BAHIR DAR

Ethiopian UNIVERSITY
Institute of Textile and Fashion
Institute of Textile & Fashion Technology

Garment Production Management

Assignment -3 Production planning & management

1 By Jemal. A
Sub.to: Prof. Adhiambo M.
Odhuno
 The Production System

Raw materials
Energy Finished products
Production
Labor Scrap
Equipment
System
Waste
Information

2
Examples of Decisions Made Throughout
Production planning and Inventory
Management
 What should we produce, how much, and when
(forecasting)?
 How much can we produce (capacity planning)?
 How much do we have and how much do we
need (inventory management)?
 When should we produce (production planning
and scheduling)?

3
 Production Planning and Control
Purpose
 Minimize non-value added activities and
effectively utilize limited resources in the
production of goods so as to satisfy customer
demands and create a profit for investors.

Resources include the production facilities, labor

and materials.

Constraints include the availability of resources,

delivery times for the products, and management
policies. 4
 Production Planning & Control
There are three stages in PPC :
Planning : The choice from several alternatives to the best
utilizing the available resources to achieve the desired
objective .
Operations: deals with achieving high Performance in
accordance with details set out in production plan.
Control: The monitoring of performance through a feed
back by comparing the results achieved with planned
targets so that performance can be improved. .

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Production Planning and Control

Main Functions
 Forecasting to predict customer demand on various products over a
given horizon.

 Aggregate Planning to determine overall resources needed.

 Materials
Requirement Planning to determine all required
components and timing.

 Inventory Management to decide production or purchase quantities

and timing.

 Scheduling to determine shop-floor schedule of various components.

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Objectives of PPC:
1. To attain maximum utilization of resources
2. To get good quality
3. To minimize manufacturing cycle
4. To attend flexibility
5. To maintain optimum inventory level
6. To achieve coordination labor, machine and other
supporting department
7. To remove bottleneck
8. To reduce production cost
9. To prepare maintain production schedule
 8

Production Objectives
High
Profitability

Low High
Costs Sales

Low Unit Quality High Customer

Costs Product Service

High High Low Fast Many

Throughput Utilization Inventory Respons products
e

Less Short Low High More

Variability Cycle Times Utilization Inventory Variability
 9

Performance Measures

 Throughput
 WIP
 Cycle time
 Service quality
 Profit
Production Planning Hierarchy

Long-Range Capacity Planning

Aggregate Planning

Master Production Scheduling

Production Planning and Control Systems

Push Pull
Systems Systems 10
 Production
Production Planning
Planning Horizons
Horizons

Long-Range
Long-Range Capacity Planning
(years)

Medium-Range
Aggregate Planning
(3-18 months)
Short-Range
Master Production Scheduling
(weeks)

Production Planning and Control Systems Very-Short-Range

(hours - days)

Push Pull
11
Systems Systems
Production
Production Planning:
Planning: Units
Units of
of Measure
Measure

Entire
Long-Range Capacity Planning
Product Line

Product
Aggregate Planning
Family

Master Production Scheduling Specific

Product Model
Labor, Materials,
Production Planning and Control Systems
Machines

Push Pull
12
Systems Systems
 Master Production Scheduling
Linkages with APP & Forecasting

Aggregate
Order
Inflow Production Forecasting
Planning
Market

Master
Capacity Plan Production Materials Plan
Scheduling

Labour & Actual

Vendors
Resources Production 13
Resource Material
availability Inflow
 Organizational structure
14

 Organizational structure determines how the

roles, power and responsibilities are assigned,
controlled, and coordinated, and how
information flows between the different
levels of management.
A structure depends on the organization's
objectives and strategy
Every organization is made up of different
department. 
 Each department contributes to the running of
the business.
 15

The main common departments are;

Production
Marketing & Sales
Finance
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Production Department
 The production department is responsible for converting
inputs into outputs through the stages of production
processes.
 will provide the materials, components and equipment
required.
 set the standards and targets at each stage of the production
process.
 Responsible for stocking all the necessary tools, raw
materials and equipment required to service the
manufacturing process.
 They are responsible for the design and testing of new
product processes and product types, together with the
development of prototypes through to the final product.
 Marketing department
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 Is responsible for the sales and distribution

of the products to the different regions.
 Is responsible for market research and
testing new products to make sure that they
are suitable to be sold.
 Decides on the type of promotion method for
the products, arranges advertisements and
the advertising media used.
 Transports the products to the market.
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Finance Department
 Keeping records of the purchases and sales made
by a business as well as capital spending.
 Profit and loss account and balance sheets
 Be responsible for the technical details of how a
business raises finance
 Be responsible for calculating the wages and
salaries of employees .
 Organizing the collection of income tax and
national insurance for the inland revenue.
 In addition it will supervise the payment of
dividends to shareholders.
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Phases of production planning & control

1. pre-planning phase
2. Planning phase
3. Control phase
pre-planning phase
 Product development
 Forecasting demand
 Process design
 Flow design
 Activities in planning phase
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 Process planning (routing)

 Estimating
 Scheduling
 Loading

ROUTING:
 Is the process of decided the path of the work and sequence
of operation by considering appropriate work station ,layout,
temporary storage , location of raw material ,components ,and
semi-finished goods ,and raw material handling system.
The main objective of routing is:
 To determine the best and cheapest sequence of operation and
to ensure that this sequence is followed in the factory.
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ESTIMATING
 Determining the requirements by operation ,efficiency ,and
utilization of space and time.

LOADING :
 Is the amount of work that is a located to work center s.

There are two types of loading:

1. Finite loading is an approach which only allocate work to
work station up to asset limit.
2. Infinite loading is an approach to loading work which
doesn't limit accepting work ,but instead try to cope with it.
 Sequence we are sequencing jobs to do what come first.
 Sequencing is deciding the order or work which will be
tackled first.
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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.
Factors which will be tackled first:
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Physical constraint of material.

Customer priority.
Due date.
LIFO (last in first out)
FIFO(first in first out)
LOT(longest operation time)
SOT(shortest operation time)
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Scheduling
1. Forward scheduling
2. Backward scheduling

 Forward scheduling ;
 With forward scheduling ,processing start immediately
when an order received ,regardless of it’s due date.
 The disadvantage to finish a job early is that it cause an
inventory build up , if the items are not delivered before
the due date.
 Backward scheduling;
 scheduling being from the last activities of the job, so that
the job is finished right on the delivery date.
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Activities in planning phase:

 DETERMINATION OF PRODUCTION CAPACITY OF A
FACTORY:
A factory’s capacity is presented in total minutes or hours or in
pieces (production per day).
To calculate Daily production capacity (in pieces) one needs
following information.

1. Factory capacity in hours

2. Product SAM
3. Line efficiency (Average)
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1. Calculation of Factory capacity (in hours):

 Check how many machines the factory has and how many
hours the factory runs in a day.
For example suppose, 
Total number of machines = 200
Shift hours per day = 10 hours
So total factory capacity (in hours) = 200*10 hours = 2000
hours 
2. Calculation of Product SAM (SAM):
 Make a list of product category that you manufacture and
get standard minutes (SAM) of all products you make from
work study engineers.
 If you don’t have product SAM then calculate the SAM. Or
you can use average SAM of the products.
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Methods of calculating SAM

Method #1: Calculation of SAM Using Synthetic Data
In this method 'Predetermined Time Standard' (PTS) code are used to
establish 'Standard Time' of a garment or other sewing products. 

Step 1: Select one operation for which you want to calculate SAM.

Step 2: Study the motions of that operation.

 Stand by side of an operator (experienced one) and see the operator
how he is doing it.
 Note all movement used by the operator in doing one complete cycle
of work.
 See carefully again and recheck your note if all movement/motion
are captured and correct.
 (for example motions are like - pick up parts one hand or two hand,
align part on table or machine foot, realign plies, etc.)
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Step 3: List down all motion sequentially.

 Refer the synthetic data for TMU (Time measuring unit)
values.
 For synthetic data you can refer (TMU values) or Sewing
Performance Data table (SPD).
 Now you got TMU value for one operation (for example say it
is 400 TMU).
 Convert total TMU into minutes (1 TMU=0.0006 minute).
 This is called as Basic Time in minutes.

Step 4: Standard allowed minutes (SAM) = (Basic minute +

Bundle allowances + machine and personal allowances).
 Add bundle allowances (10%) and machine and personal
allowances (20%) to basic time.
 Now you got Standard Minute value (SMV) or SAM. SAM=
(0.24+0.024+0.048) = 0.31 minutes.
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Method #2: Calculation of SAM Through Time Study

Step 1: Select one operation for which you want to calculate SAM.
Step 2: Take one stop watch.
 Stand by side of the operator.
 Capture cycle time for that operation.
 (cycle time – total time taken to do all works needed to complete one
operation, i.e. time from pick up part of first piece to next pick up of the
next piece).
 Do time study for consecutive five cycles.
 Discard if found abnormal time in any cycle.
 Calculate average of the 5 cycles.
 Time you got from time study is called cycle time.
 To convert this cycle time into basic time you have to multiply cycle time
with operator performance rating.
 [Basic Time = Cycle Time X performance Rating]
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Step 3: Performance rating.

 Now you have to rate the operator at what performance
level he was doing the job seeing his movement and work
speed.
 Suppose that operator performance rating is 80%.
 Suppose cycle time is 0.60 minutes.
 Basic time = (0.60 X 80%) = 0.48 minutes

Step 4: Standard allowed minutes (SAM) = (Basic minute

+ Bundle allowances + machine and personal allowances).
 Add bundle allowances (10%) and machine and personal
allowances (20%) to basic time.
 Now you got Standard Minute value (SMV) or SAM.
SAM= (0.48+0.048+0.096) = 0.624 minutes.
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3. Factory Average Efficiency:

This data is collected from industrial engineer. Or
calculate it with historical data. Suppose average
line efficiency is 50%.
 Calculation of production capacity (in pieces):
Once you have above information use following
formula to calculate production capacity. 
 Production capacity (in pieces) = (Capacity in
hours*60/product SAM)*line efficiency 
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 For Example: Suppose a factory has 8 sewing lines and

each line has 25 machines. Total 200 machines and
working shift is 10 hours per day. Total factory capacity
per day is 2000 hours (200 machines * 10 hours). If
factory is producing only one style (Shirt) of SAM 25
minutes and used all 200 machines daily production
capacity at 50%

= (2000*60/25)*50% Pieces
= (2000*60*50) / (25*100) Pieces
= 2400 Pieces
 [Note: Production will vary according to the line
efficiency and during learning curve or in the initial days
when style is loaded to the line]
 Activities in controlling phase
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Production control through controlling

mechanism try to take corrective action to
match the planned and actual production.
Major activities are:
 Dispatching
 Follow up
 Inspecting
 Evaluation
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DISPATCHING:
 Is the action or doing or implementation stage.
 Dispatching means starting the process of production
& it provides the necessary authority to start the work.
 Dispatching include the following activities;
 Issuing of materials, tools, equipment, machineries
and required facilities.
 Issuing of information , order , instruction
,procedure ,manual and specifications.
 Recording of starting and ending dates.
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FOLLOW UP:
 Follow up is concerned with checking the production is
executed as per the plan or not.
 Follow up find out and removes the defects ,delay
,breakdown , bottleneck and limitation.

INSPECTION:
 Inspection is the identification of the defect.

EVALUATION :
 Evaluation is through analysis of all the factors in flowing the
production planning and control .
 Helps to identify the week point &the corrective action with
respect to pre-planning & planning , and effected by feedback.
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Comparison b/n planning and control:

 Production Planning  Production control
a) Deals with planning a) Deal with
b) Input data are ;material implementation
,machine and skill b) Input Data are report
c) Very centralized ,feedback, efficiency ,
d) Feed back is used for future inventory ,and quality
plan reports.
e) Forward thinking c) Decentralized
f) Paper work d) Feed back is used For
corrective action
e) Backward thinking
f) Action phase
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Inventory Management
 How much to order of each material when orders
are placed with either outside suppliers or
production departments within organizations
 When to place the orders.

 The overall objective of inventory management is

to achieve satisfactory levels of customer service
while keeping inventory costs within reasonable
bounds by answering these two questions .
 38

The Role of Inventory

• Inventory consists of physical items moving through the
production system
• Originates with shipment of raw material and parts from
the supplier
• Ends with delivery of the finished products to the
customer
• Costs of storing inventory accounts for a substantial
proportion of manufacturing cost
– Often 20% or more
• Optimal level of inventory
– Allows production operations to continue smoothly
• A common control measure is Inventory Turnover
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What Does Inventory Turnover

Mean?
 A ratio showing how many times a
company's inventory is sold and replaced over a
period.
 Inventory turnover is calculated with the
following formula:
 (Cost of Goods Sold from Stock Sales during
the Past 12 Months ) /(Average Inventory
Investment during the Past 12 Months)
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Why Is Inventory
Turnover Important?
The inventory turnover rate measures how
quickly you are moving inventory through
your warehouse.
 Combined with other measurements such
as customer service level and return on
investment, inventory turnover can
provide an accurate barometer of your
success.
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5 reasons that fail production plan and

cause shipment delay

1. Product development and Sampling.

2. Delay in sourcing of raw material:
3. Inferior quality in sourced goods:
4. Production urgency:
5. Delay from Sub-contracting Jobs:
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Limitations of PPC
 PPC function is based on certain assumptions or
forecasts of customer’s demand, Plant capacity,
availability of materials etc
 Employee may resist change in production levels set
as per production plans.
 This process is time consuming when we need to carry
out routing and scheduling function for large products.
 This function become difficult when environmental
factors changes rapidly.
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Some of the factors that affect planning are :

1.Non –availability of materials
2.Changein demand and order
3.Plant ,equipment and machine may breakdown
4.Absenteeism of worker ,lateness workers
5.Supplies may not always deliver on time
6.Lack of coordination and communication b/n
different functions
Many thanks!