Production planning and_control-an_introduction

PRODUCTION PLANNING AND CONTROL-AN INTRODUCTIONProduction planningProduction controlSub functions of production planning and

controlTypes of production systemSummary

PRODUCTION PLANNING AND CONTROL-AN INTRODUCTION

Production planning is a managerial function which is concerned with the following important issues.1) What production facilities are required.2) How these production facilities should be laid out in the space available for

production? And3) How they should be used to produce the desired products at the desired

rate of production?

PRODUCTION PLANNINGProduction planning is dynamic in nature and

always remains in fluid state as plans may have to be changed according to the changes in circumstances.

Production planning is usually done at the following three horizon levels

Long term ( Capacity planning )Medium term (aggregate planning)Short term (operational planning)

PRODUCTION PLANNING HORIZONSLong term (capacity planning) - Upto 5 years or more

- will deal with strategic/ business issues- will reflect in the choice of processes

PRODUCTION PLANNING HORIZONSMedium term (aggregate planning)Up to 2 years aheadHow can demand be met from existing

facilities and resources?

PRODUCTION PLANNING HORIZONSShort term (operational planning)Monitoring and correction of day to day

activities versus plan

REQUIREMENTS OF PRODUCTION PLANNINGIt should be based on accurate data.It must be flexibleIt must satisfy a set of pre defined production

objectives (economy, quality etc)It must be simple and straight forward.It should have a reporting system, so that

right information reaches at right place and at right time.

It should not have any weak link.

PRODUCTION CONTROLProduction control is a mechanism to monitor

the execution of plans. It has several important functions.

Making sure that production operations are started at planned places and planned times.

Observing progress of the operations and recording it properly.

Analyzing the recorded data with the plans and measuring the deviations.

PRODUCTION CONTROLTaking immediate corrective actions to

minimize the negative impact of deviations from the plans.

Feeding back the recorded information to the planning section in order to improve future plans.

OPEN LOOP CONTROL SYSTEM

Resources products and services

Objectives

An open loop system with no control

Transformation process (value

addition)

CLOSED LOOP CONTROL SYSTEM Corrective action Measure

Resources products and services

Objectives

• comparizonAn closed loop system with control function

Transformation process (value

addition)

PRODUCTION CONTROLControl involves the monitoring and

correction (where necessary) of operations to ensure that plans and objectives are being met.

PRODUCTION CONTROLMany different forms of production controlQuality controlStock controlOrder processing/ chasing against schedulesCost control (budgeting)People and the labour productivity

FUNCTIONS OF PRODUCTION PLANNING AND CONTROLProduct planning-product engineering,

product design and development, functional and quality considerations and quality considerations.

Forecast planning-quantity forecast, demand pattern forecast.

FUNCTIONS OF PRODUCTION PLANNING AND CONTROLProcess planning:- technology selection,

process selection, machine selection, tool selection, process parameter selection, operation sequencing etc.

Equipment planning:- Type of equipments, no: of equipments, machine capability analysis, maintenance planning.

FUNCTIONS OF PRODUCTION PLANNING AND CONTROLMaterials planning:- material specifications,

material volumes, economic lot sizing, inventory planning, store planning

Loading, scheduling and sequencing:-machine loadings, operations scheduling and job sequencing etc.

Definition of a production systemA production system can be defined as a

transformation system in which a saleable product or service is created by working upon a set of inputs. Inputs are usually in the form of men, machine, money, materials etc. it can be classified on the basis of the following:

Definition of a production systemType of production: (job production, batch

production, mass production)Size of plantType of productPhysical flow of materialsNature of order/demand patternVariety of jobs

JOB SHOP PRODUCTIONCharacterized by make to order strategyThere are 3 possible situationsProduct is manufactured only onceSmall quantities of product are repeated in

irregular time intervalsSmall quantities of product are repeated in

regular time intervals

JOB SHOP PRODUCTIONEnd product is different at every time (most

of the time).No standard methods, time standards can be

developed.As product is changing every time, machines

and other resources should be of general purpose and flexible.

Highly skilled workforce is needed to work on varying product designs.

JOB SHOP PRODUCTIONIn-process inventory is usually very high.Machines are grouped according to their

functional capabilities.System is very flexible.Planning and control is very difficultProduct cost is usually very highDelivery dates are only estimated due dates.

BATCH PRODUCTIONA batch of identical articles are

manufactured.Demand rate < rate of productionThere are 3 possible situationsA batch is manufactured only once (made-to-

order)A batch is repeated at irregular time intervals

(made-to-order)A batch is repeated at regular time intervals

(made-to-stock)

BATCH PRODUCTIONFinal product is usually standard or belong

to same family.Customer may be external or internalBatch size is determined either by

forecasting or order size.Machines may be either general purpose or

semi automated.

BATCH PRODUCTIONMachines are grouped as per their functionsSkilled labor is requiredLess supervision is requiredLess flexible than job shop typePlanning and control is less complex

MASS PRODUCTION Demand rate > rate of production Product is standard Standard methods, time standards etc can be

generated It is a capital intensive system and needs

elaborate planning

MASS PRODUCTIONSemi skilled labor can be employed for

supervision onlyDay to day planning and scheduling need not

be elaborateIt is a rigid system