Operations Management

Lecturer : Mr W.M Goriwondo

NUST
Department of Industrial & Manufacturing Engineering
 Production Planning & Control
 It is the process of planning production in an
industry in advance of actual production.
 Objectives of PP&C
 There are basically two major and important
objectives of PP&C
i. Planning activities of production
 Collect and organise the pertinent production information
generated by the selling, purchasing and engineering
departments.
 Translate the information collected above into production
schedules such that the overall plant facilities are
economically used and the production requirements of
each department are satisfied
 Objectives of PP&C
ii. Controlling production activities
 Release the production orders in conjunction
with the production schedules (dispatching)
 Review production progress and initiate
remedial action.
 The Planning aspect
 Organises in advance the men, materials, machines
and money required for a predetermined output in a
given period of time.
 Production planning starts with a product that can be
manufactured and consists of the following functions.
1. Selection of process by which the product can be produced
2. A breakdown of the parts and materials
3. A decision to either produce or purchase
4. Planning the machines, equipment and tools
5. Development of machining operations
6. Development of time standards or estimates
7. Determining the path the raw materials will take through the
organisation to produce finished goods (routing)
8. Make up production schedules
 The controlling aspect
 Directs and controls numerous instructions to all parts of the
factory to produce the item desired and at the time specified
 Production control has been likened to a nervous system, sending
directions to all parts of a factory to achieve production schedule.
 The functions of production control are performed with the help
of the following :-
1. Dispatching : moving materials, tools and equipment. Moving work to
machines on operation basis. Liaison with scheduling.
2. Follow up :- expediting materials, in-process parts and assembly.
 Advantages of PP & C

1. Maximum quality production at minimum cost through

even distribution of work to evaluate equipment and
personnel
2. Added flexibility in equipment and personnel to meet
unavoidable emergencies.
3. Harmony and cooperation between departments
4. Achieve a high standard or reliability of delivery
 Types of Production
 From the point of view of Production Planning
and Control, there are two basic types of
production.
1. Production to Stock
2. Production to customer order

 But many organisations produce to both.

WHY?????
 Activities in PP&C
1. Determine the practicability of a product design
2. Analyse the product for best methods of production
3. Determine the economic lot size
4. Select the best equipment for any manufacturing
process
5. Determine the best sequence of operations to
manufacture each individual item, part or assembly.
6. Design or supervising the design of tools, jigs, fixtures
or other devices
7. Estimate expenditure for equipment and tools
 Activities in PP&C (continued…)

8. Setting start and finish dates for each important item,

assembly and finished product (scheduling)
9. Controlling the inventory of raw materials and in-
process parts
10. Dispatching materials, tooling and equipment to the
plant locations specified by the schedule (dispatching)
11. Keeping track of progress of production
12. Providing program for evaluation and review.

Thus PP&C is the function of looking ahead, anticipating

difficulties and tacking steps to remove the causes
before they materialise.
 Principles of PP&C
 PP&C is based on 3 principles
1. Investigation
a) Organisation and interpretation of information
received from sales (forecasts), purchasing and
engineering departments.
b) What production steps have to be followed
c) Calculation of material requirements
d) Development of detailed production schedules
 Principles of PP&C
2. Co-ordination
a) Initiating action which brings needed
materials and tools to the proper machines
and at the scheduled times.
b) Liaison with maintenance and engineering
departments for any maintenance of
equipment
 Principles of PP&C
3. Evaluation
a) Constantly reviewing production materials,
methods, tooling, operating times so that
the planned manufacturing results are
realised in terms of quantity, quality, time
and location.