PRODUCTION PLANNING

AND CONTROL
 The production planning portion handles the activities necessary before
production actually begins, such as materials planning, capacity planning, and
operations scheduling.
 The production control portion oversees the actual production process by
ensuring that the production team is able to meet its production targets and
is operating according to schedule.
Objectives of PPC

 Continuous Flow of Production:Production planning and control will attempt

to achieve a smooth and continuous production process by eliminating
bottlenecks and waste from your facility, which allows you to take your
production to the next level in terms of productivity.
 Planned Requirements - The production planning component of production
planning and control is essential to ensure that your production facility has
what it needs, in the right amount, at the right time. Having a production
plan ensures that you have enough material, machines, tools, equipment, and
manpower to perform the work.
 Optimal Inventory Levels - Production planning and control plans and
executes the processes that allows a consistent flow of production to
ultimately come closer to JIT (just-in-time) manufacturing and reducing
inventory levels within manufacturing operations.
 Increased Productivity- Increased productivity is successfully achieved
through optimizing the use of existing production resources and labor
resources while eliminating wastage/spoilage of materials.
 Customer Satisfaction- Production planning and control focuses primarily on
ensuring that the manufacturing process successfully completes orders on
time and reducing lead times. This ensures that customer orders are fulfilled
on time and within a short time frame and will improve customer satisfaction
with your company.
FUCTIONS OF PPC

 MATERIALS MANAGEMENT: Managing materials enables production to run

smoothly as raw materials, parts, and other components can be delivered in a
cost-effective and timely manner.
 EQUIPMENT: . This includes analyzing equipment downtime to identify any
bottlenecks and inefficiencies within the production process. Doing so will
ensure that production is flowing smoothly, staying efficient, and orders are
completed on time.
 METHODS: This component of production planning and control involves the
analysis of possible alternatives to production processes as well as various
schedules that production can follow.
 ROUTING: Similarly to the last point, production planning and control ensures
that raw materials are transformed into finished goods using the best route
possible.
 ESTIMATING: After the process sheet for operations is made available,
operation times are then estimated. The function is then carried out using
analysis on areas of operations such as routing, raw materials, and various
other areas.
 DISPATCHING: This phase of production planning in control involves the
execution of the production schedule. It involves the release of materials,
components, and tools to the machine operators so that production can
begin.
 EXPEDITING: This step is also called Follow-Up and involves checking the
progress of production. It also involves the follow up of materials, work in
progress, and assembly. In this step, manufacturers should identify
bottlenecks in the production process and work to remedy them to ensure
that the production plan is executed as planned.
 EVALUATION: This portion helps identify areas where productivity is still
lacking and where improvements could be made. Managers can then focus on
these areas and determine what needs to be changed and then implement
strategies to improve those areas.
PRODUCTIVITY

 Productivity is commonly defined as a ratio between the output volume and

the volume of inputs. In other words, it measures how efficiently production
inputs, such as labour and capital, are being used in an economy to produce a
given level of output.
 A company is making 6000 batteries in a month by engaging 22 persons
working for 24 days in a month in a shift of 8 hours a day. Calculate the
productivity in terms of labour input?
 A company produces 200 pieces of pens at a standard price of Rs.600 each,
with a labour cost of Rs.18,000 and overhead cost of Rs.11,000. Calculate the
multifactor productivity?
 Find the partial productivity and total productivity for M/s ABC Company for
which the following data is available:
a)Output = 500 pcs worth Rs.15000
b)Labour Input = 200 man-hours costing Rs.4500
c)Material Input = Rs.3000
d)Energy Input = 600 kwhr costing Rs.1500
Other input expenses = Rs.750
Factors influencing Productivity

 Capacity utilization
 Regulations imposed by the government
 Production volume
 Investment
 Skills of the workers
 Life of plant and machinery
 Research and Development
 Work ethics
 Energy cost
Wastivity

 As in Production process, some parts of inputs may be converted into waste,

it is, therefore, of utmost importance to reduce the waste generated during
the process of productivity. In general, the waste produced is the reciprocal
to productivity.

Wastivity = 1/Productivity
Operations Strategy

 Anoperations strategy is a set of decisions an

organization makes regarding the production and
delivery of its goods. Organizations may consider
each step they take toward manufacturing or
delivering a product an operation, and all
decisions regarding these various operations are
the operations strategy.
Components of Operations Strategy

 Product Design and Development

 Analysis of (positioning) of the production system
 Specialized production and service facility
 Selection of process and technology
 Resources deployment
 Strategic capacity, location, and layout
SUSTAINABLE RESOURCE MANAGEMENT

 Sustainable resource management means managing

resources with the future in mind. Sustainable resource
management can be defined as the application of
sustainable practices by managing resources in a way that
will benefit current and future generations.
Sustainable Production is the creation of goods
and services using processes and systems that are:

 Non-polluting
 Conserving of energy and natural resources
 Economically viable
 Safe and healthful for workers, communities, and consumers
 Socially and creatively rewarding for all working people
Waste Management

 Waste management is the process of collecting, processing, treating, and

disposing of waste. The goal of waste management is to reduce the amount of
unusable materials and prevent potential health and environmental hazards.
Energy Management

 Energy management is the proactive and systematic monitoring, control, and

optimization of an organization's energy consumption to conserve use and
decrease energy costs.
Water Management

 Water management is the process of planning, developing, and managing

water resources. It involves using, collecting, storing, and disposing of water
efficiently.
Ways to implement

 Designing of the industrial unit

 Efficient operations
 Recycling and re-use
 Community Participation
TAKT TIME

 DEFINITION OF TAKT TIME – Takt time was originally used for to design of the
operator’s work content [Monden, 1998]. The term “Takt Time” is derived
from the German word “Takt”, which refers to the rhythm and time bar in a
piece of music. In production it refers to the speed at which products are
produced.
Why Not Maximum Capacity?
Producing more than the customer requires is:

OVER-PRODUCTION

This is the greatest of the Seven Wastes

As it leads to occurrence of the other six
The Western Approach
We produce more than we require to allow for problems

1 2 3

This embeds waste in our business

 ‘Push’ Production System

If we consider production operations as a chain…

?
Customer

Each link producing in isolation at

full speed will cause a mismatch between links

Some areas over-produce, some cannot keep up...

‘Push’ Production System

Customer

What will happen when a link in the chain breaks

Within a ‘Push’ System?
‘Push’ Production System
The individual links keep building to schedule and…

Customer

The chain soon backs up

‘Push’ Production
When System
we consider the wider system…

Customer
STOCK / WIP

We see why stock is present.

To buffer the unevenness of work
To buffer the breaks in the chain
JIT

Just In Time

JIT
The Just in Time branch of the
Lean Production System
Pull
system
is constructed of four key
Contin uo us
Flow elements
Processin g

Takt Time

Level
Sche dulin g
 Takt Time

Takt is a German word

It describes the conductors

baton

It is the principal that all activity within a business is

synchronised by a pulse, set by the customer
demand
 Takt Time determines;

The pulse of the Production System

•Pace of sales

•Links production activity to actual customer demand

•Ensures all production activity will be synchronised

from 1st process to final assembly process.
 How To Calculate Takt Time
Takt time relates the customer demand to the time available.

Takt = Production Time Available

Customer Demand

Time is deducted for:

Lunch and tea breaks
Team briefing times
TPM breaks
Clean down time

E.g 8hrs x 60 = 480 minutes

Time Available = 480 – 20 mins breaks – 10 mins TPM
= 450mins
 How To Calculate Takt Time
If the customer demand is 500 units per week;

Demand = 500 / 5
= 100 products a day

Takt Time = Time Available

Customer Demand

= 450 mins
100

= 4.5 mins or 270 secs

 Takt, Cycle, Target Cycle and
Lead Time
Takt Time = The pace at which the customer requires
products

Cycle Time = The time at which a process cycles

Lead Time = The total production lead time from

product start to finish
 Flow Production

Customer
The
Each customer
link takestakes
in the chain a product from
from the the endlink
previous
Of the
And processes produce to chain
fill the gap that has been
created

What will happen when a link in the chain breaks

 Flow Production

Customer
If a link in the chain breaks...
The chain stops.

If the Customer does not pull from the end...

The chain stops.

 Takt Time, an enabler for Flow

If work balance is set to Takt, the process closest the

customer can pull production through the system at
the right pace. This includes material delivery.

This pull removes the requirement for scheduling at

each stage, and hence the buffer stocks and Work
In Progress that populate the ‘Push’ Process Chain.
Takt Time

Enables work-balancing Enables Flow

WASTE
Driving out waste within our business
 It is the overall available production time in a chosen time interval divided by
the overall forecasted customer demand for the time interval. The definition
is as follows:
Takt time =Time available/Average customer demand per time period
Time available = Total time – (Maintenance Time+ Time allowances)
 CALCULATION OF TAKT TIME – The following steps are necessary to calculate
takt time:
1. Define the time interval, for which the takt time needs to be calculated
2. Determine the available time per shift
3. Define the customer(s), whose demand needs to be satisfied
4. Determine the demand forecast for the chosen time interval
THEORY OF CONSTRAINTS

 The Theory of Constraints (TOC) is a methodology for identifying and

eliminating constraints that prevent an organization from achieving its
goals. The core concept of TOC is that every process has a single constraint,
and that improving the constraint is the fastest and most effective way to
improve total process throughput
The TOC is split into five key steps:

 Identify the constraint

 Exploit the constraint
 Subordinate everything else to the constraint
 Elevate the constraint
 Avoid inertia and repeat the process