ppcfinal-140212084933-phpapp01
TRANSCRIPT
7/18/2019 ppcfinal-140212084933-phpapp01
http://slidepdf.com/reader/full/ppcfinal-140212084933-phpapp01 1/10
1
Production Planning and Control
By
S.waqas [email protected]
What are the O!ecti"es and #unctions o$ Production
Planning and Control%
For efficient, effective and economical operation in a manufacturing unit of an organization, it is essential tointegrate the production planning and control system. Production planning and subsequent production control
follow adaption of product design and finalization of a production process.
Production planning is an activity that is performed before the actual production process takes place. It involves
determining the schedule of production, sequence of operations, economic batch quantities, and also the
dispatching priorities for sequencing of jobs.
Production control is mainly involved in implementing production schedules and is the corollary to shortterm
production planning or scheduling. Production control includes initiating production, dispatching items,
progressing and then finally reporting back to production planning. In general terms, production planning means
planning of the work to be done later and production control refers to working out or the implementation of the
plan.
Objectives of production planning and control –
1. Efective utilization o resourcesProduction planning results in effective utilization of resources, plant capacity and equipments. !his results in
lowcost and high returns for the organization.
2. Steady ow o production
Production planning ensures a regular and steady flow of production. "ere, all the machines are put to
ma#imum use. !his results in a regular production, which helps to give a routine supply to customers.
7/18/2019 ppcfinal-140212084933-phpapp01
http://slidepdf.com/reader/full/ppcfinal-140212084933-phpapp01 2/10
2
3. Estimate the resources
Production planning helps to estimate the resources like men, materials, etc. !he estimate is made based on
sales forecast. $o production is planned to meet sales requirements.
4. Ensures optimum inventory
Production planning ensures optimum inventory. It prevents overstocking and understocking. %ecessary
stocks are maintained. $tock of raw material is maintained at a proper level in order to meet the production
demands. $tock of finished goods is also maintained to meet regular demands from customers.
5. o!ordinates activities o departments
Production planning helps to coordinate the activities of different departments. For e.g. the marketingdepartment coordinates with production department to sell the goods. !his results in profit to the organization.
". #inimize wasta$e o raw materials
Production planning minimizes wastage of raw materials. It ensures proper inventory of raw materials and
materials handling. !his helps to minimize wastages of raw material. It also ensures production of quality
goods. !his results in a minimum rejects. $o proper production planning and control results in minimum
wastage.
%. &mproves the la'or productivity
Production planning improves the labor productivity. "ere, there is ma#imum utilization of manpower. !raining
is provided to the workers. !he profits are shared with the workers in form of increased wages and other
incentives. &orkers are motivated to perform their best. !his results in improved labor efficiency.
(. )elps to capture the mar*et
Production planning helps to give delivery of goods to customers in time. !his is because of regular flow ofquality production. $o the company can face competition effectively, and it can capture the market.
+. ,rovides a 'etter wor* environment
Production planning provides a better work environment to the workers. &orkers get improved working
conditions, proper working hours, leave and holidays, increased wages and other incentives. !his is because the
company is working very efficiently.
7/18/2019 ppcfinal-140212084933-phpapp01
http://slidepdf.com/reader/full/ppcfinal-140212084933-phpapp01 3/10
&
1-. acilitates /uality improvement
Production planning facilitates quality improvement because the production is checked regularly. 'uality
consciousness is developed among the employees through training, suggestion schemes, quality circles, etc.
11. 0esults in consumer satisaction
Production planning helps to give a regular supply of goods and services to the consumers at far prices. It
results in consumer satisfaction.
12. 0educes the production costs
Production planning makes optimum utilization of resources, and it minimizes wastage. It also maintains
optimum size of inventories. (ll this reduces the production costs.
)ther important objects of PP* are+
!o plan production facilities in the best possible manner along with the proper systematic planning of
production activities.
Providing men, machines, materials etc. of right quality, quantity and also providing them at the right time
forms a very important factor.
!o inform, about the difficulties or the various awkward positions e#pected to crop up later, to the management
beforehand.
#aor unctions o production plannin$ and control
. Planning-. outing i.e. determination of the manufacturing path.
. 0oading i.e. assigning of job to men and machine.
1. $cheduling i.e. establishing time for starting 2 finishing each operation or job.3. 4ispatching i.e. issue of orders.
5. Followup i.e. ensuring that work proceeds according to plans 2 there is no variation. !his means to ensure
smooth flow of work.
Planning
!he main function of the PP* is to plan everything, which mainly includes the planning, the organizing, the
staffing, the maintaining the control over the various things and also to maintain the coordination between the
7/18/2019 ppcfinal-140212084933-phpapp01
http://slidepdf.com/reader/full/ppcfinal-140212084933-phpapp01 4/10
'
different departments. For the proper working of the PP*, it is very important to classify the various functions
of the manager in the suitable groups of the activities.
)bjectives+
Production planning helps to estimate the resources like men, materials, etc. !he estimate is made based on
sales forecast. $o production is planned to meet sales requirements.
Production planning results in effective utilization of resources, plant capacity and equipments. !his results in
lowcost and high returns for the organization.
Production planning helps to coordinate the activities of different departments.
For e.g.+ the marketing department coordinates with production department to sell the goods. !his results in profit to the organization.
Routing
outing is one important function in production planning 2 control. It is useful for smooth 2 efficient working
of the whole plant or factory. It decides the path of work 2 the sequence of operations. !he demand for a more
systematic method of carrying the work through the shop gave rise to the practice of routing. In fact, production planning starts with routing which includes the following activities+
a. 4etermining the quality of the product to be manufactured6 b. 4etermining the men, machines 2 materials to be used6
c. 4etermining the types, number 2 sequence of manufacturing operations6 2
d. 4etermining the place of production.
outing has the following objectives+. It determines the sequence of manufacturing operations.
-. It ensures the strict adherence to the sequence so determined.
/. It strives for the best possible 2 cheapest sequence of operations.
1. It influences the design 2 layout of the factory building with a view to get quick 2 better production results.
3. It also influences the installation of plants 2 factory for better results.
(dvantages of routing+. &ell chalked out division of labor.
-. Production of goods according to schedule.
/. 7a#imization of productivity.1. Interruption free production.
3. eduction in cost of production.
5. )ptimum use of all factors of production.
8. scientific layout of the plant.
7/18/2019 ppcfinal-140212084933-phpapp01
http://slidepdf.com/reader/full/ppcfinal-140212084933-phpapp01 5/10
(
Loading
(ssigning specific job to men, machines and work centers as per their capacities is called loading.In PP*, a loading chart is prepared for each work centre. 0oading chart shows planned utilization of men and
material and machine available. It also helps to avoid over loading, under loading and bottle necks in the
production.
!he following information are required for preparation of loading!ime need for a job
!otal work load
(vaibility of labor ,material, machines
*apacity of each worker and machine
Scheduling
$cheduling is concerned with time table of production. $cheduling arranges the different manufacturingoperations in order of priority, fi#ing the time 2 date for the commencement 2 completion of each operation. It
includes all requisites of production like scheduling of parts, materials, machines, etc. Perfect coordination must
e#ist between operations so that parts that are separately produced are brought to the final assembly in righttime. In brief, scheduling means fi#ing or deciding the amount of work to be done 2 fi#ing the time for starting
2 finishing each operation. It is like a timetable of the production plan.
9ssentials of master scheduling+. Inventory policy 2 position.
-. Procurement including subcontract.
/. $ales forecast.1. 4epartmental manufacturing capacities.
3. )perations required 2 operations schedule.
5. $pecific operations presenting critical path or imbalance of production flow.
8. $pecific customer demands or delivery requirements.:. (lternative delivery schedules.
;. Production plan including quantitative data.<. Production standards.
. 4emand for finished products.
=ses of scheduling+. $cheduling is certainly a necessity in a large setup which produces a variety of products with numerous
components. !he time within which products must be manufactured forms an important element in production
control.-. $cheduling also determines the total time required to perform a given piece of work or assembly.
/. !ime 2 motion study helps standardization of methods of work after a careful analysis of all the vital factorssurrounding the manufacturing processes.
Dispatching
eleasing orders and instructions for starting of production as per route sheet and schedule chart is called
dispatching. 4ispatching is concerned with starting the processes 2 operations of production. 4ispatching is
based on the route sheets 2 schedule sheets. 4ispatching provides the necessary authority to start the routed 2
schedule work. It is similar to putting oneself into the train after deciding the route of the particular train 2 thedestination.
Functions of dispatching+
7/18/2019 ppcfinal-140212084933-phpapp01
http://slidepdf.com/reader/full/ppcfinal-140212084933-phpapp01 6/10
)
. !o ensure that the right materials are moved from stores to machines 2 from operation to operation.
-. !o distribute machine loading 2 schedule charts, route sheets, operation instruction cards 2 identification
tags for each works order./. !o instruct tools department to issue the right tools, accessories 2 fi#tures in time.
1. !o authorize the work to be taken in hand as per the predetermined dates 2 time.
3. !o direct inspection at various stages of production for inspection report.
5. !o maintain proper report of the various subsidiary orders issued with each production order, for filing 2reference.
8. !o inform the followup section that production is starting.
Follow-up
Followup e#pedites the movement of materials 2 production process as a whole. It looks into determination of
the present situation boosting the department lagging behind 2 removing the bottlenecks in the production line.
)nce production begins it is necessary to check that it is proceeding according to plan. >efore dispatching new
orders to the manufacturing department the progress of outstanding orders must be known. !here are certain
factors over which the manufacturing department has no control 2 hence followup is necessary. !he most
important factors causing disturbances in production schedule are+ e#cessive labor, absenteeism, machine
breakdown, errors in drawings, strikes, late delivery of materials etc. the function of followup is to maintain
proper records of work, delays 2 bottleneck. $uch records can be used in future to control production.
Followup 4ocuments+
Followup documents are prepared with the objective to identify the products. !hey also help to check
completion dates with due dates. !hey vary greatly according to the type of production. !hese documents
include the following information+
. 0abels with part numbers.
-. )rder numbers mentioned on the article.
/. %umber of products or batches of products.
1. 4aily progress sheets showing the position of every order in process.
3. eports showing orders behind schedule.
Production planning and control yields the following main advantages,
. (voidance of ush )rders
Production is well planned and its time aspects are well controlled. !herefore, production control reduces the
number of riskorders and overtime work on plant.
-. (voidance of >ottlenecks
!he incomplete work does not get accumulated because production control maintains an even flow of work.
7/18/2019 ppcfinal-140212084933-phpapp01
http://slidepdf.com/reader/full/ppcfinal-140212084933-phpapp01 7/10
*
/. *ost eduction
Production control programs minimizes the idleness of men and machines, keeps in process inventories at a
satisfactory level, leads to a better control of raw materials inventory, reduces costs of storage and materials
handling, helps in maintaining quality and containing rejection and thus reduces unit cost of production.
1. 9ffective =tilization of esources
It reduces the loss of time by the workers waiting for materials and makes most effective use of equipments.
3. *o)rdination
It serves to coordinate the activities of plant and results in a concerted effort by workmen.
5. >enefits to &orkers
(dequate wages, stable employment, job $ecurity, improved working conditions, increased personal
satisfaction, high morale.
8. 9fficient $ervice to *ustomers
it ensures better service to the customers by enabling production to be conducted in accordance with the time
schedules and therefore deliveries are made on promised dates
O+,-+,WSteps in Production Planning and Control
Production planning and control is one of the most important phases of production management, it is, as amatter of fact, the nervous system of a manufacturing organization. In manufacturing organization, it is essential
that production is carried on in the best manner at the lowest cost, and the goods are of right quality and are
produced at the proper time. !his can be ensured only through proper planning of production. but mere planning
of production will not solve the problem because production plans are not capable of selfactuating and do not
lead to automatic accomplishment. For that the production manager has to take certain steps like, he has to
regulate work assignment, review the work progress, and devise methods to bring conformity between the
actual performance and planned performance ? so that plans chalked out are adhered to and the standards set at
the planning stage are properly attained and improved. !his is the function of @production controlA. Production
control, therefore, is a directive function which involves the coordination and integration of operations and
activities of different factors of production with a view to optimizing efficiency. )ptimum efficiency isattainable by proper planning of work, laying down of e#act routes which operations shall follow, correct fi#ing
of timetable within which productive operations shall start and come to a close, uninterrupted releasing of
orders and work facilities, and timely initiation of appropriate followup steps to ensure smooth functioning of
the enterprise. In other words, production control involves planning, routing, scheduling, dispatching and
followup.
7/18/2019 ppcfinal-140212084933-phpapp01
http://slidepdf.com/reader/full/ppcfinal-140212084933-phpapp01 8/10
/
! Planning
!he first important step in production planning and control is concerned with the careful preparation of
production plans. Production plans determine what will be produced and where, at what type, by whom, and
how. For detailed planning of operations, the relevant information may be obtained from several sources in the
enterprise. Information about quantity and quality of products to be manufactured may be obtained from
customersA orders and the sales budget, and information about production facilities may be obtained from the
management and the engineering department. !hus, the planning function formulates production plans, and
translates them into requirements for men, machinery and materials.
&hatever be the planning period, production planning helps in avoiding randomness in production, providing
regular and steady flow of production activities, utilizing production facilities to its ma#imum for minimizing
operating costs and meeting delivery schedules6 coordinating various departments of the enterprise for
maintaining proper balance of activities, and above all, providing the basis for control in the enterprise.
"! Routing
!he ne#t important function of production planning and control is routing which involves the determination of
the path Bi.e. routeC of movement of raw materials through various machines and operations in the factory
Douting includes the planning of where and by whom work shall be done, the determination of the path that
work shall follow, and the necessary sequence of operationsE. !o find this path, emphasis is placed on
determining operating data, which usually includes planning of @whereA and @by whomA work should be done,
the determinations of the path that work shall follow, and the necessary sequence of operations. !hese operating
data are contained in the standard process sheet which helps in making out a routing in the standard process
sheet which helps in making out a routing chart showing the sequence of operations and the machines to be
used. If the machine loan chart indicates the nonavailability of certain machines, alternate routing may also beincluded on the routing chart. !he most efficient routing may have to be compromised with the availability of
the machines at a particular time. In other words, Drouting establishes the operations, their path and sequence,
and the proper class of machines and personnel required for these operations.E
From the above, it can be inferred that routing is one of the highly essential elements and prime considerations
of production control because many production control functions are closely related processes and are
dependent on routing functions. !hus, it is essential to solve the different problems concerning+ appropriate
personnel6 full utilization of machines6 and determining with precise degree the time required in the production
process.
#! Scheduling
$cheduling is planning the time element of production ? i.e. prior determination of Dwhen work is to be doneE
It consists of the starting and completion times for the various operations to be performed. In other words,
scheduling function determines when an operation is to be performed, or when work is to be completed, the
difference lies in the details of the scheduling procedure. !o work out effectively, the scheduling, as a part of
production control function, determines the time when each operation called for on the route sheet is to be done
on the specified machine in order to meet the desired delivery dates. ood control function directs not only the
7/18/2019 ppcfinal-140212084933-phpapp01
http://slidepdf.com/reader/full/ppcfinal-140212084933-phpapp01 9/10
0
time that each particular operation should start but also indicates the progress of each manufacturing part, the
amount of work ahead of each machine, and the availability of each machine for the assignment of new work.
$chedules are of two types+ 7aster schedule and 4etailed schedule. (ctivities, if recorded on plantwise basis,
would be preparing master schedule, while mere detailed schedules are employed to plan the manufacturing and
assembly operations required for each product.
$! Dispatching
4ispatching is the part of production control that translates the paper ? work into actual production. It is the
group that coordinates and translates planning into actual production. 4ispatching function proceeds in
accordance with the details worked out under routing and scheduling functions. (s such, dispatching sees to it
that the material is moved to the correct work place, that tools are ready at the correct place for the particular
operations, that the work is moving according to routing instructions. 4ispatching carries out the physical work
as suggested by scheduling. !hus, dispatching implies the issuance or work orders. !hese work orders represent
authority to produce. !hese orders contain the following information+
• !he name of the product6
• !he name of the part to be produced, subassembly or final assembly6
• !he order number6
• !he quantity to be produced6
• 4escriptions and numbers of the operations required and their sequence,
• !he departments involved in each operation
• !he tools required for particular operation6 and
• 7achines involved in each operation and starting dates for the operations.
%. 9#pediting
9#pedition or followup is the last stage in the process of production control. !his function is designed to keep
track of the work effort. !he aim is to ensure that what is intended and planned is being implemented.D9#pediting consists in reporting production data and investigating variances from predetermined time
schedules. !he main idea behind e#pedition is to see that promise is backed up by performanceE. It includes the
following functions+
. *heckup to ensure that all materials, tools, component parts, and accessories are available at all work
centers in specified quantities for starting and carrying out manufacturing operations.
-. *heckup on the status of workinprogress and completed work at various work stations. !his includescollecting information relating to the starting and completion time and date of work completed, status of
7/18/2019 ppcfinal-140212084933-phpapp01
http://slidepdf.com/reader/full/ppcfinal-140212084933-phpapp01 10/10
1
workinprogress relative to scheduled completion dates, position of movements of materials
component parts, and subassemblies within the plant, and inspection results.
/. Preparation of progress records and keeping the control boards uptodate.
1. eporting to manufacturing management on all significant deviations so that corrective action may be
taken. It also includes reporting to production planning department so that future plans may be adjusted.
hus production plannin$ and control 'y completin$ the a'ovediscussed phases ensures the manuacturin$ o $oods o ri$ht
/uality /uantity and at competitive mar*et rates. ne thin$ must'e 'orne in mind that production plannin$ and control is a never!
endin$ process and its various unctions are inter!dependent
)67 89S8E: ;<S 7)6 11 &6 +"
&6:9S0&= E6>&6EE0&6> 6: #6>E#E6#E)0E6 96&?E0S&8 E6> @ E).
A#S)0 S&6:),7&S6
wa/asB2Chotamail.com