PRODUCTION PLANNING

AND CONTROL SYSTEMS

PRESENTATION BY,
21M111 - GUNALAN JP
21M112 - HARIDOSS
21M114 - HARRISH
21M115 - HRITHIK
21M117 - JAGADEESH M
21M118 - JAIKARTHIK PRASANNA G
INTRODUCTION
PRODUCTION PLANNING AND CONTROL

● Production planning and control manages and schedules the allocation of human
resources, raw materials, work centers, machinery, and production processes.
● It finds the most efficient way to produce finished goods with the lead times needed to
meet production demand.
● Production planning and control are two strategies that work cohesively in manufacturing.
● PLANNING: what to produce, when to produce, how much to produce, and more.
● PRODUCTION CONTROL: ensures optimum performance from the production system
by using different control techniques for better throughput targets.
PRODUCTION PLANNING
Production planning consists of:

1. Deciding which products to make, in what quantities and when they should be completed.
2. Scheduling the delivery and/or production of the parts and products
3. Planning the manpower and equipment resources needed to accomplish the production plan.

Activities within the scope of production planning include:

Aggregate production planning Master production planning

Material requirements planning (MRP) Capacity planning

PRODUCTION CONTROL
Production control consists of:

1. Determining whether the necessary resources to implement the production plan have been
implemented.
2. If not, attempting to take corrective action to address the deficiencies.

Production control includes various systems and techniques for controlling production and
inventory in the factory:

Shop floor control Inventory control

Manufacturing resource planning Enterprise resource planning

ROUTING: SCHEDULING:
Routing fixes in advance:
Scheduling means to:
1. The quantity and quality of the product.
1. Fix the amount of work to do.
2. The men, machines, materials, etc. to be used.
2. Arrange the different manufacturing operations
3. The type, number and sequence of
in order of priority.
manufacturing operations, and
3. Fix the starting and completing date and time,
4. The place of production.
for each operation.

DISPATCHING: FOLLOW-UP:
Dispatching includes the following: Follow-up includes:
1. Issue of materials, tools, fixtures, etc., which are 1. Removes defects, delays, limitations,
necessary for actual production. bottlenecks, loopholes etc.,
2. Maintaining proper records of the starting and 2. Measures the actual performance.
completing each job on time. 3. Compares it with the expected performance.
3. Moving the work from one process to another 4. Maintains proper records of work, delay and
as per the schedule. bottlenecks.
4. Starting the control procedure. 5. Necessary when production is reduced.
5. Recording the idle time of machines
AGGREGATE
PRODUCTION
PLANNING
AGGREGATE PRODUCTION PLANNING (APP)
● Aggregate production planning is an essential tool for managing various operations.
It includes inventory, production, and performance of the employees.
● Aggregate planning is a strategy that is used to utilize the resources of the company
and assess the future demand of the consumer.
● It is used to create an appropriate production schedule for an organization.
● The period of the strategy usually stretches around 6 months to 1 year.
● It helps in maximizing the opportunities within the workforce to increase productivity
rate.
● It facilitates the synchronization of demand of the market and supply of the raw
material to maintain a certain balance.
FINANCIAL PLANNING OF AGGREGATE PRODUCTION:

1. Basic production cost

2. Cost regarding the fluctuation of production rate
3. The cost associated with inventory

TECHNIQUES OF THE AGGREGATE PLANNING:

● Determining the requirements and demands of ● Determining the cost of inventories, regular
the market for various periods. time, backorder, layoffs, subcontracting,
● Evaluation of capacities for overtime, overtime, and other costs.
subcontracting, and regular time. ● Formation of alternative strategy and
● Identifying the policies of the department and determining the cost of each plan.
the company that is associated with ● The appropriate strategy needs to be chosen
maintaining adequate stock to meet market that addresses the objectives of the company.
demand.
INPUTS AND OUTPUTS TO AGGREGATE PLANNING
THE PROCEDURE OF AGGREGATE PRODUCTION
PLANNING
There are significant rules informing the optimal aggregate production process, such as-
1. The collection of relevant data needs to be done in order to form an appropriate strategy.
2. The APP model needs to be created in a spreadsheet.
3. The strategies need to be evaluated to form a suitable plan

— The evaluation process can be done by presenting the model of aggregate production to each
department of the company.

— In case the plan is not optimal, some valuable input or parameters needs to be added to
modify the plan.

— The implementation of the strategy is the last step of the process and the market demand is
assessed in this step.
THE PROCEDURE OF AGGREGATE PRODUCTION
PLANNING
Determine requirements Prepare prospective
for planning horizon Identify alternatives, plan for planning
constraints and costs horizon

No
Is the plan
acceptable?

Yes

Move ahead to the next Implement and update

planning session the plan
IMPORTANCE OF DEVELOPING AGGREGATE PLANNING

● It has been proved to be essential in the completion of the long-term achievements of

an organization.
● It is useful in reducing the production cost that in turn gives the opportunity to
achieve financial goals.
● It is efficient in decreasing the cost of inventory.
● This method helps in utilizing the maximum productivity to increase the rate of
production.
● It is a useful tool in meeting the demand of the market on time and the waiting time
for the consumer can be effectively reduced by using this method.
● It assists the organization in achieving goals and also gives satisfactory experience
for the employees
MASTER
PRODUCTION
SCHEDULE
MASTER PRODUCTION SCHEDULE:
● The aggregate production plan must be converted into a master production
schedule (MPS) which is a specific plan of the quantities to be produced of
individual models within each product line.
● The production quantities of the major product lines listed in the aggregate plan
must be converted into a very specific schedule of individual products, known as
the master production schedule (MPS), or master schedule for short.
● It is a list of the products to be manufactured, when they should be completed
and delivered, and in what quantities.
● The master schedule must be based on an accurate estimate of demand and a
realistic assessment of the company’s production capacity.
MASTER PRODUCTION SCHEDULE :

MPS divide into three categories:

➢ Firm customer orders
➢ Forecasted demand
➢ Spare parts
● Proportions in each category vary for different companies, and in some cases
one or more categories are omitted.
● Companies producing assembled products will generally have to handle all
three types.
MASTER PRODUCTION SCHEDULE :

➢ Firm customer orders

In the case of customer orders for specific products, the company is usually
obligated to deliver the item by a particular date that has been promised by the
sales department.

➢ Forecasted demand
In the second category, production output quantities are based on statistical
forecasting techniques applied to previous demand patterns, estimates by the
sales staff, and other sources. For many companies, forecasted demand
constitutes the largest portion of the master schedule.
MASTER PRODUCTION SCHEDULE :

➢ Spare parts
The third category consists of repair parts that either will be stocked in the
company’s service department or sent directly to the customer. Some
companies exclude this third category from the master schedule since it does
not represent end products
MASTER PRODUCTION SCHEDULE :
● The MPS is generally considered to be a medium-range plan since it must
take into account the lead times to order raw materials and components,
produce parts in the factory, and then assemble the end products.
● Depending on the product, the lead times can range from several weeks to
many months; in some cases, more than a year. The MPS is usually
considered to be fixed in the near term.
● Other inputs that may cause the master schedule to depart from the
aggregate plan include new customer orders and changes in sales forecast
over the near term.
How is the MPS used in Manufacturing company ?

Considering today’s complexity in manufacturing, the MPS helps to decide:

➢ What to produce
➢ What batch sizes
➢ When to produce
➢ What sequence to adopt
To successfully implement an MPS. The MPS is in fact a solid contract
between sales and production.
How is the MPS used in Manufacturing company ?

There are manufacturing variables that the planner has to consider when running
the MPS.
The variables are :
➢ Batch criteria
➢ Sequence constraints
➢ Set up times
➢ Capacity over saturation
MATERIAL
REQUIREMENTS
PLANNING
What Is Material Requirements Planning (MRP)?
Material requirements planning (MRP) is a software-based integrated
inventory and supply management system designed for businesses.Companies
use MRP to estimate quantities of raw materials, maintain inventory levels, and
schedule production and delivers.

How Material Requirements Planning (MRP) Works:

MRP helps businesses and manufacturers define what is needed,
how much is needed, and when materials are needed and works backward from a
production plan for finished goods.
MRP converts a plan into a list of requirements for the subassemblies, parts,
and raw materials needed to produce a final product within the established
schedule. MRP helps manufacturers get a grasp of inventory requirements
while balancing both supply and demand.Using MRP, managers can determine
their need for labor and supplies and improve their production efficiency.By
inputting data scheme such us,
● Master Production Schedule (MPS)
● Shelf life of stored materials
● Inventory Status File (ISF)
● Bills of materials (BOM)
● Planning data
MRP PROCESS:

● Estimates demand and required materials: After determining customer demand and
utilizing the bill of materials, MRP breaks down demand into specific raw materials and
components.
● Allocates Inventory of materials: MRP allocates inventory into the exact areas as
needed.
● Schedules Production: Time and labor requirements are calculated to complete
manufacturing and a timeline is created.
● Monitors the process: MRP automatically alerts managers of any delays and even
suggests contingency plans to meet build deadlines

How Does MRP Benefit a Business?

MRP ensures that materials and components are available when they're needed, inventory levels
are optimized, manufacturing efficiency is improved, and customer satisfaction increases.
Advantages and Disadvantages of MRP

Pros
● Materials and components are available when needed.
● Minimized inventory levels and associated costs.
● Reduced customer lead times.
● Increased manufacturing efficiency.
● Increased labor productivity.

Cons
● Heavy reliance on input data accuracy.
● Expensive to implement.
● Lack of flexibility in the production schedule.
● Tendency to hold more inventory than needed.
● Less capable than an overall ERP system.
CAPACITY
PLANNING
CAPACITY PLANNING:

● Capacity planning is the process of determining the production capacity

needed by an organization to meet changing demands for its products.
● Capacity planning concerned with defining the long-term and short-term
capacity need of a firm and determining how these needs will be met
Three stages of capacity
planning:
(1) resource requirements
planning (RRP),
(2) rough-cut capacity
planning (RCCP), and
(3) capacity requirements
planning (CRP)
Classification of capacity planning:

Based on time horizon:

•Long term capacity planning
•short term capacity planning
Based on amount of resources employed:
•Finite capacity planning
•Infinite capacity planning
Capacity adjustments for the short term include the following:

• Employment levels.
• Temporary workers.
• Work shifts.
• Labor hours.
• Inventory stockpiling.
• Order backlogs.
• Subcontracting.
Capacity planning adjustments for the long term include changes in
production capacity that generally require long lead times. These
adjustments include the following actions:
• New equipment.
• New plants.
• Purchasing existing plants from other companies.
• Acquiring existing companies.
• Closing plants.
Factors affecting capacity planning:
•Amount of labor employed
•Facilities installed
•Shift work per day
•Over time work
•Sub contracting
•shift worked per week
•Preventive maintenance
•Number of production set-ups
SHOP FLOOR
CONTROL
SHOP FLOOR CONTROL:

Shop floor control (SFC) is the set of activities in production control that are
concerned with releasing production orders to the factory, monitoring and
controlling the progress of the orders through the various work centers, and
acquiring current information on the status of the orders.
A typical SFC system consists of three phases:
• (1) order release
• (2) order scheduling, and
• (3) order progress.
PHASES OF SFC:

1.Order release:
The order release phase of shop floor control provides the documentation
needed to process a production order through the factory. The collection of
documents is sometimes called the shop packet.
It typically includes :
(1) The route sheet, which documents the process plan for the item to be
produced .
(2) Material requisitions to draw the necessary raw materials from inventory.
 (3) Job cards or other means to report direct labor time devoted to the order and to
indicate progress of the order through the factory.
(4) Move tickets to authorize the material handling personnel to transport parts
between work centers in the factory if this kind of authorization is required, and
(5) The parts list, if required for assembly jobs.
2.Order Scheduling:

•The order scheduling phase follows directly from the

order release phase and assigns the production orders to
the various work centers in the plant.
•The order scheduling phase prepares a dispatch list that
indicates which production orders should be accomplished
at the various work centers.
The order scheduling phase in shop floor control is intended to solve two problems in
production control:
(1) Machine loading and
(2) Job sequencing.
Some of the dispatching rules used to establish priorities for production orders in the plant
include:
• First-come-first served. Jobs are processed in the order in which they arrive at the
machine.
• Earliest due date. Orders with earlier due dates are given higher priorities.
● Least slack time: Slack time is defined as the difference between the time
remaining until due date and the process time remaining.(Orders with the
least slack in their schedule are given higher priorities.)
● Critical ratio: The critical ratio is defined as the ratio of the time remaining
until due date divided by the process time remaining. (Orders with the
lowest critical ratio are given higher priorities.)
3.Order Progress
● The order progress phase in shop floor control monitors the status of the various orders in
the plant, work-in-process, and other measures that indicate the progress of production.
● The function of the order progress phase is to provide information that is useful in
managing the factory.

The information presented to production management is often summarized in the form of

reports, such as the following:

• Work order status reports: These reports indicate the status of production orders .

• Progress report: A progress report is used to report performance of the shop during a certain
time period (e.g., a week or month in the master schedule).

• Exception reports: An exception report identifies deviations from the production schedule
(e.g., overdue jobs) and similar non conformities.
Factory Data Collection System:

• The FDC system consists of the various paper documents,

terminals and automated devices located throughout the plant for
collecting data on shop floor operations, plus the means for
compiling and processing the data.
•Examples of the types of data on factory operations collected by the
FDC system include: Piece counts completed at each workcente,
Scrapped parts and parts needing rework, Machine downtime.
INVENTORY
CONTROL