Workshop Technology OR Machine Shop Theory

Heat And Mass Transfer – HMT

Production planning and control – PPC

Applied Mechanics Or Engineering Mechanics

Engineering Materials or Material Science

Engineering Thermodynamics Or Applied Thermodynamics

IC Engines

Engineering Mathematics - Numerical Analysis & more

Strength of material OR Mechanics of solid

@thelearninghub2019 @essentialamalgame @jaatishrao

PRODUCTION
PLANNING AND
CONTROL
An integral part of
Industrial Engineering
SCOPE OF COURSE

SN Sections/Units Contents
1. Introduction Production system, Manufacturing processes, Meaning of PPC.

2. PPC procedure Elements of PPC, steps involved, benefits and affecting factors.

3. Forecasting Qualitative and quantitative forecasting, Forecasting errors.

4. MRP Classes of MRP users, I/O system, Product structure, Kanban, JIT, Order size.

5. Vital techniques Break-even point analysis, Lot sizing rules, Assembly line balancing.

6. Numericals Solved questions from GATE/IES/PSU exams.

“Give me six hours to chop down a tree and I will spend the first four sharpening the axe.”

– Abraham Lincoln
MEANING OF PRODUCTION

• A value addition process.

• The step-by-step conversion of one form of material into another form through chemical or
mechanical process to create or enhance the utility of the product to the user.

• Concerned with the transformation of a range of inputs into the required outputs (products)
having the requisite quality level.

• A very complex process and is very difficult to manage for the people.

• Edwood Buffa defines production as “a process by which goods and services are created”
THE 6 M’S

Man

Management Material

Inputs

Method Machine

Money
SCHEMATIC OF PRODUCTION SYSTEM

Process
• Man
• Material • Product design
• Product
• Capital
• Machine
• Prototyping
• Production planning • Services
• Information • Production control
• Maintenance
Input Output

• Inventory
• Quality
• Cost
TYPES OF PRODUCTION

Types

Continuous/Mass Job or unit Intermittent/Batch

production production production
TYPES OF PRODUCTION

Continuous/Mass production

• It is used when we need to produce standardized products with a standard set of process and
operation sequence in anticipation of demand.

• This ensures continuous production of output

• Also termed as mass flow production or assembly line production.

• This ensures very high rate of production as we need not to intervene once the production
has begun.

• Appropriate in plants where large volume of small variety of output is produced.

e.g. oil refineries, cement manufacturing and sugar factory etc.
TYPES OF PRODUCTION

 Characteristics of Continuous/Mass production:

• As same product is manufactured for sufficiently long time, machines can be laid down in order of processing sequence.

• Standard methods and machines are used during part manufacture.

• Most of the equipment’s are semi automatic or automatic in nature.

• Material handling is also automatic (such as conveyors).

• Semi-skilled workers are normally employed as most of the facilities are automatic.

• As product flows along a pre-defined line, planning and control of the system is much easier.

• Cost of production per unit is very low owing to the high rate of production.

• In process inventories are low as production scheduling is simple and can be implemented with ease.
TYPES OF PRODUCTION

Job or Unit production

• Ensures the simultaneous production of large number of batches/orders.

• It involves production as per customer's specifications. (Viz products are made to satisfy a sp
ecific order.)

• It is flexible and can be adapted to changes in product design and order size without much inc
onvenience.

• This system is most suitable where heterogeneous products are produced against specific ord
ers.
TYPES OF PRODUCTION

 Characteristics of Job/Unit production:

• Machines and methods employed should be general purpose as product changes are quite frequent.

• Man power should be skilled enough to deal with changing work conditions.

• Schedules are actually non-existent in this system as no definite data is available on the product. In process inventory will us
ually be high as accurate plans and schedules do not exist.

• Product cost is normally high because of high material and labour costs.

• Grouping of machines is done on functional basis (i.e. as lathe section, milling section etc.) This system is very flexible as
management has to manufacture varying product types. Material handling systems are also flexible to meet changing
product requirements.
TYPES OF PRODUCTION

Intermittent/Batch Production

• Concerned with the production of different types of products in small quantities usually term
ed as batches.

• This is used to meet a specific order or to meet a continuous demand.

• Automobile plants, printing presses, electrical goods plant are some of the
examples of batch production.
TYPES OF PRODUCTION

 Characteristics of Intermittent/Batch production:

• As final product is somewhat standard and manufactured in batches, economy of scale can be availed to
some extent.

• Machines are grouped on functional basis similar to the job shop manufacturing.

• Semi-automatic, special purpose automatic machines are generally used to take advantage of the similarity
among the products.

• Labour should be skilled enough to work upon different product batches.

• In process inventory is usually high owing to the type of layout and material handling policies adopted.

• Semi-automatic material handling systems are most appropriate in conjunction with the
semi-automatic machines.
TYPES OF MANUFACTURING PROCESS

Types

Jobbing Batch Mass Process

FACTORS AFFECTING THE SELECTION OF MANUFACTURING PROCESS

Volume/Variety

Capacity Lead time

Flexibility
PPC - Meaning

• Production planning and control are inter-related in a complex manner which

eventually looks like a unary function of management of an enterprise.

• PPC is a very critical decision which is necessarily required to ensure an efficient and
economical production. Planned production is an important feature of any manufacturing
industry.

• Production planning and control (PPC) is a tool to coordinate and integrate the entire
manufacturing activities in a production system.

• According to Gorden and Carson, PPC usually involve the organization and planning of
manufacturing process. Principally, it includes entire organization.
PPC - Meaning
1. Estimating
2. Routing
3. Scheduling
4. Loading

Production planning
PPC

1. Dispatch
Production control 2. Follow-up
3. evaluation
PRODUCTION PLANNING

• Formulation of a new plan in-line with the objective of production.

• Begins with the analysis of given data on the basis of which a scheme for the utilization of
resources is outlined.

• Determines the optimal schedule and sequence of operations, economic batch size, machine
assignments and dispatching priorities.

• Synonymous to process analysis.

• Leads to elimination of undesirable process elements as well as improvement of

certain processes as well.
PRODUCTION PLANNING

Production
Planning
PP

Estimating Routing Loading Scheduling

Deciding quantity Best and cheapest route Optimum utilization Deciding priorities
PRODUCTION CONTROL

• A device to attain maximum efficiency in production.

• Involves control over production quantity, labour efficiency, Material and tools, spares and
maintenance, delivery, schedule etc.

• “A production activity of an enterprise is said to be in control when the actual performance is

within the objective of planned performance.”
PRODUCTION CONTROL

Production
Control
PC

Dispatching Follow-up Evaluation

Release of resources Comparison Formulate corrective action

STEPS OF PPC

1. Forecasting the demands of the customers for the products and services.

2. In advance preparing the production budget.

3. Design the facility layout.

4. Specify the types of machines and equipment.

5. Appropriate production requirements of the raw materials, labour, and machinery.

6. Drawing the apt schedule of the production.

7. Confirming the shortage or any excess of the end product.

8. Future plans are drawn for any sudden surge in the demand for the product.

9. The rate and scale of production is setup.

PRODUCTION ACTIVITY & INFORMATION FLOW

Raw Material Forecasting Administrative Functions

Strategic Planning
Fabrication plant Marketing

Aggregate production planning

Assembly centre Product design

Disaggregation

Distribution centre Process planning

Product scheduling

Retailer Shop floor control Manufacturing Support

STAGES OF PPC

Monitoring

Action

Planning
Requirements for an effective Production Planning and Control
• Appropriate organization structure with sufficient delegation of authority and responsibility at various levels of manpower.

• Right person should be deputed at right place for right job.

• Maximum level of standardization of inventory, tooling, manpower, job, workmanship,

equipment, etc.

• Appropriate management decision for production schedule, materials controls,

inventory and manpower turnover and product mix.

• Flexible production system to adjust any changes in demand, any problem in production or availability of materials maintena
nce requirements, etc.

• Estimation of accurate leads times for both manufacturing and purchase.

• Management information system should be reliable, efficient and supporting.

• Capacity to produce should be sufficient to meet the demand.

• The facility should be responsive enough to produce new products change of products mix and be able to
change the production rates.
BENEFITS OF PPC PRODUCTIONS

Better
coordination
of plants
activities

Improved Optimum
services to utilization of
customers resources

Benefits to
workers
FACTORS AFFECTING PPC

Factors
PPC affecting
ESTIMATION OF STAGES OF PRODUCTION PLANNING

• Seeks for appropriate estimates of production quantity.

• Considerably affected by growing competition, frequent changes in customer demand, and

the inclining trend towards automation.

• Decision on production can never be (well sometimes) based on guesses.

• A careful analysis of data connecting the future course of events is mandatory.

• “When estimates of future conditions are made on a systematic and mundane basis of
historical and current data, the process is then called as FORECASTING and the statement
thus obtained is known as a FORECAST.”
METHODS OF FORECASTING
Market survey

Delphi method "Forecasting is the art of saying

what will happen, and then
Qualitative explaining why it didn't! "
Opinion pole

Forecasting Life cycle analogy

Simple average

Casual
Quantitative Moving average (M.A)

Time series
Weighted M.A

Exponential smoothing
QUALITATIVE FORECASTING
Market survey

Delphi method

Qualitative

Opinion pole

Life cycle analogy

METHODS OF FORECASTING

Simple average

Casual

Quantitative Moving average (M.A)

Time series

Weighted M.A

Exponential smoothing

Ft = Ft-1 + μ (Dt-1 – Ft-1)

FORECASTING ERRORS

Characteristics of forecasting errors :-

– When the forecast is almost wrong, the potential error in the forecast can be accommodated through
use of buffer capacity.

– Is easier for a product line because forecasting of individual product tends to cancel each other.

– Forecasts for short time periods are more accurate.

– Incomplete without the mention of estimated forecast error.

– Cannot be substituted by calculations of demand based on actual data for a given time period.
FORECASTING ERRORS

Measures

MAD – Mean Absolute

Deviation Bias Mean square error

𝒆 𝒆 𝒆𝟐
MAD = Bias = MSE =
𝒏 𝒏 𝒏
MRP

• Material Requirements Planning is primarily related to the inventory of raw materials and
components which are required to produce the products in a facility.

• The demand for the finished products is known as primary demand. This primary demand is
ascertained mainly by aggregating the demand from sales orders and forecasted demand.

• MRP is a time phased priority-planning technique that estimates material requirements and
schedules supply to meet demand across all products and parts in one or more plants.

• MRP techniques focus on optimizing inventory.

THE CONCEPT BEHIND

• Basically concerned with the inventory of raw materials and components which are required to produce
the products in a facility.

• It is a time phased priority-planning technique that estimates material requirements and

schedules supply to meet demand across all products and parts in one or more plants.

• MRP techniques are used to explode bills of material, to compute net material requirements and plan
future production.
Master
Production
schedule

Supplier What to
lead order and BOM
time when

Production
cycle time
THE CONCEPT BEHIND
Aggregate
product
plan
Orders Forecasted
from demand for
customer unknown
known customers

Master
Design Inventory
production transactions
changes
schedule

Inventory
BOM MRP record
(Software)

Primary Secondary
reports reports
CLASSES OF MRP USERS/COMPANIES

• Class A represents full implementation of MRP. MRP system is tied up with company “financial system and
includes capacity planning, shop floor dispatching, and vendor scheduling as well as links with human
resource planning.

• Class B represents a little less than full implementation. MRP system is confined in the pre-defined
manufacturing area.

• Class C represents a classical MRP approach in which the system is confined to management of the
inventories.

• Class D represents a data processing application of MRP.

CONDITIONS FOR SUCCESSFUL IMPLEMENTATION OF MRP

• Availability of a computer based manufacturing system is a must.

• A feasible master production schedule must be drawn up.

• The bills of material should be accurate.

• Inventory records should be a precise representation of reality.

• Lead times for all inventory items should be known and given to the MRP system.

• Shop floor discipline is necessary.

INPUT/OUTPUT (I/O) IN MRP
Product Demand

BOM
INPUT
Master Production
Schedule

I/O Inventory record file

Primary report Planned order report

OUTPUT
Secondary report Order release report

Order changes report

PRODUCT DEMAND

Product demand for end items stems from two main reasons. The first is known customers who
have placed specific orders, such as those generated by sales personnel, or from
interdepartmental transactions.

The second source is forecast demand. Demand from known customers and demand forecast are
combined and become the input to the master production schedule.
BOM

BOM file is a document which tells us about an items product structure and also it tells us about
the sequence in which components are assembled and their required number. It also tells us
about the workstations in which it is assembled.

Bill of Materials gives information about the product structure, i.e., parts and raw material units
necessary to manufacture one unit of the product of interest
PRODUCT STRUCTURE

X
A

B(1) C(2) A(2) Y(1)

Sub-assembly/
Number of units
Components

Y 1 x No. of units of X = 1 x 100 = 100 B(1)

A 2 x No. of units of X = 2 x 100 = 200
B 1 x No. of units of A = 1 x 100 = 100
C 2 x No. of units of A = 2 x 100 = 200 C(2)
PRODUCT STRUCTURE
Level 0
M

N (3) O (1) Level 1

P (1) N (2) Level 2

Q (2)
MASTER PRODUCTION SCHEDULE (MPS)

Months Number of Cars

The Master Production schedule includes quantities of products to
Jan 10000
be produced at a given time period. Quantities are included both at
Feb 12000 aggregate and detailed levels. Aggregate may refer to monthly
Mar 8000 production and detailed may refer to weekly or daily production.
Apr 11000
The master production schedule takes the form of a table in which
May 7000
rows represent products and columns represent time components.
June 12000

Weeks of Jan 1st 2nd 3rd 4th 5th

Model A 1200 2000 2700 750 6650

Model B 700 950 1100 200 2950

Model B 100 50 200 50 400

Total 2000 3000 4000 1000 10000

INVENTORY RECORD FILE

IRF

Details of the Time taken by supplier to Size of each order to be

suppliers of the items supply the item placed to the supplier.
WORKING OF MRP PROGRAM

• A list of end items needed by time periods is specified by the master production schedule.

• A description of the materials and parts needed to make each item is specified in the bill of
materials (BOM) file.

• The number of units of each item and material currently on hand and on order are contained
in the inventory file.

• The MRP program “works “on the inventory file in addition, it continuously refers to the bill
of materials file to compute quantities of each item needed.

• The number of units of each item required is then corrected for on hand amounts, and the
net requirement is “offset” to allow for the lead time needed to obtain the material.
PRIMARY REPORTS

• Planned orders to be released at a future time.

• Order release notices to execute the planned orders.

• Changes in due dates of open orders due to rescheduling.

• Cancellations or suspensions of open orders due to cancellation or suspension of orders on

the master production schedule.

• Inventory status data.

SECONDARY REPORTS

SR
Secondary Reports

Planned Order Order Release Order Change

Report Report Report
POR ORR OCR
INVENTORY RECORD FILE

Order size
calculation

Economic Order
Least total cost Least unit cost
Lot for lot method Quantity (EOQ)
method method
method
CALCULATIONS OF ORDER SIZE IN MRP

Ordering cost (OC) = Rs 50 per order

Carrying cost (CC) per unit per week = 0 .5% of unit cost price
Unit cost price = Rs 20
CC per week = 20 X .5% = Rs 0.1

Week Net requirement

1 80
2 100
3 90
4 60
5 110
6 50
Total 490
CALCULATIONS OF ORDER SIZE IN MRP

Ordering cost (O) = Rs 50 per order

Carrying cost (CC) per unit per week = 0 .5% of unit cost price
Unit cost price = Rs 20
CC per week = 20 X .5% = Rs 0.1

Week Net requirement

1 80
2 100
3 90
4 60
5 110
6 50
Total 490
 Net
CALCULATIONS OF ORDER SIZE IN MRP – Lot for lot method Week requirement
1 80

Ordering cost (O) = Rs 50 per order 2 100

3 90
Carrying cost (CC) per unit per week = 0 .5% of unit cost price
4 60
Unit cost price = Rs 20
5 110
CC per week = 20 X .5% = Rs 0.1 6 50
Total 490
CALCULATIONS OF ORDER SIZE IN MRP – The EOQ Method

Economic order quantity (EOQ) is the ideal order quantity a company should purchase to
minimize inventory costs such as holding costs, shortage costs, and order costs. This production
scheduling model was developed in 1913 by Ford W. Harris and has been refined over time.

– The formula assumes that demand, ordering, and holding costs all remain constant.

– The EOQ is a company's optimal order quantity that minimizes its total costs related to ordering,
receiving, and holding inventory.

A0 = Annual Demand
2 𝐴0 𝑂
EOQ = O = Ordering cost
𝐶 C = Carrying cost
CALCULATIONS OF ORDER SIZE IN MRP – EOQ Method Week
Net
requirement
1 80
Ordering cost (O) = Rs 50 per order 490 𝑋 52
Annual Demand = 𝐴0 = = 𝟒𝟐𝟒𝟔. 𝟔𝟕 2 100
Carrying cost (CC) per unit per week = 0 .5% of unit cost price 6

Unit cost price = Rs 20 3 90

CC per week = 20 X .5% = Rs 0.1 2𝐴0𝑜 2 𝑥 4246.67 𝑥 50 4 60

EOQ = 𝑐
= = 285.77 = 286
Annual CC for 52 weeks = C = 52 X 0.1 = 5.2 5 .2 5 110
6 50
JIT – Just In Time

• It is a system to produce and deliver finished goods just in time to be sold, sub assemblies
just-in-time to be assembled into finished goods, and purchase materials just in time to be
transformed into fabricated parts.

• Originally developed by the Toyota motor company in Japan.

• JIT may be understood as the continuous improvement of material flow in either factory or
a combination of factories.

• Being used in wide variety of industries such as automobiles, consumer electronics, office
equipments etc.
JIT – Just In Time

JIT
Techniques

Factory layout Set up time Pull system Better coordination

revision reduction implementation with suppliers

Minimizes material Reduces lot size Only produce Makes the supplier an
handling activities actual orders extension of the internal
material flows
KANBAN VISUAL SYSTEM

• Japanese word that means flag or signal, and is a visual aid to convey the message that action
is required.

• First adapted by American supermarkets for replenishing empty shelves in racks and
originally introduced by the Toyota motor company in Japan.

Final implementation
Stage 4

Stage 3 Production kanban card

Stage 2
Mizosomashi
Stage 1
Kanban Card with
Identification number
KANBAN VISUAL SYSTEM
MRP BENEFITS

• Reduced inventories without reduced customer service.

• Ability to track material requirements.

• Ability to evaluate capacity requirements.

• Means of allocating production time.

• Increased customer satisfaction due to meeting delivery schedules.

• Faster response to market changes.

• Improved labour and equipment utilization.

• Better inventory planning and scheduling.

BREAK EVEN POINT ANALYSIS

𝑭𝑪
$ Break even units =
𝑺𝑷 −𝑽𝑪

FC – Fixed Cost

SP – Selling price

VC – Variable cost
LOT SIZING

Rules
Lot sizing rules

FOQ EOQ Lot for Lot FPQ POQ PPB

Economic order Fixed period Periodic order Part-period
Fixed order quantity quantity LFT requirement quantity balancing
ASSEMBLY LINE BALANCING

𝑇𝑝
Tc =
𝑇𝑜

Cycle
Time

Number of
workstations Balance Delay =
1-𝜼
Cycle
efficiency (𝜼)

𝑇
NT =
𝑇𝑐
𝜼 = NT/Na
(1) For a product, the forecast and the actual sales for December 2019 were 25 and 20
respectively. If the exponential smoothing constant (μ) = 0.2, calculate the forecast
for January 2019.

Ft = Ft-1 + μ (Dt-1 – Ft-1)

= 25 + 0.2 ( 20 – 25 )

= 25 – 1

= 24.
(2) The sales of a product during last four years were 860,880,870 and 890 units. The
forecast for fourth year was 876 units. If the forecast for the fifth year using simple
exponential smoothing is equal to the forecast using three years moving average, Find
out the value of exponential smoothing constant “μ”.

By moving average method

𝟖𝟖𝟎+ 𝟖𝟕𝟎+ 𝟖𝟗𝟎

F5 = = 880
𝟑

By exponential smoothing method

F5 = 876 + μ (890 – 876) Gives; μ = 2/7.

(3) For a canteen, the actual demand for disposable cups was 500 units in January and
600 units in February. Calculate the forecast for the month of March considering smo
othing constant as 0.75.

FFeb = FJan + μ (DJan – FJan)

= 400 + 0.75 (600 - 475)
= 475 Units.

FMar = FFeb + μ (DFeb – FFeb)

= 475 + 0.75 (600 – 475)
= 568.75 = 569 Units
(4) A firm uses a turning center, a milling center and a grinding machine to produce
two parts. The table below provides the machining time required for each part and
the maximum machining time available on each machine.

Machining time required (minutes) Max machining

M/C time available per
I II week (minutes)

Turning 12 6 6000
Milling 4 10 4000
Grinding 2 3 1800

The profit per unit on parts I and II are 40 and 100 respectively. Calculate
the maximum profit per week of the firm.
12x + 6y ≤ 6000
1000
4x + 10y ≤ 4000
2x + 3y ≤ 1800
x,y ≥ 0 600
OR
(375,250)
12x + 6y ≤ 6000 400

4x + 10y ≤ 4000
12x + 30y ≤ 12000

0
Gives x = 375 & y = 250 500 900 1000

Hence, profit = 40 X 375 + 100 x 250 = 40000

(5) Two models P and Q of a product earns profit of 100 and 80 per piece. Production
time for P and Q are 5 hours and 3 hours respectively, while the total production time
available is 150 hours. For a total batch size of 40, to maximum profit, calculate the
number of units of P to be produced.

x + y = 40

5x + 3y = 150

Gives, x = 15
(6) In an assembly line for assembling toys, five workers are assigned tasks which takes
time 10,8,6,9 and 10 respectively. Find out the balance delay for the line.

𝟏𝟎+𝟖+𝟔+𝟗+𝟏𝟎
Ta = = 8.6 minutes.
𝟓

Balance delay = 1 - 𝜼

= 1 – 8.6/10

= 0.14 Or 14%
(7) Manufacturing of a product requires fixed investment of 4,50,000 in a particular
year. The estimated sales for this period is 8,00,000. The variable cost per unit for
this product is 10. Determine the break-even point of production if unit price of the
product is 50.

𝑭𝒊𝒙𝒆𝒅 𝑪𝒐𝒔𝒕
Break even point =
𝑼𝒏𝒊𝒕 𝒑𝒓𝒊𝒄𝒆 −𝑽𝒂𝒓𝒊𝒂𝒃𝒍𝒆 𝒄𝒐𝒔𝒕

𝟒𝟓𝟎𝟎𝟎𝟎
= = 11250.
𝟓𝟎 −𝟏𝟎
 Workshop Technology OR Machine Shop Theory

Heat And Mass Transfer – HMT

Production planning and control – PPC

Applied Mechanics Or Engineering Mechanics

Engineering Materials or Material Science

Engineering Thermodynamics Or Applied Thermodynamics

IC Engines

Engineering Mathematics - Numerical Analysis & more

Strength of material OR Mechanics of solid

@thelearninghub2019 @essentialamalgame @jaatishrao