing etc.• • • Formulate cost targets Construct and test prototypes Document specifications FORMS OF PRODUCT DESIGN 1. PHASES IN PRODUCT DEVELOPMENT PROCESS – Customer satisfaction Secondary focus – Function of product/service – Cost/profit – Quality – Appearance – Ease of production/assembly – Ease of maintenance/service 1.is a form of standardization in which component parts are subdivided into modules that are easily replaced or interchanged.Modular Design . or legal •Competitive •Technological OBJECTIVES OF PRODUCT DESIGN Main focus 4. Feasibility analysis 3. It allows: –easier diagnosis and remedy of failures –easier repair and replacement –simplification of manufacturing and assembly REASONS FOR PRODUCT DESIGN •Economic •Social and demographic •Political. Prototype development . Process specifications 5.. liability. 3. Priliminary Design – Pre design or proto type of the product design 2.

FACTORS CONSIDERATIONS THAT FAVOR MAKING A PART IN-HOUSE:    Cost considerations (less expensive to make the part) Desire to integrate plant operations Productive use of excess plant capacity to help absorb fixed overhead (using existing idle capacity) The make-or-buy decision is the act of making a strategic choice between producing an item internally (inhouse) or buying it externally (from an outside supplier). Variables considered at the strategic level include analysis of the future. The buy side of the decision also is referred to as outsourcing. as well as the current  Need to exert direct control over production and/or quality   Better quality control Design secrecy is required to protect proprietary technology    Unreliable suppliers No competent suppliers Desire to maintain a stable workforce (in periods of declining sales)   Quantity too small to interest a supplier Control of lead time. Market test 8. and market trends all have a strategic impact on the make-or-buy decision.6. competing firms. transportation. Make-or-buy analysis is conducted at the strategic and operational level. Issues like government regulation. Make-or-buy decisions usually arise when a firm that has developed a product or part—or significantly modified a product or part—is having trouble with current suppliers. and warehousing costs  Greater assurance of continual supply . or has diminishing capacity or changing demand. Obviously. the strategic level is the more long-range of the two. Follow-up evaluation UNIT – II Chapter – 2 Make-or-Buy Decisions environment. Product introduction 9. Design review 7.

pride) FACTORS THAT MAY INFLUENCE FIRMS TO BUY A PART EXTERNALLY INCLUDE:     Incremental purchasing costs Incremental capital costs Lack of expertise Suppliers' research and specialized know-how exceeds that of the buyer Cost considerations for the "buy" analysis include:              cost considerations (less expensive to buy the item) Small-volume requirements Limited production facilities or insufficient capacity Desire to maintain a multiple-source policy Indirect managerial control considerations Procurement and inventory considerations Brand preference Item not essential to the firm's strategy Purchase price of the part Transportation costs Receiving and inspection costs Incremental purchasing costs Any follow-on costs related to quality or service Cost considerations for the "Make " analysis include:  Incremental inventory-carrying costs Unit ..g. social or environmental reasons (union pressure)      Direct labor costs Incremental factory overhead costs Delivered purchased material costs Incremental managerial costs Any follow-on costs stemming from quality and related problems  Emotion (e.  Provision of a second source Political.II Chapter – 3 Modern Production Management .

( CIM. It is also known as flexible design and manufacturing. Typically. it relies on closed-loop control processes." . "CIM is the integration of total manufacturing enterprise by using integrated systems and data communication coupled with new managerial philosophies that improve organizational and personnel efficiency. analysis. Algorithms for uniting the data processing component with the sensor/modification component. Overview The term "Computer Integrated Manufacturing" is both a method of manufacturing and the name of a computerautomated system in which individual engineering. FMS) As method of manufacturing. retrieval. History of CIM The idea of "Digital Manufacturing" is a vision for the 1980s. providing direct control and monitoring of all process operations. CAD. manipulation and presentation. inventory control. and distribution are linked through the computer with factory floor functions such as materials handling and management. Computer Integrated Manufacturing was developed and promoted by machine tool manufacturers and the CASA/SME (Computer and Automated Systems Association /Society for Manufacturing Engineers). CAM. engineering is a method of manufacturing in which the entire production process is controlled by computer. marketing. purchasing. cost accounting. In the 1980s. three components distinguish CIM from other manufacturing methodologies: Computer Integrated Manufacturing Computer-Integrated Manufacturing (CIM) in  Means for data storage. and support functions of a manufacturing enterprise are organized.   Mechanisms for sensing state and modifying processes. In a CIM system functional areas such as design. based on real-time input from sensors. CIM is basically use of Information and Communication Technology (ICT)in manufacturing. production. planning.

the more critical is the integrity of the data used to control the machines. where the factory can be quickly modified to produce different products. (Computer-aided process planning) ERP (Enterprise resource planning) CNC (computer numerical control) machine tools DNC. . automated storage and retrieval systems AGV. automated guided vehicles Robotics Automated conveyance systems Computerized scheduling and production control CAQ (Computer-aided quality assurance)  Process control: Computers may be used to assist the human operators of the manufacturing facility. but there must always be a competent engineer on hand to handle circumstances which could not be foreseen by the designers of the control software. even differing lengths of time for charging the batteries may cause problems.Subsystems in Computer Integrated Manufacturing Key Challenges to CIM There are three major challenges to development of a smoothly operating Computer Integrated Manufacturing system:  A Computer Integrated Manufacturing system is not the same as a "lights out" factory. In the case of AGVs. or where the volume of products can be changed quickly with the aid of computers. which would run completely independent of human intervention. flexible machining systems ASRS. are using different communications protocols. direct numerical control machine tools FMS. conveyors and robots. such as CNC. Part of the system involves flexible Integration of components from different suppliers: When different machines. it requires extra human labor in ensuring that there are proper safeguards for the data signals that are used to control the machines.            CAPP. While the CIM system saves on labor of operating the machines. Some or all of the following subsystems may be found in a CIM operation:  CAD/CAM (Computer-aided design/Computer-aided manufacturing)  Data integrity: The higher the degree of automation. manufacturing. although it is a big step in that direction.

Lean Manufacturing surface modellers. even from the inside Computer-aided design Computer-Aided Design (CAD) is the use of computer technology to aid in the design and particularly the drafting (technical drawing and engineering drawing) of a part or product. these objects have traditionally been represented by three projected views at right angles. allowing viewing of a designed object from any desired angle. Some CAD software is capable of dynamic mathematic modeling. including entire buildings. In representing complex. but it is also used throughout the engineering process from conceptual design and layout of products. through strength and dynamic analysis of assemblies to definition of manufacturing methods of components. in which case it may be marketed as CADD — computer-aided design and drafting. It is both a visual (or drawing) and symbol-based method of communication whose conventions are particular to a specific technical field. Overview Current Computer-Aided Design software packages range from 2D vector-based drafting systems to 3D solid and . Drafting is the communication of technical or engineering drawings and is the industrial arts sub-discipline that underlies all involved technical endeavors. saving time on their drawings. drawings. CAD has become an especially important technology within the scope of computer-aided technologies. from small residential types (houses) to the largest commercial and industrial structures (hospitals and factories).  A business system integrated by a common database. print it out and save it for future editing. Modern CAD packages can also frequently allow rotations in three dimensions. Drafting can be done in two dimensions ("2D") and three dimensions ("3D"). CAD is used in the design of tools and machinery and in the drafting and design of all types of buildings. CAD enables designers to lay out and develop work on screen. CAD is mainly used for detailed engineering of 3D models and/or 2D drawings of physical components. with benefits such as lower product development costs and a greatly shortened design cycle. three-dimensional objects in two-dimensional looking out.

such as holes. Another consequence had been that since the latest advances were often quite expensive.Uses Computer-Aided Design is one of the many tools used by engineers and designers and is used in many ways depending on the profession of the user and the type of software in question. since these can be adjusted as required during the creation of the final draft. Today. databases. the development of readily affordable Computer-Aided Design programs that could be run on personal computers began a trend of massive downsizing in drafting departments in many small to mid-size companies. although many 3D systems allow using the wireframe model to make the final engineering drawing views. one CAD operator could readily replace at least three to five drafters using traditional methods. The operator approaches these in a similar fashion to the 2D systems. The costs associated with CAD implementation now are more heavily weighted to the costs of training in the use of these high level tools. Each of these different types of CAD systems require the operator to think differently about how he or she will use them and he or she must design their virtual components in a different manner for each. small and even mid-size firms often could not compete against large firms who could use their computational edge for competitive purposes. including a number of free and open source programs. Even high-end packages work on less expensive platforms and some even support multiple platforms. There are many producers of the lower-end 2D systems. These provide an approach to the drawing process without all the fuss over scale and placement on the drawing sheet that accompanied hand drafting. further eliminating the need for traditional drafting departments. however. became standard software packages that "everyone" was expected to learn. etc. Each line has to be manually inserted into the drawing. The final product has no mass properties associated with it and cannot have features directly added to it. hardware and software costs have come down. As a general rule. the cost of . There are several different types of CAD. This trend mirrored that of the elimination of many office jobs traditionally performed by a secretary as word processors. many engineers began to do their own drafting work. 3D wireframe is basically an extension of 2D drafting. Additionally. spreadsheets. The Effects of CAD Starting in the late 1980s.

These methods can be split into three categories: 1. This includes the ability to free the user from the need to understand the design intent history of a complex intelligent model.integrating a CAD/CAM/CAE PLM using enterprise across multi-CAD and multi-platform environments and the costs of modifying design work flows to exploit the full advantage of CAD tools. through the ability to model/edit a design component from within the context of a large. even multi-CAD. . active digital mockup. 3. Whereas in the past it would be necessary for a design developed using CAD Applications The field of computer-aided design has steadily advanced over the past four decades to the stage at which conceptual designs for new products can be made entirely within the framework of CAD software. Computer-Aided Manufacturing (CAM) is the use of computer software and hardware in the translation of computer-aided design models into manufacturing instructions for numerical controlled machine tools. Enhancements to application software. One such example is improved design-in-context.Aided Manufacturing (CAM) Definition: CAD vendors have effectively lowered these training costs. Computer . User oriented modeling options. 2. Computer-Aided Manufacturing takes this one step further by bridging the gap between the conceptual design and the manufacturing of the finished product. From the development of the basic design to the Bill of Materials necessary to manufacture the product there is no requirement at any stage of the process to build physical prototypes. Improved and simplified user interfaces. This includes the availability of ―role‖ specific tailor able user interfaces through which commands are presented to users in a form appropriate to their function and expertise.

welding and milling machines. feeding updated instructions to the machine tools and seeing instant results. lower end product prices and increased profits for manufacturers. drills. lathes etc. While CAD removed the need to retain a team of drafters to design new products. CAM removes the need for skilled and unskilled factory workers. with each machine tool (i. CAM software converts 3D models generated in CAD into a set of basic operating instructions written in G-Code. translate CAD models into manufacturing instructions through paper drafts it enables manufactures to make quick alterations to the product design. G-code is a programming language that can be understood by numerical controlled machine tools – essentially industrial robots – and the G-code can instruct the machine tool to manufacture a large number of items with perfect precision and faith to the CAD design. In addition to lower running costs there are several additional benefits to using CAM software. The product is passed along the cell in the manner of a production line. further minimising human involvement. Modern numerical controlled machine tools can be linked into a ‗cell‘.software to be manually converted into a drafted paper drawing detailing instructions for its manufacture. All of these developments result in lower operational costs. CAM software represents a continuation of the trend to make manufacturing entirely automated. a collection of tools that each performs a specified task in the manufacture of a product.e. In addition. Though all numerical controlled machine tools have the ability to sense errors and automatically shut down. Computer-Aided Manufacturing software allows data from CAD software to be converted directly into a set of manufacturing instructions. many can actually send a message to their human operators via mobile phones or e-mail. many CAM software packages have the ability to manage simple tasks such as the re-ordering of parts.) performing a single step of the process. All in all. informing them of the problem and awaiting further instructions. By removing the need to Problems .

such as in volume. which both contain numerous subcategories. there are several limitations of computer-aided manufacturing. Most FMS systems comprise of three main systems. manufacturing system in which there is some amount of flexibility that allows the system to react in the case of changes. there is no universally used standard for the code itself. so it can often be a challenge to Unfortunately. covers the system's ability to be changed to produce new product types. 1. CAD systems tend to store data in their own proprietary format (in the same way that word absorb large-scale changes. This flexibility is generally considered to fall into two categories. and ability to change the order of operations executed on a part. it can become a problem when the time comes to convert 3D CAD designs into G-code. While all numerical controlled machine tools operate using G-code. which consists of the ability to use multiple machines to perform the same operation on a part. the field of computer-aided management is fraught with inconsistency. While this lack of standardisation may not be a problem in itself. FLEXIBLE MANUFACTURING SYSTEM A flexible manufacturing system (FMS) is a transfer data from CAD to CAM software and then into whatever form of G-code the manufacturer employs. The work machines which are often automated CNC machines are . capacity. setting up the infrastructure to begin with can be extremely expensive.processor applications do). Obviously. Since there is such a wide variety of machine tools that use the code it tends to be the case that manufacturers create their own bespoke codes to operate their machinery. The second category is called routing flexibility. Computer-aided manufacturing requires not only the numerical controlled machine tools themselves but also an extensive suite of CAD/CAM software and hardware to develop the design models and convert them into manufacturing instructions – as well as trained operatives to run them. machine flexibility. whether predicted or unpredicted. The first category. or capability. 2. as well as the system's ability to Additionally.

and mostly come from nodes. and data reporting are transmitted in small size. it is not always necessary that on increasing flexibility productivity also increases. are files with a large size. and other stand alone systems such as inspection machines. The use of robots in the production segment of manufacturing industries promises a variety of benefits ranging from high utilization to high volume of productivity. the finished parts will be routed to an automatic inspection node. The main advantages of an FMS is its high flexibility in managing manufacturing resources like time and effort in order to manufacture a new product. The production of each part or work-piece will require a different combination of manufacturing nodes. The message size ranges between a few bytes to several hundreds of bytes. The FMS data traffic consists of large files and short messages. Productivity increment due to automation Preparation time for new products is shorter due to flexibility   Saved labor cost. instrument to instrument communications. Numerical controlled machines (CNC). due to automation However. instrumentation devices. The movement of parts from one node to another is done through the material handling system. At the end of part processing. Advantages   computers. due to automation Improved production quality. sensors. The best application of an FMS is found in the production of small sets of products like those from a mass production. status monitoring. and subsequently unloaded from the Flexible Manufacturing System. Executive software and other data.  Industrial FMS Communication An Industrial Flexible Manufacturing System (FMS) consists of robots. while messages for machining data. Computer-controlled Machines. Each Robotic cell or node will be located along a material handling system such as a conveyor or automatic guided vehicle. . for example.connected by a material handling system to optimize parts flow and the central control computer which controls material movements and machine flow. devices and instruments.

however. reduce production times. its data transmission is unreliable. A modification of standard Token Bus to implement a prioritized access scheme was proposed to allow transmission of short and periodic messages with a low delay compared to the one for long messages. Forecasting methods may be based on mathematical models using historical data available. In addition. Accurate forecasts allow scheduler to use machine capacity efficiently. A design of FMS communication protocol that supports a real time communication with bounded message delay and reacts promptly to any emergency signal is needed. Messages for instrument data need to be sent in a periodic time with deterministic time delay. qualitative methods drawing on managerial experience.There is also some variation on response time. but it does not support prioritized access scheme which is needed in FMS communications. The existing IEEE standard protocols do not fully satisfy the real time communication requirements in this environment. The demands for reliable FMS protocol that support all the FMS data characteristics are now urgent. Other type of messages used for emergency reporting is quite short in size and must be transmitted and received with almost instantaneous response. Token Bus has a deterministic message delay. Unit – II Chapter – 4 DEMAND FORECASTING Forecasts are needed to aid in determining what resources are needed. the topology of Token Ring results in high wiring installation and cost. dust. Token Ring provides prioritized access and has a low message delay. scheduling existing resources. A single node failure which may occur quite often in FMS causes transmission errors of passing message in that node. and cut inventories. The delay of CSMA/CD is unbounded as the number of nodes increases due to the message collisions. . Large program files from a main computer usually take about 60 seconds to be down loaded into each instrument or node at the beginning of FMS operation. Because of machine failure and malfunction due to heat. a prioritized and immediate transmission of emergency messages are needed so that a suitable recovery procedure can be applied. or a combination of both. and acquiring additional resources. and electromagnetic mechanism interference is common.

follow those turning points. External Factors.Horizontal. Seasonal. target areas all contribute to changes in demand volume. or season. Lagging indicators. sales persons quotas or incentive and expansion and Four of the patterns of demands. I. 4. or the fluctuation of data around a constant mean. or less predictable gradual increases or decreases in demand over longer periods of time (years or decades). results from chance causes and thus cannot be predicted. depending on the time of day. month. Leading indicators. The fifth pattern. 2. External factors that affect demand for a firm‘s products or services are beyond management‘s control. The term demand management describes the process of influencing the timing and volume of demand or adapting to the undesirable effects of unchangeable demand patterns. . or a repeatable pattern of increase or decrease in demand. II. Internal Factors: internal decision about product or service design. are external factors with turning points that typically precede the peaks and troughs of general business cycle. are the time series with turning points that generally match those of the general business cycle. packaging design. Horizontal. and 5. random variations. and Cyclic. Coincident indicator. 3. variation in demand Generally such factors can be divided into main categories: Externals and Internals.combine in varying degrees to define the underlying time pattern of demand for a product or service. Trend.Forecasting demand in such situations require uncovering the underlying patterns from available information. price and advertising promotion. Such as the rate of business failures. Random. such as retail sales. PATTERNS OF DEMAND The five basic patterns of the most demand time series are-: 1. or unforecastable. week. typically by several weeks or months. or systematic increase or decrease in the mean of the series overtime. Trend. such as unemployment figures. FACTORS AFFECTING DEMAND contraction of geographic market. Cyclic. Seasonal.

it sometimes gets out of control. This approach has several advantages. Executive opinion can also be used for technical forecasting. Executive opinion can be costly because it takes valuable executive time. salespeople may underestimate their forecasts so that their performance will look good when they exceed their projections or may work hard only until they reach their required minimum sales.  The forecasts of individual sales force members can be combined easily to get regional or national sales. executive opinion can be used to modify an existing sales forecast to account for unusual circumstances.  The sales force is the group most likely to know which products or services customers will be buying in the near future.Forecasting methods The two general types of forecasting techniques used for demand forecasting are: Qualitative methods and Quantitative methods II. In addition.  Sales territories often are divided by district or region.  If the firm uses individual sales as a performance measure. Information broken down in this manner can be useful for inventory management. other more cautious. such as a new sales promotion or unexpected international events. Although that may be warranted under certain circumstances. distribution. b) Executive opinion Executive opinion is a forecasting method in which the opinions.  Individual biases of the sales people may taint the forecast. and in what quantities.QUALITATIVE METHODS a) Sales Force Estimate Sales force estimates are forecasts compiled from estimates of future demand made periodically by members of a company‘s sales force. and sales force staffing purposes. and technical knowledge of one or more managers are summarized to arrive at a single forecast. But it also has several disadvantages. if executives are allowed to modify a forecast without optimistic. This method of forecasting has several disadvantages. some people are naturally  Sales people may not always be able to detect the difference between what a customers ―wants‖ (a wish list) and what a customer ―needs‖ (a necessary purchase). moreover. As we will discuss later. .

2. Selecting a representative sample of households to survey. Conducting a market research study includes 1. and only fair for the long term. Accuracy is excellent for the short term. and long term. Designing a questionnaire that request economic and demographics information from each person and analyze whether the survey represents a random sample of the potential market. Deciding how an administrative sample of household to survey. . is participating. determine their adequacy. 3. The Delphi methods can be used to obtain a consensus from a panel of experts who can devote their attention to following scientific advances. mailings. This form of forecasting is useful when there are no historical data from which to develop statistical models and when managers inside the firm have no experience on which to base informed projections. which should include a random selection within the market area of the proposed product or service. A coordinator sends a question to each member of the group of outside experts. the resulting forecast will not be useful. or personal interviews. It can also be used for technological forecasting. Analyzing the information using judgment and statistical tools to interpret the responses. good for the medium term. Market research may be used to forecast demand for the short.collectively agreeing to the changes. whether by telephone polling. medium. who may not even know who else. changes in interviewed and asks whether the interviewee would be interested in the product or services. c) Market research Market research is a systematic approach to determine consumer interest in a product or services by creating and testing hypotheses through data-gathering surveys. d) Delphi method The Delphi method is process of gaining consensus from a group of experts while maintaining their anonymity. The Delphi method can be used to develop long-range forecasts of product demand and new product sales projections. and 4. make allowance for economic or competitive factors not included in the questionnaire.

r. Where Y=a + bX Y = dependent variable X = independent variable a = Y-intercept of the line b = slope of the line. The value of r can range from – 1.good in identifying turning points in new product demand. called a dependent variable. and therefore the theoretical relationship is a straight line: environment.  The process can take a long time (sometime a year or more). the dependent variable is a function of only one independent variable.  Poorly designed questionnaires will result in ambiguous or false conclusions. . However. including the following major ones. The simple moving average method is used to estimate the average of demand time series and thereby remove the effects of random fluctuation. II. It is most useful when demand has no pronounced trend or seasonal influences. The objectives of linear regression analysis is to find values of a and b that minimize the sum of squared deviations of the actual data points from the graphed line. one variable.00 to + 1. QUANTITATIVE METHOD a) Linear Regression In linear regression.society. they are known to be fair. The Delphi method has some shortcomings. confounding the results or at least further lengthening the process. and the competitive In the simple linear regression models.to. government regulations. During that time the panel of people considered to be experts may change. measures the direction and strength of the relationship between the independent variable and the dependent variable.00. The sample correlation coefficient. is related to one or more independent variables by a linear equation. b) Time series methods Simple Moving Averages. There is little evidence that Delphi forecasts achieve high degrees of accuracy.   Responses may be less meaningful than if experts were accountable for their responses.

This lag is specially noticeable with a trend because the average of the time series is systematically increasing or decreasing. method. Exponential smoothing requires an initial forecast to get started. . as in the case of a demand series with a trend.Weighted Moving Averages. However. The forecast will be more responsive than the simple moving average forecast to changes in the underlying average of the demand series. It is inexpensive to use and therefore very attractive to firms that make thousands of forecasts for each time period. Exponential smoothing has the advantages of simplicity and minimal data requirements. its simplicity also is disadvantage when the underlying average is changing. In the weighted moving average Ft+1 =(Demand this period) + (1-) (Forecast calculated last period)= Dt+(1-)Ft Ft+1 =Ft + (Dt-Ft) Larger  values emphasize recent levels of demand and result in forecasts more responsive to changes in the underlying average. There are two ways to get this initial forecast: Either use last period‘s demand or. In the simple moving average method. The sum of the weight equal 1. Smaller  values treat past demand more uniformly and result in more stable forecasts. calculate the average of several recent periods of demand. if some historical data are available. c) Exponential smoothing. 1/n. The advantage of a weighted moving average method is that it allows you to emphasize recent demand over earlier demand.0. It is the most frequently used formal forecasting methods because of its simplicity and the small amount of data needed to support it. the weights given to successive historical demands used to calculate the average decay exponentially. The effect of the initial estimate of the average on successive estimate of the average diminishes over time because. with exponential smoothing. The exponential smoothing method is a sophisticated weighted moving average method that calculates the average of a time series by giving recent demands more weight than earlier demands. each demand has the same weight in the average --namely. the weighted moving average forecast will still lag behind demand because it merely averages past demands. each historical demand in the average can have its own weight. Nonetheless.

Objectives of Production Planning The basic objectives of production planning are as under:(i) On the basis of the sales forecast and its engineering analysis. It involves foreseeing Unit – III Chapter – 1 every step in the process of production so as to avoid all difficulties and inefficiency in the operation of the plant. This is the task of production planning and control. and each operation to be done at maximum efficiency. In other words. in proper enterprise. Economy and productivity are to a large extent directly proportional to the thoroughness with which the planning and control functions are performed. each step to be taken in the right place. machinery and man-power. It determines the requirements for materials. production planning involves looking ahead. at the right time and place and by the most efficient methods possible. establishes the exact sequence of operations for each individual item and lays down the time schedule for its completion. anticipating bottlenecks and identifying the steps necessary to ensure smooth and uninterrupted flow of production. Proper planning and control of manufacturing activities or the production system is equally essential for efficient and economical production.PRODUCTION PLANNING Production planning is concerned with deciding in advance what is to be produced. and at the right time. of Production Planning and control are basic managerial functions which are essential to every organized activity. when to be produced. Production planning has been defined as the technique of Production Planning & Control forecasting or picturing ahead every step in a long series of separate operations. to estimate the kind of the resources like men. where to be produced and how to be produced. production is a complex system and steps must be taken to ensure that goods are produced in the right quantity and quality. machines. In a modern the right degree. methods etc. materials. .

the executives concerned must have complete information regarding the following:(v) (i) Engineering data including complete analysis of the product to be manufactured . and the maximum plant capacity per (ii) It also aims to make all necessary arrangement so that the production targets as set in the production budget and master schedules are reached. (ii) Machine analysis giving full information regarding speeds of all available machines and their maximum capacity to perform certain operations. adjustments are made for the (iv) (iii) day for each process or operation. Information relating to power production and consumption. quality and quantity of the raw material to be used in each process or operation. It also estimates when and where these resources will be required so that the production of the desired goods is done most economically.quantities and qualities. internal transport and material handling service. Also. (vi) information as to raw materials in stores. Material analysis giving full information as to the type. week or month. The various types and classes of tools and equipment required of production. fluctuations in the demand. For an effective planning of production activities. . the nature of inspection required. how much are on order. The characteristics of each job and the degree of skill and personnel qualifications required for the effective performance of each such job.the operations. While attaining these targets. and the method of assembly. and how much are a located or reserved for current orders. processes and methods through which each component or class of product must pass. and the rate of output per day.

Levels of Production Planning Production planning can be done at three levels namely Factory Planning. It is the job of the production department to arrange for the order in which the work will be done the routing and scheduling of work. Then the . and what for stock purpose.(vii) Job analysis giving information as to what methods of operation would yield uniformity of output. and determine what machines tools. equipment and labour by controlling all time and efforts essential in manufacturing. sequence of work/ tasks is planned in terms of building machines and equipment required for manufacturing the desired goods and services. facilitate selling and customer service. workplaces materials and operatives should do the work. It would promote fuller utilization of plant. and the delivery for customers. In process planning these operations are located and the sequence of these operations in the production process is determined. The relationship of workplaces in terms of departments is also planned at this stage taking into consideration the space available for the purpose. Process Planning and Operation Planning which are as follows: (i) Factory Planning: At this level of planning the (viii) Information as to the customers orders on hand. ease in production and reduction in costs. and help reduce production cost by providing reliable basis for investment in raw materials and tools. A balanced production planning would tend to increase operating efficiency by stabilizing productive activities. selection of work centers. designing of tools required for various operations. (iii) Operation Planning: It is concerned with planning the details of the methods required to perform each operation viz. (ii) Process Planning: There are many operations involved in factory planning for transforming the inputs into some desired end product. Plans are also made for the layout of work centers in each process.

a high degree of standardization and trained personnel for its successful operation. Production control may be defined as ―the process of planning production in advance of operations. PRODUCTION CONTROL All organizations irrespective of size. production control assures a more positive and accurate completion and delivery date. assembly and the finished products. production control regulates the orderly flow of materials in the manufacturing process from the raw material stage to the finished product. Specifications about each the enterprises. but in large complex industries the production control department is normally wellorganised and highly specialized. An effective production control system requires reliable information. and it involves the use of various control techniques to ensure production performance as per plans.sequences of work elements involved in each operation are planned. and releasing the necessary orders as well as initiating the required follow-up to effectivate the smooth functioning of A sound production control system contributes to the efficient operation of plant. use production control to some degree. Production control Production control aims at achieving production targets. In terms of manufacturing customer‘s orders. increased profits through productivity. Co-ordinating men and materials and machines is the task of production control. production control is the art and science of ensuring that all which occurs is in accordance with the rules established and the instructions issued‖. part of assembly. presupposes the existence of production plans. sound organization structure. This not only increases the plant efficiency but also makes it a more . Delivering an order on time is obviously important to the customer and to the development of customer goodwill.‖ According to Henry Fayol. better and more economic goods and services etc. nature of tools required and the time necessary for the completion of each operation are prescribed. establishing the exact route of each individual item. optimum use of available resources. the production control may be performed by one person. Production control also brings plan and order to chaotic and haphazard manufacturing procedures. In small organizations. transfer. work centers. Thus. setting and finishing dates for each important item.

Objectives of Production Control The success of an enterprise greatly depends on the performance of its production control department. (viii) (vii) To perform inspection of semi-finished and finished goods and use quality control techniques to ascertain that the produced items are of required specifications. (ii) To organize production schedule in conformity with the demand forecasts. The production control department generally has to perform the following functions: (i) Provision of raw material. good production control helps a company operate and produce more efficiently and achieve lowest possible costs. making possible a real saving in both labour and material investment. Most people recognize that employees prefer to work and do better work under conditions of obvious control and plan. Programming . It is also responsible for product design and development. machines and labour. (vi) To ensure regular and timely supply of raw material at the desired place and of prescribed quality and quantity to avoid delays in production. (iii) The resources are used in the best possible manner in such a way that the cost of production is minimized and delivery date is maintained. Morale may be considerably (v) Proper co-ordination of the operations of various sections/departments responsible for production. equipment. Thus.pleasant place in which to work. improved. at the right time with minimum efforts and cost. Thus the fundamental objective of production control is to regulate and control the various operations of production process such a way that orderly flow of material is ensured at different stages of the production and the items are produced of right quality. in right quantity. (iv) Determination of economic production runs with a view to reduce setup costs. Effective production control also maintains working inventories at a minimum.. Levels of Production Control Production control starts with some particular goal and formulation of some general strategy for the accomplishment of desired objectives. There are three levels of production control namely programming. ordering and dispatching.

Dispatching considers each processing department in turn and plans the output from the machine. production usually requires more time. a) Nature of production: In job-oriented manufacturing. becomes necessary. tools and other work centers so as to complete the orders by due date. Ordering plans the output of components from the suppliers and processing departments. In mixed stock and custom manufacturing systems the problem of control is further complicated due to simultaneous scheduling of combined process. decentralization of some production control functions Factors Determining Production Control The nature of production control operations varies from organization to organization. terms of their nature.plans the output of products for the factory as a whole. c) Magnitude of operations: Centralised control secures the most effective co-ordination but as an organization grows in size. b) Nature of operations/activities: In intermittent Production planning and control may be defined as the direction and coordination of the firm‘s material and physical manufacturing system the operations are markedly varied in . Similarly. PRODUCTION PLANNING AND CONTROL Planning and control are interrelated and interdependent. Planning is meaningless unless control action is taken to ensure the success of the plan. Control also products and operations are designed for some particular order which may or may not be repeated in future. Therefore. The degree to which the performance of an activity should be decentralized depends upon the scope of operations and convenience of their locations. The following factors affect the nature and magnitude of production control methods in an organization. sequence and duration. production and control should be considered an integrated function of planning to ensure the most efficient production and regulation of operations to execute the plans successfully. Due to this the control procedure requires continuous modifications and adjustments to suit the requirements of each order. Hence provides information feedback which is helpful in modifying the existing plans and in making new plans. control is dependent on planning as the standards of performance are laid down under planning. whereas in a continuous manufacturing system inventory problems are more complex but control operations are rather simple due to fixed process.

routing. quality. tools. materials. scheduling. establishing the exact route of each individual item. The production planning and control tries to ensure that the schedules to be issued to the various departments/units/supervisors are in coordination with the master schedule. dispatching and expediting to coordinate the movements of materials. production planning and control aims at the following purposes: a) Continuous Flow of Production: It tries to achieve as smooth and continuous production by eliminating successfully all sorts of bottlenecks in the process of production through well-planned routing and scheduling requirements relating to production work. d) Optimum investment Inventory: in It aims at minimum with inventories consistent continuous flow of production. c) Co-ordinated work Schedules: activities planned and The production out in a carried manufacturing organization as per the master schedule. machines. In other words. Thus.e. It is based upon the old adage of ―first plan your work and then work your plan‖. production planning and control involves planning. machines and manpower as to quantity.It is the process of planning production in advance of operations. and releasing the necessary orders as well as initiating the required follow up to effectuate the smooth functioning of the enterprise. setting starting and finishing dates for each important item or assembly and finished products. Objectives of Production Planning and Control The main objective of production planning and control is to ensure the coordinated flow of work so that the required number of products are manufactured in the required quantity and of required quality at the required time at optimum efficiency. of the required quality and at the required time so that desired targets of production may be achieved. . equipment and manpower in the required quantity. b) Planned Requirements of Resources: It seeks to ensure the availability of all the inputs i. time and place.facilities towards the attainment of pre-specified production goals in the most efficient available way . part or assembly.

purchasing. Importance of Production Planning and Control The system of production planning and control serves as the nervous system of a plant. improving relations with customers and promoting profitable repeat orders. any deviation between planned and actual operations. (ii) Fewer Rush Orders :In an organization. Delivery in time and proper quality. The principal advantages of production f) Customer Satisfaction : It also aims at satisfying customers‘ requirements by producing the items as per the specifications or desires of the customers. helps in providing better services to customers is terms of better quality of goods at reasonable prices as per promised relatively stable and consistent with the quantity of sales. This is achieved by optimizing the use of productive resources and eliminating wastage and spoilage.ordinating agency which co-ordinate the activities of engineering.e) Increased Productivity: It aims at increased productivity by increasing efficiency and by being economical. operations move smoothly as per original planning . production planning and control is expected to keep a constant check on operations by judging the performance of various individuals and workshops and taking suitable corrective measures if there is effective production. h) Evaluation of Performance: The process of delivery dates. both help in winning the confidence of customers. It is a co. It is essential in all plants irrespective of their nature and size. It seeks to ensure delivery of products on time by coordinating the production operations with customers‘ orders. where there is system of production planning and control. production. selling and stock control departments. through proper scheduling and expediting of work. An efficient system of production planning and control helps in providing better and more economic goods to customers at lower investment. g) Production and Employment Stabilisation: planning and control are summarized below: (i) Better Service to Customers: Production planning and Production planning and control aims at ensuring production and employment levels that are control.

industrial harmony and. transfer. (iv) More Effective Use of Equipment : An efficient production planning and control co-ordinates the activities of all the departments involved in the production activity. (vii) Good public image: A proper system of production planning and control is helpful in keeping systematized operations in an organization . increased profits . it is possible to ensure proper utilization of equipment and other resources. (vi) Improved Plant Morale: An effective system of production planning and control helps in maintaining inventory at proper levels and. (viii) Lower capital requirements: Under a sound system of production planning and control . everything relating to production is planned well in advance of operations. thereby. which contributes to more effective purchasing. minimizing investment in inventory. It requires lower inventory of work-in-progress and less finished stock to give efficient service to customers. in the same industry. unnecessary purchases of equipment and materials can be avoided. (iii) Better Control of Inventory: A sound system of (v) Reduced Idle Time: Production planning and control helps in reducing idle time i. Also. Customers satisfaction leads to increased sales.and matching with the promised delivery dates. equipment and personnel requirements for next few weeks. without adequate production planning and control. Consequently. because ensures that material and other facilities are available to the workers in time as per the production schedule. It ensures even flow of work and avoids rush orders. It provides information to the management on regular basis pertaining to the present position of all orders in process. there is improve plant morale as a by-product.e. . there will be fewer rush orders in the plant and less overtime than. lay-offs. less man-hours are lost. loss of time by workers waiting for materials and other facilities. etc. ultimately. good public image of the enterprise . The workers can be communicated well in advance if any retrenchment. It maintains healthy working conditions in the plant thus. which has a positive impact on the cost of production. Consequently. is likely to come about. It also helps in exercising better control over raw-material inventory.Such an organization is in a position to meet its orders in time to the satisfaction of its customers. system of production planning and control makes for the most effective use of equipment. Thus.

each operation' as well as it determines the sequence of operations to be followed. which each part of the product will follow. in minimizing capital investment in equipment and inventories. Human factors. when and what is required in the form of input is known before the actual production process starts . Factors Affecting Routing Procedure:    Manufacturing type Availability of plant equipment and its component parts. Therefore. This closely inter elated with activities of dispatcher to whom is delegated scheduling responsibility 2. Dispatcing Dispatching is concerned with the starting the processes.Thus . It gives necessary authority so as to start a particular work. Follow – up Follow up which regulates the progress of materials and parts through the Production process. Scheduling may be defined as 'the fixation of time and date for . dispatching is ‗Release of orders and instruction for the starting of production for any item in acceptance with the Route sheet and Schedule Charts‘ 4.Where. 3. Scheduling Scheduling determines the programme for the operations. which being transformed from raw material to finished products.production planning and control helps. Routing determines the most advantageous path to be followed for department to department and machine to machine till raw material gets its final shape. Basic Elements of PPC ( Refer Class notes also) 1. Routing Routing may be defined as the selection of path. which has been already been planned under ‗Routing‘ and ‗Scheduling‘.Inputs are made available as per schedule which ensures even flow of production without any bottlenecks .Facilities are used more effectively and inventory levels are kept as per schedule neither more nor less .

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