Production/Operations Planning & control (A

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Production/Operations Planning & control
Production planning / Operation planning: Involves the organization of an overall manufacturing / operating system to produce a product. Various activities involved are i) designing the product ii) determining the equipment & capacity requirements, iii) designing the layout of physical facilities & MH system, iv) determining the sequence of operations to be performed along with time requirements (standard times) & v) specifying certain production quantity & quality levels Objective is to provide a physical system together with a set of operating guidelines for efficient conversion of raw materials, human skills & other inputs in to finished products

It also includes the task of planning for the manufacturing of a modified version of an existing product. It may begin with a product idea & a plan for the design of the product & the entire production / operating system to manufacture the product. The wide difference between the planning procedures of one company from the other is primarily due to the differences in the economic & technological conditions under which the firms operate. using the exiting facilities.Production/Operations Planning & control-contd Factors determining Production Planning procedures It differs from company to company. 3. Contd on next slide .major factors determining the planning procedures are: (1) Volume of production (2) Nature of production processes (3)Nature of operations.

In case of custom order job shop.Production planning may be informal & the development of methods is left to the individual workman who is highly skilled. process designers & method engineers are involved in designing the product & manufacturing process. equipment designers. the planning of production is limited to planning for purchase of raw materials & components & determination of work centers which have the capacity of manufacturing the product In high volume operations.Production/Operations Planning & control-contd (1) Volume of production. (2) Nature of production processes In job shop.many product designers. . extensive production planning is necessary in planning for design of both the product & the production processes in order to achieve substantial cost reduction when large number of products are produced. In high volume production.The Production Planning is expected to reduce manufacturing costs.

in case of a single standardized product..Chemicals. food products. watches etc. yarn etc The degree to which production planning is carried.Manufacture of Automobiles. Production planning system – has Two . Ex .Production/Operations Planning & control-contd (3) Nature of OperationsDetailed production planning is required for repetitive operations.interrelated sub systems i) Product planning system & ii) Process planning system Refer the figure on the next slide . soap. varies with the nature of the process. e. ii) Manufacturing to stock & sell (under repetitive batch or mass production).g. Variants in manufacturing approach are: i) Manufacture to order which may or may not be repeated at regular intervals. iii) Manufacturing to stock & sell (under continuous process manufacturing) Ex.

Production/Operations Planning & control-contd Product Planning System Market Requirements Product specifications Product Ideas Process Planning System Process R&D Work Station Selection Operation Design Operation Control Operation Method Sequence Feedback Process Design Work Flow Analysis Product Research Product Development Final Product Design Production Planning System .

i. the results of the production activities. w. iv) Achieve the broad objectives of the low cost production & reliable customer service. iii) Provide for optimum utilization of all resources.Production/Operations Planning & control-contd Production Control:Importance of control function:The function of production control is to: i) Provide for the production of parts.p & finished goods b) Balanced & stabilized production c) Maximum utilization of men. assemblies & products of required quality & quantity at the required time. parts. machines & equipments & space d) Minimum investment in inventory e) Reduction in indirect & set-up costs f) Reduction in scrap & rework costs g) Reduction in inventory costs contd-next slide . ii) Coordinate. Benefits of Production Control!) Improvement in profits througha) Maintenance of balanced inventory of materials. monitor & feed-back to manufacturing management. analyzing & interpreting their significance & taking corrective action if necessary.

Production/Operations Planning & control-contd Benefits of Production Control.contd 2) Competitive advantagea) Reliable delivery to customers. Elements of Production Control1) Control of planning 2) Control of materials 3) Control of tooling 4) Control of Manufacturing activities 5) Control of activities 6) Control of Quantity 7) Control of material handling 8) Control of due dates 9) Control of information . b) Shortened delivery schedule to customers c) Lower production costs & greater pricing flexibility d) Orderly planning & marketing of new or improved products.

Production Planning & control (B) .

capacity planning.Man-power planning f) How much to produce. materials planning. subcontracting planning d) When to produce.Facilities planning. e) Who will produce.Product Planning & development includes product design b) How to produce.Production scheduling & machine loading.Process planning.Planning for quantity & economic batch size etc . tools planning etc c) Where to produce.Production Planning & control-(PPC) This function is concerned with decision making regardinga) What to produce.

6 Maintain flexibility in manufacturing operations 7 Coordination between labour. 3 Production of quality goods 4 Minimise product throughput time or production / manufacturing cycle time. Objectives of Production Planning & control : 1 Delivery of quality goods in required quantities to customer in the required delivery schedule 2 Maximum utilisation of all resources. delivery schedule & cost of production. . & supporting deptts. quantity. 5 Maintain optimum inventory level. m/cs.Production Planning & control Production Planning & control function essentially consists of planning in a manufacturing organization before actual production activities starts & exercises control activities to ensure that the planned production is realized in terms of quality.

13 Establish routes & schedules for work that will ensure optimum utilisation of labour. & provide the means for ensuring the operation of the plant in accordance with these plans. 12 Produce effective results for least total cost .Production Planning & control-contd Objectives of Production Planning & control-contd 8 Plan for plant capacity for future requirements 9 Remove bottle-neck at all stages. . equipments & machines. 14 Ultimate objective is to contribute to the profit of the enterprise. & solve production related problems 10 Effective cost reduction & cost control 11 Prepare production schedule & delivery by scheduled dates.

right time. 3) Machines & equipments : Manufacturing methods are related to production facilities available in the production system.It encompasses 1) Materials: Planning for procurement of RM. maintenance schedules. variety reduction. capacity planning. storage. value analysis & inspection. . components/ parts in right quantities/specifications. 2) Methods: Choosing the best method of processing from several alternatives. from right source & at the right price. standardization. Other activities associated with the materials are purchasing. allocation & utilization plant & equipments. Tools manufacturing & maintenance etc. machineries etc It also involves equipment replacement policy. It involves facilities planning. including the best sequence of operations (Process Planning) & planning for tooling /Jigs/Fixtures. inventory control.Production Planning & control-contd Scope of Production Planning & control.

5) Routing: Determining the flow of work. supervisory. . sequence of operations or processing steps. 6) Estimating: Estimating operations time leading to fixation of performance standards both for workers & machines. temporary storage locations for raw materials.Production Planning & control-contd Scope of Production Planning & control – contd 4) Manpower: Planning for Human resources (labour. material handling in the plant. components & semifinished goods & material handling systems. This is related to considerations of appropriate shop layout. 7) Loading & scheduling: Machine loading is allocation of jobs to the machines in conjunction with due consideration for capacity of machines & priority for jobs in order to utilize the machines to the maximum possible extent. & managerial levels) having appropriate skills & expertise.

10)Inspection: This relates to maintenance of quality in production (evaluating processes/methods/ workers for improvements) to achieve the quality standards set by product design. follow-up or progressing which is done after the dispatching function. 9) Expediting: Means chasing. It is the release of orders & instructions for starting of production as per route sheets & schedule charts. process/labour performance evaluation for improvement) 12)Cost control: By waste reduction/ value analysis. It gives necessary authority to start a particular work already planned under routing & scheduling. inventory control & efficient utilization of all resources. 11) Evaluating): Its objective is to improve the performance (m/cs. . It keeps a close liaison with scheduling in order to provide an efficient feed-back & prompt review of targets & schedules.Production Planning & control-contd Scope of Production Planning & control – contd 8) Dispatching: It is concerned with execution of planning function.

Includes status reporting. (b) Active planning-Involves planning for quantity. quality control. (a) Pre-planning. inventory control. facilities planning. materials control. capacity planning. (3) Control Phase. plant planning.Production Planning & control-contd Phases in PPC Function: (1) Planning phase. labour output control & cost control. . process planning. routing. scheduling. Plant location & plant layout.Involves Product planning & development.(a) Pre-planning (b) Active planning. materials planning. & tools planning (2) Action Phase-Execution or implementation phase includes the dispatching & progressing function. tools control. determination of product-mix. demand forecasting.

Production Planning & Control Production Planning Production Control i) ii) iii) iv) Estimating Routing Scheduling Loading i) ii) iii) iv) Dispatching Expediting/Follow-up Inspection Evaluating & Corrective action .Production Planning & control-contd Main functions of PPC department are shown in the following figure.

iii) Major machinery & process plans. subassemblies & final assembly iii) Short range plan for purchasing materials iv) Short range shop-floor plans 1) Long Range (Strategic Planning) 2)Interme-diate range (Tactical plan) 3) Short Range (Operatio nal Plan) i) Long Range demand forecast ii) Availability of fund & Business analysis iii) Capacity data & Analysis Intermediate Range demand forecast Long range capacity plan Aggregate capacity plans i) Short Range demand forecast ii) On hand customer orders iii) Other orders ( IntraCompany) iv) Availability of material from suppliers i) Master production schedule ii) Capacity requirement Planning iii) Material requirement planning . i) Employment plan ii) Machinery & utility plans iii) contract & material supply contract iv) Facility modification plan i) Short range production schedule for end products ii) Short range production schedule for parts. layout. size. components.Production Planning & control-contd Levels of Planning in a Production Planning System Planning Horizon Inputs Plans / Schedules Out-Puts i) Production capacity plans. (Plant location. capacities etc ii) Major sub contracting plans.

Chart 8-Production report 6 PPC deptt 7 Production 8 Prroduction . 8 Progress/Status of work Source of Information 1-The sales order or the order accepted by marketing 2-Design deptt which translate customer needs in to specifications 3-Drawing & Bill of materials (BOM). purchase & stores 3-PPC deptt 4 PPC deptt 5 Industrial Engg deptt 6-Work measurement Data 7-M/c load & sch.PP&C-contd Information required for PPC Information required 1 Production programme • Quantity to be produced Delivery date • Variety / different models & spl features 2 Quality standards-specs & tolerance 3 Production materials •Type of materials Quality & quantity •Procurement lead-time Stock position 4 Toolings 5 Operational details Sequence of operations. Material stock card 4-Standard & special tools 5-Process sheets Load charts Process capability study Department 1-Marketing deptment 2-Engg. Process capability of machines/ equipments Jigs & Fixtures needed Cutting parameters/ Process parameters 6 Standard times for operations/ set-up time 7 Starting & finishing dates.

compare progress with plan continuously Inspection. Quality control Evaluation of Production System.feedback for improvement Finished goods stock Dispatch to customer Production Procedure .Sales forecast Preparation of production Budget –FIN/PRODUCTION Preparation of details by Engg Deptt (Drg/BOM/Spec Production Planning.despatch of prodn order Management Feedback Control function.supplies data to dispatch section Customer Authorisation for production.

(Plant) R&D Production PPC Quality Control Maintenance Order preparation Material Control Tools Control Scheduling Dispatching Program .Production Planning & control-contdTypical Organization for PPC in a manufacturing firm G.M.

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