Unit_3

PRODUCTION PLANNING & CONTROL:

Production is the sequence of operations which transforms the given material into the
desired product. Production management deals with decision making related to
production processes so that the resulting goods or services are produced according to
specifications at the minimum cost. In brief production management is concerned with
two main functions i.e 1. Planning the production and
2.Control of production.
Planning may be defined as an action to achieve the desired goals. Planning
involves the determination o objectives and planning of operations in terms of policies,
plans and budgets which ill establish the most advantageous course for the
organization.
Control may be defined as the monitoring of performance through a feed back
by comparing the results achieved with the planned targets so that performance can be
improved trough proper corrective action. This mechanism is also responsible for
subsequent adjusting, modifying and redefining plans and targets in order to ensure the
attainment of goals.
Production planning:
Production planning is a pre-detrermined activity involving manufacturing
requirements such as man power, materials and machines and manufacturing process.
Characteristics:
1. Production planning is the basis and pre-requisite of production control.
2. Production planning includes routing of production activities and layout
production facilities such as building, machines, etc.,
3. Production planning is related to planning, directing and controlling of production
methods for the manufacture of product.
4. Production planning may be short-term or medium-term or long-term.
5. Production planning can be done at three levels i.e., factory planning, process
planning and operations planning
Analysis of the planning process:
Production planning process includes three phases.

1. Research concerned chiefly with the issues to be included within the scope of the
plans and the determination of various possible alternativces which may be
employed in achieving the desired goals.
2. Choice of resources, facilities, methods and procedures to be employed.

3. Codification of plans is formulation of specifications covering products and

materials, tools and manufacturing facilities wihc are necessary, for performing
the job. Drawings, models, layout charts, and similar devices which are required
in delivering the plans to those who will carry them out. Formulation of procedure
and instructions as to how plans are to be placed in execution.
Information requirements of production planning:
1. Data regarding product-engineering, product-design, basic type of prices and
operations, assembly and sub assembly methods.
2. Sequence of operations.
3. Material specifications.
4. Standardization and the quantity of raw material required.
5. Rate of output per hour, per day, per week and per month.
6. Materials cost, labor cost and overhead cost per unit, labor and overhead costs
per hour.
7. Customer orders on hand their expected date of delivery.
8. Information regarding fixtures, tools, jigs and dimensional gauging instruments
that are required for production.
9. Normal, maximum and average production capacity of the plant.
10. Quantity required immediately for stock purpose and for delivery purposes.
11. Information regarding time fixed for each operation, rate of obsolence of the
plant and loss in storage etc.,. update knowledge of modern development on the
field of production process and techniques.
Production control:
It is the function of management which plans, directs and controls the material
supply and processing activities of a firm so that products are produced by specified
methods to meet an approved sales programming. It ensures that activites are carried
out in such a way that the available labor and capital are used in the best possible way.
Objectives of production control:
1. Issuing the necessary orders to the proper personnel.
2. To ensure availability of the materials, machines, tools, equipments and
manpower in the required quality at the required time.
3. To ensure carrying out of the orders by the personnel so that goods are produced
in the required quantities of the specified quality at the per-determined time.
The idea involved in production is tha the highest efficiency, in production is
obtained by producing the required in time and in the best and cheapest method
possible.
Functions involved in production control:
1. Control Activities: This is done by releasing manufacturing orders through
dispatching. Thus, plans are set in motion at the assigned time.
2. Control of Material Movement: The time at which material is received from the
supplier and issued to the plant is observed and a close watch is kept on its
movement from one plant to another to ensure that this movement is in
accordance with the production cost.
3. Availability of Tools is controlled: Steps are to be taken to ensure that the tools
specified in the production plan are available as and when required.

4. Quality Product is controlled: Work-in-process at pre-determined stages of

production is observed to determine that right quantity of specified quality work
is processed.
5. Control of Replacement: Quantity of raw material and work-in-process which fails
to pass each stage of inspection is observed. Provision is made to issue
replacement orders for each material for work.
Advantages of production control:
A good production control system means more production on the same
investment. The advantages of production planning and control are given below:
1. Better services to customers: Promised delivery dates are kept, production flows
as per scheduled time injecting confidence in the travelling salesman of the firm
to set delivery date.
2. Less Overtime work: As production takes place as per schedule, there will be few
rush orders. Therefore, there will be less overtime work in the organization.
3. More effective purchasing: As better materials management lead to effective
inventor control, purchasing is more scientific, economical and timely.
4. More effective use of equipment.
5. Savings in the cost: A properly designed and introduced system of production
planning and control results in major cost savings.
6. Less work-stoppage: Work-stoppages are avoided or minimized in terms of time
duration. Therefore, delay occurring in the dispatch of goods to customer is very
rare.
Production Planning & Control:
Production planning and control may be defined as the direction and coordination
of the firms material and physical facilities towards the attainment of pre-specific
production goals in the most effective way.
According to Gordon B.Carson, Production planning and control consists of the
organization and the planning of the manufacturing processes routing, scheduling
dispatching and inspection, coordination and control of materials, methods, machines,
tooling and operating time. The ultimate objective is the organization of the supply and
movement of materials and labor, machine utilization and related activities in order to
bring about the desired manufacturing results in the terms of quality, time and price.
The parameters which decide the effectiveness of production planning and
control are
1. Routing
2. Loading
3. Scheduling
4. Dispatching
5. Follow-up
Objectives of production planning and control:
Quality of the output:
The most important objective of production planning and control is to ensure the
safe and economical manufacture of desired products in required quantity and in
quality.
Delivery of goods:
To deliver the products to the customers whenever they are needed.
Process of efficiency:

To maintain the maximum process efficiency by proper coordination.

Plant utilization:
To ensure maximum plant utilization so that productivity of highest degree can
be achieved.
Maintenance of inventories:
To maintain an adequate supply of finished goods and having sufficient work-inprocess ensure that deliveries are made to the customers who may want the product in
less than the manufacturing time.
Effectiveness of work:
Production planning and control ensure the right man for the right job, at the
right place, at right time on right wages and salaries so that maximum effectiveness is
obtained.
Team spirit:
To develop the team spirit and feeling of brotherhood among workers in another
aim of production planning and control.
Reduced supervision:
The other objective of production planning and control is to reduce supervision by
creating interest in work amongst workforce.
Functions of production planning and control:
Materials:
Raw materials, finished parts and bought-out components should be made
available in required quantities and at required time to ensure the correct beginning and
end of each operation resulting in uninterrupted production.
Methods it involves the decision to be made on sequence of operation.
Machines and equipments:
This function is related with the detailed analysis of available production
facilities, equipment down time, maintenance policy, procedure and schedule.
Manpower:
To maintain the availability of appropriate manpower on appropriate machines at
right time.
Process planning (Routing):
It is concerned with selection of path route which the raw material should follow
to get transferred into finished products.
Estimating:
Once the overall method and sequence of operations are fixed and process sheet
for each operation is available, then the operations times are estimated.
Loading & scheduling:
Scheduling is concerned with preparation of machine loads and fixation of
starting and completion date for each of the operations. Machines have to be loaded
according to their capability of performing the given task and their capacity. Thus, the
duties include:
Dispatching:
This is the execution phase of planning. It is the process setting production
activities in motion through release of orders and instructions. It authorizes the start of

production activities by releasing materials, component tools, fixtures and instruction

sheets to the operators.
Expanding the control tool which keeps a close observation on the progress of work.
Inspection:
It involves the application of various controlling techniques like SQC, control
charts to check whether the products are confirming the standards.
Evaluation:
It involves the understanding the weakness of production in material flow,
processing and inspection and effective implementation of corrective action to achieve
better product with quality and less cost and in time.
Stages of production planning:

Preplanning:
The available data based on sales report, market research, product development
and design are collected and the broad aspect of planning on equipment policy,
process, and material purchase are made.
Planning:
It is said as a realistic approach for enhancing production. The material,
machines, manpower needed is estimated. This is followed by routing, estimating and
scheduling. The more detailed analysis with the greater conformity to schedules
achieved during production are noted and with two time bond conditions like long term
planning and other short term planning.
Control:
This phase starts from dispatching. This is the execution phase of planning. It is
the process setting production activities in motion through release of orders and
instructions. It authorizes the start of production activities by releasing materials,
component tools, fixtures and instruction sheets to the operators. Expanding the control
tool which keeps a close observation on the progress of the work. Inspection involves
the application of various controlling techniques like SQC, control charts to check
whether the products are confirming to the standards. Evaluation involves the
understanding the weakness of production in material flow, processing and inspection
and effective implementation of corrective action to achieve better product with quality
and less cost and in time.
The production planning and control is a staff function. Its effectiveness cannot
be directly measured. Yet its an important function in any production industry.