UNIT - I

BASIC INTRO.
TO
PRODUCTION MANAGEMENT

1
 BASIC INTRO.
 Production management is concerned with the
decision-making regarding the production of
goods & services at a minimum cost according
to the demands of the customers through the
management process of planning, organizing &
controlling.

 Therefore, it includes;
 production of Goods & Services
 at Minimum Cost
 according to the Demands of Customers
 through Planning, Organizing & Controlling. 2
 HISTORY or EVOLUTION
 For over 2 centuries operations and production
management has been recognised as an important factor
in a country’s economic growth.

 The traditional view of Manufacturing Management

began in 18th century when Adam Smith recognised the
benefits of specialisation of labour.

 He recommended breaking of jobs down into sub-tasks

and recognises workers to specialised tasks in which they
would become highly skilled and efficient.
3
 In the early 20th century, F.W. Taylor developed
scientific management.

 From then till 1930, many techniques were

developed prevailing the traditional view.

 Production management becomes the acceptable

term from 1930s to 1950s.

4
 Modern management began in the late 19th
century.

 Organizations were seeking ways to better

satisfy customer needs.
 Machinery was changing the way goods were
produced.
 Managers had to increase the efficiency of the
worker-task mix.

5
 Scientific management methods were called for optimizing
the way that tasks were performed and simplifying the
jobs enough so that workers could be trained to perform their
specialized sequence of motions in the one "best" way.

 Based on his experiments and observations as a

manufacturing manager in a variety of settings, he
developed 5 principles to increase efficiency in the workplace:

(a) Replacing Rule-of-Thumb with Science

(b) Harmony, not Discord in Group Actions
(c) Cooperation, not Individualism
(d) Maximum Output, not Restricted Output
(e) Development of Workers to their Fullest Capacity
6
 Workers were studied in great detail to eliminate
wasteful efforts and achieve greater efficiency.

 At the same time, psychologists, socialists and

other social scientists began to study people and
human behaviour in the working environment.

 Production Management was a shift in the

service & manufacturing sectors of the economy.
7
 CONCEPT OF PRODUCTION
 Production is defined as “the step-by-step conversion of
one form of material into another form through
chemical or mechanical process to create or enhance
the utility of the product to the user”.

 Thus, production is a value addition process. At each

stage of processing, there will be a value added to it.

 Edwood Buffa defines production as ‘a process by

which goods and services are created’.
8
 Example for Production

 Manufacturing Custom-Made Products

Like- 1.Boilers with a specific capacity
2.Constructing flats

 Manufacturing Standardized Products

Like- 1.Car
2.Bus
3.Motor cycle
4.Television, etc.
9
 DEFINITION : PRODUCTION MANAGEMENT

 According to H.A. HARDING;

“Production
management is concerned with those processes
which convert the inputs into the outputs. The
inputs are various resources like raw materials,
men, machines, methods, etc. and the outputs are
goods & services”.

10
 MEANING : PRODUCTION MANAGEMENT
 Production may be referred to as the process concerned
with the conversion of inputs into output with the help of
certain processes.

 While management is the process of exploitation of these

factors of production in order to achieve the desired results.

where;
 Inputs – raw materials, machinery, information, manpower,

& other factors of production.

 Output – semi-finished & finished goods & services.

 Processes – planning, scheduling, controlling, etc...

11
DIFFRENCE BETWEEN
PRODUCTION & PRODUCTIVITY

 Production is number of goods made.

 Productivity is the number of goods produced divided by

employees.
Units produced
Example:
Productivity =

Input used
Business A produced 40 chairs with 5 employees
 Production: 40 chairs

 Productivity: 40 chairs / 5 employees = 8 12

 NATURE : PRODUCTION MANAGEMENT

1. Transformational Process
2. Results into Value Addition
3. System Itself
4. Exists for Certain Objectives
5. Specialization of Function
6. Increase in Productivity

13
 continued……..

(1) TRANSFORMATIONAL PROCESS : the production

management is concerned with the conversion of raw
material.

(2) RESULTS INTO VALUE ADDITION : in this at every

successive level, some value is added to the previous one.
For Example : sand at sea shore does not add any value, but
sand used in construction adds to the value.

(3) SYSTEM ITSELF : it is a complete step-wise process,

i.e., a proper well-defined sequence is followed in
production management.
14
 continued……..

(4) EXISTS FOR CERTAIN OBJECTIVES : first there is an

objective & to meet that particular objective a complete
procedure is followed.

(5) SPECIALIZATION OF FUNCTIONS : as different

functions are performed separately, due to this, they are
repetitively performed by same people & there is
specialization of functions.

(6) INCREASE IN PRODUCTIVITY : as there is

specialization in functions, so the speed of doing a task
increases, as a result there is increase in productivity.
15
 OBJECTIVES OF PRODUCTION
MANAGEMENT
 The objective of the production management is ‘to
produce goods & services of right quality and quantity at
the right time and right manufacturing cost’.

(1) RIGHT QUALITY:

The quality of product is established, based upon the
customers needs. The right quality is not necessarily
best quality. It is determined by the cost of the
product and the technical characteristics as suited to
the specific requirements.
16
(2) RIGHT QUANTITY
The manufacturing organization should produce the
products in right number. If they are produced in excess of
demand, the capital will block up in the form of inventory,
and if the quantity is produced in short of demand, leads to
shortage of products.

(3) RIGHT TIME

Timeliness of delivery is one of the important parameter to
judge the effectiveness of production department. So, the
production department has to make the optimal utilization
of input resources to achieve its objective.
17
(4) RIGHT MANUFACTURING COST

 Manufacturing costs are established before the

product is actually manufactured.

 All attempts should be made to produce the products at

pre-established cost, so as to reduce the variation
between actual and the standard (pre-established) cost.

18
 SCOPE / FUNCTIONS
OF PRODUCTION MANAGEMENT

 Production management concern with the conversion

of inputs into outputs, using physical resources, so
as to provide the desired utilities to the customer,
while meeting the other organizational objectives of
effectiveness, efficiency and adoptability.

 It distinguishes itself from other functions such as

personnel, marketing, finance, etc., by its primary concern
for ‘conversion by using physical resources’.

19
 SCOPE / FUNCTIONS :
1. Selection of Product & Design
2. Process Selection & Planning
3. Plant Location
4. Capacity Planning
5. Production Planning
6. Production Control
7. Quality & Cost Control
8. Method Analysis
9. Inventory Control
10. Plant Layout & Materials Handling
11. Work Measurement
12. Maintenance & Replacement of Machines 20
(1) SELECTION OF PRODUCT & DESIGN :

 Care must be taken while selecting the product & design,

because the survival & success of the company depend on
it.
 The product must be selected only after detailed
evaluation of all the other alternative products.

 After selecting the right product, the right design must be

selected. The design must be selected according to the
customer’s requirements.

Example : Value-Chain Analysis

21
(2) PROCESS SELECTION & PLANNING :

 Selection of optimal conversion system is very

important.

 Process Selection decisions include; decisions

concerning choice of technology, equipment,
machines, machinery-handling systems,
mechanization & automation.

 Process Planning involves detailing of processes of

resource conversion required & their sequences.
22
(3) PLANT LOCATION :

 A poor location of plant can be a constant source

of :-

 higher cost,
 create difficulty in marketing & transportation,
&
 causes dissatisfaction among employees &
customers.

23
(4) CAPACITY PLANNING :

 The production manager must plan the capacity for both

short & long term’s production.

 Capacity planning concerns determination & acquisition

of productive resources, to ensure that, their availability
matches the demand.

 Capacity decisions have a direct influence on

performance of the production system in respect of
both, resource productivity & customer service.

24
(5) PRODUCTION PLANNING :
 Production planning deals with the preparation of long &
short-term production programmes.
 It comprises routing, scheduling & preparation of
orders.

 Routing means deciding the path of work & the

sequence of operations.
 Routing ensures a smooth flow of work.

 Scheduling specifies when to start & when to complete a

particular production activity.
25
(6) PRODUCTION CONTROL :

 Here, the production manager has to find out, whether

the actual production is done as per the plans or not.

 After planning, the next responsibility is to control the

production by taking steps to utilize the various factors of
production in an efficient manner,

 So that, the goods are produced at the lowest possible cost

& according to the requirements & satisfaction of the
customers,

 And are supplied to them on the delivery dates in the

ordered quantity. 26
(7) QUALITY & COST CONTROL :

 Production management also includes quality & cost

control.

 Customers all over the world want good quality

products at cheapest prices.

 To satisfy this demand of consumers, the production

manager must continuously improve the quality of his
products.

 Along with this, he must also take essential steps to

reduce the cost of his products. 27
(8) METHOD ANALYSIS :
 There may be so many alternatives for manufacturing a
product. As because all alternatives do not work equally.

 Some may be more economical than others.

 The production manager must study the various
alternatives & analyze them in right perspective in order
to choose the best one.

 This activity of choosing best alternative is called Method

Analysis.

 Method analysis improves the productivity of the concern

& minimizes the cost of production. 28
 (9) INVENTORY CONTROL :
 Production management also includes inventory control.

 Production manager is supposed to have control over the

cost of production, by reducing the wastage of man &
material.

 So, he has to make the best use of material.

 The production manger must monitor the level of

inventories.

 There must be neither over-stocking, nor under-stocking

of inventories. 29
(10) PLANT LAYOUT & MATERIALS HANDLING :

 Plant layout is an arrangement of machines &

equipment in such a manner, so as to maintain the flow
of production un-interruptedly.

 An efficient plant layout aims at efficient material

handling which in turn reduces wastages of man &
material.

 And it also helps in reducing the cost of production.

 Example : Ergonomics (human-engineering)

30
(11) WORK MEASUREMENT :

 One of the main responsibilities of the production

manager is to control & reduce the labor-cost per
unit.

 Here, by work measurement methods, we mean

the level of performance of work by a worker.

31
(12) MAINTENANCE & REPLACEMENT OF
MACHINES :

 The production manager must have an efficient system for :-

a. continuous inspection (routine checks),
b. cleaning,
c. oiling,
d. maintenance & replacement of machines,
equipment, spare parts.
 This prevents breakdown of machines & avoids
production halts.
32
 RESPONSIBILITIES OF
PRODUCTIONS MANAGER

1. Understanding Strategic Objectives

2. Developing An Production’s Strategy

3. Designing the Production's Products & Processes

4. Planning & Controlling

5. Improving the Performance of Production

33
 RESPONSIBILITIES OF
PRODUCTIONS MANAGER

(1) Understanding Strategic Objectives:

Operations managers must clearly understand the goals of
the organization and develop a clear vision of exactly how
operations will help achieve them.

(2) Developing An Production Strategy:

Due to the numerous decision-making involved with
production, it is critical that production managers have a set
of guidelines that are align with the organization's long term
goals.
34
(3) Designing the Product & Processes:
Design involves determining the physical form, shape and
composition of product and processes.

(4) Planning & Controlling:

This involves deciding what the production’s resources
should be doing and making sure that it is getting done.

(5) Improving the Performance of Production :

Production managers are expected to continuously monitor
and improve the overall performance of their production.
35
PRODUCTION
SYSTEM

36
 CONCEPT OF PRODUCTION SYSTEM
 The production system of an organization is that part, which
produces products of an organization.

 It is that activity whereby resources, flowing within a defined

system, are combined & transformed in a controlled manner
to add value in accordance with the policies communicated
by management.

 Production System is a set of interrelated component or

subsystem which receives the input from the environment,
transform it into desirable outputs (product or service).

 A production system includes all the functions required to

design, produce, distribute & service to manufacture a
product. 37
 MEANING : PRODUCTION SYSTEM
 A system is a assemblage of objects united by some form of
regular interaction.
 It is composed of number of components.
 These components are combined together for the
accomplishment of some predetermined goals.
 The production process consists of a number of activities &
operations.
 These operations & activities can be applied in different
combinations & order to achieve the desired objective.
 The operations can be purchase of raw material, maintenance
of inventory, transportation of goods.
 The combination of two or more activities constitute a system.
38
DEFINITION : PRODUCTION SYSTEM

According to WEBSTER;
“System is a regularly
interacting or interdependent group of items
forming a unified whole”.

39
 Characteristics of Production System
1. Production is an organized activity, so every production
system has an objective.

2. The system transforms the various Inputs to useful

Outputs.

3. It doesn’t operate in Isolation from the other organization

system.

4. There exists a feedback about the activities, which is

essential to control and improve system performance.
40
PRODUCTION SYSTEM
MODEL

41
42
 PRODUCTION SYSTEM MODEL

In any production process, two or more sub-systems can

be combined in series or in parallel.

There are 3 main components of production system,

namely :-

1. Inputs
2. Transformation Process
3. Outputs
43
 (1) INPUTS :
(a) PLANNING :
This involves forecasting, identification of alternatives & preparation
of corporate plans. The common managerial aids used are-
forecasting models, decision-tree, game theory & use of
computers.

(b) MANPOWER :
This involves Human Resource Planning, Recruitment, Selection &
Training & their Retention through adequate motivation involving;
proper merit rating, fair wages & effective administration.

(c) MATERIALS :
This involves effective material management organization, to create
conditions to generate adequate motivation for employees. 44
(d) MACHINERY :
The main consideration here is the proper selection of machinery in order
to have cost effective capital investment.

(e) MONEY :
Several managerial tools are available to carry out economic evaluation of
an investment. Some of these are- Net-Profit Value, Pay-Back Method,
Portfolio Management, Return on Investment Analysis, Profitability
Index, Risk Analysis, Ratio Analysis, etc.

(f) TECHNOLOGY :
This input involves acquisition, upgradation, adaptation & improvement
of technology. The R & D and engineering division of an organization are
also directly involved in this. The techniques used are: TF (technology
forecasting), PLC (product life cycle) Analysis. 45
 (2) TRANFORMATION PROCESS :
a) Selection of Product & Design

b) Process Selection & Planning

c) Production Planning

d) Production Control

e) Maintenance & Replacement of Machines

46
(a) SELECTION OF PRODUCT & DESIGN :

 Care must be taken while selecting the product & design,

because the survival & success of the company depend on
it.
 The product must be selected only after detailed
evaluation of all the other alternative products.

 After selecting the right product, the right design must be

selected. The design must be selected according to the
customer’s requirements.

Example : Value-Chain Analysis

47
(b) PROCESS SELECTION & PLANNING :

 Selection of optimal conversion system is very

important.

 Process Selection Decisions include; decisions

concerning choice of technology, equipment,
machines, machinery-handling systems &
mechanization.

 Process Planning involves detailing of processes of

resource conversion required & their sequences.
48
(c) PRODUCTION PLANNING :
 Production planning deals with the preparation of long
& short-term production programmes.
 It comprises estimating, routing, scheduling, loading,
preparation of orders, dispatching & inspection.

 Routing means deciding the path of work & the

sequence of operations.
 Routing ensures a smooth flow of work.

 Scheduling specifies when to start & when to complete a

particular production activity.
49
(d) PRODUCTION CONTROL :

 Here, the production manager has to find out, whether

the actual production is done as per the plans or not.

 After planning, the next responsibility is to control the

production by taking steps to utilize the various factors of
production in an efficient manner,

 So that, the goods are produced at the lowest possible cost

& according to the requirements & satisfaction of the
customers,

 And are supplied to them on the delivery dates in the

ordered quantity. 50
 (e) MAINTENANCE & REPLACEMENT OF
MACHINES :

 The production manager must have an efficient system for :-

a. continuous inspection (routine checks),
b. cleaning,
c. oiling,
d. maintenance & replacement of machines,
equipment, spare parts.
 This prevents breakdown of machines & avoids
production halts.
51
 (3) OUTPUTS :
 Output in the form of product, i.e., goods or services is
the ultimate objective of an industrial enterprise.

 The survival & success of an enterprise depends

entirely on its ability to produce the desired output.

 Some factors which influence output are :-

i. Quality
ii. Quantity
iii. Timely Delivery
iv. Cost
v. Profitability 52
 (4) FEEDBACK ANALYSIS :
 Feedback is a kind of continuous process.

 Where it is essential to ensure that the ‘actual output’

conforms with the ‘planned output’.

 It includes following :-

a) Quality & Cost Control

b) Inventory Control
53
(a) QUALITY & COST CONTROL :

Production management also includes quality & cost

control.

 Customers all over the world want good quality

products at cheapest prices.

 To satisfy this demand of consumers, the production

manager must continuously improve the quality of his
products.

 Along with this, he must also take essential steps to

reduce the cost of his products. 54
 (b) INVENTORY CONTROL :
 Production management also includes inventory control.

 Production manager is supposed to have control over the

cost of production, by reducing the wastage of man &
material.

 So, he has to make the best use of material.

 The production manger must monitor the level of

inventories.

 There must be neither over-stocking, nor under-stocking

of inventories. 55
 TECHNIQUES FOR
PRODUCTIVITY IMPROVEMENT
1. Value Engineering (V.E.)
2. Quality Circles (Q.C.)
3. Financial & Non-Financial Incentives
4. Operations Research (O.R.)
5. Training
6. Job Enlargement
7. Job Enrichment
8. Inventory Control
9. Material Management
10. Quality Control
11. Job Evaluation
12. Human Factor Engineering 56
(1) VALUE ENGINEERING (VE) :

 Value Engineering (VE) is the process of improving the value

of a product at every stage of the PLC (Product Life Cycle).

 At the development stage, VE improves the value of a

product by reducing the cost without reducing quality.

 At the maturity stage, VE reduces the cost by replacing the

costly components (parts) by cheaper components.

 VE also tries to improve the value and quality of the product.

 VE tries to give maximum value for a lowest price.

57
(2) QUALITY CIRCLES (QC) :

 The concept of Quality Circles (QC) was introduced

in 1960 in Japan.

 QC is a small group of employees who meet regularly

to identify, analyze, and solve problems in their
department.

 The QC members advise the management to implement

new methods to solve work-related problems.

 QC increases the productivity.

58
(3) Financial and Non-Financial Incentives :

 The organization must motivate the employees by

providing financial and non-financial incentives.

 The financial incentives include- better wages and

salaries, bonus, allowances, etc.

 The non-financial incentives include- better working

conditions, welfare facilities, worker's participation in
management, etc.

59
(4) Operations Research (OR) :
 Operations Research (OR) uses mathematical and
scientific methods to solve management problems,
including problems of productivity.

 OR technique uses a scientific method to study the

alternative courses of actions and to select the best
alternative.

 OR uses techniques such as linear programming, game

theory, decision-tree analysis etc., to make the right
decision.

 Thus, OR helps to improve productivity.

60
(5) TRAINING :

 Training is a process of increasing the knowledge and

skills of the employees.

 Training is a must, for new employees and as well as for

experienced employees.

 Training increases the efficiency of the employee.

 Thus, training results in high productivity.

61
(6) JOB ENLARGEMENT :

Job Enlargement is a horizontal expansion of a job. It is done to make

jobs more interesting and satisfying. It involves increasing the variety
of duties. For e.g. a typist may be given the job of accounts writing in
addition to the typing work. This technique is used for lower level
jobs.

(6) JOB ENRICHMENT :

Job Enrichment is a vertical expansion of a job. It makes routine jobs

more meaningful and satisfying. It involves providing more
challenging tasks, and responsibilities. For e.g. a manager who
prepares performance reports is asked to make plans for his
department. Job Enrichment technique is used for higher-level jobs.62
(8) INVENTORY CONTROL :

 There must be a proper level of inventory.

 Overstocking and under stocking of inventories must be

avoided.

 Over-stocking of inventories will result in blocking of

funds and there are chances of spoilage or misuse of
materials.

 Under-stocking of inventories will result in shortages.

 This will block the smooth flow of production, and so the

delivery schedules will be affected.
63
(9) MATERIALS‘ MANAGEMENT :

 Materials' management deals with optimum utilization

of materials in the manufacturing process.

 It involves purchasing, systematic store keeping, proper

inventory control, etc.

 The main objective of materials' management is to

purchase the right quantity and quality materials, at
the right prices, at the right time, to maintain
favorable relations with suppliers, to reduce the cost of
production, etc.
64
(10) QUALITY CONTROL :
The main objective of quality control is to produce good
quality goods at reasonable prices, to reduce wastages, to
locate causes of quality deviation and to correct such
deviations, to make the employees quality conscious, etc.

(11) JOB EVALUATION :

 Job Evaluation is a process of fixing the value of each job in
the organization.
 It is done to fix the wage rate for each job.
 A proper job evaluation increases the moral of the
employees.
 This increases the productivity.
65
(12) HUMAN FACTOR ENGINEERING :
 Human factor engineering refers to the man-machine
relationship.

 It is designed to match the technology to a human

requirement.

 The term Ergonomics has originated from the Greek word

'ergos' meaning 'Work' and 'nomikos' meaning 'Law’.

 So, it means 'Law of Work’.

 It tells us, how to fit a job to a man's psychological and

physiological characteristics to increase human efficiency
and well-being.
66
 PRODUCTION
PLANNING & CONTROL

(P.P.C.)

67
INTRO. : PPC

 It is simply like adopting in business an old age

principle as :
“Plan your work,
Work your plan”.
 Here, the system which is finally adopted should be as
simple & economical as possible & yet be effective in
producing the product for delivery when promised, of
the proper quality, & at the proper cost.
68
PDCA CYCLE

69
 PLAN (What, Why, When, Where &
How?)

 DO (Test)

 CHECK (Analyze)

 ACT (Implement) 70
 BASIC CONCEPT : P.P.C.

PPC can be viewed as the nervous system of the production

operation.

 This function aims at :-

 efficient utilization of material resources, people &
facilities,
 In any undertaking through :-
 planning, coordination & controlling the production
activities
 that transforms the raw material into finished products.
71
MEANING : PPC

 Production consists of a sequence of operations that

transform materials from a given form to a desired form
(products).

 The highest efficiency in production is obtained by

manufacturing the required quantity of products, of the
required quality , at the required time, by the best and
cheapest method.

 All the activities in the manufacturing or production cycle

must be planned, coordinated, organized & controlled to
its objectives.
72
DEFINITION : PPC

According to ALFORD & BEATTY,

“PPC comprises
of planning, routing, scheduling, dispatching & follow-up
in productive process, organized in such a manner that,
movements of material, performance of machines &
operations of labor in a sub-divided manner are directed
& coordinated as to quantity, quality, time & place”.

73
OBJECTIVES : PPC

1. Nature of the Inputs

2. Quantity of Inputs

3. Proper Coordination

4. Better Control

5. Ensures Un-interrupted Production

6. Capacity Utilization

7. Timely Delivery 74
(1) NATURE OF THE INPUTS

 To manufacture a product, different types of inputs

are used.

 The quality of the product depends upon the nature

of the inputs used.

 Hence, the planning is done to determine the

nature of various types of inputs which is a
complicated process.
75
 (2) QUANTITY OF INPUTS

 To achieve a level of production, determination of

quantity of the inputs & their composition is very
important.

 A product can be prepared only when there is an

estimate of the required composition of inputs.

76
(3) PROPER COORDINATION

 It ensures the proper coordination among the

workforce, machines & equipment.

 This leads to avoidance of wastages & smooth

flow of production.

77
(4) BETTER CONTROL

 Production planning is the method of control.

 For a better control, planning is a prediction.

 Only then, one can compare the performance &

calculate the deviations which lead control of the
production.

78
(5) ENSURES UN-INTERRUPTED PRODUCTION

 The planning of materials ensures the regular

supply of raw materials & other components.

 The regular flow of materials & supplies are

helpful in the un-interrupted production.

79
(6) CAPACITY UTILIZATION

 There is a need to use the available resources

effectively.

 It is helpful in bringing down various costs of

production.

 It is only possible through proper selection of

plant layout.
80
 (7) TIMELY DELIVERY

 If there is good production planning & control,

there will be timely production & the finished
product will be rushed to the market in time.

 This also ensures the better relationship with

the customers.

81
ELEMENTS
OF
P.P.C.

82
 ELEMENTS : PPC
(I) PRODUCTION PLANNING

1. Planning / Estimating
2. Routing
3. Scheduling
4. Loading

(II) PRODUCTION CONTROL

1. Dispatching
2. Expediting / Follow-Up / Progressing
3. Inspection 83
 ELEMENTS : PPC

(I) PRODUCTION PLANNING

1. Planning / Estimating
2. Routing
3. Scheduling
4. Loading

84
1. PLANNING / ESTIMATING

 This involves forecasting, identification of

alternatives & preparation of corporate plans.

 The common managerial aids used are forecasting

models, decision-tree, game theory & use of
computers.

 Establishing operation time, helps in fixing the

performance standards both for workers &
machines.
85
2. ROUTING
 This the process of determining the flow of work,
material handling in the plant & sequence of
operations or processing steps.

 This is related to considerations of :- appropriate plant

layout, temporary storage locations for raw materials,
components & semi-finished goods & of materials
handling systems.

 According to KIMBALL & KIMBALL,

“Routing is the selection
of path or route over which each piece is to travel, is being
transformed from raw material into finished goods”. 86
3. SCHEDULING
 Scheduling ensures that parts, sub-assemblies &
finished products are completed as per the required
delivery dates.
 Scheduling provides a time-table of manufacturing
activities, indicating the total time required for the
manufacture of a product.
 It ensures a balanced load on all work centres & ensures
even flow of work through manufacturing facilities.
 According to SPRIEGAL & LANSBURGH,
“Scheduling involves
establishing the amount of work to be done & the time when each
element of work will start or order of work”. 87
 4. LOADING
 Loading is the process of converting operation schedules
into practice, which ensures maximum possible
utilization of resources & avoid bottlenecks in
production.

 Facility Loading means loading of facility or work center &

deciding which jobs to be assigned to which work center or
machine.

 Machine Loading is the process of assigning specific jobs

to machines, men or work centers based on relative
priorities & capacity utilization. 88
 ELEMENTS : PPC

(II) PRODUCTION CONTROL

1. Dispatching
2. Expediting / Follow-Up / Progressing
3. Inspection

89
1. DISPATCHING
 Dispatching may be defined as setting production activities in
motion, through the release of orders & instructions in
accordance with the previously planned time-schedules &
routings.

 Dispatching is the release of orders & instructions for

the starting of production in accordance with the
route-sheets & schedule-charts.

 According to JAMES L. LANDY,

“The dispatching function
involves the actual granting of permission to proceed according to
plans already laid down”. 90
2. EXPEDITING / FOLLOW-UP / PROGRESSING

 Expediting or progressing ensures that, the work is

carried out as per the plan & delivery schedules are met.

 This means chasing, follow-up or progressing, which is

done after the dispatching function.

 Need for Expediting may arise due to the following reasons :-

 Delay in supply of materials
 Excessive Absenteeism
 Changes in Design Specifications
 Break-down of machines or tools, or fixtures
 Errors in design drawings & process plans. 91
 3. INSPECTION
 Inspection is an appraisal activity that compares goods or
services to a standard.

 It basically involves Evaluation & Controlling function.

 This function is related to maintenance of quality in production

& evaluating the efficiency of the process, methods & labor; so
that improvements can be made to achieve the quality standards
set by product design.

 The objective of evaluation is to improve performance.

 Performance of machines, process & labor is evaluated.

 Inspection occurs at 3 stages : Before Production, During

Production & After Production. 92