Production Planning and Control

Introductio
n

Production and Inventory Control- Introduction (1)

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Overview
The main components of the PPC system
Qualitative/quantitative forecasting
Steps In PPC
Aggregate planning
Material requirement planning
Inventory control
Scheduling
The theory of constraints and its applications
Push and Pull production systems

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PPC

MEANING:- Production planning and control can be viewed as the

nervous system of the production operation. It comprises planning,
routing, scheduling, dispatching & follow up in the productive
process. Production/Operations Planning and Control: Planning,
direction and co-ordination of the firms facilities to achieve the
predetermined production objectives in the most economical manner

Definition: The highest efficiency in production is obtained by

manufacturing the required quantity of the product at the required
time, by the best & cheapest method

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Production Planning and Control

The Production Control System
Demand
forecasting

Aggregate
planning

Materials
requirement
planning

Shop-floor
scheduling
and control

Inventory
management

Production and Inventory Control- Introduction (4)

Sales and
order entry

Customer

Production

Shipping
and
receiving

Inventory

Vendors

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STEPS OF PRODUCTION PLANNING AND

CONTROL

Production and Inventory Control- Introduction (5)

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Scope/steps of Production Planning

and Control
PPC encompasses
Materials
Methods
Machines and Equipments
Manpower
Routing
Estimating

Loading and Scheduling

Dispatching
Expediting
Inspection
Evaluating
Cost control

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Main Functions of Production

Planning and Control Department

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PRODUCTION PLANNING.

It may be defined as the technique of foreseeing every step in a long

series of separate operations, each step to be taken at the right time &
in the right place & each operations to be performed in maximum
efficinecy.It helps producers to work out the quantity of material , man
power , machine & money required for producing predetermined level
of output in given period of time.

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><<>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. In
small enterprises, this job is usually done by
entrepreneur himself in a rather
adhoc manner.
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LOADING

Assignment of work to manpower, machinery etc.It includes the

assignment of the work to the operators at their machines or work
places.It will determine who will do the work as routing determines
where scheduling determines when it shall be done.

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Loading:
The next step is the execution of the schedule plan as per the
route
chalked out it 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

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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 pattern of scheduling
differs from one job to
another which is explained as below:

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Production schedule:
The main aim is to schedule that amount of work which
can easily be handled by plant and equipment without
interference. Its not
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 and
experience to operate the
equipment and perform the type of work involved.
(3)
Necessary materials and purchased parts.
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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

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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.

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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 spotsdelays 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.

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

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Corrective measures:
Corrective action may involve any of those activities of
adjusting the route, rescheduling of work changing the
workloads, repairs andmaintenance of machinery or
equipment, control over inventories of the cause of
deviation is the poor performance of the employees. Certain
personnel decisionslike training, transfer, demotion etc.
may have to be taken.

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Classification of Production Planning

and Control Functions

i.
ii.
iii.
iv.
v.
vi.

The functions of PPC can be classified under the following :

Materials
Methods
Machines and Equipments
Routing
Estimating
Loading and Scheduling
Scheduling
vii. Dispatching
viii.Expediting or Progressing
ix. Inspection
x. Evaluating or Controlling
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Production Planning and Control

Purpose
1.Effectively utilize limited resources in the production of
goods so as to satisfy customer demands and create a profit
for investors.
2.Resources include the production facilities, labor and
materials.
3.Constraints include the availability of resources, delivery
times for the products, and management policies.
4.Receiving orders for customers
5.Direction and control of the movement of materials
through production process.
.6.Maintaining stocks of materials and parts.
7.Analyzing the orders
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Production Objectives
High
Profitability
Low
Costs

High
Sales

Low Unit
Costs
High
Throughput

High
Utilization

Less
Variability

Quality
Product
Low
Inventory

Short
Cycle Times

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High Customer
Service
Fast
Response

Low
Utilization

Many
products

High
Inventory

More
Variability

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Role of Production Planning and Control in

Operations Management
The Production/Operations Management Cycle

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Material Requirement Planning

Objective: Determine all purchase and production
components needed to satisfy the
aggregate/disaggregate plan.
Issues:
Bill of Materials: Determines components, quantities
and lead times.
Inventory Management: Must be coordinated with
inventory.

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Sequencing and Scheduling

Objective: develop a plan to guide the release of work
into the system and coordination with needed resources
(e.g., machines, staffing, materials).

Methods:
Sequencing:
Gives order of releases but not times.
Scheduling:
Gives detailed release times.

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Materials Requirements planning

Materials Requirements planning (MRP-1 or mrp):
Computer based information system for ordering and
scheduling of dependent demand inventories.
Objectives of MRP
1. To improve customer service by meeting delivery
schedules promised and shortening delivery lead times.
2. To reduce inventory costs by reducing inventory levels.
3. To improve plant operating efficiency by better use of
productive resources.
Three main purposes of a basic MRP system are to:
Control inventory levels
Assign operating priorities
Assign capacity to load production systems.
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 Manufacturing Resource Planning (MRP II ): Broadbased resource co-ordination system involving other
areas of a firm in the planning process, such as
marketing, finance and the human resource.
Three important functions of MRP are:
Order planning and control
Priority planning and control
Providing a basis for planning capacity requirements.

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Enterprise Resource Planning

Enterprise Resource Planning (ERP); A software
package developed for optimum use of resources of an
enterprise in a planned manner. It integrates the entire
enterprise starting form the supplier to the customer,
covering, logistics, financial and human resources.
Features of ERP
1. Accommodating variety
2. Integrated Management Information
3. Seamless integration
4. Supply chain management
5. Resource management
6. Integrated data model
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 Scope of ERP
a. Financials
b. Logistics
c. Human resources
d. Work flow
Application of ERP
ERP is gaining popularity in India at a rapid
pace. This is mainly due to the need for
reducing costs especially when the sales
are
sluggish in the sub-merging markets.

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TECHNIQUES OF PRODUCTION
CONTROL

GANTT CHART
PERT & CPM
BAR CHART
LINE OF BALANCE.

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