Computer integrated production planning

Computer integrated production
planning
Prepared by
B.venuM.Tech(CAD/CAM),
ASST. PROFESSER, MeRITS

Production Planning
Production Planning may be said to be a technique
of forecasting ahead every step in the long
process of production, taking them at right
time and in the right degree and trying to
complete operations at the maximum efficiency
In the words of Kimball and Kimball Jr –
“The planning of industrial operations involves
four considerations, namely, what work shall
be done, how the work shall be done and
lastly, when the work shall be done.”

PRODUCTION CONTROL
Production control is the process that keeps a
watchful eye on the production flow and size of
resources along with the location, of any deviation
from the present action and to arrange for the
prompt adjustment so that the production may run
according to the original or revised schedule
In the words of Henry Fayol –
“Production control refers to ensuring that all
which occurs is in accordance with the rules
established and instructions issued.”

• Inputs like materials, men and machines are
efficiently used
• Factors of production are integrated to use
them economically
• Division of work is undertaken carefully so that
every available element is properly utilised
• Work is regulated from the first stage of
procuring raw materials to the stage of finished
goods
• Questions like what, when and how to be
manufactured are decided
Characteristics

• Determining sequence of operations for
continuous production
• Planning plant capacity for future production
programmes
• Issuing co-ordinated work schedules to
concerned persons
• Maintaining sufficient inventories to support
continuous flow of production
• Evaluating performance of workshops
• Maintaining production schedules to ensure
delivery at proper time
AIMS N OBJECTIVES

• Preparation of production budget
• Devising manufacturing methods and sequence of
operations
• Deciding type of machines and equipments
• Preparation of operation sheets and instruction
cards
• Estimating men, machine and material
requirements
• Undertaking time and motion studies
• Preparing master schedules
AREAS OF PRODUCTION PLANNING

Production planning and control is important for
the following reasons -
• For Increasing Production – Main purpose
of production planning is to arrange inputs.
Production control programme minimises
idleness of men and machines. It thus helps in
raising industrial output.
• For co-ordinating plant activity -In
planning production is carried out in a number
of processes and thus activities are
synchronized for smooth working.
NEED OR IMPORTANCE

• Sub-dividing the master schedule into
manufacturing and subsidiary orders
• Routing
• Scheduling
• Despatching
• Expediting
• Tool keeping
AREAS OF PRODUCTION
CONTROL

• For Cost Control – A properly planned
system of production will help in controlling
costs by not only making full utilisation of
various inputs but also by increasing output and
lowering overhead expenses per unit.
• For Rationalisation of Production
Activities – In production planning, the
process of entering of raw materials and
converting them into finished goods is planned
in such a way that everything is done in
sequence or routine. It regulates flow of inputs
to run production system smoothly

Following are the limitations faced by production
planning and control –
• Based on Assumptions – Production planning
and control is based on certain assumptions. In case
the assumptions prove correct, the planning and
control will go smoothly. But if they go wrong,
process of planning and control will go weak.
• Rigidity – Under production planning and control,
there is rigidity in the behaviour of employees and
it may not help in smoothening flow of work.
LIMITATIONS

• Difficult for small firms – This process is
time consuming and therefore not affordable
for small firms
• Costly – It is a costly device as its
implementation requires separate persons to
perform functions of planning, expediting,
dispatching etc.
• Dependence on External Factors –
External factors like natural calamities, change
in technology, government controls etc reduce
effectiveness of production planning.

• Planning
• Routing
• Scheduling
• Despatching
• Follow-up and Expediting
• Inspection
ELEMENTS OF PRODUCTION
PLANNING

It is the first element of production
planning and control. Planning is deciding in
advance what is to be done in future. An
organisational set up is created to prepare
plans and policies. Various charts, manuals
and production budgets are also prepared.
Planning provides a sound base for control.
A separate department is set up for this
work.
PLANNING

Routing is determining the exact path which will
be followed in production. It is the selection of
the path from where each unit have to pass
before reaching the final stage. The stages from
which goods are to pass are decided in this
process.
In the words of ALFORD and BEATY –
“Routing is the specification of the flow
sequence of operations and processes to be
followed in producing a particular
manufacturing lot.”
ROUTING

The following steps are taken for completing a routing
procedure –
• Deciding what part to be made or purchased
• Determining Materials required
• Determining Manufacturing Operations and
Sequences
• Determining of Lot Sizes
• Determining of Scrap Factors
• Analysis of Cost of the Product
• Preparation of Production Control Forms
ROUTING PROCEDURE

Scheduling is the determining of time and date
when each operation is to be commenced or
completed. The time and date of manufacturing
each component is fixed in such a way that
assembling for final product is not delayed in
any way.
In the words of KIMBALL and KIMBALL –
“The determination of the time that should
be required to perform each operation and
also the time necessary to perform the entire
series, as routed, making allowances for all
factors concerned.”
SCHEDULING

• Master Scheduling – It is the breakup of
production requirements. It is the start of
scheduling. It is prepared by keeping in view the
order or likely sales order in near future.
• Manufacturing Scheduling – It is used
where production process is continuous. The
order of preference for manufacture is also
mentioned in the schedule for a systematic
production planning.
• Detail Operation Scheduling – It indicates
the time required to perform each and every
detailed operations of a given process
TYPES OF SCHEDULES

Despatching refers to the process of actually
ordering the work to be done. It involves putting
the plan into effect by issuing orders. It is
concerned with starting the process and
operation on the basis of route sheets and
schedule charts.
In the words of JOHN A. SHUBIN –
“Despatches put production in effect by
releasing and guiding manufacturing order in
the sequence previously determined by route
sheets and schedules.”
DESPATCHING

Following two procedures may be used for
despatching –
• Centralised Despatching – Under this,
orders are directly issued to workmen and
machines. It helps in exercising effective
control.
• Decentralised Despatching – Under this
procedure all work orders are issued to the
foreman or despatch clerk of the department or
section. It suffers from difficulties in achieving
co-ordination among different departments.
DESPATCHING PROCEDURES

“Follow up or expediting is that branch of
production control procedure which regulates
the progress of materials and part through
the production process.”
Follow up Procedure –
Progress may be assessed with the help of routine
reports or communication with operating
departments. The follow up procedure is used
for expediting and checking the progress.
FOLLOW UP & EXPEDITING

Inspection is the process of ensuring
whether the products manufactured are
of requisite quality or not.
Inspection is undertaken both of products
and inputs. It is carried on at various
levels of production process so that pre-
determined standards of quality are
achieved.
Inspection ensures the maintenance of
pre-determined quality of products.
INSPECTION

Activities of production planning
Production planning: It is a pre-production activity. It is the pre-
determination of manufacturing requirements such as manpower,
materials, machines, and manufacturing process.
1. Aggregate production planning
2. Master production planning
3. Material requirements planning(MRP-1)
4. Capacity planning

Activities of production control
• It is concerned with determining whether the necessary resources to
implement the production plan have been provided or not.
1. Shop floor control
2. Inventory control
3. Manufacturing resource planning (MRP-II), and
4. Just-in-time (JIT) production systems.

• Aggregate production planning:
Aggregate planning is concerned with determining the
quantity and timing of production for the intermediate future a head,
setting employment, inventory, and subcontracting.
Master production schedule:
1. The aggregate production plan must be converted into master production
schedule(MPS)
2. MPS is a listing of the products to be manufactured, when they are to be
delivered, and in what quantities.

MATERIAL REQUIREMNT
PLANNING(MRP)
• MRP is a computational technique that converts the master
schedule for final products into a detailed schedule for the raw
materials and parts used in the final pr oducts.
• Information needed for MRP:
The following informations are needed for MRP
1. Demand for all products
2. Lead times for all finished goods, components, parts and raw materials.
3. Lot sizing policies for all parts.
4. Opening inventory levels.
5. Safety stock requirements

• Inputs to MRP:
1. Master production schedule
2. Bill of materials file, and
3. Inventory record file.
BOM: designates what items and how many of each are used to make up
a specified final product.
BOM FILE: is used to compute the raw material and component
requirements for end products listed in the master schedule.

• Inventory record file:
The inventory record file contains the following three segments:
1. Item Master data segment: it provides the items identification
by part number and other data, such as lead time, cost, and
quantity.
2. Inventory Status Data: It provides a time- phased record of
inventory
3. Subsidiary data segment: It provides subsidiary data such as
purchase orders, scrap or rejects, and engineering changes.

Benefits of MRP
1. Reduced inventory levels
2. Better production scheduling
3. Reduced production lead time
4. Reduced setup cost
5. Reduced product changeover cost
6. Better machine utilization
7. Improved product quality
8. Quicker response to change in demand

Capacity planning
• Capacity planning is concerned with determining what labour and
equipment resources are required to meet the MPS
• Capacity planning is used to identify the limitations of the
production resources so that unrealistic master schedule is not
planned.

Shop floor control
• Shop floor control is concerned with monitoring the progress of
orders in the factory and reporting the status of each order to
management so that effective control can be exercised.
• FUNCTIONS OF SFC:
1. Scheduling ,
2. Dispatching, and
3. Follow-up or Expeditind
PHASES OF SFC:
1. Order release,
2. Order scheduling, and
3. Order progress

INVENTORY CONTROL
• Inventory control is concerned with:
1. Minimizing the cost of holding inventory;
2. Maximizing service to customers.
• Inventory control includes a variety of techniques for managing
the inventory of a firm.

MRP-II
• An expansion of the material requirements planning systems to
include other portions of the productive system was natural and to
be expected.
• MRP II is an integrated information system that synchronize all
aspects of the business.
• MRP II is defined as a computer based system for planning,
scheduling, and controlling the materials, resources, and supporting
activities needed to meet the MPS.

• MRP II functions:
1. Management planning
2. Customer services
3. Operations planning
4. Operations executions
5. Financial functions

Just- in- time production systems
• JIT is a management philosophy that strives to eliminate sources of
manufacturing waste by producing the right part in that place at the right
time.
• JIT also known as lean production or stockless production.
Objectives of JIT:
The JIT is applied to achieve the following goals;
1. Zero defects
2. Zero setup time
3. Zero inventories
4. Zero handling
5. Zero breakdowns
6. Zero lead time
7. Lot size of one

Benefits of JIT
• Lower inventory cost
• Lower scrap and waste costs
• Improved quality and zero defect products
• Improved worker involvement
• Higher motivation and morale
• Increased productivity
• Reduced manufacturing lead time
• Improved product design and increased product flexibility
• Adherence to delivery time

Computer integrated production planning

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