This document discusses production planning and control as well as sales forecasting. It begins by defining production planning and control, noting that it aims to efficiently use resources and coordinate production activities. It then covers the characteristics, objectives, factors, functions, process, limitations, and significance of production planning and control. The document also defines sales forecasting and discusses the need for it. It outlines several forecasting techniques as well as qualitative techniques and applications of forecasting.
Kodo Millet PPT made by Ghanshyam bairwa college of Agriculture kumher bhara...
Production planning and control; Sale Froecasting
1. PRODUCTION PLANNING AND
CONTROL; SALE FOReCASTING
SUBHASISH PRAMANIK
M.PHARM; 1ST YEAR; 1ST SEMESTER
DEPARTMENT OF PHARMACEUTICS
HIMALAYAM PHARMACY INSTITUTE
2. CONTENT
PRODUCTION & PLANNING
CONTROL:
INTRODUCTION
CHARACTERSTICS
OBJECTIVES
FACTORS
FUNCTION
PROCESS
LIMITATION
SIGNIFICANCE
SALE FORECASTING:
INTRODUCTION
NEED F SALE FORECASTING
TECHNIQUES
QAULITATIVE TECHNIQUE
APPLICATION
REFERENCES
3. INTRODUCTION
Production planning and control as a department plays a vital role in
manufacturing organizations.
This function aims at efficient utilization of material resources, people
and facilities, coordinating and controlling the production activities.
Production planning and control provides different kinds of information
to different departments.
It provides information about available manufacturing resources to
marketing department. Marketing department receives orders according
to that information.
PRODUCTION PLANNING & CONTROL
4. Inputs like materials, men and machines are efficiently used.
Factors of production are integrate to use them economically.
Division of work is undertaken carefully so that every available element is
properly utilized.
Work is regulated from the first stage of procuring raw materials to the sage
of finished product.
CHARACTRISTICS
5. Nature of Inputs
Quantity of
Inputs
Proper
Coordination
Better Control
Ensure
Uninterrupted
Production
Capacity
Utilization
Timely Delivered
Result in
consumer
satisfaction
Helps to capture
the market
OBJECTIVES
OBJECTIVES
6. OBJECTIVES
Nature of Inputs: The quality of the product depends upon the nature of the inputs are used.
To manufacture a product, different types of inputs are used.
Quantity of Inputs: Quantity of the inputs and their composition is very important. A product
can be prepared only when there is an estimate of the required composition of inputs.
Proper Coordination: It ensures the proper coordination among the workforce, machines and
equipment. This leads to avoidance of wastages and smooth flow of production.
Better Control: For a better control, planning is a precondition. Only then, one can compare
the performance and calculate the deviations which lead control of the production
7. Uninterrupted Production: The planning of materials ensures the regular supply of
raw materials and other components that is helpful in the uninterrupted production.
Capacity Utilization: There is a need to use the available resources effectively. It is
helpful in bringing down various costs of production.
Timely Delivered: If there is good production planning and control, there will be
timely production and the finished product will be rushed to the market in time.
Result in consumer satisfaction: The good Production planning method leads to
consumer satisfaction
OBJECTIVES
8. FACTORS AFFECTING PRODUCTION PLANNING AND CONTROL
Use of
Computers
• Modern factories are using office automation equipment like PC, punch cards etc. It
helps accurate computation of required of men and machine
Seasonal
Variations
• Demand of certain products is affected by seasons.
• It must take such changes into consideration while planning and control activities of
inputs and outputs.
Test
Marketing
• In an aggressive marketing strategy new products are to be test marketed in order to
know the trends
• This is a short-cycle operation.
After Sales
Service
• Important parameter for success.
• Many items are returned for repair. These are unscheduled work and also overload the
production line.
9. Losses due to
Unpredictable
Factors
• Losses occur due to accidents, fire and theft of production inputs. These are unpredictable
• Shortage of input due to such factors upset the planned production schedule in time and
quantity.
Losses due to
Predictable
Factors
• There are losses of inputs, due to natural engineering phenomena like production
losses and changes in consumption of materials and occurrence of defectives.
Production
of Order
• When last minute prioritization of existing orders due to external pressure takes place.
• These changes in priority are often decided by sufficiently high level of management.
Design
Changes
• It is issued by R & D and the engineering department.
• This will necessarily force production planning control change the input materials and
process.
Rejection &
Replacement
• When finished goods are rejected during stage or final inspection.
• It must cater for contingent plans to take care of rework without affecting scheduled
quality.
10. Production planning and control
Production controlProduction planning
Planning Dispatching
Following upRouting
Scheduling
Loading
Inspection
Corrective
PROCESS OF PRODUCTION PLANNING & CONTROL
11. Assumption based
Rigidity
Difficult for small
firms
Costly
Depends on external
factors
Team work is must.
Demands high level
of co-ordination
LIMITATION
LIMITATION
12. SIGNIFICANCE
Structure and planned process
Increased production
Seamless plan activity
Better co-ordination
Optimal resource utilization
Cost control
Rationalization of production activites.
S
I
G
N
I
F
I
C
A
N
C
E
13. Forecasting is a process of estimating a future event by casting forward past data. The past data
are systematically combined in a predetermined way to obtain the estimate of the future.
Prediction is a process of estimating a future event based on subjective considerations other than
just past data; these subjective considerations need not be combined in a predetermined way.
Every manager plans for future irrespective of the fact whether future events are exactly known
or not.
SALE FORECASTING
Introduction
14. Purpose: Any action devised in the PRESENT to take care of some contingency accruing out of a
situation or set of conditions set in future. These future conditions offer a purpose / target to be achieved
so as to take advantage of or to minimize the impact of (if the foreseen conditions are adverse in nature)
these future conditions.
Time: To prepare plan, to organize resources for its implementation, to implement; and complete the
plan; all these need time as a resource. Some situations need very little time; some other situations need
several years of time. Therefore, if future forecast is available in advance, appropriate actions can be
planned and implemented ‘intime’.
Need of sale forecasting
15. Forecasting techniques
Casual methodsTime series methodsQualitative methods
Market research
Historical method
Panel consensus
Grass roots
Trend
projections
Exponential
smoothing
Moving average
Naive methods
Regression analysis
Delphi methods
Forecasting techniques
16. 1) Identify the general need.
2) Select the Period (Time Horizon) of Forecast.
3) Select Forecast Model to be used:
how reliable each one of them is; what type of data is required.
On these considerations; one or more models can be selected.
4) Data Collection: Various indicators identified-collect data from various appropriate sources-data.
5) Prepare forecast: Apply the model using the data collected and calculate the value of the forecast.
6) Evaluate: It should be evaluated in terms of ‘confidence interval’ usually all good forecast models have
methods of calculating upper value and the lower value within which the given forecast is expected to remain
with.
General Steps in The Forecasting Process
17. Sales Forecasting:
Any company in selling goods needs to forecast the demand for those goods. Manufactures need to know how
much to produce. Wholesalers and retailers need to know now much to stock. Substantially understanding
demand is likely to lead to many lost sales, unhappy customers, and perhaps allowing the competition to gain
the upper hand in the marketplace. Successful marketing and production managers understand very well the
importance of obtaining good sales forecasts.
Forecasting Economic Trends:
With the possible exception of sales forecasting, the most extensive forecasting effort is devoted to forecasting
economic trends on a regional, national, or even international level.
APLLICATION
18. Forecasting Staffing Needs:
For economically developed countries there is a shifting emphasis from manufacturing to services. Goods are
being produced outside the country and then imported. At the same time, an increasing number of business firms
are specializing in providing a service of some kind (e.g. travel, tourism, entertainment, legal, maintenance, etc.).
Forecasting in education environment:
A good education institute typically plans its activities and areas concentration for the coming years based on the
forecasted demand for its different activities. The institute may come out with a forecast that the future
requirements of its students who graduate may be more in particular sector.