Production Planning & Control

Production Planning & ControlAn IntroductionThe ConceptPlanning: consideration of all input variables to achieve predetermined output goals; a pre-production activity to determine optimal production schedule, operation sequence, economic batch quantity, etc.Control: remedial action to prevent variance of output from planned levels; tracking operations to ensure compliance with planned levelsProduction Planning StagesDefining objectivesSetting priorities to attain objectivesExamining internal & external environments of planned systemDetermining achievable targetsDetermining inputs needed to achieve targets

ObjectivesEffectiveness: goods to fulfill customers needsMaximising output: maximum output with minimum inputQuality control: Product/service quality meets planned quality specificationsMinimise throughput time: conversion of RM to FG in minimum timeObjectives (continued)Capacity: full utilisation of men & machinesMinimise cost: minimum cost of production Maintaining inventory: optimal inventoryFlexibility: flexibility in production operationsCoordination: between men & machines

Objectives (continued)Capacity: plan for current & future needs Reduce bottlenecks: solve production problems earlyMaximise profit: minimise costProduction schedules: as per planRoutes & schedules: to optimise use of men, material & machineryMaintain performance: maintain standardsFunctions of Production PlanningProduct selection & designProcess selection & planningFacility locationFacility layout & materials handlingCapacity planningSystems & proceduresEstimating quantity/costs of production, menRouting operation sequenceJob scheduling & loadingFunctions of Production ControlInventory control: MRP; JITTime managementQuality controlMaintenance & ReplacementCost reduction & cost controlDispatchExpediting/Follow-up/ProgressingScope of Production Planning & ControlMaterial: RM, components, spares; right quantity; right timeMethodsMachines & equipmentsManpowerRoutingEstimatingLoading & scedulingScope of Production Planning & Control (continued)DispatchingExpeditingInspectionEvaluatingCost controlPhases in Production Planning & Control SystemPlanning: 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 dispatching; progress functionControl phase; status reporting; material control; tool control; inventory control; quality control; labour output control; cost controlBenefits of Production Planning & ControlHigher qualityBetter resource utilizationReduced inventoryReduced manufacturing cycle timeFaster deliveryBetter customer servicesLower production costsBenefits (continued)Lower capital investmentHigher customer serviceImproved sales turnoverImproved market shareImproved profitabilityCompetitive advantageFlexibilityDependabilityLower prices

Limitations of Production Planning & ControlBased on assumptionsResistance to changeTime consumingDifficult due to rapid environment changesMeasuring Effectiveness of Production Planning & ControlDeliveryInventory levelsProduction/Operations ManagementRequirements for Effective Production Planning & ControlSound organisational structureDelegation of authorityReliable, up-to-date feedback StandardisationTrained peopleFlexibility to adapt Appropriate management policiesAccurate assessment of manufacturing/procurement lead timesAdequate plant capacityTechniquesPlanning & Control of Reserves; deterministic/non-deterministic systemsNetwork analysis: PERT Project Evaluation & Review Technique CPM Critical Path MethodReliability Theory: probability Series structure 1 2 Parallel structure 1 2Planning & Control in Different Production SystemsJob Production: Difficult no standardised routing of job orders Orders assigned to workstations as available Scheduled on relative priority of job order Scheduled on assessed production times; estimates of judgementDifferent Production Systems (continued)Batch: Produced once Repeated at irregular intervals as needed Produced periodically at known intervalsSolution depends on: External customers orders Internal consumption sub-assembly