PRODUCTION

PLANNING AND
CONTROL
(MEFB 433)
Ts. Zubaidi Faiesal
Email: zubaidi@uniten.edu.my
Room No. BN-1-010
PRODUCTION PLANNING AND CONTROL (MEFB 433)

Content:
1. Introduction: Overview of Production Planning and
Control, Historical Background
2. Demand Forecasting: Overview, Qualitative
Forecasting Methods, Quantitative Forecasting Methods
3. Product, Process and Service Design: Product
Design, Process Design, Process Design in Service
4. Facility Capacity, Location and Layout:
Capacity Planning, Facility Location, Facility Layout
5. Quality Management: Nature of Quality,
Traditional & Modern QM, QM Recognition, TQM
PRODUCTION PLANNING AND CONTROL (MEFB 433)

Content:
6. Project Management: Project Planning & Control
Techniques, CPM, PERT
7. Supply Chain Management: Purchasing, Logistics,
Warehousing, Expediting
8. Just in Time and Lean Manufacturing:
Philosophy, Elements and Implementation, Benefits
9. Production Planning: Aggregate Planning, MPS
10.Inventory Management: Inventory Management
Systems
1- INTRODUCTION
1- Introduction
• In the late 1970s, Walmart was a
Why do some companies succeed
normal marketer with about 200
stores. Today, Walmart is world's
while others struggle or fail?
largest public corporation, the biggest
private employer in the world with
over two million employees, and the
There are a variety of reasons,
largest retailer in the world with more
than 11000 stores worldwide.
BUT
• In the 1990s, the Boeing Company
An important key in a company’s
ran into trouble when it could not
meet production deadlines. As a
success or failure is how well it
result, Boeing lost some orders which
had a negative impact on earnings
plans and controls it production or
and its stock price.
 1- Introduction
  
Organization
Organization
  

        
Finance
Finance Operations
Operations Marketing
Marketing
          
  PRODUCING  
-Securing Financial Resources
-Resource Allocation
THE GOODS -Assessing Consumers’ Need
-Selling the product/Service
-Budgeting OR -Promotion and
-Investment Analysis
-Providing operation Fund
PROVIDING Advertisement
...
... THE
  SERVICES  
 
1- Introduction

• Goods : Physical items produced by

business organizations.

• Service : Activities that provide some

combination of time, location, form and
psychological value.
1- Introduction
1- Introduction
Basic different between Manufacturing (good-
oriented) and Service (act-oriented) Industry:
1. Degree of customer contact
2. Uniformity of input
3. Labor content of jobs
4. Uniformity of output
5. Measurement of productivity
6. Production and delivery
7. Quality assurance
8. Amount of inventory
9. Evaluation of work
10. Ability to patent design
1- Introduction
Process Management:
A key Aspect of PPC is process management.
A process consists of one or more actions that
transform input into output.
- Upper-Management Processes: Organizational
Governance and Strategy.
- Operational Processes: Purchasing,
Production/Service, Marketing, Sale.
- Supporting Processes: Accounting,
Human Resources, IT
1- Introduction
Career Opportunities in PPC:
Operations Manager
Production Analyst
Production Manager
Industrial Engineer
Time Study Analyst
Inventory Manager
Quality Analyst
Supply Chain Manager …
1- Introduction
PPC and Decision Making:
PPC Experts make a number of key decisions that
affect the entire organization:
WHAT: What resources and in what amount?
WHEN: When to order resources? When to schedule
the work? When to perform corrective actions?
WHERE: where will the work be done?
HOW: How to design the product/service? How will
recourses be allocated?
WHO: Who will do the work?
1- Introduction
•   PRODUCTIVITY:
One of the main responsibilities of a manager is to achieve
productive use of an organization’s resources.
Productivity is an index that measures output (goods and
services) relative to the input (labor, materials, energy and
other resources).

Productivity is mostly important in organizations with low

cost strategy. The higher the productivity, the lower the
cost of the output.
 1- Introduction
PRODUCTIVITY:
Productivity
 Example: Determine Measures:
the productivity for these cases:

a.1. Partial
Four workers Productivity
installed 720 square meters of carpeting in eight hours.

b.2. Multifactor
A machine Productivity
produced 70 pieces in two hours. However, two pieces were unusable.

3. Total Productivity
 
1- Introduction
PRODUCTIVITY:
Factors that Affect Productivity:
 Methods
 Capital
 Quality
 Technology
 Management
1- Introduction
Historical Evolution of PPC:
The Industrial Revolution: (1770s in England)
1- Introduction
Historical Evolution of PPC:
Scientific Management:
Frederick Winslow Taylor
(Father of scientific
management), Frank Gilbreth
(Motion study), Henry Gantt
(Reward systems and
scheduling), Henry Ford
(Modern Industry), …
1- Introduction
Historical Evolution of PPC:
The Human Relations Movement:
 1- Introduction
Historical Evolution of PPC:

Decision Models:
Inventory
management
models, statistical
sampling,
forecasting,
qualitative
models, …
1- Introduction
Historical Evolution of PPC:
Japanese Manufacturers:
THE QUALITY REVOLUTION,
Productivity and quality improvement,
JIT, …