PPC

Production Planning & Control Introduction: Introduction Production/Operations Management - Production is a creation of utility. Operations is often defined as a transformation process. - A set of various activities, which are involved in manufacturing certain products, is named as “Production Management”. - If the same concept is extended to service management, then the set of various management activities are called “Operations Management”. - Activities in production/operations management include organizing work, selecting processes, arranging layouts, locating facilities, designing jobs, measuring performance, controlling quality, scheduling work, managing inventory and planning production. Production System: Production System The production system of an organization is that part which produces the organizations products. Production is the basic activity of all organizations and all the other activities revolve around production activity. Production system is shown in the figure below: Inputs Men Materials Machines Information Energy Conversion Process Output Goods/Services Comparison of Actual vs Desired Random Fluctuations Monitor output Adjustment needed Feedback Production System - Characteristics: Production System - Characteristics The production system has the following characteristics: Production is an organized activity, so every production system has an objective. The system transforms the various inputs (men, material, machines, information, energy) into useful outputs (goods or services) Production system does not operate in isolation from the other organizational systems such as finance, marketing, etc. There exists a feedback about the activities, which is essential to control and improve system performance. Classification of Production System: Classification of Production System Job shop production Batch or Intermittent production Cellular or Assembly line production Continuous production Mass production Production Management Framework: Production Management Framework The division of production management functions into 5 p‟s. The five P‟s - The product - The Plant - The process - The program - The people Production Management Framework: Production Management Framework The product - Performance - Quality and reliability Aesthetics and ergonomics - Quantity and selling price - Delivery schedule The Plant - Design and layout of building and offices - Reliability, perfect, maintenance of equipments - Safety of operations - The financial constraint Production Management Framework:

Production Management Framework The Process Available capacity Manpower skills available Type of production Layout of plant Safety Maintenance required Manufacturing cost The program It prepares schedules for Purchasing Transforming Maintenance Cash Storage and transport Production Management Framework: Production Management Framework The people - Wages/salaries administration - Conditions of work/safety - Motivation - Training of employees Types of Production: Types of Production Make to Stock production Make to order Assemble-to-order production Functions of Production Department: Functions of Production Department Forecasting the demand for the products and using the forecast to determine the requirements of various factors of production. Arranging for the procurement of required factors of production. Arranging for the services such as maintenance, store keeping, material handling, inspection and quality control etc that would be required to attain the targeted level of production. Utilizing effectively the factors of production and service facilities available to produce the product. Production Planning: Production Planning Strategic Planning - Involves deciding and developing strategic plans to achieve strategic objectives (goals). - Top management typically develops the strategic plans. e.g. technology decisions, capacity decisions, facilities decisions, etc Tactical Planning - Done at middle management and involves the resources acquisitions and utilizations to achieve the organizational goals. Operational Planning - These decisions are taken at the bottom level of management and these are routine decisions. Production Control: Production Control Control is described as the constraining the activities to follow the plans. Production control is „the function of management which plans, directs and controls the material supply and processing activities of an enterprise, so that specified products are produced by specified methods to meet an approved sales program; these activities being carried out in such a manner that the labour, plant and capital available are used to the best advantage.‟ Operations Scheduling System of Production Control: Operations Scheduling System of Production Control OUTPUT PLAN Loading Sequencing Scheduling Expediting Assigning specific jobs to each work centre for the planning period Determining the order of processing of all jobs at each work centre. Establishing start and finish times of all jobs at each work centre. Monitoring progress, taking corrective actions to minimize deviations. Outline of Production Control: Outline of Production Control Loading and Scheduling Material control Dispatch and Progress Production Procedure:

Production Procedure Authorization for Production Dispatch to Customers Finished Goods Stock Evaluation of Production System Inspection, Quality Control Production Planning Preparation of Production Budget Preparation of details by Engg Dept Control Function Sales Forecast Production Planning and Control: Production Planning and Control Definition : Production planning and control can be defined as the “direction and co-ordination of firms resources towards attaining the prefixed goals.” Thus, production planning and control helps to achieve uninterrupted flow of materials through production line by making available the materials at right time and required quantity. Need for PPC: Need for PPC Effective utilization of firm‟s resources. To achieve the production objectives with respect to quality, quantity, cost and timeliness of delivery. To obtain the uninterrupted production flow in order to meet customers varied demand with respect to quality and committed delivery schedule. To help the company to supply a good quality products to the customer on the continuous basis at competitive rates. Objectives of PPC: Objectives of PPC Systematic planning of production activities to achieve the highest efficiency in production of goods. To organize the production facilities like machines, men, etc. to achieve stated production objectives w.r.t. quantity and quality, time and cost. Optimum scheduling of resources. Co-ordinate with other departments relating to production to achieve regular balanced and uninterrupted production flow. To conform to delivery commitments. Material planning and control. To be able to make adjustments due to changes in demand and rush orders. Functions of PPC: Functions of PPC Materials function Machines and Equipment Methods Process Planning (Routing) Estimating Loading and Scheduling Dispatching Expediting Inspection Evaluation Comparison between Production Planning and Production Control: Comparison between Production Planning and Production Control Production Planning Production Control 1. Production planning is a pre production activity. 2. Planning involves the collection, maintenance and analysis of data with respect to time standards, materials & their specification, machines and their process capabilities. 3. Planning is useful to anticipate the problems and devising remedial measure in case the problem arises. 4. Planning is a centralised activity and includes functions like materials control, tool control, process planning and control. 5. Planning sees that all the necessary resources are available to make the production at right quality and time. 1. Production control will be in action when production activity begins. 2. Control is concerned with communication of their information and producing reports like output reports, productivity, rejection rate etc. 3. Control involves in taking corrective steps in case error to match actual performance against the planned performance. 4. Control is a widespread activity. Includes functions such as dispatching programming and inspection, etc. 5. Control keeps track of the activities and sees whether everything is going as per schedule or not.