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

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

quality and time schedule are the objectives that determine the extent of customer satisfaction.performance objectives and cost objectives. and seasonal basis Markets served productive system regional. to the achievement Availability achieved by keeping the of objectives and eventually the purpose or mission of an productive system open for organization . certain objectives & goals to achieve since the objectives of an organization have hierarchical structure. there is very little if any. advantage of economies of scale of local customers. In product systems. Thus quantity. 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. contact between the producers and consumer. daily and weekly bases .to produce the services. properly structured and explicitly High contact with clients or stated.It is very important that these objectives should services be unambiguously identified. Thus various objectives local markets can be grouped as. In addition the person being served often participates in the productive process. as they are needed. 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. monthly. sub-goals lead to  accomplishment of goals. national international by are and Demand commonly variable right quality as per schedule and at a minimum cost. Location dependent on location      Large units that can take . 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. consumed in the process of their production Every system (or organization) has a purpose. on hourly. which contribute.

customer complaints etc. II. c) Quality: Quality is the extent to which a product or service satisfies the customer needs. waiting etc. we should consider the total relevant systems costs including visible and invisible. Where efficiency may refer to ―doing things right‖. 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.I.such as delayed supplies. back-logging. storage. Costs can be explicit or implicit. is calculated in order to enhance overall capacity utilization. e) Capacity utilization: Percentage utilization manpower. delays. machines etc. 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. b) Effectiveness: It concerns expressed whether a right set of outputs is being produced. A longer term cost . f) Flexibility: If the conversion process has the flexibility of producing a combination of outputs. 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. Cost objectives For the purpose of managerial decision-making. it is possible to satisfy a variety of customer needs. will reduce throughput time. effectiveness may mean ―doing the right things‖. While managing production systems we must consider the visible and invisible. Performance Objectives The performance objectives may include: a) Efficiency or productivity expressed unit of input. Thus cost minimization is an important systems objective. These could be tangible in economic terms or intangible in social cost terms.

Marketing Department – Making demand forecasting. customer satisfaction. Types of Production system POM RELATION WITH OTHER FUNCTIONAL AREAS 1.implication rather than only short-term will help in arriving at better decision.. machinery. materials ect. 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 .Recruit people ( Labour) for production Department activities. 2. marketing research etc.Human Resource . Finance – Allocation Funds ( Money) for production department ( for purchasing land ..) 3.

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

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

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

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

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

COMPARISON OF DIFFERENT PRODUCTION SYSTEM As we have discussed various system and sub-system in detail in the above lines. it is lower in case of job production and comparatively higher in batch production. (2) SIZE AND CAPITAL INVESTMENT : as stated batch production require high skilled technical foreman and other executives . mass production or process production employ single purpose machine in their manufacturing process. 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. Unit cost in mass production is higher while it is lower than the batch production or job production. (3) FLEXIBILITY IN PRODUCTION : in case of in demand of the product. Hence the size of . Process production calls for the higher investment while mass production requires lesser amount of capital investment . medium in batch production. we can now make a comparative study of them as follows (1) MANUFACTURING COST : Cost of capital investment different from system. 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.But both the sub-system of continuous production system i. the production facilities may be adjust very shortly with out increasing much expenses under the system of job or batch production .DEMERITS :   work-in-progress inventory is high and large storage space is required . earlier . large in mass production and very large in process production.e. 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. the scale of operation is small in job production. but under mass production for process production systems.

milk processing industries etc. batch production is mostly used in mechanical engeering and consumer-goods industries like cotton. functional organization is adopted in case of job and batch production systems. electricals goods etc. sugar refining. On the contrary. mass production is found in automobiles. process production is most appropriate in chemical . machine tools . 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 . The mechanisum of job production applies in products of construction and manufacturing industries like building . bridges special purpose machines etc. divisional organization is preferred in mass product process production system due to the greater emphasis for centralization. petroleum .(5) ORGANISATIONAL STRUCTURE : mostly shoe-making etc. workers particularly unskilled worker are thrown out of job. of different system is suitable in different industries depending upon the nature of work. 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. jute . On the other hand . 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. refrigerators .

Product specifications 4.. 3. or legal •Competitive •Technological OBJECTIVES OF PRODUCT DESIGN Main focus 4. Reverse Engineering . liability. 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. Feasibility analysis 3.• • • Formulate cost targets Construct and test prototypes Document specifications FORMS OF PRODUCT DESIGN 1.is a form of standardization in which component parts are subdivided into modules that are easily replaced or interchanged.Reverse engineering is the dismantling and inspecting of a competitor‘s product to discover product improvements. Priliminary Design – Pre design or proto type of the product design 2. Prototype development . Final Design – Final decision making of the product design after testing etc.Modular Design . Idea generation 2. Process specifications 5. 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.

and market trends all have a strategic impact on the make-or-buy decision. competing firms. transportation. Follow-up evaluation UNIT – II Chapter – 2 Make-or-Buy Decisions environment. Market test 8. Make-or-buy analysis is conducted at the strategic and operational level. the strategic level is the more long-range of the two. Variables considered at the strategic level include analysis of the future.6. Design review 7. Issues like government regulation. Product introduction 9. 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. 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). Obviously. 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 . The buy side of the decision also is referred to as outsourcing. or has diminishing capacity or changing demand.

II Chapter – 3 Modern Production Management . 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.. 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 .  Provision of a second source Political.g.

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

the more critical is the integrity of the data used to control the machines. are using different communications protocols. In the case of AGVs. (Computer-aided process planning) ERP (Enterprise resource planning) CNC (computer numerical control) machine tools DNC. where the factory can be quickly modified to produce different products. direct numerical control machine tools FMS. although it is a big step in that direction. While the CIM system saves on labor of operating the machines. . or where the volume of products can be changed quickly with the aid of computers.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. it requires extra human labor in ensuring that there are proper safeguards for the data signals that are used to control the machines. conveyors and robots. flexible machining systems ASRS. manufacturing. Part of the system involves flexible Integration of components from different suppliers: When different machines. 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. which would run completely independent of human intervention. such as CNC. even differing lengths of time for charging the batteries may cause problems.            CAPP. automated storage and retrieval systems AGV. 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.

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

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

through the ability to model/edit a design component from within the context of a large. 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. 2. One such example is improved design-in-context. 3.Aided Manufacturing (CAM) Definition: CAD vendors have effectively lowered these training costs. even multi-CAD. This includes the ability to free the user from the need to understand the design intent history of a complex intelligent model. 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. active digital mockup. Enhancements to application software. These methods can be split into three categories: 1. Improved and simplified user interfaces.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. 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. Computer-Aided Manufacturing takes this one step further by bridging the gap between the conceptual design and the manufacturing of the finished product. User oriented modeling options. 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. Computer . .

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

which consists of the ability to use multiple machines to perform the same operation on a part. The first category. The work machines which are often automated CNC machines are . machine flexibility. The second category is called routing flexibility. whether predicted or unpredicted. CAD systems tend to store data in their own proprietary format (in the same way that word absorb large-scale changes. 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. While all numerical controlled machine tools operate using G-code. and ability to change the order of operations executed on a part. While this lack of standardisation may not be a problem in itself. it can become a problem when the time comes to convert 3D CAD designs into G-code.processor applications do). as well as the system's ability to Additionally. or capability. This flexibility is generally considered to fall into two categories. 2. Obviously. capacity. which both contain numerous subcategories. such as in volume. covers the system's ability to be changed to produce new product types. 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 are several limitations of computer-aided manufacturing. 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. there is no universally used standard for the code itself. setting up the infrastructure to begin with can be extremely expensive. the field of computer-aided management is fraught with inconsistency. 1. 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. so it can often be a challenge to Unfortunately.

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

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

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

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. it sometimes gets out of control.  Sales territories often are divided by district or region. and in what quantities. and technical knowledge of one or more managers are summarized to arrive at a single forecast. executive opinion can be used to modify an existing sales forecast to account for unusual circumstances. Executive opinion can also be used for technical forecasting. 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. Information broken down in this manner can be useful for inventory management. This method of forecasting has several disadvantages.  The forecasts of individual sales force members can be combined easily to get regional or national sales. if executives are allowed to modify a forecast without optimistic. and sales force staffing purposes. 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). Although that may be warranted under certain circumstances. b) Executive opinion Executive opinion is a forecasting method in which the opinions. moreover.Forecasting methods The two general types of forecasting techniques used for demand forecasting are: Qualitative methods and Quantitative methods II. Executive opinion can be costly because it takes valuable executive time. In addition. distribution. This approach has several advantages.  The sales force is the group most likely to know which products or services customers will be buying in the near future. .  Individual biases of the sales people may taint the forecast. such as a new sales promotion or unexpected international events. other more cautious. But it also has several disadvantages.  If the firm uses individual sales as a performance measure. As we will discuss later.

changes in interviewed and asks whether the interviewee would be interested in the product or services. The Delphi method can be used to develop long-range forecasts of product demand and new product sales projections. or personal interviews. and 4. 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. Analyzing the information using judgment and statistical tools to interpret the responses. and long term.collectively agreeing to the changes. 2. and only fair for the long term. A coordinator sends a question to each member of the group of outside experts. 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. make allowance for economic or competitive factors not included in the questionnaire. good for the medium term. 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. mailings. 3. is participating. the resulting forecast will not be useful. whether by telephone polling. It can also be used for technological forecasting. Accuracy is excellent for the short term. determine their adequacy. Market research may be used to forecast demand for the short. d) Delphi method The Delphi method is process of gaining consensus from a group of experts while maintaining their anonymity. who may not even know who else. The Delphi methods can be used to obtain a consensus from a panel of experts who can devote their attention to following scientific advances. medium. which should include a random selection within the market area of the proposed product or service. Conducting a market research study includes 1. . Deciding how an administrative sample of household to survey. Selecting a representative sample of households to survey.

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

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

production is a complex system and steps must be taken to ensure that goods are produced in the right quantity and quality. anticipating bottlenecks and identifying the steps necessary to ensure smooth and uninterrupted flow of production. at the right time and place and by the most efficient methods possible. materials. 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. production planning involves looking ahead. 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. and at the right time. establishes the exact sequence of operations for each individual item and lays down the time schedule for its completion. where to be produced and how to be produced. when to be produced. and each operation to be done at maximum efficiency. machines. of Production Planning and control are basic managerial functions which are essential to every organized activity. Proper planning and control of manufacturing activities or the production system is equally essential for efficient and economical production. In other words. machinery and man-power. This is the task of production planning and control. in proper enterprise. 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. to estimate the kind of the resources like men. .PRODUCTION PLANNING Production planning is concerned with deciding in advance what is to be produced. Economy and productivity are to a large extent directly proportional to the thoroughness with which the planning and control functions are performed. methods etc. In a modern the right degree. each step to be taken in the right place. It determines the requirements for materials.

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

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

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

equipment.pleasant place in which to work. (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.. Most people recognize that employees prefer to work and do better work under conditions of obvious control and plan. (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. improved. Thus. The production control department generally has to perform the following functions: (i) Provision of raw material. in right quantity. Objectives of Production Control The success of an enterprise greatly depends on the performance of its production control department. (iv) Determination of economic production runs with a view to reduce setup costs. It is also responsible for product design and development. Effective production control also maintains working inventories at a minimum. 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. Morale may be considerably (v) Proper co-ordination of the operations of various sections/departments responsible for production. There are three levels of production control namely programming. at the right time with minimum efforts and cost. machines and labour. good production control helps a company operate and produce more efficiently and achieve lowest possible costs. (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. making possible a real saving in both labour and material investment. Levels of Production Control Production control starts with some particular goal and formulation of some general strategy for the accomplishment of desired objectives. Programming . ordering and dispatching. (ii) To organize production schedule in conformity with the demand forecasts.

Planning is meaningless unless control action is taken to ensure the success of the plan. control is dependent on planning as the standards of performance are laid down under planning. The following factors affect the nature and magnitude of production control methods in an organization. terms of their nature. tools and other work centers so as to complete the orders by due date. Therefore. 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.plans the output of products for the factory as a whole. Due to this the control procedure requires continuous modifications and adjustments to suit the requirements of each order. PRODUCTION PLANNING AND CONTROL Planning and control are interrelated and interdependent. c) Magnitude of operations: Centralised control secures the most effective co-ordination but as an organization grows in size. The degree to which the performance of an activity should be decentralized depends upon the scope of operations and convenience of their locations. production usually requires more time. Hence provides information feedback which is helpful in modifying the existing plans and in making new plans. 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. 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. becomes necessary. Control also products and operations are designed for some particular order which may or may not be repeated in future. whereas in a continuous manufacturing system inventory problems are more complex but control operations are rather simple due to fixed process. Dispatching considers each processing department in turn and plans the output from the machine. a) Nature of production: In job-oriented manufacturing. Ordering plans the output of components from the suppliers and processing departments. sequence and duration.

It is based upon the old adage of ―first plan your work and then work your plan‖. dispatching and expediting to coordinate the movements of materials. of the required quality and at the required time so that desired targets of production may be achieved.facilities towards the attainment of pre-specified production goals in the most efficient available way . part or assembly. 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. machines. 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. equipment and manpower in the required quantity. d) Optimum investment Inventory: in It aims at minimum with inventories consistent continuous flow of production. quality. setting starting and finishing dates for each important item or assembly and finished products. routing.e. materials. scheduling. machines and manpower as to quantity. time and place. Thus. and releasing the necessary orders as well as initiating the required follow up to effectuate the smooth functioning of the enterprise. In other words. tools. b) Planned Requirements of Resources: It seeks to ensure the availability of all the inputs i. 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. c) Co-ordinated work Schedules: activities planned and The production out in a carried manufacturing organization as per the master schedule. establishing the exact route of each individual item.It is the process of planning production in advance of operations. . production planning and control involves planning.

purchasing. Importance of Production Planning and Control The system of production planning and control serves as the nervous system of a plant. where there is system of production planning and control. It seeks to ensure delivery of products on time by coordinating the production operations with customers‘ orders. It is a co. (ii) Fewer Rush Orders :In an organization. both help in winning the confidence of customers. 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. selling and stock control departments. production. through proper scheduling and expediting of work. h) Evaluation of Performance: The process of delivery dates. 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. improving relations with customers and promoting profitable repeat orders. This is achieved by optimizing the use of productive resources and eliminating wastage and spoilage. 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.ordinating agency which co-ordinate the activities of engineering. operations move smoothly as per original planning . Delivery in time and proper quality. 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. It is essential in all plants irrespective of their nature and size. any deviation between planned and actual operations.e) Increased Productivity: It aims at increased productivity by increasing efficiency and by being economical.

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

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

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