Production/Operations Planning & control
(A)
Production/Operations Planning & control
Production planning / Operation planning:
Involves the organization of an overall manufacturing / operating system to produce a product.
Various activities involved are i) designing the product ii) determining the equipment & capacity requirements, iii) designing the layout of physical facilities & MH system, iv) determining the sequence of operations to be performed along with time requirements (standard times) & v) specifying certain production quantity & quality levels
Objective is to provide a physical system together with a set of operating guidelines for efficient conversion of raw materials, human skills & other inputs in to finished products
Production/Operations Planning & control-contd
Factors determining Production Planning procedures It differs from company to company. It may begin with a
product idea & a plan for the design of the product & the entire production / operating system to manufacture the product.
It also includes the task of planning for the manufacturing of a modified version of an existing product, using the exiting facilities.
The wide difference between the planning procedures of one company from the other is primarily due to the differences in the economic & technological conditions under which the firms operate.
3- major factors determining the planning procedures are: (1) Volume of production (2) Nature of production processes
Production/Operations Planning & control-contd
(1) Volume of production- The Production Planning is expected to reduce manufacturing costs.
In case of custom order job shop, the planning of production is limited to planning for purchase of raw materials &
components & determination of work centers which have the capacity of manufacturing the product
In high volume operations, extensive production planning is necessary in planning for design of both the product & the production processes in order to achieve substantial cost reduction when large number of products are produced. (2) Nature of production processes
In job shop- Production planning may be informal & the
development of methods is left to the individual workman who is highly skilled.
In high volume production- many product designers, equipment designers, process designers & method engineers are
Production/Operations Planning & control-contd
(3) Nature of Operations-
Detailed production planning is required for repetitive operations, e.g. in case of a single standardized product.
Variants in manufacturing approach are:
i) Manufacture to order which may or may not be repeated at regular intervals.
ii) Manufacturing to stock & sell (under repetitive batch or mass production). Ex - Manufacture of Automobiles, watches etc. iii) Manufacturing to stock & sell (under continuous process
manufacturing) Ex.- Chemicals, soap, food products, yarn etc The degree to which production planning is carried, varies with the
nature of the process.
Production planning system – has Two - interrelated sub systems i) Product planning system & ii) Process planning system
Production/Operations Planning & control-contd
Market Requirements Product Research
Product Development Product specifications
Final Product Design Product Ideas
Process Design Process R&D
Work Flow Analysis Work Station Selection
Operation Design
Operation Method Operation Control
Process Planning System Product Planning System
Sequence Feedback
Production/Operations Planning & control-contd
Production Control:- Importance of control function:- The function of production control is to:
i) Provide for the production of parts, assemblies & products of required quality & quantity at the required time.
ii) Coordinate, monitor & feed-back to manufacturing management, the results of the production activities, analyzing & interpreting their significance & taking corrective action if necessary.
iii) Provide for optimum utilization of all resources.
iv) Achieve the broad objectives of the low cost production & reliable customer service.
Benefits of Production Control- !) Improvement in profits through-
a) Maintenance of balanced inventory of materials, parts, w.i.p & finished goods
b) Balanced & stabilized production
c) Maximum utilization of men, machines & equipments & space d) Minimum investment in inventory
e) Reduction in indirect & set-up costs f) Reduction in scrap & rework costs
Production/Operations Planning & control-contd
Benefits of Production Control- contd 2) Competitive advantage-
a) Reliable delivery to customers.
b) Shortened delivery schedule to customers
c) Lower production costs & greater pricing flexibility
d) Orderly planning & marketing of new or improved products. Elements of Production Control-
1) Control of planning 2) Control of materials
3) Control of tooling 4) Control of Manufacturing activities 5) Control of activities 6) Control of Quantity
7) Control of material handling 8) Control of due dates 9) Control of information
Production Planning & control
(B)
Production Planning & control-(PPC)
This function is concerned with decision making regarding-
a) What to produce- Product Planning & development includes product design
b) How to produce- Process planning, materials planning, tools planning etc
c) Where to produce- Facilities planning, capacity planning, sub- contracting planning
d) When to produce- Production scheduling & machine loading. e) Who will produce- Man-power planning
f) How much to produce- Planning for quantity & economic batch size etc
Production Planning & control
Production Planning & control function essentially consists of planning in a manufacturing organization before actual production activities starts
& exercises control activities to ensure that the planned production is realized in terms of quality, quantity,
delivery schedule & cost of production.
Objectives of Production Planning & control :
1 Delivery of quality goods in required quantities to customer in the required delivery schedule
2 Maximum utilisation of all resources. 3 Production of quality goods
4 Minimise product throughput time or production / manufacturing cycle time.
5 Maintain optimum inventory level.
6 Maintain flexibility in manufacturing operations
Production Planning & control-contd
Objectives of Production Planning & control-contd 8 Plan for plant capacity for future requirements
9 Remove bottle-neck at all stages, & solve production related problems
10 Effective cost reduction & cost control
11 Prepare production schedule & delivery by scheduled dates. 12 Produce effective results for least total cost .
13 Establish routes & schedules for work that will ensure optimum utilisation of labour, equipments & machines, & provide the means for ensuring the operation of the plant in accordance with these plans.
14 Ultimate objective is to contribute to the profit of the enterprise.
Production Planning & control-contd
Scope of Production Planning & control- It encompasses
1) Materials: Planning for procurement of RM, components/ parts in right quantities/specifications, right time, from right source & at the right price.
Other activities associated with the materials are purchasing, storage, inventory control, standardization, variety reduction, value analysis & inspection.
2) Methods: Choosing the best method of processing from several alternatives, including the best sequence of operations
(Process Planning) & planning for tooling /Jigs/Fixtures.
3) Machines & equipments : Manufacturing methods are related to production facilities available in the production system. It
involves facilities planning, capacity planning, allocation & utilization plant & equipments, machineries etc It also
involves equipment replacement policy, maintenance schedules, Tools manufacturing & maintenance etc.
Production Planning & control-contd
Scope of Production Planning & control – contd
4) Manpower: Planning for Human resources (labour, supervisory, & managerial levels) having appropriate skills & expertise.
5) Routing: Determining the flow of work, material handling in the plant, sequence of operations or processing steps. This is
related to considerations of appropriate shop layout, temporary storage locations for raw materials, components &
semi-finished goods & material handling systems.
6) Estimating: Estimating operations time leading to fixation of performance standards both for workers & machines.
7) Loading & scheduling: Machine loading is allocation of jobs to the machines in conjunction with due consideration for capacity of machines & priority for jobs in order to utilize the machines to the maximum possible extent.
Production Planning & control-contd
Scope of Production Planning & control – contd
8) Dispatching: It is concerned with execution of planning function. It gives necessary authority to start a particular work already planned under routing & scheduling. It is the release of orders & instructions for starting of production as per route sheets &
schedule charts.
9) Expediting: Means chasing, follow-up or progressing which is done after the dispatching function. It keeps a close liaison with scheduling in order to provide an efficient feed-back & prompt review of targets & schedules.
10)Inspection: This relates to maintenance of quality in production (evaluating processes/methods/ workers for improvements) to achieve the quality standards set by product design.
11) Evaluating): Its objective is to improve the performance (m/cs, process/labour performance evaluation for improvement)
12)Cost control: By waste reduction/ value analysis, inventory control & efficient utilization of all resources.
Production Planning & control-contd
Phases in PPC Function:
(1) Planning phase- (a) Pre-planning (b) Active planning.
(a) Pre-planning- Involves Product planning & development, demand forecasting, facilities planning, plant planning, Plant location & plant layout.
(b) Active planning-Involves planning for quantity, determination of product-mix, routing, scheduling,
materials planning, process planning, capacity planning, & tools planning
(2) Action Phase-Execution or implementation phase includes the dispatching & progressing function.
(3) Control Phase- Includes status reporting, materials control, tools control, inventory control, quality control, labour out-put control & cost control.
Production Planning & control-contd
Main functions of PPC department are shown in the following figure. Production Planning & Control
i) Estimating ii) Routing iii) Scheduling iv) Loading i) Dispatching ii) Expediting/Follow-up iii) Inspection
iv) Evaluating &
Corrective action
Production Planning & control-contd
1) Long Range (Strategic Planning) 2)Interme- -diate range (Tactical plan) 3) Short Range (Operatio nal Plan)i) Long Range demand forecast
ii) Availability of fund & Business analysis
iii) Capacity data & Analysis Intermediate Range
demand forecast
i) Short Range demand forecast
ii) On hand customer orders iii) Other orders (
Intra-Company)
iv) Availability of material from suppliers Long range capacity plan Aggregate capacity plans i) Master production schedule ii) Capacity requirement Planning iii) Material requirement planning
i) Production capacity plans. (Plant location, layout, size, capacities etc
ii) Major sub contracting plans.
iii) Major machinery & process plans. i) Employment plan
ii) Machinery & utility plans
iii) contract & material supply contract iv) Facility modification plan
i) Short range production schedule for end products
ii) Short range production schedule for parts, components,
sub-assemblies & final assembly iii) Short range plan for purchasing
materials
iv) Short range shop-floor plans
Levels of Planning in a Production Planning System
Planning
Horizon Inputs
Plans /
PP&C-contd Information required for PPC
1 Production programme
• Quantity to be produced Delivery date • Variety / different models & spl features
2 Quality standards-specs & tolerance
3 Production materials
•Type of materials Quality & quantity •Procurement lead-time Stock position
4 Toolings
5 Operational details
Sequence of operations,
Process capability of machines/ equipments Jigs & Fixtures needed
Cutting parameters/ Process parameters
6 Standard times for operations/ set-up
time
7 Starting & finishing dates. 8 Progress/Status of work
1-The sales order or the order accepted by
marketing
2-Design deptt which translate customer needs in to specifications 3-Drawing & Bill of
materials (BOM), Material stock card
4-Standard & special tools 5-Process sheets
Load charts
Process capability study
6-Work measurement Data
7-M/c load & sch. Chart 8-Production report 1-Marketing deptment 2-Engg, purchase & stores 3-PPC deptt 4 PPC deptt 5 Industrial Engg deptt 6 PPC deptt 7 Production 8 Prroduction
Preparation of production Budget –FIN/PRODUCTION Preparation of details by Engg Deptt (Drg/BOM/Spec
Production Planning- supplies data to dispatch section
Authorisation for production- despatch of prodn order
Control function- compare progress with plan continuously
Inspection, Quality control
Evaluation of Production System- feedback for improvement
Finished goods stock
Dispatch to customer Sales forecast Management Customer Fee db ack Production Procedure
Production Planning & control-contd-
Typical Organization for PPC in a manufacturing firm G.M. (Plant) Maintenance Quality Control PPC Production R & D
Scheduling Dispatching Program Tools Control Material Control Order preparation
