PRODUCTION PLANNING AND CONTROL*

FUNCTIONS OF A PRODUCTION DEPARTMENTThe activity of production department of an organization can be stated to be :To convert the physical resources of the manufacturing concern into saleable goods and services

For achieving the above objective, the Production department must perform the following activities:Production of goods at the right time and in sufficient quantity to meet the demand.Production of goods at minimum possible costProduction of goods of acceptable quality*

PRODUCTION PLANNING AND CONTROLINTRODUCTION:The efficiency of the production system is its ability to produce the products with required quantity and specified quality at a pre-determined cost and pre-established time.

Production Planning and Control is a tool available to achieve the above stated objectives.

Production planning starts with the analysis of the given data, i.e., demand for products, delivery schedule, etc.

On the basis of the information available, a scheme of utilization of firms resources, like machines, materials and men are worked out to obtain the target in the most economical way.

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PRODUCTION PLANNING AND CONTROLINTRODUCTION (cont. ) :

Once the plan is prepared, then operations are performed in line with the details given in the plan.

Production planning and control can be defined as:

direction and co-ordination of firms resources towards attaining the pre-fixed goals.

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PRODUCTION PLANNING AND CONTROLThe three basic functions of Production Planning and Control Department are:Planning FunctionControl FunctionProgress Function

The Planning Function is further divided into the following:Routing activityScheduling activityDispatching activity*

ORGANIZATION CHART OF PRODUCTION CONTROL DEPT

1. PLANNING FUNCTIONProduction planning is a pre-production activity.

It is the pre-determination of manufacturing requirements, such as :manpower, materials,machines and manufacturing process.

3.Based on the demand for the companys products, it is going to establish the production programme to meet the targets using available resources.

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PLANNING FUNCTION (cont. )It is possible that production may deviate from the actual plan due to innumerable factors , such as:

Non availability of materialsPlant, equipment, machine breakdownChanges in demand and rush ordersAbsenteeism of workersLack of co-ordination between various functional areas of business.

In case of deviation between actual production and planned production, the CONTROL FUNCTION comes into action and tries to take corrective action.*

2. CONTROL FUNCTIONControl function will be in action when production activity begins.

Control is concerned with checking what is a actually being done with that what was planned.

Control involves in taking corrective steps in case of error to match actual performance against the planned performance.

Thus production control: reviews the progress of the work, and takes corrective steps in order to ensure that programmed production takes place.

They communicate their information by providing reports, like out-put reports, productivity, rejection rate, etc.

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3. PROGRESS FUNCTION: Progress is the process of checking that specific orders for the companys product proceed through their manufacturing stages in accordance with the pre-planned time schedule.

Ensuring that any difficulties are detected well in time and are reported to the appropriate authority so that corrective action can be taken.

MAIN FUNCTIONS OF PPC:PLANNING SECTION ACTIVITIES:MATERIALS FUNCTION: Raw materials, finished parts and bought out components should be made available in required quantities and at required time to ensure un-interrupted production.

MACHINES AND EQUIPMENT: PPC must have a detailed information of available production facilities, equipment down time, maintenance policy, procedures and schedule. Duties include the analysis of facilities and making their availability with minimum downtime because of break downs.

Cont..*

PLANNING SECTION ACTIVITIES (cont. ..):

METHODS: Concerned with analysis of alternatives and selection of the best method within the constraints imposed.

ROUTING: Routing is selection of the path or route which the raw material should follow to get transformed into finished product. The job includes:

Fixation of path of travelBreaking down of operations to define each operation in detailDeciding the set-up time and process time for each operation. Cont. ..*

PLANNING SECTION ACTIVITIES (cont. ...):ESTIMATING: Once the overall method and sequence of operations is fixed and process sheet for each operation is available, then the operation times are estimated

Standard times for each operation are established.

SCHEDULING (LOADING): Scheduling is concerned with preparation of machine loads and fixation of starting and completion dates for each of the operation. Such as:

Loading of the machines as per their capability/ capacity.Setting the start and completion times of each operationTo coordinate with sales department regarding delivery schedules *

PLANNING SECTION ACTIVITIES (cont. ...):DISPATCHING: This is the execution phase of planning.a) It is the process of setting production activities in motion through release of orders and instructions.b) It authorizes the start of production activities by releasing materials, components, tools, fixtures, etc., and instruction sheets to the operator.

Work includes:To assign definite work to definite machines, work centers, etc. To issue required materials from storesTo issue jigs & fixtures and at correct point of use.Issue work orders, job cards to authorize timely start of operations.To record start and finish time of each job on each machine or by each man.

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MAIN FUNCTIONS OF PPC:PROGRESS SECTION ACTIVITIES:

EXPEDITING:

This concerns keeping a close observation on the progress of the work. It is a logical step after dispatching, which is called follow-up or progress, i.e. Follow up of materials, work-in-progress and assembly.

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INFORMATION REQUIRED BY PPC FOR PERFORMING THEIR WORKFOR PRODUCTION PROGRAMME:Quantity to be producedDelivery datesVariety and different models and special features.

QUALITY STANDARDS SPECIFICATIONS & TOLERANCES

PRODUCTION MATERIALS:Type of materialsQuality and quantityProcurement lead timeStock position

TOOLINGS: (cont..)

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INFORMATION REQUIRED BY PPC (cont.)5.OPERATIONAL DETAILS:Sequence of operationsProcess capability of machinesJigs and Fixtures neededCutting parameters or process parameters

STANDARD TIMES FOR OPERATION & SET UP TIMES

STARTING AND FINISHING DATES

PROGRESS OF WORK*

OBJECTIVES OF PRODUCTION PLANNING AND CONTROL (PPC)Planning of production activities to achieve efficiency in production.

To organize the production facilities like machines, men, etc. to achieve stated production objectives.

Optimum scheduling of resources.

Co-ordination with other departments relating to production.

To conform to delivery commitments.

Materials planning and control.

To be able to make adjustments due to changes in demand and rush orders.

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ADVANTAGES OF PRODUCTION CONTROLBetter services to customers; delivery dates are met.Fewer rush orders in the plant and less overtime compared to industry without adequate production planning.Lower inventory of work in progress.Less finished stock required to give the same service to customers.Better control of raw materials inventoryMore effective use of equipmentLess loss of time by workers, waiting for materials.Improved plant/ workers morale.

End of this lecture*