Production Planning and Control

Introduction

Production and Inventory Control- Introduction (1)

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Overview
The main components of the PPC system Qualitative/quantitative forecasting Steps In PPC Aggregate planning Material requirement planning

Inventory control
Scheduling The theory of constraints and its applications Push and Pull production systems
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PPC
MEANING:- Production planning and control can be viewed as the nervous system of the production operation. It comprises planning, routing, scheduling, dispatching & follow up in the productive process. Production/Operations Planning and Control: Planning, direction and co-ordination of the firms facilities to achieve the predetermined production objectives in the most economical manner Definition: The highest efficiency in production is obtained by manufacturing the required quantity of the product at the required time, by the best & cheapest method

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Production Planning and Control

The Production Control System
Demand forecasting
Sales and order entry Customer

Aggregate planning

Materials requirement planning

Shop-floor scheduling and control

Production

Shipping and receiving

Inventory management

Inventory

Vendors

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STEPS OF PRODUCTION PLANNING AND CONTROL

Production and Inventory Control- Introduction (5)

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Scope/steps of Production Planning and Control

PPC encompasses Materials Methods Machines and Equipments Manpower Routing Estimating Loading and Scheduling Dispatching Expediting Inspection Evaluating Cost control

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Main Functions of Production Planning and Control Department

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PRODUCTION PLANNING.
It may be defined as the technique of foreseeing every step in a long series of separate operations, each step to be taken at the right time & in the right place & each operations to be performed in maximum efficinecy.It helps producers to work out the quantity of material , man power , machine & money required for producing predetermined level of output in given period of time.

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><<>Routing:

Under this, the operations, their path and sequence are established. To perform these operations the proper class of machines and personnel required are also worked out. The main aim of routing is to determine the best and cheapest
sequence of operations and to ensure that this sequence is strictly followed. In small enterprises, this job is usually done by entrepreneur himself in a rather adhoc manner.
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LOADING
Assignment of work to manpower, machinery etc.It includes the assignment of the work to the operators at their machines or work places.It will determine who will do the work as routing determines where scheduling determines when it shall be done.

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Loading:

The next step is the execution of the schedule plan as per the route chalked out it includes the assignment of the work to the operators at their machines or work places. So loading determines who will do the work as routing determines where and scheduling determines when it shall be done. Gantt Charts are most commonly used in small industries in order to determine the existing load and also to foresee how fast a job can be done. The

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Scheduling: It means working out of time that should be required to perform each operation and also the time necessary to perform the entire series as routed, making allowances for all factors concerned. It mainly concerns with time element and priorities of a job. The pattern of scheduling differs from one job to another which is explained as below:

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Production schedule:

The main aim is to schedule that amount of work which can easily be handled by plant and equipment without interference. Its not independent decision as it takes into account following factors. (1)Physical plant facilities of the type required to process the material being scheduled. (2)Personnel who possess the desired skills and experience to operate the equipment and perform the type of work involved. (3) Necessary materials and purchased parts.
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Production control:

Production control is the process of planning production in advance of operations, establishing the extract route of each individual item part or assembly, setting, starting and finishing for each important item, assembly or the finishing production and releasing the necessary orders as well as initiating the necessary follow-up to have the smooth function of the enterprise. The production control is of complicated nature in small industries. The

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Dispatching:

Dispatching involves issue of production orders for starting the operations. Necessary authority and conformation is given for: 1. Movement of materials to different workstations. 2. Movement of tools and fixtures necessary for each operation. 3. Beginning of work on each operation. 4. Recording of time and cost involved in each operation.

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Follow up:

Every production programme involves determination of the progress of work, removing bottlenecks in the flow of work and ensuring that the productive operations are taking place in accordance with the plans. It spotsdelays or deviations from the production plans. It helps to reveal detects in routing and scheduling, misunderstanding of orders and instruction, under loading or overloading of work etc.

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Inspection:

This is mainly to ensure the quality of goods. It can be required as effective agency of production control.

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Corrective measures:

Corrective action may involve any of those activities of adjusting the route, rescheduling of work changing the workloads, repairs andmaintenance of machinery or equipment, control over inventories of the cause of deviation is the poor performance of the employees. Certain personnel decisionslike training, transfer, demotion etc. may have to be taken.

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Classification of Production Planning and Control Functions

i. ii. iii. iv. v. vi. The functions of PPC can be classified under the following : Materials Methods Machines and Equipments Routing Estimating Loading and Scheduling Scheduling vii. Dispatching viii. Expediting or Progressing ix. Inspection x. Evaluating or Controlling
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Production Planning and Control

Purpose
1.Effectively utilize limited resources in the production of goods so as to satisfy customer demands and create a profit for investors. 2.Resources include the production facilities, labor and materials. 3.Constraints include the availability of resources, delivery times for the products, and management policies. 4.Receiving orders for customers 5.Direction and control of the movement of materials through production process. .6.Maintaining stocks of materials and parts. 7.Analyzing the orders
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Production Objectives
High Profitability Low Costs Low Unit Costs High Throughput High Utilization Low Inventory Quality Product Fast Response High Sales High Customer Service Many products

Less Variability

Short Cycle Times

Low Utilization

High Inventory

More Variability

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Role of Production Planning and Control in Operations Management

The Production/Operations Management Cycle

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Material Requirement Planning

Objective: Determine all purchase and production components needed to satisfy the aggregate/disaggregate plan. Issues: Bill of Materials: Determines components, quantities and lead times. Inventory Management: Must be coordinated with inventory.

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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.

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Materials Requirements planning

Materials Requirements planning (MRP-1 or mrp): Computer based information system for ordering and scheduling of dependent demand inventories. Objectives of MRP 1. To improve customer service by meeting delivery schedules promised and shortening delivery lead times. 2. To reduce inventory costs by reducing inventory levels. 3. To improve plant operating efficiency by better use of productive resources. Three main purposes of a basic MRP system are to: Control inventory levels Assign operating priorities Assign capacity to load production systems.
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 Manufacturing Resource Planning (MRP II ): Broadbased resource co-ordination system involving other areas of a firm in the planning process, such as marketing, finance and the human resource. Three important functions of MRP are: Order planning and control Priority planning and control Providing a basis for planning capacity requirements.

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Enterprise Resource Planning

Enterprise Resource Planning (ERP); A software package developed for optimum use of resources of an enterprise in a planned manner. It integrates the entire enterprise starting form the supplier to the customer, covering, logistics, financial and human resources. Features of ERP 1. Accommodating variety 2. Integrated Management Information 3. Seamless integration 4. Supply chain management 5. Resource management 6. Integrated data model
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 Scope of ERP a. Financials b. Logistics c. Human resources d. Work flow Application of ERP ERP is gaining popularity in India at a rapid pace. This is mainly due to the need for reducing costs especially when the sales are sluggish in the sub-merging markets.

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TECHNIQUES OF PRODUCTION CONTROL

GANTT CHART PERT & CPM BAR CHART LINE OF BALANCE.

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