Production Planning and control

MEEG 308
Department of Mechanical Engineering
Kathmandu University
 Course Details:
• Course title : Production Planning and control
• Course code : MEEG 308
• Credit : 3 cr
• Group : Mechanical Engineering III/II
 Course Objectives:
• To apply different production planning and control system to
increase productivity in the existing and newly formed
organization.
• To give aid for the improvement of existing product and
designing of new product in different manufacturing
industries.
Syllabus Link :

https://cdn.ku.edu.np/6_Guveq_Lrne_Frpbaq_Frzrfgre158072
2155.cqs/1
 Content( chapter 1):
• Types of production systems:
• project type, job order type.
• Similar process production, Continuous production.
• Design feature of production control system for different types of production
system, production-consumption cycle.
• Organization for PPC Section.
• Conventional organizational structure for production and planning.
 Introduction:
• Production planning and control is an important task of Production
Manager. It has to see that production process is properly decided in
advance and it is carried out as per the plan. Production is related to the
conversion of raw materials into finished goods. This conversion process
involves a number of steps such as deciding what to produce, how to
produce, when to produce, etc. These decisions are a part, of production
planning. Merely deciding about the task is not sufficient.
• The whole process should be carried out in a best possible way and at the
lowest cost. Production Manager will have to see that the things proceed
as per the plans. This is a control function and has to be carried as
meticulously as planning. Both planning and control of production are
necessary to produce better quality goods at reasonable prices and in a
most systematic manner.
• Production planning and control involves generally the organization and
planning of the manufacturing process. Specifically, it consists of the
planning of the routing, scheduling, dispatching and inspection, co-
ordination and the control of materials, methods, machines, tooling and
operating times. 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
terms of quantity, time and place.”
• Goldon B. Carson
 Production Planning
The planning of industrial operations involves four consideration
, namely , what work shall be done , how the work shall be done
and lastly, when the work shall be done.
Objectives:
1. To determine the requirement of recourses.
2. To arrange the production schedule according to the market
needs.
3. To achieve coordination among various department relating
to production.
4. To manage various input and output at right time and right
quantity.
5. To make effort to achieve production target in time.
6. To determine the requirements for men, materials and
equipment.
7. Production of various inputs at a right time and in right
quantity.
8. Making most economical use of various inputs.
9. Arranging production schedules according to the needs of
marketing department.
10. Providing for adequate stocks for meeting contingencies.
11. Keeping up-to-date information processes.
 Production control
Production control refers to ensuring that all which occurs in accordance
with rules established and instructions issued. ( Henry Fayol)
Objectives:
1. To regulate inventory management
2. To minimize wastage
3. To reduce waiting time.
4. To introduce a proper system of quality control.
5. Making efforts to adhere to the production schedules.
6. Issuing necessary instructions to the staff for making the plans realistic.
7. To ensure that goods produced according to the prescribed standards
and quality norms.
8. To ensure that various inputs are made available in right quantity and at
proper time.
9. To ensure that work progresses according to the pre decided plans.
 Project type
• Based on Investment
• Based on duration
• Based on ownership
• Based on risk
• Startup .
 Job order type:
• A job order refers to the job posting or requisition. Once a
candidate has been selected and the terms of the
assignment (e.g. start and end dates, hourly billing rate) have
been mutually agreed to by the hiring manager and the
supplier, the Job Order becomes a Work Order.
 Various manufacturing process
1. Repetitive Manufacturing
A manufacturer would use repetitive manufacturing for repeated
production that commits to a production rate. Repetitive processing is
comprised of dedicated production lines that produce the same or
a paraphernalia of items, 24/7, all year round. With its requirements for setup
being minimal or having little changeover, the operation speeds can be
increased or decreased to meet customer demands or requirements.
 2. Discrete Manufacturing
Like repetitive manufacturing, discrete manufacturing also utilizes an
assembly or production line. However, this process is extremely diverse, with a
variation of setups and changeover frequencies. This is due to factors based
on whether the products in production are similar or discordant in
design. If the items are vastly different this will require altering the setup
and a tear-down, which means production will require more time. process
is more diverse.
 3. Job Shop Manufacturing
Job shop manufacturing, unlike repetitive or
discrete manufacturing, makes use of production areas rather than
assembly lines. This is because this process will produce smaller batches
of custom products, which can be either made-to-order (MTO) or
made-to-stock (MTS). These workstations are organized to make one
version of a custom product, or even a couple of dozen. If customer
demand requires it, the operation can become a
discrete manufacturing line with selected labor operations being,
potentially, replaced by automated equipment. Of course, this depends
on the type of manufacturing business.
 4. Process Manufacturing (Continuous)
Process manufacturing (also called continuous
manufacturing) is similar to repetitive manufacturing as it too also runs
24/7. However, the difference is that this manufacturing process
productions raw materials are gases, liquids, powders, or slurries. But,
in areas like mining, the products can be granule materials. Product
designs are similar, unless the disciplines to create a final product or a
production process is more diverse.
 5. Process Manufacturing (Batch)
Process manufacturing (also called batch manufacturing) shares
similarities with discrete and job shop processes. Depending on
consumer demand, one batch could be enough to meet that demand.
Once a batch is completed, the equipment is cleaned, ready to
produce the next batch when needed. Batch processes
are continuous in nature. Continuous batch processes are achievable
when the ingredients or raw materials cannot be made to a strict
standard. Just like Process manufacturing (continuous) the product
ingredients are similar, and the production.
Design feature of production control system
 Production control system

Management system:

The system performs the corporate control and

governance so that each function the enterprise has can
work harmoniously with each other.

The main mission is to manage human resources, and to

draw up management structure plans as well as business
plans indispensable for its future development.
 Production control system
Selling system
The system mainly performs market researches,
management of the company's customers and
distributors, its inventory control, and its order
management in order to improve customer service,
expand its market share , and increase its sales
volume.
 Production control system
Production system
The system makes an effective use of production
materials of human resources, raw materials and
facilities to perform the engineering, purchasing, and
producing activities so that it can produce adequate
products to meet certain conditions (in quantity and
delivery time) at the lowest cost.
 Production control system
Product distribution system

The system functions as a supplementary means in

such activities as product positioning, sales promotion,
and product distribution, and performs various activities
including packing, loading/unloading, shipping, storing and
communications, in order to supply more adequate
products to the company's customers.
 Production control system
Financial system
The system controls and governs the activities of obtaining and
utilizing the company's capital in order to facilitate its business
activities over the long or short term.
Recently, the production system of manufacturing companies have
been functionally fragmented in remarkable manner, in accordance
with rapid technological innovation. Such fragmentation has been
notably seen in the engineering and producing fields.
In other words, the production system can be said to consist of three
systems: production control system (planning and administration
divisions), engineering system (engineering division), and
manufacturing system (manufacturing division).
 Production control system
Production control system
The system performs planning and management activities to
make the effective use of human resources, raw materials,
and facilities based on the order information received from
customers.
Engineering system
The system uses computers to engineer manufacturing
technologies and processes as well as products according to
customers' specifications. It is commonly called CAD/CAM
system (Computer Aided Design/Computer Aided
Manufacturing System).
 Production control system
Manufacturing system
The system automatically uses automatic machine tools, robots,
etc. to perform processing and assembly operations in response to
the production schedule information and manufacturing technology
information received from production control system and
engineering system, respectively. This is an automation system for
high-mix low-volume manufacturing, commonly called FMS
(Flexible Manufacturing System).
Production-consumption cycle
• Production
• Consumption
• Distribution
• Consumption or recovery
organization structure for production
planning and control
Centralized versus decentralized system
• Now a days major organizations structure determines how work is
handled and what guidelines are followed or avoided altogether. At
the start of a business, sometimes even later, the organizational
structure is developed to facilitate regular operation and growth.
• In most cases, the chosen structure reflects the owner or prominent
decision makers, employing their personalities, management styles,
character traits and personal goals.
• In manufacturing specifically, there are two major types of
organizational structures or business methods — centralized and
decentralized.
 Centralized system
• It can essentially liken to a foundational or core process. It involves a
single factory or location that can alleviate per unit production costs
by employing versatile and adaptive equipment. In short, it means
you can produce different products or quantities of items at will
based on demand and scale.
 Decentralized System
• Decentralized manufacturing involves an organization with multiple
facilities or locations with the ultimate goal to provide service or
coverage for large areas. As opposed to a central location, the
factories or distribution centers are spaced out across a wider area.
These locations are generally positioned close to customers.
 Decentralized system
• Many project the idea that decentralized is better and offers more benefits.
This is only slightly true and makes sense because of how the modern
landscape is currently structured. Decentralized manufacturing offers more
flexibility and faster, timelier delivery of goods because it’s closer to the
customer. It also offers a cost reduction, thanks to low labor costs in
varying areas, and easier to manage processes.
• In reality, however, both organizational structures are on a level playing
field. Because the startup costs and resources necessary to maintain
several properties is much higher, you need more investment capital to
start with a decentralized organization. Per unit costs tend to be higher,
because you’re not mass producing a single good from one plant.
Consistency in products and processes may also suffer because you’re
talking about several different locations, filled with their own hardware and
personnel, so things will differ.
 Centralized manufacturing system
• Centralized manufacturing, on the other hand, provides better product
forecasting, more local jobs for an area, consistent production schedules,
and better or more efficient use of a limited resource supply. In addition,
the cost of materials or operations may be significantly lower, because the
location is positioned close to a source or supply as opposed to consumers.
• Adversely, centralized manufacturing is incredibly inflexible due to the
nature of its structure. The cost of customization can be great, especially if
change comes later in the development cycle. If and when a product must
change, the entire system including equipment and hardware must be
retooled to meet the new demands. This can be both costly and time-
consuming, especially for large properties with lots of equipment. The
costs can balloon even higher in areas where wages and resource costs are
growing.
 Reference
• https://www.fishbowlinventory.com/blog/2018/05/02/the-
difference-between-centralized-and-decentralized-manufacturing/

• http://www.numdam.org/item/RO_2006__40_2_113_0/