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Production planning and control
This document discusses production planning and control. It describes production planning and control as concerned with planning and controlling all aspects of manufacturing, including materials, scheduling machines and people. The objectives are timely supply of finished goods, maximum utilization of resources, and effective production control. Key functions of production planning and control include routing, scheduling, dispatching, and follow up to plan and monitor the production process. The document also distinguishes between batch and job production.
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Production planning and control
- 1. Productionplanning andcontrol GUIDE: B.BALAJI DR. BLAKSHMI V. KARTHEEK S. JEEVAN 1
- 2. Contents What isproduction planning and control? Objectives of production planning and control Functions of production planning and control routing scheduling dispatching follow-up Scrap and surplus Batch and job production 2
- 3. What is productionplanning and control? A production planning and control system is concerned with planning and controlling of all aspects of manufacturing, including materials, scheduling machines and people. 3
- 4. Objectives of productionplanning and control Timely supply of finished goods. Maximum utilization of material and human resources. Effective control of production process. Helps to produce the goods on the basis of demand. 4
- 5. Process of ProductionPlanning Materials Planning Operations Planning Cost Planning 5
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- 8. How it isdone ? 8
- 9. Cost planning Cost Material LabourOther Expenses Direct Indirect Direct Indirect Direct Indirect Over Heads FOH AOH SOH DOH 9
- 10. Production planning andcontrol stages • First step • Related to production planningRouting • Second step • Related to production planningScheduling • Third step • Related to production controlDispatching • Final step • Related to production controlFollow-up 10
- 11. Routing Determines theexact path which will be followed in production. It is a selection of 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. 11
- 12. Objectives of routing Determines the sequence of manufacturing operations. Ensures the strict adherence to the sequence determined. Strives for the best possible and cheapest sequence of operstions. Influences the design and layout of the factory building with a view to get a quick and better production results. Also influences the installation of plants and factory for better results. 12
- 13. Routing procedure Decidingwhat part to be made or purchased. Determining materials required. Determining manufacturing operations and sequence. Determining lot sizes. Determining scrap factors. Analysis of cost of production. Preparation of production control forms. 13
- 14. Scheduling Scheduling is thedetermining 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. Kimball and Kimball words: 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. 14
- 15. Types of schedules Masterscheduling: It is a breakup of production requirements. 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 given process. 15
- 16. Dispatching Dispatching refers tothe 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. 16
- 17. Dispatching procedures Centralised dispatching: Underthis orders are directly issued to workmen and machine. It helps in exercising effective control. Decentralised dispatching: Under this procedure all work orders are issued to the foreman or dispatch clerk of the department or section. It suffers from difficulties in achieving co-ordination among different departments. 17
- 18. Follow up &expediting 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. 18
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- 23. Scrap and surplus Scrap: Wastethat either has no economic value or only the value of its basic material content recoverable through recycling. Scrap management: Manufacturers do not intend or plan to make scrap, but depending on the industry and the product, scrap is produced. But depending on the type of scrap, it may be re- cycled back into the production process or sold as a revenue generating product or simply non-recyclable and the enterprise has to pay for an outside contractor to dispose of the product. 23
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- 25. Reasons for Generationof Scrap Change in Design, Method or Product Mistakes in procurement Wrong planning decisions Wasteful processes in production Inevitable waste during the adjustment of the equipment Overall absence of efficiency 25
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- 27. Waste management Reduce Reuse Recycle Recovery Landfill Lowering theamount of waste produced Using material repeatedly Using material to make new products Recovering energy from waste Safe disposal of waste to landfill 27
- 28. Batch Production A manufacturingprocess in which components or goods are produced in groups (batches) and not in a continuous stream. Characteristics: 1. Shorter production runs. 2. Plant and machinery are flexible. 3. Plant and machinery set up is used for the production of item in a batch and change of set up is required for processing the next batch. 4. Manufacturing lead-time and cost are lower as compared to job order production. 28
- 29. Job Shop Production Ajob shop is a type of manufacturing process in which small batches of a variety of custom products are made for other businesses. Characteristics: 1. High variety of products and low volume. 2. Use of general purpose machines and facilities. 3. Highly skilled operators who can take up each job as a challenge because of uniqueness. 4. Large inventory of materials, tools, parts. 5. Exhaustive planning is essential for sequencing the requirements of each product, capacities for each work centre and order priorities. 29
- 30. Reference: https://www.managementstudyguide.com/production-planning-and- control.htm https://www.tandfonline.com/toc/tppc20/current http://www.yourarticlelibrary.com/management/planning- management/production-planning-and-control-meaning- characteristics-and-objectives/53145 https://www.educba.com/production-planning-and-control-ppc/ http://www.managementguru.net/batch-and-jobshop-production/ 30
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Editor's Notes
- #10 FOH: factory over head AOH: administrative over head SOH: section over head DOH: departmental over head
- #12 ROUTING IS A SPECIFICATION OF THE FLOW SEQUENCE OF OPERATIONS AND PROCESSES TO BE FOLLOWED IN PRODUCING A PARTICULAR MANUFACTURING LOT.
- #29 Benefits 1. Better utilisation of plant and machinery. 2. Promotes functional specialisation. 3. Cost per unit is lower as compared to job order production. 4. Lower investment in plant and machinery. 5. Flexibility to accommodate and process number of products. 6. Job satisfaction exists for operators. Limitations 1. Material handling is complex because of irregular and longer flows. 2. Production planning and control is complex. 3. Work in process inventory is higher compared to continuous production. 4. Higher set up costs due to frequent changes in set up.
- #30 Benefits 1. Because of general purpose machines and facilities variety of products can be produced. 2. Operators will become more skilled and competent, as each job gives them learning opportunities. 3. Full potential of operators can be utilised. 4. Opportunity exists for Creative methods and innovative ideas. Limitations 1. Higher cost due to frequent set up changes. 2. Higher level of inventory at all levels and hence higher inventory cost. 3. Production planning is complicated. 4. Larger space requirements.