batch production, job shop, scrap, surplus, material managent. operation management, cost management

1. Productionplanning
andcontrol
GUIDE: B.BALAJI
DR. B LAKSHMI V.
KARTHEEK
S. JEEVAN
1

2. Contents
 What is production planning and control?
 Objectives of production planning and control
 Functions of production planning and control
routing
scheduling
dispatching
follow-up
 Scrap and surplus
 Batch and job production
2

3. What is production planning and control?
A production planning and control system is concerned with planning
and controlling of all aspects of manufacturing, including materials,
scheduling machines and people.
3

4. Objectives of production planning and control
 Timely supply of finished goods.
 Maximum utilization of material and human resources.
 Effective control of production process.
 Helps to produce the goods on the basis of demand.
4

5. Process of Production Planning
 Materials Planning
 Operations Planning
 Cost Planning
5

6. Materials Planning 6

7. Operations Planning 7

8. How it is done ? 8

9. Cost planning
Cost
Material Labour Other Expenses
Direct Indirect Direct Indirect Direct Indirect
Over Heads
FOH AOH SOH DOH
9

10. Production planning and control stages
• First step
• Related to production planningRouting
• Second step
• Related to production planningScheduling
• Third step
• Related to production controlDispatching
• Final step
• Related to production controlFollow-up
10

11. Routing
 Determines the exact path which will be followed in production.
 It is a selection of path from where each unit have to pass before
reaching the final stage.
 The Stages from which goods are to pass are decided in this process.
11

12. Objectives of routing
 Determines the sequence of manufacturing operations.
 Ensures the strict adherence to the sequence determined.
 Strives for the best possible and cheapest sequence of operstions.
 Influences the design and layout of the factory building with a view
to get a quick and better production results.
 Also influences the installation of plants and factory for better
results.
12

13. Routing procedure
 Deciding what part to be made or purchased.
 Determining materials required.
 Determining manufacturing operations and sequence.
 Determining lot sizes.
 Determining scrap factors.
 Analysis of cost of production.
 Preparation of production control forms.
13

14. Scheduling
Scheduling is the determining of time and date when each operation is
to be commenced or completed. The time and date of manufacturing
each component is fixed in such a way that assembling for final product
is not delayed in any way.
Kimball and Kimball words:
The determination of the time that should be required to perform each
operation and also the time necessary to perform the entire series, as
routed, making allowances for all factors concerned.
14

15. Types of schedules
Master scheduling:
It is a breakup of production requirements.
It is prepared by keeping in view the order or likely sales order in
near future.
Manufacturing scheduling:
It is used where production process is continuous. The order of
preference for manufacture is also mentioned in the schedule for a
systematic production planning.
Detail operation scheduling:
It indicates the time required to perform each and every detailed
operations of given process.
15

16. Dispatching
Dispatching refers to the process of actually ordering the work to be
done. It involves putting the plan into effect by issuing orders. It is
concerned with starting the process and operation on the basis of route
sheets and schedule charts.
16

17. Dispatching procedures
Centralised dispatching:
Under this orders are directly issued to workmen and machine.
It helps in exercising effective control.
Decentralised dispatching:
Under this procedure all work orders are issued to the foreman
or dispatch clerk of the department or section. It suffers from
difficulties in achieving co-ordination among different
departments.
17

18. Follow up & expediting
Follow up or expediting is that branch of production control procedure
which regulates the progress of materials and part through the
production process.
Follow-up procedure:
progress may be assessed with the help of routine reports or
communication with operating departments. The follow up
procedure is used for expediting and checking the progress.
18

19. 19

20. 20

21. 21

22. 22

23. Scrap and surplus
Scrap:
Waste that either has no economic value or only the value of its
basic material content recoverable through recycling.
Scrap management:
Manufacturers do not intend or plan to make scrap, but
depending on the industry and the product, scrap is produced.
But depending on the type of scrap, it may be re- cycled back
into the production process or sold as a revenue generating product or
simply non-recyclable and the enterprise has to pay for an outside
contractor to dispose of the product.
23

24. 24

25. Reasons for Generation of Scrap
 Change in Design, Method or Product
 Mistakes in procurement
 Wrong planning decisions
 Wasteful processes in production
 Inevitable waste during the adjustment of the equipment
 Overall absence of efficiency
25

26. 26

27. Waste management
Reduce
Reuse
Recycle
Recovery
Landfill
Lowering the amount of waste
produced
Using material repeatedly
Using material to make new
products
Recovering energy from waste
Safe disposal of waste to landfill
27

28. Batch Production
A manufacturing process in which components or goods are produced in
groups (batches) and not in a continuous stream.
Characteristics:
1. Shorter production runs.
2. Plant and machinery are flexible.
3. Plant and machinery set up is used for the production of item in a batch and
change of set up is required for processing the next batch.
4. Manufacturing lead-time and cost are lower as compared to job order
production.
28

29. Job Shop Production
A job shop is a type of manufacturing process in which small batches of a
variety of custom products are made for other businesses.
Characteristics:
1. High variety of products and low volume.
2. Use of general purpose machines and facilities.
3. Highly skilled operators who can take up each job as a challenge
because of uniqueness.
4. Large inventory of materials, tools, parts.
5. Exhaustive planning is essential for sequencing the requirements of
each product, capacities for each work centre and order priorities.
29

30. Reference:
 https://www.managementstudyguide.com/production-planning-and-
control.htm
 https://www.tandfonline.com/toc/tppc20/current
 http://www.yourarticlelibrary.com/management/planning-
management/production-planning-and-control-meaning-
characteristics-and-objectives/53145
 https://www.educba.com/production-planning-and-control-ppc/
 http://www.managementguru.net/batch-and-jobshop-production/
30

31. 31

32. 32