a

INTRODUCTION

2
N R Industries was established in June, 1995 based on the principle of quality and customer
satisfaction. It is based in Gurgaon, India. It was established with a vision to provide the best
Quality plastic parts and wire forming components to the customer.
N R Industries is a provider of cutting edge plastic technology solutions with 20+ years of
experience.
They service multiple Fortune 500 clients in the Automotive, Lighting & Industrial segments.

N R Industries is an end to end solution provider, assisting our global clients with product design,
tool design & development, injection molding & complete assemblies. They are leaders in molding
precision components with complex requirements for demanding applications.

Working with Japanese, American & European customers over 2 decades has helped them instill a
disciplined work culture which is entirely quality driven and which imbibes best practices from
different production systems.

It is for this reason that they have maintained consistent 0 ppm performance with many of our
clients. On the back of consistent performance and long-term strategic partnerships with our
customers, N R Industries has an enviable track record of 35% CAGR since inception.

TIMELINE
1. 1995 – N R Industries was started with 2 Automates with precision machined parts as its forte
2. 2000 – Achieved ISO 9001:2000 certification
3. 2002 – Achieved Turnover of INR 1 Crore
4. 2004 – Added CNC wire forming to the its processes
5. 2005 – Achieved Turnover of INR 5 Crore
6. 2008 – Achieved ISO 9001:2008 Certification
7. 2008 – Added Injection Moulding to its processes
8. 2014 – Achieved Turnover of INR 10 Crores
9. 2016- Achieved TS standard of system certifications
10. 2018- Achieved IATF16949:2016 Certification
11. 2018- Achieved Turnover of INR 20 Crores

3
VISION

Customer satisfaction through persistence, endurance and strong belief in constantly improving our products
and services define our core Business Strategy and Vision. We strive to be attentive listeners and respond
passionately, swiftly and positively to bring customer delight first time, every time.

 To continuously challenge us and set new and higher benchmarks for supplying high precision
products at superior quality level, competitive prices and 100% on time with best in class
development lead times.
 To delight customers by always delivering on our commitments and to become their supplier of
choice
 To strive for continuous improvement in our operations through innovation and set the
benchmarks for manufacturing excellence
 To develop products in anticipation of client’s needs and be at the forefront of deploying latest
technologies
 By treating all employees with compassion and ensuring their health and safety, integrity to
employees and suppliers
 By dealing with integrity with customers, suppliers and customers
 By committing ourselves to the environment and honouring all laws of land.

OBJECTIVES OF THE PROJECT

The objective of the project is to establish the relation that FIFO (First in First out) and production
planning and control practices help the company on effective management and utilization.
 To know how FIFO and production planning help in efficient usage of resources, utilities and
equipment’s.
 To know implications of production planning and control on production function
 To know how FIFO and production planning and control help in reducing waste and making
profit.
 To prove that short term production planning and scheduling techniques employed by
industries, is necessary in minimizing process and customer waiting time.
 To know how FIFO helps in proper traceability of products back to raw material stage.

4
LITERATURE

5
PRODUCTION FUNCTION

After taking the entrepreneur step, then comes setting up the location for the production site and
setting up the plant.
Once all this done, now the owner has to step in to the shoes of a production manager and tries to
apply all his skills to production function of his company.

Production is a process in which the raw material is processed into semi-finished goods or finished
goods which thereby adds value to the utility of products, which can be measured as the difference
between the value of inputs and value of outputs.

Materials
SUPPLIER CUSTOMERS
Machines
(Raw Materials) (Finished products)
People

P
Production function covers activities like procurement, allocation and utilization of resources.

The main target of production function is to produce quality goods and services demanded by the
customers in the most timely and cost effective manner.
Therefore the production function of any industry is to be handled in a very effective manner, which
involves managerial decisions regarding the design of the product and the production system. These
decisions will lead to efficient production processes and production planning and control.

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PRODUCTION PLANNING AND CONTROL

Once the decisions regarding the product design and production processes have been taken, the next
step that comes into play is PRODUCTION PLANNING AND CONTROL.
This function is required for efficient and economical production of goods and services
Planned production helps in the ability to look ahead, organize and coordinate among all the
processes required for production.
Having plenty of driving forces, capacity to lead and ability to supervise and coordinate work among
the associates are some of the good quality of a good production manager.
A good production manager would simulate his/her associates by means of a programme of human
relation and organization of employees.
This function generally involves the organization and planning of manufacturing process. Especially
it consists of the planning of routing, scheduling, dispatching inspection and coordination, control of
materials, methods machines, tools and operating times. The ultimate objective is the organization of
the supply and movement of materials and labour, machines utilization and relayed activities, in
order to bring about the desired manufacturing results in terms of quality, quantity, time and place.
Production control in an industry is necessary tool required for efficient survival. Planning initiates
action while control is an adjusting process, providing corrective measures for planned development.
Production control regulates and stimulates the orderly how the materials in the manufacturing
process from the beginning to end.

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PROCEDURE FOR PPC

PPC (Production planning and control) is a process that comprises the performance of some critical
function on either side i.e. planning as well as control.

Production
Planning and
Control

Production Production
Planning control

Planning Dispatching

Routing Following Up

Scheduling Inspection

Loading Corrective

PRODUCTION PLANNING

It is defined as the technique of foreseeing every step in a long series of separate operations.

PLANNING
It is the basic step of Production planning. It’s about foreseeing each step to be taken at the right time
and in the right place and each operation to be performed in maximum efficiency. It helps the

8
production manager to calculate the quantity of man power, machine and money required for
producing products at maximum level of efficiency.

ROUTING

Under this, the operations, their path and sequence are established. To perform these operations the
proper class of machines and personnel required are also worked out. The main aim of routing is to
determine the best and cheapest sequence of operations and to ensure that this sequence is strictly
followed.
Routing procedure involves following different activities:
1. An analysis of the product to determine how to make the product
2. To determine the quality and type of raw material to be procured
3. Determining the manufacturing processes involved and their sequence
4. Determining the minimum quantity that can be manufactured
5. Determining the amount of scrap that will be generated
6. Analysing the cost involved in production
7. Standardisation of manufacturing processes involved.

SCHEDULING

It means working out of time that should be required to perform each operation and also the time
necessary to perform the entire series as routed, making allowances for all factors concerned. It
mainly concerns with time element and priorities of a job. The patter of scheduling differs from one
job to another which is as explained as below:

Production schedule:
The main aim is to schedule that amount of work which can easily be handled by plant and
equipment without interference. It is not an independent decision as it takes into account following
factors:
1. Physical plant facilities of the type required to process the material being scheduled.
2. Personnel who possess the desired skills to experience to operate the equipment and perform
the type of work involved.
3. Necessary materials and purchased plants.

Master schedule:
Scheduling usually starts with preparation of master schedule which is weekly or monthly break-
down of the production requirement for each product for a definite time period, by having this as a

9
record of total production requirement the production manager is in better position to shift the
production from one product to another as per the changed production requirements.
This forms a base for all subsequent scheduling activities. A master schedule is followed by operator
which fixes total time required to do a piece of work with a given machine or which shows the time
required to do each detailed operation of a given with a given machine or process.
Manufacturing Schedule:
It is prepared on the basis of type of manufacturing process involved. It is very useful where single
or a few products are manufactured repeatedly at regular intervals. Thus it would show the required
quality of each product and sequence in which the same to be operated.

Scheduling of Job Order manufacturing:

Scheduling acquires greater importance in job order manufacturing. This will enable the speedy
execution of job at each center point. As far as small scale industry is concerned scheduling is of
utmost importance as it brings out efficiency in the operations and reduces cost price. The small
entrepreneur should maintain four types of schedules to have a close scrutiny of all stages namely:
Enquiry Schedule
Production schedule
Shop Schedule
Arrears Schedule
Out of above four, a shop schedule is the most important most suited to the needs of small scale
industry as it enables a foreman at a glance:
1. The total load on any section.
2. The operational sequence.
3. The stage, which any job has reached.

LOADING
The next step is the execution of the schedule plan as per the route chalked out in includes the
assignment of the work to the operators at their machines or work places. So loading determines who
will do the work as routing determines where and scheduling determines when it shall be done.
Gantt charts are most commonly used in small industries in order to determine the existing load and
also to foresee how fast a job can be done. The usefulness of their technique lies in the fact that they
compare what has been done and what ought to have been done. Most of a small scale enterprise
fails due to non-adherence to delivery schedule therefore they can be successful if they have ability
to meet delivery order in time which no doubt depends upon production of quality goods in right
time.
It makes all the more important for production manager to judge ahead of time what should be done,
where and when thus leave nothing to chance once the work has begun.

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PRODUCTION CONTROL

Production control is the process of planning production in advance of operations, establishing the
extract route of each individual item part or assembly, setting, starting and finishing for each
important item assembly or the finishing production and releasing the necessary orders as well as
initiating the necessary follow-up to have the smooth function of the enterprise.
The production control is of complicated nature in small industries.
The production planning and control department can function at its best in small scale unit only when
the work manager, the purchase manager, the personnel manager and the financial controller
assisting planning production activities.
The production controller directly reports to the works manager but in small scale unit, all the three
functions namely material control, planning and control are often performed by the entrepreneur
himself.
Production control starts with dispatching and ends up with corrective actions.

DISPATCHING

Dispatching involves issue of production orders for starting the operations.

Necessary authority and conformation is given for:

1. Movement of materials to different workstations.

2. Movement of tools and fixtures necessary for each operation.

3. Beginning of work on each operation.

4. Recording of time and cost involved in each operation.

5. Movement of work from one operation to another in accordance with the route sheet.

6. Inspecting or supervision of work.

Dispatching is an important step as it translates production plans into production.
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FOLLOW UP

Every production Programme involves determination of the progress of work, removing bottlenecks
in the flow of work and ensuring that the productive operations are taking place in accordance with
the plans. It spots delays or deviations from the production plans. It helps to reveal detects in routing
and scheduling, misunderstanding of orders and instruction, under loading or overloading of work
etc. All problems or deviations are investigated and remedial measures are undertaken to ensure the
completion of work by the planned date.

Inspection: This is mainly to ensure the quality of goods. It can be required as effective agency of
production control.

Corrective measures: Corrective action may involve any of those activities of adjusting the route,
rescheduling of work changing the workloads, repairs and maintenance of machinery or equipment,
control over inventories of the cause of deviation is the poor performance of the employees. Certain
personnel decisions like training, transfer, demotion etc. may have to be taken. Alternate methods
may be suggested to handle peak loads.

INSPECTION

This is mainly to ensure the quality of goods. It can be required as effective agency of production
control.

CORRECTIVE MEASURES

Corrective action may involve any of those activities of adjusting the route, rescheduling of work
changing the workloads, repairs and maintenance of machinery or equipment, control over
inventories of the cause of deviation is the poor performance of the employees. Certain personnel
decisions like training, transfer, demotion etc. may have to be taken. Alternate methods may be
suggested to handle peak loads.

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FIRST IN FIRST OUT (FIFO)

As the name suggests the FIFO is a technique used industry wide for inventory management and
efficient traceability for any product back it its raw material.
It’s an accounting tool, used to eliminate excess inventories in a plant. It helps in plan layout and
inventory management by using the simplest skills. This process requires least manpower.
By reducing the inventory the industries can make profits.
FIFO, LIFO and LEFO are some of the examples of such techniques used by industries to reduce
inventories and help make profits.

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METHODOLOGY

14
It is a Qualitative Research done to explore and know about the implementation of FIFO and PPC.

The study is carried out at N R Industries, Gurgaon.

Production supervisors were selected as the respondents of the study. The study explores both the
primary and secondary sources of information.
Quality information was gathered from the respondents using structured questionnaire.
The structured questionnaire consists of descriptive questions to get the description of various
aspects of Production Planning and Control and FIFO.
The initial questions are to cover the variables characterizing the various production planning and
control practices such as demand forecasting, inventory, capacity utilization, and scheduling
techniques while the last segment will purely on Control practices.
Unstructured personal interview is also conducted in order to augment the responses that may not be
explicitly cleared in the questionnaire.

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COMPANY PROFILE

N R INDUSTRIES, GURGAON,
The company started in 1995manufacture quality products for leading automobile companies. N R
Industries started operation in Gurgaon producing precision machines parts. Theirs products rolled
out of N R Industries factory at Gurgaon in India, august 1995.Today; there are 3 plants of N R
Industries that contribute to the Nations automobile sectors development. N R Industries
manufacturing and marketing facilities located at Gurgaon have been awarded TS 16949:2016
certification.
Committed to providing high quality products, invests significantly in technology resources and
infrastructure. The manufacturing facilities are spread across three states.
Highlights

% SALES
SANDHAR TECHNICO
AUTOMOTIVES 3%
4% A. G.
INDUSTRIES A. G. INDUSTRIES P. LTD
PVT. LTD HARYANA
PRICOL 25% HILEX
30%
LIFELONG INDIA PVT LD
PRICOL
HARYANA
SANDHAR AUTOMOTIVES
15%
TECHNICO
LIFELONG HILEX
INDIA PVT LTD 18%
5%

16
ABOUT THE PLANT
Process held at the plant:
 Plastic Injection Moulding
 CNC wire forming
 Precision Machined parts
 Complete Assemblies

Some of the Products:

PRODUCTS

PRODUCTS

17
PRODUCTS
 CNC WIRE BENDING COMPONENTS

PRODUCTS
 MACHINED COMPONENTS

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QUESTIONNAIRE AND ITS INTREPRETATION

No. of staff = 20
No. of responses = 10
No. male responder= 10
No. of female Responder= 0

Q1. Do you think production planning and control is central to the success of any manufacturing
unit?
Options Yes No
Response 10 0

Response
0

yes
no

10

Interpretation
All the respondents believed that PPC (Production Planning and Control) is central to the success of
any manufacturing process.
They believed that PPC helps in the best usage of resources to their maximum capacity

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Q2. Does PPC help in capacity planning that contributes to the efficient use of facility and
equipment’s?
Options Yes No
Response 8 2

Response

Yes
No

Interpretation
Most of the respondents i.e. 80% are in favor of the statement that “capacity Planning contributes to
the efficient use of facility and equipment’s. “Proper Capacity planning leads to optimum utilization
of capacity reduces idle time, under or over utilization of capacity.

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Q3. If yes, then which of the following suits best?
a) Inventory Control _________________
b) Economy in production time _________________
c) Ensure Quality _________________
d) Waste reduction and Increased Profit _________________
e) Optimum Utilization of Capacity _________________

Options A B C D E
Response 6 4 2 8 6

Response
10
9
8
7
6
5
4 10
Response
3 6
8
2 4
1
0 2
A
B
C
D
E

Interpretation
All respondents believe that PPC helps in waste reduction and increased profit, and some of them
believe that optimum utilization of capacity and Inventory control is another objective of Production
Planning and Control.

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Q4. Do you think that Production Planning and Capacity planning are interrelated?

Options Yes No
Response 7 3

Response

Yes
No

INTERPRETATION

Majority of the respondents i.e. 70% believe that production planning and capacity planning are
interrelated. Long term Production planning becomes the basis of capacity planning. Size of
production and type of production depends on capacity, hence both are interrelated.

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.Q5. Do you believe that mismatch in load and capacity is wrong PPC. If yes, then what are the
nearest options?
a) Increases the cost ___________
b) Hurts the ability to satisfy customer’s ___________
c) Lead time gets affected ___________
d) Other effects ___________

Options A B C D
Responses 9 10 0 2

Series 1

10
9
8
7
6
10 Series 1
5 9
4
3
2
2
1
0
0
A B C D

Interpretation
Almost all respondents believe in the above statement. According to them mismatch in load and
capacity, leads to customer dissatisfaction and increase in cost. If the capacity is low and demand is
high, orders will not be completed on time. If load is less and capacity is more than requirement it
will lead to inefficient use of capacity, hence, cost of production will increase. As lead time is
calculated on the basis of available capacity it has no effect on lead time. Other effects can be
increase in cost by increasing man power and plant maintenance, and delay in delivery to customers.

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Q6. On what basis do you plan your production?
a) Customer needs (demand) ___________
b) Target of Marketing Dept. ___________
c) Resources available ___________
d) Other factors ___________

Options a b c D
Response 8 0 10 0

Response
10
9
8
7
6
5
8 10
4 Response
3
2
1
0
0
a 0
b
c
d

Interpretation

According to the data collected from the respondents the production planning of N R Industries,
Gurgaon, is based on customer need i.e. dealers demand for particular models, and also on the basis
of resources available.
The marketing department reports to the PPC/Store about dealers’ requirements. PPC/Store
communicates with the material department about availability of material.
Hence, market demand and availability of resources is considered as base for production plans

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Q7. Do you feel or experienced “hung up” and “bottlenecks” in implementing Production Plans?

Option Yes No
Response 4 6

response

4
yes
no
6

Interpretation
Majority of the respondents i.e. 60% are in against of the statement, hence, all the department works
in integration.
Heads of all the department sits together and prepares plans which are properly applicable.
There are people who experienced bottlenecks like- sequence change due to non-availability of
material, and transforming one model to other due to requirement of specific model.

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Q8. How do current Production Planning and Capacity Planning methods account for bottlenecks.

Interpretation
Current production planning and capacity planning highly depends on material available and material
in transit. The non-availability of material and delay in transportation of material hinders execution
of plans properly.
Due to this too many changes in daily and weekly plans takes place. Sometimes lack of coordination
between PPC/Store, production department, and Quality control department creates problem of
rework and repair.

Q9. Previously what measures have been taken to avoid such bottlenecks?

Interpretation
As the main source of bottleneck is timely not availability of material. So, proper care is taken of the
material providers, transportation of material, and inventory of material.
Following measures have been taken to avoid such bottlenecks:
• Multiple vendors being developed for most of the items.
• Proper inventory level is being asked to maintain.
• Planning being done with the best availability of material

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Q10. If results are not according to the plans, what control measures are taken?

a) Revision of Plan
b) Any other measures.

Please specify other measures (if any) Options

Options Revision of plan Any other measure
Response 10 0

response

Revision of plan
Any other measure

Interpretation
If the results are OK wait until next control period. If not OK, revision of plan is required to be done.
At present people of do not have any other solution except revision of plan to control deviations in
plans and results.

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PRODUCTION PLANNING AND CONTROL AT N R INDUSTRIES

Production plan is crucial to the success of any producing unit; it is an activity which is continuous in
nature and is required to be revised time to time as per the requirements.
It can’t be done in isolation by a particular department; rather it is an integrated activity done by
Planning and Control Department in collaboration with Material Department, Production
Department, and Quality Control Department.
The heads of various departments of N R Industries, Gurgaon sit together and Plans their monthly,
weekly, and daily production.

PROCESS OF PRODUCTION PLANNING

MARKETING DEPARTMENT – MONTHLY DETAILS OF MARKET DEMAND

Production planning starts from the market details provided by Marketing Department. Marketing
Department provides their monthly requirements like- number of parts, specific models, capacity etc.

PPC/STORE – PRELIMINARY PRODUCTION PLAN

PPC/Store receives message of monthly requirements from marketing department. PPC studies the
requirements and prepare a Preliminary Production Plan. This plan is sent to the Materials
Department.

MATERIAL DEPARTMENT – MATERIAL REQUIREMENTS PLANNING

A copy of preliminary plan is sent to the material department. Material department studies the plan
and prepares a report which shows the availability of material, material in transit, plan receipt of
material in chronological form, expected shortage of material, and any other problem related to the
material. Materials Requirements Planning (MRP) can be used in more complex systems. MRP
determines time-phased requirements (period-by-period) for all purchased and manufactured parts
such as raw materials, components, parts, subassemblies, etc. . This report is sent to the PPC
Department
PPC - REVISION OF PRELIMINARY PRODUCTION PLAN.
On the basis of the report sent by material department, thick/Store revises the preliminary plan. This
revised plan is sent to the marketing department. Marketing department revises the schedule of
requirements according to the availability and sequence/schedule of receipt of material.

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PRODUCTION PLANNING AND MASTER PRODUCTION SCHEDULING

After the consent of marketing department and material department the monthly Production Plan and
weekly master production scheduling is done. A copy of main plan and master production schedule
is sent to each department.

DAILY PRODUCTION PLAN

Every day in morning the production head, quality head, and material head sits together, discuss their
problems, and unanimously prepares a daily production plan. This daily production plan is displayed
on planning board of every department and at every level of assembly line. This daily production
plan shows sequence of operations, sequence and schedule of material movement, post pending
material, pre pending material, and shortage of material. This daily plan is automatically get updated
with the completion of operations at every level.

CONTROL

If results are not according to the Daily Plans, the plan is required to be revised. Daily Production
Plan is revised number of times considering the material shortages, problems with assembly line etc.
If material is post pending i.e. on assembly line its operation can’t be changed, but, changes can be
made in the sequence and scheduling of pre pending material i.e. material in queue. Efforts are made
to plan a sequence which minimizes the idle time of assembly line, labor, and other equipment’s.

FINDINGS

The PPC department of N R Industries, Gurgaon, believes in making plans and decisions
unanimously, in cooperation with production department, marketing department, material
department, and quality control department.
So that a feasible plan can be made, executed properly, and optimum results can be achieved.
Hence, production planning and control is an integrated activity and can’t be done in isolation by any
particular department.

Following are the findings of this project about production planning and control activities of N R
Industries, Gurgaon:
1. Production Planning is an integrated activity and cannot be done in isolation by a particular
department.

29
 2. PPC helps in scheduling tasks and production runs and ensures production capacity does not
remain idle and there is no undue queuing of tasks via proper allocation of tasks to the production
facilities.
3. Proper PPC helps to resort to just- in- time systems and thereby reduce the overall inventory. It
enables to ensure that the right supplies are available at the right time.
4. PPC helps to reduce the cycle time and increase the turnover via proper scheduling.
5. PPC provide for adherence to the quality standards so that quality of output is ensured.

To sum up we may say that PPC and FIFO are of immense value to the entrepreneur in capacity
utilization and inventory control. More importantly it improves his/her response time and quality. As
such effective PPC and FIFO contribute to time, quality and cost parameters of entrepreneurial
success.

30
CONCLUSION

After doing this project I am in position to conclude that N R INDUSTRIES has well defined and
structured production planning system.
PPC defines the sequences and schedules of operations; hence production planning contributes to the
efficient use of facilities and equipment’s.
PPC is done to identify production process which leads to reduced lead time; hence customer waiting
time is also reduced.
PPC and FIFO ensure optimum utilization of production capacity, material, and other equipment’s;
hence it leads to waste reduction and increased profits.

RECOMMENDATIONS

The production planning and control of N R Industries, Gurgaon, highly depends on the material
availability.
In case of shortage of material the overall plan get disturbed.
If such problem prevails the optimum results cannot be achieved.
To avoid such problem following measures can be taken:

A. Proper Materials Planning done,

B. Materials must be purchased from multiple vendors,
C. sufficient safety stock must be maintained,
D. Lead time and responsibility must be fixed at the part of vendors.

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REFERENCES

BOOKS:
1. Harris, g, at tour, s, 2003 The National advertising practices of multinational companies; a content
analysis study. European journal of marketing volume 37, no ½; 154-168
2. Mackenzie, I.2004 English for business studies - A curse for business studies and economics
students. Cambridge, United Kingdom;
3. Nard, P.2003.doing Survey Research – A Guide to Quantitative Method.

WEBSITES:
1. www.wikipedia.org
2. www.nrindustries.com
3. www.iatfglobaloversight.org

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