Production Plnning & Control

8/7/2019 Production Plnning & Control

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Prepared By :-Vivek VashisathIBMR B-School ,Gurgaon,Delhi -NCR


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Introduction

Object Steps of production planning and controlSummary


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Introduction:-After taking decisions about the type of business, itslocation, layout etc. the entrepreneur steps into theshoe of production manager and attempts to apply

managerial principles to the production function in anenterprise.Production is a process whereby raw material isconverted into semi finished products and thereby

adds to the value of utility of products, which can bemeasured as the difference between the value of inputsand value of outputs.


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ContProduction function encompasses the activities ofprocurement, allocation and utilization of resources.

The main objective of production function is toproduce the goods and services demanded by thecustomers in the most efficient and economical way.

Therefore efficient management of the productionfunction is ofutmost importance in order to achieve this objective


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Objective of PPC(1) Optimum Utilization of Capacity:With the help of Production Planning and Control[PPC] the entrepreneur can

schedule his tasks and production runs and therebyensure that his productivecapacity does not remain idle and there is no unduequeuing up of tasks via proper

allocation of tasks to the production facilities. Noorder goes unattended and nomachine remains idle.


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(2) Inventory control:-

Proper PPCwill help the entrepreneur to resort tojust- in- time systems andthereby reduce the overall inventory. It will enablehim to ensure that the rightsupplies are available at the right time.


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(3) Economy in production time:-PPCwill help the entrepreneur to reduce the cycletime and increase the turnovervia proper scheduling.

(4) Ensure quality:-Agood PPCwill provide for adherence to the qualitystandards so that quality ofoutput is ensured.


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Sum Up Of PPC:-To sum up we may say that PPC is of immense valueto the entrepreneur incapacity utilization and inventory control. More

importantly it improves hisresponse time and quality.As such effective PPCcontributes to time, quality andcost parameters of entrepreneurial success


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STEPS OF PRODUCTION PLANNING ANDCONTROL:-

Dispatching

Following up

Inspection

Corrective

Production Planning Production Control

Planning

Routing

Scheduling

Routing


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Production planning:Production planning may be defined as thetechnique offoreseeing every step in a long series of separate

operations, each step to be takenat the right time and in the right place and eachoperation to be performed inmaximum efficiency. It helps entrepreneur to work

out the quantity of materialmanpower, machine and money requires forproducing predetermined level ofoutput in given period of time.


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Routing: Under this, the operations, their path andsequence are established.To perform these operations the proper class ofmachines and personnel required are

also worked out. The main aim of routing is todetermine the best and cheapest

sequence of operations and to ensure that thissequence is strictly followed.In small enterprises, this job is usually done byentrepreneur himself in a rather adhoc manner.


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Routing procedure involves following differentactivities.(1)An analysis of the article to determine what tomake and what to buy.

(2) To determine the quality and type of material(3) Determining the manufacturing operations andtheir sequence.(4)Adetermination of lot sizes

(5) Determination of scrap factors(6)An analysis of cost of the article(7) Organization of production control forms.


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Scheduling:It means working out of time that should berequired to perform eachoperation and also the time necessary to perform the

entire series as routed,making allowances for all factors concerned. Itmainly concerns with timeelement and priorities of a job. The pattern of

scheduling differs from one job toanother which is explained as below:


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Production schedule:The main aim is to schedule that amount of workwhichcan easily be handled by plant and equipment without

interference. Its not independent decision as it takesinto account following factors.(1) Physical plant facilities of the type required toprocess the material being

scheduled.(2) Personnel who possess the desired skills andexperience to operate theequipment and perform the type of work involved.

(3) Necessary materials and purchased parts.


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Master Schedule: Scheduling usually starts with

preparation of master schedule which is weekly ormonthly break-down of the production requirement foreach product for a definite time period, by having this asa running record of total production requirements the

entrepreneur is in better position to shift the productionfrom one product to another as per the changedproduction requirements. This forms a base for allsubsequent scheduling acclivities.Amaster schedule is

followed by operator schedule which fixes total timerequiredto do a piece of work with a given machine or whichshows the time required to do each detailed operation

of a given job with a given machine or process.


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Manufacturing schedule:It is prepared on the basis of type of manufacturingprocess involved.It is very useful where single or few products are

manufactured repeatedly at regular intervals.Thus it would show the required quality of eachproduct and sequence in which the same to beoperated


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Scheduling of Job order manufacturing: Scheduling acquiresgreater importance in job order manufacturing. This willenable the speedy execution of job at each center point.As far as small scale industry is concerned scheduling is ofutmost importance as it brings out efficiency in the

operations and s reduces cost price. The small entrepreneurshould maintain four types of schedules to have a closescrutiny of all stages namely an enquiry schedule , aproduction schedule, a shop schedule and an arrears scheduleout of above four, a shop schedule is the most important most

suited to the needs of small scale industry as it enables aforeman to see at a glance.1. The total load on any section2. The operational sequence

3. The stage, which any job has reached.


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Loading: The next step is the execution of the schedule planas per the route chalked out it includes the assignment of thework to the operators at their machines or work places. Soloading determines who will do the work as routingdetermines where and scheduling determines when it shallbe done. Gantt Charts are most commonly used in small

industries in order to determine the existing load and also toforesee how fast a job can be done. The usefulness of theirtechnique lies in the fact that they compare what has beendone and what ought to have been done. Most of a smallscale enterprise fail due to non-adherence to delivery

schedules therefore they can be successful if they have abilityto meet delivery order in time which no doubt depends uponproduction of quality goods in right time. It makes all themore important for entrepreneur to judge ahead of time what

should be done, where and when thus to leave nothing tochance once the work has begun.


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Production control: Production control is the process ofplanning production in advance of operations, establishingthe extract route of each individual item part or assembly,setting, starting and finishing for each important item,assembly or the finishing production and releasing thenecessary orders as well as initiating the necessary follow-up

to have the smooth function of the enterprise. The productioncontrol is of complicated nature in small industries. Theproduction planning and control department can function atits best in small scale unit only when the work manager, thepurchase manager, the personnel manager and the financial

controller assist in planning production activities. Theproduction controller directly reports to the works managerbut in small scale unit, all the three functions namely materialcontrol, planning and control are often performed by the

entrepreneur himself production control starts withdispatching and ends up with corrective actions.


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Dispatching:

Dispatching involves issue of production orders forstarting the operations. Necessary authority andconformation is given for:1. Movement of materials to different workstations.

2. Movement of tools and fixtures necessary for eachoperation.3. Beginning of work on each operation.4. Recording of time and cost involved in each

operation.5. Movement of work from one operation to another inaccordance with the route sheet.6. Inspecting or supervision of work


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Dispatching is an important step as it translates

production plans into production.Follow up: Every production programme involvesdetermination of the progress of work, removingbottlenecks in the flow of work and ensuring that the

productive operations are taking place in accordancewith the plans.It spots delays or deviations from the productionplans. It helps to reveal detects in routing

and scheduling, misunderstanding of orders andinstruction, under loading or overloading of worketc.All problems or deviations are investigated andremedial measurer are undertaken to ensure the

completion of work by the planned date.


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Inspection: This is mainly to ensure the quality of

goods. It can be required as effective agency ofproduction control.Corrective measures: Corrective action may involveany of those activities of adjusting the route,

rescheduling of work changing the workloads, repairsand maintenance of machinery or equipment, controlover inventories of the cause of deviation is the poorperformance of the employees.

Certain personnel decisions like training, transfer,demotion etc. may have to be taken.Alternatemethods may be suggested to handle peak loads.


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Summery:-Small-scale industries have a challenge to

manufacture products at economical prices. They needto embrace management principles surroundingproduction processes, which are effective for theproducts manufactured by them.An upfront planning

and study of the critical factors of the manufacturingprocesses will not only help the small scaleentrepreneurs to understand the steps they need to takein selecting the most appropriate manufacturing

process but also help them identify areas of risk so thatnecessary control procedures are put in place. This willeventually help the small entrepreneur to eliminate thewastages and increase the production, productivity and

profits.

Documents

Production Plnning & Control