PRODUCTION PLANNING & CONTROL

PPC

PPC is the organization & planning of the manufacturing process. It coordinates supply & movement of the material & Labour, ensures economic & balanced utilization of the machine & equipment as well as other activities related with production to achieve the desired manufacturing results in terms of quantity, quality, time & place.

Objectives of PPC

Determining the nature & magnitude of various input factors to manufacture the desired output. To co-ordinate labour, machines & equipments in the most effective & economic manner. Establishing targets & checking these against performance. Ensuring smooth flow of material by eliminating bottlenecks, if any in production. Utilization of under employed resources. To manufacture the desired output of right quality & quantity at right time.

Importance of PPC
Reduce cost of production by minimizing wastage of

material & economic utilization of resources. Leads to power investment by means of efficient & balanced utilization of resources. Promote employees morale by avoiding all sorts of bottlenecks. Enhance customer satisfaction & confidence.

Factors determining the nature of PPC operations in a manufacturing firm

The independence of various activities/operations

involved in the transformation process. The no. of operations, parts & sub-assemblies required to get the final product. The nature & magnitude of the variation in the capacity of different kinds of machines & equipment.

Factors determining the nature of PPC operations in a manufacturing firm

The size of order & the production run e.g. a large

no. of orders in smaller lots make the system more complex.

The nature of the manufacturing system.

SCOPE OF PPC
Liason with the purchase department for efficient &

effective procurement of inputs. Liason with marketing department to determine the nature & magnitude of the output. To plan the layout of the operations indicating in detail the places/points in the system where various production activities/operations are to be performed.

SCOPE OF PPC
Establishment of the time schedule for various

stages/levels of production by setting up necessary standards. Ensuring continuous inspection over the quality of goods manufactured. Instituting necessary control to complete the work according to schedule.

LEVELS OF PRODUCTION PLANNING

Factory Planning Process Planning Operations Planning

Objectives of Production Planning

Systematic co-ordination & regulation of various activities keeping in view the capacity of the resources & the objective of the organization. To maintain proper balance of the activities for efficient production. Determination of raw material, machines, equipments etc. Anticipation of business changes & reacting to them in proper manner.

Objectives of Production Planning

To have optimum use of the resources with optimum

cost and time by having most economical combination. To provide alternate production strategies in the case of emergencies.

Factors determining an efficient Production Planning system

Future rate of sales, production & inventory levels etc.

Input requirement viz. raw materials, spare parts for

machine & equipment, capacity of plant & present load etc. Estimated output desired. Nature of operations, sequence of these operations and duration of each operation.

PRODUCTION PLANNING CATEGORIES

ROUTING: It means determination of path or route over which each piece or to travel in being transformed from raw material into finished product. Routing consists of seven decisions: Whether to Make/Buy. The form & shape of the material. The division of the work. The choice of machines/work centers. The proper sequence. The division of operations into elements. The choice of special tooling.

Route Sheet
Manufacturing Order No. Description of the Item No of pieces on order /Economic Lot size Material Description Purchase order No Time//piece Tool Description Spoilage allowances Drawing No. Date of completion

Remarks Total Item to be Produced

Quality of material Due date Set up time Time allowance

Advantages of Routing
Efficient use of available resources

Reduction in manufacturing costs

Improvement in quality & quantity of the output

Provides a basis for scheduling & loading

Scheduling
It is process of prescribing when each operation in a production process is to be executed. In other words, it involves designing the time table of manufacturing activities indicating the time required for the production of units at each stage. The determination of time that is required to perform each operation and also the time required to perform the entire series as routed is scheduling.

Objectives of Scheduling
To plan the sequence of work such that the delivery date is met. To have minimum throughput time for having better utilization of resources. To minimize idle time of machines, labour etc. for having maximum utilization of plant and reducing the cost of wages. To prevent unbalanced allocation of time among various departments & work centers.

Classification of schedule
Operation schedule

Master schedule
Sequential schedule

Operation Schedule
Operation schedule determines the total time required to

do a piece of work with a given machine or process. It indicates the time required to perform as well as other details of type of material, machines, labour etc. required for each & every operation.

Master Schedule
Master schedule is a list showing how many of each item

to make in each period of time in future. Its is the first step for planning for production. These are usually changed as time moves along in response to change in production.

Sequential Scheduling
Sequential scheduling is used to define a sequence for a multiproduct plant, which passes through a number of operations. If the duration of each operation is known then two general rules for finding the optimum sequence can be: For minimum time lost each operation should be longer than any predecessor in a programme. For minimum individual lead time each operation should be shorter than any predecessor in a programme.

Scheduling Devices
Gantt chart CPM & PERT techniques The Run out approach

Gantt Chart
These charts portray planned production & actual performance over a period of time. It is a rectangular chart divided by parallel horizontal & vertical lines. There are no. of different types of Gantt charts available but the most common are load chart & schedule chart. It often shows who is responsible for

PERT/CPM
It is based upon network analysis and are powerful tool of production control. In this technique, the job is first broken into elements & then a network is constructed. A PERT chart is a project management tool used to schedule, organize & coordinate tasks within a project.

Run Out Approach

This method is applicable to production that is geared up to inventory level. It is demand oriented and tries to minimize stock outs by assigning highest priority to items mostly in danger of running out. The rum out time for each product is calculated & a monthly forecast for future monthly usage is developed.

Steps of PPC
Production Planning & Control

Production Planning

Production Control

Planning Routing Scheduling Loading

Dispatching Following Up Inspection Corrective

Loading

Loading can be defined as the study of the relationship between load and capacity at the places where work is done. Loading provides complete & correct information about the number of machines available & their operating characteristics such as speed, capacity, capability etc. This information can be used to calculate the diff b/w work load & actual capacity and then to determine whether

Objectives of Loading
To plan new work orders on the basis of spare capacity. To balance the work load in a plant. To maintain the delivery promise. To check the feasibility of production programme.

Loading Devices
Loading Step by Step Machine Loading Load Charts

Production Control

Production control is some scientific procedure to regulate an orderly flow of material & co-ordinate various production operations to accomplish the objective of producing desired item in right quantity of desired quality at the desired time by the best & the cheapest method i.e. to attain highest efficiency in production.

Objectives/Functions of Production Control

Provision of raw material, equipment, machines & Labour. To organize production schedule in conformity with the demand forecast. The resources are used in the best possible manner in such a way that the cost of production is minimized. Proper co-ordination of the operations of various department. To ensure regular & timely supply of raw material at the desired places. Perform Inspection of semi finished goods & finished goods. It is also responsible for product design &

Levels of Production Control

Programming Ordering Dispatching

Factors Determining Production Control Operations

Nature of production Nature of operational activities Magnitude of operation

Techniques of Production Control

Programming: It regulates the supply of finished product in desired amount at the due date in accordance with the production plan. Programming ensures most efficient use of labour, equipment & capital. In programming, three decisions are taken: Nature of product to be manufactured Amount of quantity to be produced When to produce

Techniques of Production Control

Ordering: It is the process of placing order to the supplier & the processing dept. for the material & other parts needed to manufacture the products & to arrange the ordering quantity & delivery schedule in such a away that all items are delivered in time to meet the production programme. An order form contains the following details: Order No., Date of Order, Ordered By, production Centre, Part Number, Part description, Order quantity, run quantity, due date, material source etc.

Techniques of Production Control

Dispatching: It is the routine of setting production activities in motion through the release of order & instructions in accordance with previously planned times & sequence embodied in route sheet & schedules

Functions of Dispatching

To check the immediate availability of materials. Ensuring that all production & inspection aids are available for use. To obtain the appropriate drawing, specification or material list. To collate jobs, operation layout etc. with the design. Processing information or inspection schedule. Instruction to start the production.

Techniques of Production Control

Inventory Control: The constituents of Inventory can be: All material, parts & in process or finished goods recorded in the books by the organization & kept in stores, warehouse & plants. A list of names, quantities/monetary values of all or any group or classification of items.