LECTURE 4:

PRODUCTION PLANNING AND

CONTROL

Prepared by:
Assoc. Prof. Dr Siti Akhtar Mahayuddin
LEARNING
OUTCOME Apply and Apply knowledge Adapt with parties

FOR THIS develop skill and

methods:
and skills towards
production
involved in
production
planning and planning and
TOPIC: production
planning and
control control
control

2
 1. Introduction and objectives of production
planning and control (PPC)
2. Stages of production planning and control
• planning phase (shop drawing by
CONTENTS consultants),
• action phase (manufacturing process)
• control phase (quality control)
 INTRODUCTION TO PPC
PPC is important task of PRODUCTION MANAGER, where he or she able to see that
production process is properly decided in ADVANCE and undertaken as per the plan.
Production is related to the CONVERSION of RAW MATERIALS into FINISHED
GOODS. THIS CONVERSION PROCESS involves several steps such as DECIDING :
WHAT TO PRODUCE?
HOW TO PRODUCE?
WHEN TO PRODUCE ? & etc………..000…..

This DECISIONS are part of PRODUCTION PLANNING

THE WHOLE PROCESS should undertaken IN A BEST POSSIBLE WAY
at the LOWEST COST
 INTRODUCTION TO PPC
PRODUCTION MANAGER will have see that the things proceed as planning. This is a
CONTROL function and to be carried as meticulously as planning.
Integration of the production planning and control system for:

• Efficient
3E • Effective
• Economical operation

Production Planning is the function of LOOKING AHEAD, ANTICIPATING difficulties to

be faced and remedial steps to remove it.
“IS A TECHNIQUE OF FORECASTING AHEAD EVERY STEP, TAKING THEM AT A
RIGHT TIME, IN THE RIGHT DEGREE, AND COMPLETING THE OPERATION AT
MAXIMUM EFFICIENCY.”
 INTRODUCTION TO PPC

Essential to integrate the production planning and

control system. Production planning and Production planning and control address a
subsequent production control follow adaption of fundamental problem of low productivity,
product design and finalization of a production inventory management and resource utilization.
process.

Production control ensures that

Production planning is required for
production team can achieve
scheduling, dispatch, inspection, quality
required production target,
management, inventory management,
optimum utilization of resources,
supply management and equipment
quality management and cost
management.
savings.
 THE BENEFITS OF PRODUCTION PLANNING
AND CONTROL (PPC)

PPC ENSURES THAT PPC ENSURES THAT PPC ENSURES THAT PPC OVERLOOKS ALL
OPTIMUM UTILIZATION OF INVENTORY LEVEL ARE PRODUCTION TIME IS ASPECTS OF
PRODUCTION CAPACITY IS MAINTAINED AT KEPT AT OPTIMUM PRODUCTION
ACHIEVED, BY PROPER
SCHEDULING OF THE OPTIMUM LEVELS AT LEVEL AND THEREBY THEREFORE QUALITY
MACHINE ITEMS WHICH ALL TIME, I.E. THERE IS INCREASING THE OF FINAL PRODUCT IS
REDUCES THE IDLE TIME NO OVER-STOCKING OR TURNOVER TIME. ALWAYS MAINTAINED.
AS WELL AS OVERUSE. UNDER-STOCKING.
 PRODUCTION PLANNING – BASIC CONCEPT
• Production planning is one part of production planning and control.
• Basic concepts:
1. WHAT to produce?

2. WHEN to produce?

3. HOW much to produce, etc.

• Taking a long-term view at overall production planning.

OBJECTIVES 1. To ensure right quantity and quality of raw
material, equipment, etc. are available during
OF times of production.

PRODUCTIO 2. To ensure capacity utilization is in tune with

forecast demand at all the time.
N PLANNING
BENEFITS OF 1. Organization can deliver a product in a timely
A WELL 2.
and regular manner.
Supplier are informed in advance for the
THOUGHT requirement of raw materials.
3. Able to reduce investment in inventory.
OF 4. Able to reduce overall production cost by
PRODUCTIO driving in efficiency.

N PLANNING
BASIC STRATEGIES Long range
planning
Facility planning

Capital investment

Product planning

Location planning

Medium Range
Planning Demand forecast
Basic strategies

Capacity planning
Short term planning
Process planning (day to day
operation)
 • Production control looks to utilize different type of
control techniques to achieve optimum performance
out of the production system as to achieve overall
production planning targets.

PRODUCTIO • Objectives of production control:

N CONTROL 1.
2.
Regulate inventory management
Organize the production schedules
3. Optimum utilization of resources and
production process
 • Production control cannot be same across all the
organization.
PRODUCTION • Production control is dependent upon the following
CONTROL factors:
1. Nature of production (job oriented, service
oriented, etc.)
2. Nature of operation
3. Size of operation
ADVANTAGES OF ROBUST PRODUCTION
CONTROL

1. Ensure a smooth flow of all

production processes
2. Ensure production cost savings
thereby improving the bottom line
3. Control wastage of resources
4. It maintains standard of quality
through the production life cycle.
 3 STAGES OF PRODUCTION PLANNING &
CONTROL (PPCC)

Planning Phase Action Phase Control Phase

 • Planning is an exercise of intelligent anticipation in
order to establish how an objective can be achieved
or a need fulfilled in circumstances, which are
invariably restrictive.

(1) • Production planning determines the optimal schedule

PLANNING and sequence of operations economic batch quantity,
machine assignment and dispatching priorities for
PHASE sequencing.

• Two categories of planning:

• Prior planning
• Active planning.
 • Prior planning means pre-production planning. This includes all the planning efforts,
which are taking place prior to the active planning.

• The prior planning are as follows:

• Product development and design is the process of developing a new product with
all the features, which are essential for effective use in the field, and designing it
accordingly. Factors need to be considered are design like, design for selling,
design for manufacturing and design for usage.

(A) PRIOR • Forecasting is an estimate of demand (future) based on past demand. The planner
need to consider sales forecast, factory capacity, aggregate inventory levels and
PLANNING size of the work force (manpower capacity) to determine the production rate (in
order to meet the demand). Production rate = operation of the plant over an
intermediate planning horizon.

• Aggregate planning aims to find out a product wise planning over the
intermediate planning horizon.

• Material requirement planning (MRP) is a technique for determining the quantity

and timing for the acquisition of dependent items needed to satisfy the master
production schedule.
 Active planning are:
1. Process planning and routing,
2. Materials planning.
3. Tools planning,
4. Loading,
5. Scheduling etc.

(B) ACTIVE 1. Process planning and routing

• A complete determination of the specific technological process steps and their
PLANNING sequence to produce products at the desired quality, quantity and cost.
• Determines the method of manufacturing a product selects the tools and equipments,
analyses how the manufacturing of the product will fit into the facilities.
• Routing in particular prescribes the flow of work in the plant and it is related to the
considerations of layout, temporary locations for raw materials and components and
materials handling systems.

2. Material planning
• A process which determines the requirements of various raw
materials/subassemblies by considering the trade-off between various cost
components like, carrying cost, ordering cost, shortage cost, and so forth.
 3. Tools’ planning
• Determines the requirements of various tools by taking process
specification (surface finish, length of the job, overall depth of cut etc.),
material specifications (type of material used, hardness of the material,
shape and size of the material etc.) and equipment specifications (speed
range, feed range, depth of cut range etc.).

(B) ACTIVE 4. Loading

PLANNING • process of assigning jobs to several machines such that there is a load
balance among the machines. This is relatively a complex task, which
can be managed with the help of efficient heuristic procedures.

5. Scheduling
• is the time phase of loading and determines when and in what sequence
the work will be carried out. This fixes the starting as well as the
finishing time for each job
Action phase has the major step of
dispatching. Dispatching is the
transition from planning phase to
action phase. In this phase, the
worker is ordered to start
manufacturing the product. The
tasks which are included in
dispatching are job order, store
issue order, tool order, time
ticket, inspection order, move
order etc.
The time ticket is a card which is
designed to note down the actual
time taken at various processes.
This information is used for
deciding the costs for future jobs
of similar nature and also for
performing variance analysis,
which helps to exercise control.
The job order number is the
key item which is to be
mentioned in all other
reports/orders. Job order is
the official authorization to
the shop floor to start
manufacturing the product.
The inspection order is an
instruction for testing and
inspection of the product
manufactured. The process
sequence will contain some
testing and inspection. This
order can minimize the
amount of rework.
(2) ACTION PHASE
Stores issue order The tool order
gives instruction to instruct the tool
stores to issue room to issue
materials for necessary tools
manufacturing the required in the
product as per manufacturing the
product product.
specifications.
The manufacture of product involves moving raw
materials/subassemblies to the main line. This is done by a
well-designed materials handling system. So Movement
order is a proper instruction given to the materials handling
facilities for major movements of materials/subassemblies.
Movements which involve less distance and fewer loads are
managed at the shop floor level based on requests from
operators.
 PROGRESS REPORTING
• Various data regarding what is happening with the job is collected and analyzed
• The various data includes materials rejection, process variations, equipment failures, operator efficiency,
operator absenteeism, tool life, etc (all related to the manufacturing process)
• Comparison with the present level of performance can be made with the collected data.
• These data are used for performing variance analysis, which would help to identify critical areas that deserve
immediate attention for corrective actions.

(3) CORRECTIVE ACTION

CONTROL • The tasks under corrective action primarily make provisions for an unexpected event.

PHASE • Some examples of corrective actions are creating schedule flexibility, schedule modifications, capacity
modifications, make or buy decisions, expediting the work and pre-planning.
• Due to unforeseen reasons such as, machine breakdown, labor absenteeism and too much rejection due to poor
material quality, it may not be possible to realize the schedule as per the plan. Under such condition, it is better
to reschedule the whole product mix to get a clear picture of the situation to progress further.
• Under such situation, it is to be re-examined for selecting appropriate course of action. Expediting means taking
action if the progress reporting indicates deviations from the originally set targets.
• Pre-planning of the whole affair becomes essential in case the expediting fails to bring the deviated plan to its
original plan.
 • Video 1: Introduction to Production Planning & Control
https://www.youtube.com/watch?v=m1J3GPpIZt0

• Video 2: Production Planning & Control

VIDEO https://www.youtube.com/watch?v=2Ie9uH9ySpo

• Video 3: Production planning software

https://www.youtube.com/watch?v=hfQGHh5NIXI