UNIT – 1&2

(REFER OLD PPT FOR PICTURE AND DIAGRAMS)

Introduction:
Production Planning and Control (PPC) is a crucial aspect of manufacturing and business operations
that involves the systematic planning, scheduling, and coordination of all activities related to
production. The primary goal of PPC is to ensure that goods are produced efficiently, on time, and in
the desired quantity while optimizing resources and minimizing costs.
Objective of Production Planning & Control:
The main objectives of Production Planning and Control are:
1.​ Efficient Resource Utilization: PPC aims to allocate resources such as manpower, materials,
and equipment effectively to meet production targets while minimizing waste.
2.​ On-Time Delivery: Ensuring that products are manufactured and delivered according to the
predetermined schedules and deadlines is a key objective to meet customer demands and
maintain a competitive edge.
3.​ Cost Optimization: PPC strives to control and reduce production costs by optimizing
processes, minimizing waste, and improving efficiency in resource utilization.
4.​ Quality Assurance: Ensuring the production of high-quality products that meet or exceed
customer expectations is a critical objective of PPC.
5.​ Flexibility and Adaptability: PPC aims to create systems that can adapt to changes in
demand, production requirements, or unforeseen disruptions in the supply chain.
Functions of Production Planning & Control:
1.​ Forecasting: Analyzing historical data and market trends to predict future demand for
products.
2.​ Master Production Scheduling (MPS): Developing a detailed plan that specifies the
quantity and timing of production to meet customer demand while considering resource
constraints.
3.​ Material Requirement Planning (MRP): Planning and managing the procurement and
inventory of raw materials required for production.
4.​ Capacity Planning: Evaluating and ensuring that the production facilities have the capacity
to meet the planned production levels.
5.​ Production Scheduling: Creating detailed schedules for each operation and work center to
ensure smooth production flow.
6.​ Quality Control: Implementing measures to monitor and maintain the quality of products
throughout the production process.
Roles & Responsibilities of PPC Manager:
The PPC manager plays a pivotal role in ensuring the smooth functioning of production planning and
control. Their responsibilities include:
1.​ Strategic Planning: Developing and implementing long-term production strategies aligned
with overall business goals.
2.​ Team Management: Leading and managing a team of professionals involved in production
planning and control activities.
3.​ Resource Allocation: Allocating resources effectively to meet production targets while
optimizing costs.
4.​ Coordination: Ensuring seamless communication and coordination between different
departments such as production, procurement, and logistics.
5.​ Problem-solving: Identifying and addressing issues that may arise in the production process,
causing delays or disruptions.
6.​ Continuous Improvement: Implementing measures to enhance efficiency, reduce costs, and
improve overall production processes.
7.​ Adaptability: Being able to adapt plans and schedules in response to changes in demand,
resource availability, or unexpected disruptions.

Forecasting – qualitative and quantitative analysis techniques.

Forecasting is a critical aspect of production planning and control, helping organizations predict future
demand, make informed decisions, and allocate resources efficiently. There are two main types of
forecasting techniques: qualitative and quantitative.
1.​ Qualitative Forecasting Techniques:
Qualitative methods rely on subjective judgment, expert opinions, and qualitative data to make
predictions. These techniques are often used when historical data is limited, unreliable, or when
dealing with new products or changing market conditions. Here are some common qualitative
forecasting techniques:
a. Expert Opinion: Gathering insights and predictions from experts within the industry or the
organization.
b. Market Research: Conducting surveys, interviews, and focus groups to gather opinions and
feedback from potential customers and stakeholders.
c. Delphi Method: Involves a structured communication process among a panel of experts to reach a
consensus on future developments.
d. Scenario Analysis: Considering various possible scenarios and their likelihood to anticipate
potential outcomes.
e. Sales Force Composite: Gathering input from the sales team based on their knowledge of customer
preferences and market trends.
Qualitative methods are often used when there is a high level of uncertainty or when historical data is
not reliable.
2.​ Quantitative Forecasting Techniques:
Quantitative methods involve the use of historical data and mathematical models to predict future
outcomes. These techniques are suitable when there is a significant amount of past data available and
when historical patterns can be identified. Here are some common quantitative forecasting techniques:
a. Time Series Analysis: Analyzing historical data to identify patterns, trends, and seasonality.
Techniques include moving averages and exponential smoothing.
b. Regression Analysis: Examining the relationship between a dependent variable (e.g., sales) and
one or more independent variables (e.g., advertising spending, economic indicators).
c. Forecasting with Machine Learning: Using advanced algorithms and machine learning models to
analyze historical data and predict future trends. This includes methods like neural networks, decision
trees, and random forests.
d. Simulation Models: Creating models that simulate the real-world system to analyze the impact of
various factors on future outcomes.
e. Causal Models: Identifying cause-and-effect relationships between variables and using them to
predict future values.
Quantitative methods are valuable when historical data is reliable, and there is a need for a more
data-driven and systematic approach to forecasting.

Process of Production Planning and Control –

The process of Production Planning and Control (PPC) involves a series of steps designed to ensure
that manufacturing processes run smoothly, efficiently, and in accordance with the overall goals of the
organization. The process typically includes the following key stages:
1.​ Demand Forecasting:
●​ The process begins with estimating and forecasting the demand for the products or
services.
●​ Various forecasting techniques, both qualitative and quantitative, are employed to
predict future demand based on historical data, market trends, and other relevant
factors.
2.​ Order Entry and Customer Service:
●​ Once the demand is forecasted, customer orders are entered into the system.

●​ Customer service plays a crucial role in understanding and managing customer

requirements, addressing inquiries, and ensuring customer satisfaction.
3.​ Product Design and Development:
●​ In situations where new products are involved, the product design and development
phase becomes crucial.
●​ Collaboration between design, engineering, and production teams is essential to
ensure that the product can be manufactured efficiently.
4.​ Master Production Scheduling (MPS):
●​ Based on the demand forecast and available resources, a Master Production Schedule
is created.
 ●​ MPS outlines the production plan, specifying the quantity and timing of production to
meet customer demand while considering constraints such as resource availability and
capacity.
5.​ Material Requirement Planning (MRP):
●​ MRP involves planning and managing the procurement and inventory of raw
materials required for production.
●​ It ensures that materials are available in the right quantity and at the right time to
support the production schedule.
6.​ Capacity Planning:
●​ The production capacity of the facilities is assessed to ensure that it aligns with the
production requirements outlined in the MPS.
●​ Capacity planning helps identify and address any potential bottlenecks or constraints
in the production process.
7.​ Production Scheduling:
●​ Detailed schedules for each operation and work center are created, specifying when
and where each production activity will take place.
●​ This involves coordinating activities to optimize efficiency and minimize downtime.

8.​ Quality Control:

●​ Throughout the production process, quality control measures are implemented to
monitor and maintain the quality of products.
●​ Inspections, testing, and other quality assurance processes are conducted to ensure
that products meet specified standards.
9.​ Execution and Monitoring:
●​ The actual production processes are executed based on the schedules and plans.

●​ Ongoing monitoring is crucial to identify any deviations from the plan and address
them promptly.
10.​ Feedback and Continuous Improvement:
●​ Feedback mechanisms are established to gather information on the actual
performance of the production processes.
●​ Lessons learned, feedback from quality control, and other performance metrics are
used to implement continuous improvement measures.
11.​ Delivery and Distribution:
●​ Finished products are delivered to customers as per the scheduled timelines.

●​ Distribution logistics are managed to ensure timely and efficient delivery to various
destinations.
Capacity planning –Concept, types, plant capacity, capacity planning strategies
Capacity Planning:
Capacity planning is the process of determining the production capacity needed by an organization to
meet changing demands for its products or services. It involves assessing the existing capacity,
forecasting future demand, and aligning production capabilities to ensure that the organization can
meet its business objectives efficiently. The goal is to strike a balance between having enough
capacity to meet demand without overcommitting resources.
Types of Capacity:
1.​ Design Capacity:
●​ The maximum output a system can achieve under ideal conditions and with perfect
efficiency.
2.​ Effective Capacity:
●​ The maximum output a system can achieve under normal operating conditions,
accounting for factors like downtime, maintenance, and other constraints.
3.​ Actual Capacity:
●​ The actual output achieved in real-world conditions, which may be less than the
effective capacity due to various factors such as machine breakdowns, employee
absenteeism, etc.
Plant Capacity:
Plant capacity refers to the maximum amount of goods or services that a facility can produce in a
given period under normal working conditions. It's an important aspect of capacity planning, and it
can be measured in terms of units, volume, or other relevant metrics. Effective capacity planning
involves a combination of these strategies based on the nature of the industry, market conditions, and
the specific goals of the organization. It's an ongoing process that requires constant evaluation and
adjustment to adapt to changes in demand and the business environment.

Capacity Planning Strategies:

1.​ Lead Strategy:
●​ Involves increasing capacity in anticipation of future demand.

●​ Proactive approach to ensure the organization is well-prepared for increased demand.

●​ Requires a significant investment and carries a risk if demand does not meet
expectations.
2.​ Lag Strategy:
●​ Involves increasing capacity only after an increase in demand has been observed.
 ●​ Reactive approach to capacity planning.

●​ Reduces the risk of overcommitting resources, but may lead to production bottlenecks
if demand surges unexpectedly.
3.​ Match Strategy:
●​ Involves adjusting capacity in small increments to closely match changes in demand.

●​ Balances the advantages of both lead and lag strategies.

●​ Requires a flexible production system and responsive capacity adjustments.

4.​ Use of Outsourcing:

●​ Organizations can strategically use outsourcing to manage capacity fluctuations.

●​ Outsourcing certain tasks or processes allows flexibility in adjusting production levels

without significant investments in in-house capacity.
5.​ Technology and Process Innovation:
●​ Investing in new technologies or process improvements can increase production
efficiency and capacity.
●​ Innovations can enable organizations to produce more with existing resources.

6.​ Multi-Shift Operations:

●​ Running production operations on multiple shifts can increase the effective capacity
of a facility without major capital investments.
●​ However, it may involve increased labor and operational costs.

7.​ Inventory Management:

●​ Efficient inventory management practices can help buffer against fluctuations in
demand.
●​ Maintaining strategic safety stock levels can bridge gaps between production and
demand.
8.​ Collaborative Planning with Suppliers:
●​ Collaborating with suppliers to share information and plan production schedules can
help ensure a smooth flow of materials and minimize disruptions.

Routing in Production Planning and Control:

Routing is a crucial element in the production planning and control process that involves determining
the sequence of operations through which a product or service will pass. It outlines the path that
materials, components, and subassemblies will take as they move through the production process. The
primary purpose of routing is to ensure a systematic and efficient flow of materials through various
work centers to meet production schedules and quality standards.
Procedure for Routing:
 1.​ Product Analysis:
●​ Begin by analyzing the product's design and bill of materials (BOM) to understand its
components and subassemblies.
2.​ Operation Analysis:
●​ Identify the individual operations or processes required to manufacture each
component or subassembly.
3.​ Sequence Determination:
●​ Determine the optimal sequence in which operations should be performed. This may
involve considerations such as minimizing setup times, utilizing specialized
equipment, or ensuring the correct order for assembly.
4.​ Routing Sheet Creation:
●​ Create a routing sheet that details the sequence of operations, work centers, and the
standard time required for each operation.
5.​ Documentation:
●​ Document all relevant information about the routing, including machine and tool
specifications, materials required, and any special instructions.
6.​ Review and Approval:
●​ Review the routing information and seek approval from relevant stakeholders,
including production managers, engineers, and quality control personnel.
7.​ Update as Needed:
●​ Routings may need to be updated periodically due to changes in product design,
process improvements, or other factors. Ensure that the routing information remains
current.
Materials Flow Patterns:
The materials flow pattern refers to the movement of materials through the production process, from
raw materials to finished products. Different production systems adopt various materials flow patterns
based on factors such as product characteristics, production volume, and the nature of the
manufacturing process. Common materials flow patterns include:
1.​ Job Shop Flow:
●​ Suitable for small-scale production of custom or specialized products.

●​ Products move through various work centers based on the specific requirements of
each job.
2.​ Batch Flow:
●​ Groups of products are produced in batches, and each batch follows a specific route
through the production process.
●​ Economical for moderate production volumes with some standardization.

3.​ Line Flow (Continuous Flow):

 ●​ Ideal for high-volume production of standardized products.

●​ Products move along an assembly line, and each workstation performs a specific task
in a sequential manner.
4.​ Project Flow:
●​ Applied to large-scale, unique projects such as construction or engineering projects.

●​ Materials move through various stages based on project requirements.

5.​ Cellular Manufacturing:

●​ Involves organizing work centers into cells, each responsible for a specific set of
operations.
●​ Enhances flexibility and efficiency by grouping similar processes.

6.​ Hybrid Flow:

●​ Combines elements of different flow patterns to meet the specific needs of the
production process.
●​ Offers a balance between customization and efficiency.

Scheduling –production scheduling, machine scheduling and Line Balancing

1. Production Scheduling:
Production scheduling is the process of determining the sequence and timing of operations or tasks in
the production process to meet the production plan efficiently. It involves allocating resources, such as
manpower, machines, and materials, in a way that maximizes efficiency and minimizes idle time.
Example: Consider a manufacturing facility producing electronic gadgets. The production scheduling
may involve determining the order in which different components are assembled, ensuring that each
workstation is utilized effectively, and aligning the production schedule with the demand forecast.

Task Workstation Start Time End Time

Component A Station 1 8:00 AM 9:30 AM

Component B Station 2 9:30 AM 11:00 AM

Assembly Station 3 11:00 AM 1:00 PM

This schedule ensures a smooth flow of production, with each task starting as soon as the preceding
one is completed.
2. Machine Scheduling:
Machine scheduling focuses on optimizing the use of machines and equipment in the production
process. It involves assigning tasks or jobs to machines based on factors such as processing time,
machine capacity, and priority.
Example: Consider a CNC machining center with two machines, M1 and M2, and three jobs, J1, J2,
and J3, with their respective processing times:
Job Machine Processing Time

J1 M1 2 hours

J2 M2 3 hours

J3 M1 1.5 hours

The machine scheduling might look like:

Job Machine Start Time End Time

J1 M1 8:00 AM 10:00 AM

J2 M2 9:00 AM 12:00 PM

J3 M1 10:00 AM 11:30 AM

This schedule optimizes the use of machines and ensures that processing times are considered when
assigning jobs to machines.
3. Line Balancing:
Line balancing is the process of evenly distributing the workload among workstations in a production
line to avoid bottlenecks and minimize idle time. It aims to optimize the production process by
ensuring that each workstation has a similar workload.
Example: Consider an assembly line with four workstations, W1, W2, W3, and W4, and four tasks,
T1, T2, T3, and T4, with their respective processing times:

Task Workstation Processing Time

T1 W1 3 hours

T2 W2 2 hours

T3 W3 4 hours

T4 W4 3 hours

An initial assignment might look like:

Workstation Task Assigned Processing Time

W1 T1 3 hours

W2 T2 2 hours

W3 T3 4 hours

W4 T4 3 hours

This results in an imbalance as W3 has a longer processing time. A balanced assignment could be:

Workstation Task Assigned Processing Time

W1 T2 2 hours
Workstation Task Assigned Processing Time

W2 T1 3 hours

W3 T4 3 hours

W4 T3 4 hours

This balanced assignment minimizes idle time and ensures a more efficient production line.
These scheduling techniques play a crucial role in optimizing production processes, minimizing costs,
and meeting customer demand efficiently. The specific approach and numerical values may vary
based on the industry, production environment, and requirements.

Scheduling –production scheduling, machine scheduling and Line Balancing with numerical
1. Production Scheduling:
Production scheduling involves creating a detailed plan that specifies the timing and quantity of
production for each operation to meet customer demand and organizational objectives. The goal is to
allocate resources effectively, minimize idle time, and ensure a smooth flow of materials through the
production process.
Example: Suppose a manufacturing company needs to produce 1,000 units of a product over the next
month. The production scheduling process would involve breaking down this target into daily or
weekly production quantities, considering factors such as available resources, machine capacity, and
workforce availability.

Day Daily Production Quantity

Day 1 50

Day 2 50

... ...

Day 20 50

This schedule ensures that the overall target of 1,000 units is met by distributing the production
evenly over the specified time frame.
2. Machine Scheduling:
Machine scheduling focuses on optimizing the use of machines and equipment to meet production
requirements efficiently. It involves assigning jobs or tasks to machines, considering factors such as
processing time, machine capacity, and setup time.
Example: Consider a machine that can process 100 units per hour, and there are three jobs to be
processed:
1.​ Job A: Requires 2 hours of machine time.
2.​ Job B: Requires 3 hours of machine time.
 3.​ Job C: Requires 1 hour of machine time.
The machine scheduling might look like:

Job Processing Time (hours) Start Time End Time

Job A 2 8:00 AM 10:00 AM

Job B 3 10:00 AM 1:00 PM

Job C 1 1:00 PM 2:00 PM

This schedule ensures efficient use of the machine while meeting the processing requirements of each
job.
3. Line Balancing:
Line balancing aims to evenly distribute work among workstations in a production line, minimizing
idle time and achieving efficient production. It involves assigning tasks to workstations in a way that
optimizes overall production flow and ensures that no workstation becomes a bottleneck.
Example: Consider a production line with three workstations (A, B, and C) and three tasks (X, Y, and
Z) with processing times:
1.​ Task X: 5 minutes
2.​ Task Y: 8 minutes
3.​ Task Z: 4 minutes
An initial assignment might look like:

Station Task Assigned Processing Time

A X 5

B Y 8

C Z 4

However, this results in an imbalance as Station B has a longer processing time. A balanced
assignment could be:

Station Task Assigned Processing Time

A Z 4

B X 5

C Y 8

This ensures that the processing times are more evenly distributed, optimizing the overall efficiency of
the production line.
Loading –process, strategies and relationship between capacity and loading
Loading in Production Planning and Control:
Loading is a crucial step in the production planning and control process that involves assigning work
to work centers or machines based on their capacity and available resources. The goal is to utilize the
available capacity efficiently and ensure that production schedules are met. Loading helps balance the
workload across different resources and minimizes idle time.
Process of Loading:
1.​ Determine Work Center Capacity:
●​ Understand the capacity of each work center or machine in terms of the number of
units it can process or the time required for each operation.
2.​ Identify Production Requirements:
●​ Review the production schedule and identify the quantity and timing of each task or
job that needs to be processed.
3.​ Match Work to Capacity:
●​ Assign tasks or jobs to work centers based on their capacity, taking into account the
priority of each task and the availability of resources.
4.​ Consider Constraints:
●​ Take into consideration any constraints, such as machine limitations, tooling
requirements, or the availability of skilled personnel.
5.​ Optimize Loading:
●​ Adjust the loading plan to optimize the utilization of resources, minimize idle time,
and meet production targets.
Strategies for Loading:
1.​ Forward Loading:
●​ Assign tasks to work centers in a way that prioritizes the completion of jobs as early
as possible.
●​ Suitable for industries with high demand variability or where early completion is
critical.
2.​ Backward Loading:
●​ Assign tasks to work centers based on the due dates of jobs, focusing on meeting
deadlines.
●​ Useful when customer delivery dates are fixed and critical.

3.​ Load Leveling:

●​ Distribute the workload evenly across work centers to avoid peaks and valleys in
production.
●​ Aims to maintain a consistent level of production to minimize fluctuations in resource
utilization.
 4.​ Priority Loading:
●​ Assign priority to tasks based on their importance, urgency, or criticality.

●​ Ensures that high-priority tasks are completed first.

Relationship Between Capacity and Loading:

The relationship between capacity and loading is crucial for achieving operational efficiency. Efficient
loading ensures that capacity is utilized optimally, minimizing idle time and maximizing throughput.
Key points in this relationship include:
1.​ Under-Loading:
●​ Underutilizing capacity can lead to inefficiencies and increased per-unit costs.

●​ It may result in resource wastage and missed opportunities for increased production.

2.​ Over-Loading:
●​ Overloading can lead to bottlenecks, delays, and decreased overall efficiency.

●​ It may result in increased lead times, decreased quality, and added stress on resources.

3.​ Optimal Loading:

●​ Optimal loading ensures that work centers operate at their maximum capacity without
exceeding it.
●​ It results in efficient resource utilization, timely production, and effective response to
changes in demand.
4.​ Dynamic Loading:
●​ Loading plans may need to be adjusted dynamically based on changing demand,
resource availability, and unforeseen disruptions.
●​ Flexibility in loading strategies helps adapt to fluctuations in production
requirements.
Balancing the relationship between capacity and loading requires continuous monitoring, analysis,
and adjustment of production plans. Effective loading contributes to the overall success of the
production process by ensuring that resources are used efficiently to meet production goals and
customer demands.

Let's go through a numerical example to illustrate the loading process.

Suppose we have a production facility with two work centers, A and B. Each work center has a
certain capacity, and we need to assign tasks to them based on their processing times and capacities.
Work Center Capacities:
●​ Work Center A: Capacity of 200 units per day

●​ Work Center B: Capacity of 150 units per day

Tasks and Processing Times:

1.​ Task X requires 2 hours at Work Center A.
2.​ Task Y requires 3 hours at Work Center B.
3.​ Task Z requires 1.5 hours at Work Center A.
Production Schedule (Initial):
●​ We initially assign all tasks in a straightforward manner.

Task Work Center Processing Time (hours) Start Time End Time

X A 2 8:00 AM 10:00 AM

Y B 3 8:00 AM 11:00 AM

Z A 1.5 10:00 AM 11:30 AM

This schedule utilizes the available capacity of both work centers but does not optimize the overall
production process.
Optimized Production Schedule (Load Leveling):

Task Work Center Processing Time (hours) Start Time End Time

X A 2 8:00 AM 10:00 AM

Y B 3 10:00 AM 1:00 PM

Z A 1.5 1:00 PM 2:30 PM

In this optimized schedule, we've leveled the workload between the two work centers, avoiding peaks
and valleys. This helps ensure a more consistent production flow.
Analysis:
●​ The initial schedule had overlapping work on Work Center A, which could lead to
inefficiencies and potential bottlenecks.
●​ The optimized schedule distributes the workload more evenly, utilizing the capacities of both
work centers effectively.
This numerical example demonstrates the importance of load leveling and efficient task assignment to
achieve optimal resource utilization in production scheduling. The specific values and details may
vary based on the actual capacities, processing times, and requirements of the production
environment.
PPC in different production systems ie. Job, batch, Mass (assembly) and continuous
Production Planning and Control (PPC) plays a crucial role in various production systems, each with
its own characteristics and requirements. Let's explore how PPC is applied in different production
systems: Job Production, Batch Production, Mass (Assembly) Production, and Continuous Production.
1.​ Job Production:
●​ Characteristics:

●​ Low volume and high customization.

●​ Each product is unique or made to order.

●​ PPC Considerations:

●​ Detailed planning for each job, including resource allocation and scheduling.

●​ Flexibility to accommodate varying job specifications.

●​ Emphasis on skill requirements and job sequencing.

2.​ Batch Production:

●​ Characteristics:

●​ Moderate volume with a standardized product.

●​ Production occurs in batches or lots.

●​ PPC Considerations:

●​ Creating production schedules for batches.

●​ Material Requirement Planning (MRP) for batch sizes.

●​ Efficient changeover between batches to minimize downtime.

3.​ Mass (Assembly) Production:

●​ Characteristics:

●​ High volume with standardized products.

●​ Assembly line production with repetitive tasks.

●​ PPC Considerations:

●​ Line balancing to ensure even distribution of tasks.

●​ Focus on optimizing the flow of materials and minimizing cycle times.

●​ Coordination with suppliers to maintain a steady flow of components.

4.​ Continuous Production:

●​ Characteristics:

●​ Very high volume with continuous production flow.

●​ Often associated with industries like chemicals, oil refining, and utilities.

●​ PPC Considerations:
 ●​ Optimizing continuous processes for efficiency.

●​ Continuous monitoring and control of production variables.

●​ Predictive maintenance to minimize disruptions.

Common PPC Strategies Across Production Systems:

1.​ Demand Forecasting:
●​ Accurate forecasting to determine production requirements.

●​ Adjusting production plans based on changing demand.

2.​ Master Production Scheduling (MPS):

●​ Creating detailed schedules for each production system.

●​ Aligning production schedules with overall business objectives.

3.​ Material Requirement Planning (MRP):

●​ Efficient planning and management of raw materials.

●​ Minimizing inventory levels while ensuring materials are available when needed.

4.​ Capacity Planning:

●​ Assessing and adjusting production capacities.

●​ Identifying and resolving capacity constraints.

5.​ Quality Control:

●​ Implementing measures to monitor and maintain product quality.

●​ Incorporating quality checkpoints throughout the production process.

6.​ Shop Floor Control:

●​ Real-time monitoring of production activities.

●​ Adapting schedules based on actual production performance.

7.​ Lean Manufacturing Principles:

●​ Reducing waste and improving efficiency.

●​ Applying principles such as 5S, Kanban, and continuous improvement.

8.​ Technological Integration:

●​ Implementing technologies like Manufacturing Execution Systems (MES) for
real-time data and analytics.
●​ Automation to enhance precision and speed.

9.​ Supplier Collaboration:

●​ Establishing effective communication and collaboration with suppliers.

●​ Ensuring a reliable supply chain for components and materials.

Example
Let's explore how Production Planning and Control (PPC) functions in different production systems
through examples in Job Production, Batch Production, Mass (Assembly) Production, and Continuous
Production:
1. Job Production:
●​ Example: Customized Furniture Manufacturing

●​ PPC Considerations:

●​ Each piece of furniture is unique and made to order.

●​ PPC involves detailed planning for each job, including resource allocation
and scheduling.
●​ Emphasis on skilled labor, raw material availability, and efficient job
sequencing.
2. Batch Production:
●​ Example: Pharmaceutical Manufacturing

●​ PPC Considerations:

●​ Pharmaceutical companies produce drugs in batches.

●​ PPC involves creating production schedules for each batch.

●​ Material Requirement Planning (MRP) is crucial to ensure the availability of

specific ingredients for each batch.
3. Mass (Assembly) Production:
●​ Example: Automobile Assembly Line

●​ PPC Considerations:

●​ Automobiles are produced on assembly lines with repetitive tasks.

●​ PPC focuses on line balancing to ensure even distribution of tasks among

workstations.
●​ Coordination with suppliers for a steady flow of standardized components.

4. Continuous Production:
●​ Example: Chemical Refinery

●​ PPC Considerations:

●​ Chemical refineries continuously produce chemicals without interruptions.

●​ PPC involves optimizing continuous processes for efficiency and safety.

●​ Real-time monitoring and control of production variables to maintain

consistent output.
Common PPC Strategies Across Examples:
1.​ Demand Forecasting:
 ●​ Example: In all production systems, accurate forecasting is essential. For job
production, forecasting helps plan for custom orders, while in batch and mass
production, it ensures efficient production planning.
2.​ Master Production Scheduling (MPS):
●​ Example: In batch production, creating a master production schedule involves
planning the production of batches over a specific period. In continuous production, it
involves maintaining a continuous flow of products without disruptions.
3.​ Material Requirement Planning (MRP):
●​ Example: Pharmaceutical manufacturing uses MRP to plan for the specific quantities
of raw materials needed for each batch of drugs. Chemical refineries employ MRP for
continuous material flow.
4.​ Capacity Planning:
●​ Example: Customized furniture manufacturing adjusts capacity planning for varying
job sizes. Automobile assembly lines focus on optimizing capacity for the efficient
assembly of standardized vehicles.
5.​ Quality Control:
●​ Example: Quality control is critical in pharmaceuticals to ensure the safety and
efficacy of drugs. In automobile assembly, it ensures the production of reliable and
safe vehicles.
6.​ Lean Manufacturing Principles:
●​ Example: Lean principles are applied across all examples to reduce waste, improve
efficiency, and enhance overall production processes.
7.​ Technological Integration:
●​ Example: Automation and technology integration are common in all examples, from
using CNC machines in furniture manufacturing to robotics in automobile assembly.
8.​ Supplier Collaboration:
●​ Example: Collaborating with suppliers is crucial in pharmaceuticals to ensure a
reliable supply chain for raw materials. Automobile assembly lines depend on timely
deliveries from various suppliers.

UNIT3
Aggregate Planning:
●​ Definition: Aggregate Planning is the process of developing, analyzing, and maintaining
preliminary, approximate schedules of the overall operations of an organization.
 ●​ Significance: It facilitates balancing supply and demand while making informed decisions on
production levels, staffing, inventory, and customer satisfaction.

Strategies:
1.​ Chase Demand Strategy:
●​ Definition: Adjust production to meet varying demand.

●​ Application: Effective for industries with volatile demand.

2.​ Level Production Strategy:

●​ Definition: Maintain a steady production rate and manage demand variations through
inventory adjustments.
●​ Application: Useful for stable demand situations.

Cost Considerations:
●​ Holding Costs: Cost of holding inventory.

●​ Backordering Costs: Cost incurred when demand exceeds supply.

●​ Stockout Costs: Cost associated with running out of inventory.

Application in Different Industries:

●​ Capital-Intensive Industries: Automation and technology for economies of scale.

●​ Labor-Intensive Industries: Manual labor with flexible production capabilities.

●​ Fashion Industries: Combination of chase demand and level production strategies due to
rapidly changing consumer preferences.

1.​ Aggregate Planning:

●​ Meaning: Aggregate planning is the process of developing, analyzing, and
maintaining preliminary, approximate schedules of the overall operations of an
 organization. It involves determining production, inventory, and workforce levels
over a specific period.
●​ Strategies and Cost: Strategies in aggregate planning include adjusting production
rates, hiring and laying off workers, and managing inventory levels. The costs
associated with aggregate planning include production costs, labor costs, and
inventory holding costs.
2.​ Concept of Aggregate Planning in Different Industries:
●​ Capital-Intensive Industries: These industries, such as manufacturing or heavy
machinery production, heavily rely on large-scale equipment. Aggregate planning
here involves optimizing the use of expensive machinery, considering maintenance
schedules, and ensuring efficient production.

In this diagram isoquant Q represents the initial .level of output, using OL

amount of labour and OC amount of capital. With the introduction of new
technique a higher level of output is shown by labour (OL) but with
greater dose of capital (OC1). Therefore, capital intensive technique is
using more capital with the same amount of labour.

●​ Labor-Intensive Industries: Industries relying on manual labor, like service

industries or certain manufacturing processes, need to manage workforce levels to
meet demand fluctuations. This may involve hiring temporary workers during peak
times and layoffs during low demand periods.

Labour intensive technique has been illustrated with the help of diagram I. In this
diagramme, isoquant Q shows the initial level of output which is being produced by
 using OL labour and OC amount of capital. With the adoption of new technology a
higher level of output is represented by the isoquant Q1; can be produced by the same
amount of capital i.e. OC. In this case, greater amount of labour is OL This shows that
the technique is labour intensive.
●​ Fashion Industries: Given the dynamic and trend-driven nature of the fashion
industry, aggregate planning involves adapting quickly to changing consumer
preferences and seasonal demands. Flexibility in production schedules and inventory
management is crucial.

Master Production Scheduling (MPS):

●​ Definition: Part of MRP II, it plans production schedules based on demand, capacities, and
inventory constraints.

Materials Requirement Planning (MRP I):

Concept and Implementation:
 ●​ Materials Requirement Planning (MRP I): A system managing production scheduling and
inventory control.
●​ Implementation Steps:

1.​ Identify end products.

2.​ Determine quantity needed.
3.​ Develop a production schedule.

MRP-Manufacturing Resource Planning (MRP II):

Manufacturing resource planning (MRP II) is a comprehensive type of planning for manufacturing
companies. It is a sort of extension to the original material requirements planning (MRP) concept. It
emerged in the 1980s to help companies deal with dynamic processes. Both of these, MRP and MRP
II, are related to the enterprise resource planning (ERP) system, which is a top-level business
information system that helps companies to plan better and work more efficiently.
Enterprise Resource Planning (ERP):
Concept and Global Practices:
●​ Enterprise Resource Planning (ERP): Integrates various business processes and functions
across a company.
●​ Characteristics:

●​ Centralized database.

●​ Real-time operation.

●​ Standardization of processes.

●​ Global Practices:

●​ Used by multinational corporations.

●​ Facilitates uniformity in operations across different locations.

3.​ Materials Requirement Planning (MRP I):

●​ MRP I is a system for planning and controlling the production process based on the
materials needed for production. It involves creating schedules that specify when and
how many materials will be required to meet production demands.
4.​ Manufacturing Resource Planning (MRP II):
●​ MRP II extends beyond MRP I by integrating additional aspects like capacity
planning, financial planning, and human resources. It provides a more coprehensive
view of the entire manufacturing process, ensuring that resources are efficiently
utilized.
5.​ Master Production Scheduling (MPS):
 ●​ MPS is a detailed plan that specifies the production quantities and schedules for each
end product. It considers constraints like machine capacities and labor availability,
ensuring that the production plan aligns with the overall business strategy.
6.​ Enterprise Resource Planning (ERP):
●​ ERP integrates various business processes, including manufacturing, finance, human
resources, and supply chain management, into a unified system. It facilitates real-time
data sharing and communication across different departments, enhancing overall
organizational efficiency.
7.​ Global Practices:
●​ Considering global practices involves understanding how businesses implement
aggregate planning, MRP, MRP II, and ERP in an international context. This includes
dealing with diverse supply chains, market conditions, and regulatory environments
across different regions.

Summary:
●​ Aggregate Planning: Balancing supply and demand with strategic decisions on production,
staffing, and inventory.
●​ MRP I: Managing production schedules and inventory.

●​ MRP II: Incorporating MPS into MRP for holistic production planning.

●​ ERP: Integrating business processes globally for efficiency.

UNIT4

Waste Management: Value and waste, Types of waste; 5S techniques of eliminating wastes, Lean
process to minimize wastages

1.​ Value and Waste:

●​ Value: In the context of waste management, value refers to any activity or process
that adds worth or utility to a product or service from the customer's perspective.
●​ Waste: Waste, on the other hand, includes any activity or process that does not
contribute to the value of the final product or service, leading to inefficiencies,
increased costs, and reduced overall productivity.
2.​ Types of Waste:
●​ Transportation Waste: Unnecessary movement of goods or materials.

●​ Inventory Waste: Excessive or insufficient stock levels leading to increased costs.

●​ Motion Waste: Unnecessary movement or actions of people.

●​ Waiting Waste: Idle time during the production process.

●​ Overproduction Waste: Producing more than required or producing ahead of

demand.
●​ Overprocessing Waste: Performing unnecessary steps or using excessive resources
in the production process.
●​ Defects Waste: Errors or defects in products that require rework or lead to customer
dissatisfaction.
3.​ Waste Management from the business perspective
The waste management is very important for the business organization also. The business
organization has been producing the some kinds of commercial waste by knowingly or
unknowingly. The waste volume and types can be differing business to business. The business
waste management is somewhat different from the residential or household. Generally
manufacturing industries produces more waste than service industry, for example
Construction Company produces more waste than banks. The waste creates the unnecessary
cost burden and increases the environmental footprint and can make business vulnerable to
the risk, regulation and fines. Waste management for the company is reducing the
environmental impact of organizational activities and simultaneously reducing the costs.
To manage the waste in the business in better ways the organization should follow the
different ideas. Some of the business waste management ideas are discuss below:
●​ Conduct the waste audit: waste audit is the formal and systematic process in order to know
the know or quantify the amount and types of waste being generated by the company in
particular time period. Info form audit will help to identify the current waste practice and how
they can be improved. Being waste-wise mean-a more efficient and effective company,
reduces the costs, better use of the resources.
●​ Grab company waste bill and call the company that services your locations to ask
them: It is another way of reducing the waste in the business. The company should ask the
service provider for unjustified bills unnecessary, amount(cost) to be removed from your bill
such as vague and unclear “environmental fee or fuel charge etc. ”and company should
identifies the other ways like reducing the no of service time and other recycling process etc.
●​ Better inventory management: The Company should keep minimum stock to serve the
customer. They should avoid keeping too many stocks that may expire or become useless and
will increase the cost.
●​ Scrutinize the products you purchase for unnecessary packaging: unnecessary packaging
will only increase the waste and cost of the business so the business organization should avoid
purchasing the disposable products and tools and purchase the product with less packaging
and work with vendor to take back and reuse the packaging.
●​ Donate extra food and gently used the items instead of throwing them away: another way
of managing the waste is donating the extra food to the society‘s needy people.
●​ Work with neighboring business to implement recycling: to reduce the business waste the
organization should work with other similar company to reduce the costs through scale by
sharing equipment and selling quantizes of valuable recyclable products.
●​ Standardize the recycling equipment: The business organization should purchase the
standardize recycling equipment in order to process waste. The equipment should have certain
standard for operations.
●​ Engage with your employee, customer and community: The Company should provide the
training to the employee and asking for their suggestions and creating the waste reduction
incentives. Similarly, the business organization should engage with the society customer to
provide the proper information about the products through social media.

3.​ 5S Techniques of Eliminating Wastes:

●​ Sort (Seiri): Eliminate unnecessary items from the workplace, keeping only the
essential.
●​ Set in Order (Seiton): Organize and arrange necessary items in an efficient and
easily accessible manner.
●​ Shine (Seiso): Clean and maintain the workplace to ensure a safe and efficient
environment.
●​ Standardize (Seiketsu): Establish standardized processes and procedures for
maintaining the first three S's.
●​ Sustain (Shitsuke): Ensure that the 5S practices become a part of the organizational
culture and are consistently maintained.
 4.​ Lean Process to Minimize Wastages:
●​ Lean Thinking: A management philosophy derived mostly from the Toyota
Production System, emphasizing the elimination of waste to improve efficiency and
effectiveness.
●​ Key Principles of Lean:

●​ Value: Define value from the customer's perspective.

●​ Value Stream: Identify and map the entire value stream for a product or
service.
●​ Flow: Ensure a smooth, continuous flow of work processes.

●​ Pull: Use a pull system to produce items only when requested by the
customer.
●​ Perfection: Strive for continuous improvement and perfection in all
processes.
●​ Tools and Techniques of Lean:

●​ Kaizen: Continuous improvement philosophy, encouraging small,

incremental changes.
●​ Just-In-Time (JIT): Produce items just in time to meet customer demand,
minimizing inventory.
●​ Kanban: Visual management tool to control the flow of materials and
production.
By incorporating the 5S techniques and Lean principles, organizations can systematically identify and
eliminate wastages, leading to improved efficiency, reduced costs, and increased overall value in their
processes.
UNIT 5

1.​ Production Control Systems:

●​ Definition: Production control systems are mechanisms and strategies implemented
to regulate and optimize the production processes within an organization.
●​ Objectives:

●​ Ensure efficient use of resources.

●​ Meet production schedules and demand.

●​ Minimize delays and disruptions.

 2.​ Gantt Charts:
●​ Definition: A Gantt Chart is a visual representation of a project schedule, showing
tasks displayed against time. It helps in planning, scheduling, and tracking the
progress of various activities.
●​ Key Elements:

●​ Tasks (represented as bars).

●​ Time axis (horizontal).

●​ Task dependencies.

●​ Application: Gantt Charts are widely used in production planning to schedule and
monitor tasks and processes.

Gantt Charts
A Gantt chart is a horizontal bar chart developed as a production control tool in
1917 by Henry L. Gantt, an American engineer and social scientist. Frequently
used in project management, a Gantt chart provides a graphical illustration of a
schedule that helps to plan, coordinate, and track specific tasks in a project.
 ​
Gantt charts may be simple versions created on graph paper or more complex
automated versions created using project management applications such as
Microsoft Project or Excel.

A Gantt chart is constructed with a horizontal axis representing the total time
span of the project, broken down into increments (for example, days, weeks, or
months) and a vertical axis representing the tasks that make up the project (for
example, if the project is outfitting your computer with new software, the major
tasks involved might be: conduct research, choose software, install software).

Horizontal bars of varying lengths represent the sequences, timing, and time
span for each task. Using the same example, you would put “conduct research”
at the top of the verticle axis and draw a bar on the graph that represents the
amount of time you expect to spend on the research, and then enter the other
tasks below the first one and representative bars at the points in time when you
expect to undertake them. The bar spans may overlap, as, for example, you may
conduct research and choose software during the same time span. As the
project progresses, secondary bars, arrowheads, or darkened bars may be added
to indicate completed tasks, or the portions of tasks that have been completed.
A vertical line is used to represent the report date.

3.​ Bar Charts:

●​ Definition: Similar to Gantt Charts, Bar Charts represent project schedules using
horizontal bars to show the duration of tasks.
●​ Key Elements:
 ●​ Tasks (represented as bars).

●​ Time axis (horizontal).

●​ Application: Bar Charts are simpler than Gantt Charts and are often used for
visualizing project timelines and production schedules.

4.​ Production Progress Reporting and Performance Analysis:

●​ Progress Reporting: Regular updates on the status of production processes,
identifying completed tasks and potential delays.
●​ Performance Analysis: Evaluating the efficiency and effectiveness of production
processes based on predefined metrics and goals.
5.​ System Feedback:
●​ Definition: System feedback involves collecting and analyzing information about the
performance of production processes.
●​ Importance: Enables continuous monitoring, identification of deviations from the
plan, and the implementation of corrective actions.
6.​ Strategies for Corrective Actions:
●​ Identifying Deviations: Monitoring systems to identify variations from the planned
production schedule.
●​ Root Cause Analysis: Determining the underlying causes of deviations.

●​ Corrective Measures: Implementing actions to address issues and bring production

back on track.
Steps for Corrective Actions:

Step 1: Understand System Requirements (Plan)

Seeking understanding before action is the first step in creating an effective corrective action
system. While quality standards spell out the various requirements, it may take some due
diligence to understand exactly what needs to be done.

Documentation needs and corrective action procedural requirements must be accurately assessed
in order to minimize implementation missteps.

Step 2: Plan the Process (Plan)

Planning is the design phase where decisions are made regarding the framework and mechanics of
a corrective action system, including how to integrate the system into current operations.

Planning should also address personnel duties for the corrective action process. More specifically,
procedures and conduits must be planned for completion of the following key tasks:

●​ Evaluating and assessing non-conformance triggers (customer complaints, audit findings,

process parameters, etc.)

●​ Identifying legitimate non-conformances and related issues

●​ Capturing and entering issues into the corrective action process

●​ Investigating and getting to the root cause of an issue

●​ Determining and implementing solutions

●​ Reviewing, checking, and verifying the effectiveness of a problem resolution

●​ Using risk management protocols to ensure major non-conformances are top priority

●​ Establishing personnel responsibilities at various stages of the corrective action process

Step 3: Develop and Document (Do)

In this development stage, a cohesive corrective action system is created according to a

well-developed plan. Teams are formed and given the authority and responsibility to fully develop
the program.
 Team duties include making sure the corrective action system is structured properly and is
functional and compatible with existing quality management elements that provide
nonconformance alerts.

Activities at this stage also include formal documentation of policies, procedures, and
responsibilities for system caretakers and users.

Step 4: Conduct Training (Do)

Implementing any new system can significantly upset the norm, creating anxiety for those
affected by the change. For something as big as a corrective action system that reaches across
business operations, changes in management demand adequate training.

Training should involve interactive learning events that tie directly to job duties and should
include hands-on practice, with on-the-job learning sessions, tabletop simulations, case studies, or
a mix of all three.

If the plan is to use an electronic system to capture nonconformances, for example, then training
must cover how the system works, explain access details, and describe pertinent data fields. Plus,
personnel must be able to practice data entry using several different corrective action scenarios.

Effective training lays out the process from start to finish so that personnel gains the
understanding, skills, and knowledge needed to carry out corrective action tasks accurately and
with confidence.

Step 5: Implement (Do)

After training, implementation of the corrective action system should take place as soon as
possible to lessen the gap between training and actual use of new skills and knowledge.

In this step, corrective action procedures go live, and system mechanisms are fully operational.
Instructions and methods are in place for designated personnel to thoroughly manage corrective
actions.

Step 6: Test the System (Check)

After several corrective actions travel full circle, the next feat is to check that the system
performed as intended. The goal is to verify functionality and use. The check can happen by
auditing a sampling of corrective actions from system input to investigation, resolution, and
closure.

Audit findings may contribute to future corrective actions and changes. Where changes are made,
it is important to notify and train affected personnel.

Step 7: Adjust and Improve (Act)

In a perfect world, everything goes according to plan. In the real world, glitches are likely. For
this step, adjustments are made to improve the corrective action process.

Actions are taken to fine-tune the system to the point that nonconformances are reliably detected,
evaluated, and resolved. The goal is to make corrective action management a consistent and
effective process through continuous improvement.

A proper corrective action system detects and resolves nonconformances. By including the
Plan-Do-Check-Act cycle in implementation efforts, launching a successful corrective action
system is well within reach.

7.​ Role of Control Rooms in Production Plants:

 ●​ Centralized Monitoring: Control rooms serve as centralized hubs for monitoring
and controlling various aspects of production.
●​ Real-time Information: Control rooms provide real-time data on production
processes, allowing quick decision-making.
●​ Communication Hub: Facilitates communication and coordination among different
departments and teams.

Control Room Picture

In summary, control systems play a crucial role in managing and optimizing production processes.
Tools like Gantt Charts and Bar Charts aid in visualizing and planning, while progress reporting,
performance analysis, and feedback mechanisms contribute to continuous improvement. Corrective
actions and the use of control rooms enhance the adaptability and efficiency of production plants.