Industrial Engineering Unit 4 PPC

1. Production Planning &
Control
Mr. Hemant D Gurav
Assistant Professor
SRES College of Engineering, Kopargaon
Subject: Industrial Engineering

2. Contents
• Introduction: Types, Need and Function,
aggregates production planning, Capacity
planning.
• ERP
• Forecasting Techniques
• Supply chain management
• Order control strategies

3. Introduction-PPC
Production
Planning
Control
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4. Introduction
Production
Planning
Control
Manufacturing of goods and services
The series of related and coordinated activities-material
control, process planning, scheduling etc- designed to
systematise in advance the manufacturing efforts.
To review the work progress, make corrections wherever it
requires thereby ensure that programmed production takes
place.

5. Introduction
According to the Ray Wild:
•Production Planning is the derangeination , acquisition and
arrangement of all facilities necessary for future production of
items.
•In other words Production planning is essentially a pre-production
activity associated with the design of production system
Production Control:
•It is corollary to short range production planning or sheduling and
is quite simply concerned with implementation of production
schedules.
Planning is thus FORWARD THINKING while control is
MECHANISM for execution.

6. Objectives of PPC
•To plan systematically production related activities to
meet targets of production with available resources.
•To provide manufacturing requirements at right quality
and right quantity
•To schedule production facilities in optimum manner
•To co-ordinate the activities of different departments
relating to production.
•To ensure conformance to delivery commitments and to
inform sales department regarding difficulties (if any)
•To inform management regarding difficulties that will
occur delay to achieve production targets.

7. Functions of PPC
•Material Control
•Process Planning or routing
•Scheduling
•Dispatching – setting production activities in motion
•To assign work
•To issue required material for first operation
•To issue jigs and fixture
•Issue required work orders, move orders etc
•To guide and control operations
•To record data
•Co ordinate between routing and scheduling
•Follow up
1. Follow up for material
2. Follow up of work in progress
3. Follow up of assembly and erection

8. Types of Production System
Three basic types of Production system
•Unit Production or Job Production
•Continuous Production or Mass Production
•Quantity Production or Batch Production
•Unit Production or Job Production System
Small Scale Production
Meets individual need
Flexible layout of plant
Flexibility in work hence expertise of worker
Eg. SPM, Things of high artistic nature, die, foundary work.
High Raw material cost
Limited scope of Commercialisation
Requirement of skilled and intelligent manpower

9. Types of Production System
•Continuous Production or Mass Production
Used for large scale production and continuous production
Needs specially planned layout
One purpose machinery
Less material handling by using Conveyors, jigs fixtures etc
Simplification and standardisation of Product is possible
Different machines are assigned a definite work
One product runs throughout the factory.
Better quality and increased production is achieved
Less raw material cost
Few skilled and rest semi skilled workers are needed
Not changeable to other types of production

10. • Quantity Production or Batch Production
• Inrangeediate between Mass and Job
Production
• Some machines are one purpose and
remaining multipurpose
• Two or more products are produced in lots (i.e
batches)
• Different Products are produced and stacked
and then sold on demand.

11. Aggregate production planning
• Different types of Production Plan
• Long range Plan (> one yr)
• Medium range Plan (6 months to 1 yr)
• Short range Plan (Day or weeks)
• Medium range level are aggregate production
plan.
– Indicates production output levels for major
product lines rather than specific product.
– Co ordinate with sales and marketing dept.
– Details of planning process delegated to staff
– Consider marketing plan for current product

12. Capacity planning
• Determination of capacity and adjustment of
capacity to meet fluctuations in demand is
measure problem of PPC
• Capacity decisions reflects to customer service
and resources productivity.
• Matching resources with demand
• Stable demand – simple capacity planning
• Fluctuations in demand-difficult CP
• Capacity decisions are strategic in nature.

13. Master Production schedule
• Master Production schedule: The planned
output levels of the major product line listed
in aggregate schedule must be converted into
a very specific schedule of individual product.
• Types of product lines:
– Firm Consumer orders
– Forecasted demand
– Spare parts.

14. Material Requirement Planning
(Short Note)
• Introduction:
• When and how many of a specific product we
want to produce?
• What components are required and how
many?
• How many of each are in hand how many are
ordered and when will they arrive?
• When and how many more are needed?
• When should these be ordered?

15. Cont.........
• Objectives of MRP:
1. Inventory reduction
2. Avoid delays
3. Realistic commitments
4. Increased efficiency
5. Plans far enough into the future

16. Cont.........
• Components of MRP system:
• Bill of material
• Master schedule plan
• Inventory status file Master schedule Plan
MRP Processing Logic
Output reports(orders
to be released, order
re scheduling)
BOMInventory
Status file
Design Changes

17. Cont.........
• Product Structure Hierarchy
P1
S1(2)
C1(1) C2(1)
D1(3) D2 (4)
C3(3)
S2(4)
C4(2)
Level o
2
1
3

18. Cont.........
• Benefits of MRP:
Ensure availability of material at right quantity
at right time
Reduction in process inventory
Materials are ordered with firm due date
Helps better utilization of men and machines
Improves productivity
• Limitations:
Product structure must be assembly oriented
Need of valid master productions schedule
Reliable data entry

19. Manufacturing resource planning
(MRP-II)
• Composed of wide range of integrated
functions which together plan and control all
resources of mfg firm
• The aim is to tie up the whole value chain
from firms suppliers to customers into an
integrated system

20. Enterprise Resource Planning(ERP)
(Short note)
• Powerful tool which provides seamless
information system to support various business
modules of an organisation, be it financial, HR,
Customer information etc.
• Increase in productivity and profit
• Operates through common database at he core
of the system and data base interacts with all of
the various applications in the system.
• Need of ERP:
Use techniques and concepts which will help for
effective use of resources to improve efficiency.
Results in better product and services.

21. Enterprise Resource Planning(ERP)
(Short note)
• Benefits :
Reduction in production lead time due to fast
information flow
On time delivery
Reduction in cycle time
Improved resource utilisation
Better customer satisfaction
Increased flexibility
Reduced quality cost
Improved decision making capability

22. Enterprise Resource Planning(ERP)
(Short note)
• ERP Implementation Strategy:
Pre-evaluation screening
Package evaluation
Project planning phase
Gap analysis
Re-engineering
Configuration
Training of implementation team
Testing
Actual operations
Training of end users
Post implementation

23. What is Supply Chain?
• A supply chain is the system of organizations,
people, activities, information and resources
involved in moving a product or service from
supplier to customer.
• An integrated group of processes to “source,”
“make,” and “deliver” products.
• Supply chain activities transform raw materials and
components into a finished product that is
delivered to the end customer.

24. Supply Chain Illustration
Supplier Manufacturer Distributor Retailer Customers

25. - A supply chain consists of
- aims to Match Supply and Demand,
profitably for products and services
SUPPLY SIDE DEMAND SIDE
The right
Product
Higher
Profits
The right
Time
The right
Customer
The right
Quantity
The right
Store
The right
Price
=++ ++ +
- achieves
Supplier Manufacturer Distributor Retailer Customer
Upstream
Downstream

26. Efficient supply chain management must
result in tangible business improvements. It is
characterized by a sharp focus on
– Revenue growth
– Better asset utilization
– Cost reduction.
Supply Chain Goals

27. Distribution and Order Control
Strategy (Short Note)
• MTO: Make to order (Pull System) to SC to
minimise cost and waste.
• MTS: Make to Stock (Better customer service)
• Hybrid Approach: Push –Pull (MTO-MTS)

28. Push vs Pull System
• What instigates the movement of the work in the system?
• In Push systems, work release is based on downstream demand
forecasts
– Keeps inventory to meet actual demand
– Acts proactively
• e.g. Making generic job application resumes today (e.g.: exempli gratia)
• In Pull systems, work release is based on actual demand or the
actual status of the downstream customers
– May cause long delivery lead times
– Acts reactively
• e.g. Making a specific resume for a company after talking to the recruiter

29. Push/Pull View of Supply Chains
Procurement,
Manufacturing and
Replenishment cycles
Customer Order
Cycle
Customer
Order Arrives
Push-Pull boundary
PUSH PROCESSES PULL PROCESSES

30. © 2011 Pearson Education, Inc.
publishing as Prentice Hall
Supply Chain Risk
 More reliance on supply chains means more
risk
 Fewer suppliers increase dependence
 Compounded by globalization and logistical
complexity
 Vendor reliability and quality risks
 Political and currency risks