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Production planning and_control-an_introduction
1. PRODUCTION PLANNING AND
CONTROL-AN INTRODUCTION
Production planning
Production control
Sub functions of production planning and control
Types of production system
Summary
2. Production planning is a managerial function which is concerned with the following
important issues.
1) What production facilities are required.
2) How these production facilities should be laid out in the space available for
production? And
3) How they should be used to produce the desired products at the desired rate of
production?
3. PRODUCTION PLANNING
Production planning is dynamic in nature and always
remains in fluid state as plans may have to be changed
according to the changes in circumstances.
Production planning is usually done at the following
three horizon levels
Long term ( Capacity planning )
Medium term (aggregate planning)
Short term (operational planning)
4. PRODUCTION PLANNING
HORIZONS
Long term (capacity planning)
- Upto 5 years or more
- will deal with strategic/ business issues
- will reflect in the choice of processes
5. PRODUCTION PLANNING
HORIZONS
Medium term (aggregate planning)
Up to 2 years ahead
How can demand be met from existing facilities and
resources?
7. REQUIREMENTS OF PRODUCTION
PLANNING
It should be based on accurate data.
It must be flexible
It must satisfy a set of pre defined production
objectives (economy, quality etc)
It must be simple and straight forward.
It should have a reporting system, so that right
information reaches at right place and at right time.
It should not have any weak link.
8. PRODUCTION CONTROL
Production control is a mechanism to monitor the
execution of plans. It has several important functions.
Making sure that production operations are started at
planned places and planned times.
Observing progress of the operations and recording it
properly.
Analyzing the recorded data with the plans and
measuring the deviations.
9. PRODUCTION CONTROL
Taking immediate corrective actions to minimize the
negative impact of deviations from the plans.
Feeding back the recorded information to the
planning section in order to improve future plans.
10. OPEN LOOP CONTROL SYSTEM
Resources products and services
Objectives
An open loop system with no control
Transformation
process (value
addition)
11. CLOSED LOOP CONTROL SYSTEM
Corrective action Measure
Resources products and services
Objectives
• comparizon
An closed loop system with control function
Transformation
process (value
addition)
12. PRODUCTION CONTROL
Control involves the monitoring and correction (where
necessary) of operations to ensure that plans and
objectives are being met.
13. PRODUCTION CONTROL
Many different forms of production control
Quality control
Stock control
Order processing/ chasing against schedules
Cost control (budgeting)
People and the labour productivity
14. FUNCTIONS OF PRODUCTION
PLANNING AND CONTROL
Product planning-product engineering, product
design and development, functional and quality
considerations and quality considerations.
Forecast planning-quantity forecast, demand pattern
forecast.
15. FUNCTIONS OF PRODUCTION
PLANNING AND CONTROL
Process planning:- technology selection, process
selection, machine selection, tool selection, process
parameter selection, operation sequencing etc.
Equipment planning:- Type of equipments, no: of
equipments, machine capability analysis, maintenance
planning.
16. FUNCTIONS OF PRODUCTION
PLANNING AND CONTROL
Materials planning:- material specifications, material
volumes, economic lot sizing, inventory planning,
store planning
Loading, scheduling and sequencing:-machine
loadings, operations scheduling and job sequencing
etc.
17. Definition of a production system
A production system can be defined as a
transformation system in which a saleable product or
service is created by working upon a set of inputs.
Inputs are usually in the form of
men, machine, money, materials etc. it can be
classified on the basis of the following:
18. Definition of a production system
Type of production: (job production, batch
production, mass production)
Size of plant
Type of product
Physical flow of materials
Nature of order/demand pattern
Variety of jobs
19. JOB SHOP PRODUCTION
Characterized by make to order strategy
There are 3 possible situations
Product is manufactured only once
Small quantities of product are repeated in irregular
time intervals
Small quantities of product are repeated in regular
time intervals
20. JOB SHOP PRODUCTION
End product is different at every time (most of the
time).
No standard methods, time standards can be
developed.
As product is changing every time, machines and
other resources should be of general purpose and
flexible.
Highly skilled workforce is needed to work on varying
product designs.
21. JOB SHOP PRODUCTION
In-process inventory is usually very high.
Machines are grouped according to their functional
capabilities.
System is very flexible.
Planning and control is very difficult
Product cost is usually very high
Delivery dates are only estimated due dates.
22. BATCH PRODUCTION
A batch of identical articles are manufactured.
Demand rate < rate of production
There are 3 possible situations
A batch is manufactured only once (made-to-order)
A batch is repeated at irregular time intervals (made-
to-order)
A batch is repeated at regular time intervals (made-to-
stock)
23. BATCH PRODUCTION
Final product is usually standard or belong to same
family.
Customer may be external or internal
Batch size is determined either by forecasting or order
size.
Machines may be either general purpose or semi
automated.
24. BATCH PRODUCTION
Machines are grouped as per their functions
Skilled labor is required
Less supervision is required
Less flexible than job shop type
Planning and control is less complex
25. MASS PRODUCTION
Demand rate > rate of production
Product is standard
Standard methods, time standards etc can be
generated
It is a capital intensive system and needs elaborate
planning
26. MASS PRODUCTION
Semi skilled labor can be employed for supervision
only
Day to day planning and scheduling need not be
elaborate
It is a rigid system