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Chapter 3 - Production - Planning - Control

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96 views20 pages

Chapter 3 - Production - Planning - Control

Uploaded by

himanshu3km
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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1

PRODUCTION PLANNING
AND CONTROL
Dr. Manoj Gadre
Production
Consist of sequence of operations that
transforms materials from a given from to
desired form ( Products).
 The highest efficiency in production is
obtained by manufacturing the required Quantity
of products, of the required quality, at the
required time, by the best and cheapest method.
The four factors Quantity, Quality, Time and
Cost encompass the production system of which
production planning and control ( PPC) is the
nerve centre or brain.
Operations and Production Plan
4

 Who ?
 What ?
 Where ?
 When ?

Right Arrive Arrive To support


Quantities of at the right At the right Production &
Materials time place Distribution
3 Stages in PPC
1. Planning: The choice from several
alternatives of the best means of utilizing the
resources available to achieve the desired
objectives in the most economic and efficient
manner.
2. Operations: Production in accordance with the
details set out in the production plan.
3. Control: remedial action to prevent variance
of output from planned levels; tracking operations
to ensure compliance with planned levels
Definition PPC

Defined as the planning, direction and

coordination of the firm’s material and physical

facilities towards the attainment of

predetermined production objectives in the most

economical manner.
Objectives

 Maximizing Productivity: maximum output with


minimum input
 Quality control: Product/service quality meets planned
quality specifications
 Minimise throughput time: conversion of RM to FG in
minimum time
 Ultimate objective is to contribute to profit of the
Objectives (continued)

 Minimise cost: minimum cost of production

 Maintaining inventory: optimal inventory

 Plan for the capacities for the future requirements.

 Optimum Inventory Level.


Objectives (continued)

 Reduce bottlenecks: solve production problems

early

 Maximize profit: minimize cost

 Production schedules: as per plan

 Maintain performance: maintain standards


Functions of Production Planning / Scope
 Product selection & design
 Process selection & planning
 Facility location
 Facility layout & materials handling
 Capacity planning
 Systems & procedures
 Estimating quantity/costs of production, men
 Routing operation sequence
 Job scheduling & loading
Functions of Production Control

 Inventory control: MRP; JIT


 Time management
 Quality control
 Maintenance & Replacement
 Cost reduction & cost control
 Dispatch
 Expediting/Follow-up/Progressing
Role of Production Planning and Control in
Operations Management

The Production/Operations Management Cycle


Phases in Production Planning & Control
System
Planning:
 Pre-planning – product planning & development;

demand forecasting; resource planning; facilities


planning; plant location & layout

 Active planning – quantity planning; product


mix; routing; scheduling; material planning;
process planning; capacity planning; tool planning
Phases (continued)
 Action Phase: Execution or implementation
phase includes dispatching and progressing
phase.

 Control phase: status reporting; material


control; tool control; inventory control; quality
control; labour output control; cost control
Benefits of Production Planning &
Control
 Higher quality
 Better resource utilization
 Reduced inventory
 Reduced manufacturing cycle time
 Faster delivery
 Better customer services
 Lower production costs
Main Functions of Production

Planning and Control Department


Scheduling
Alternative Terminologies

 Loading is defined as a planning methodology using which the resources in


an operating system are assigned with adequate number of jobs during the
planning horizon (of say a week)
 Scheduling is defined as the process of rank
ordering the jobs in front of each resource
with a view to maximise some chosen
performance measure
 Routing is defined as the order in which the
resources available in a shop are used by the job for
processing
 Sequencing is the ordering of operations of the
jobs in the operating system
Sequencing Combine routing + scheduling
 Dispatching is defined as the administrative

process of authorizing processing of jobs by


resources in the operating system as identified
by the scheduling system

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