Note for Industrial Engineering and Operation Research - IEOR By Engineering Kings

Topics ( 7 )

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BME 316: INDUSTRIAL ENGINEERING AND OPERATION RESEARCH (M) MODULE- I – CHAPTER- 1: PRODUCTION PLANNING & CONTROL (PPC) 1. Definition & objective of PPC Introduction: Production is an organized activity of converting raw materials into useful products. But before starting the actual production process planning is done –  To anticipate possible difficulties.  To decide in advance – how the production processes be carried out in a best & economical way to satisfy customers. However, only planning of production is not sufficient. Hence management must take all possible steps to see that plans chalked out by the planning department are properly adhered to and the standard sets are attained. In order to achieve it, control over production process is exercised. Objective: Therefore, the ultimate objective of production planning and control is to produce products of  right quality  in right quantity  at right time By using the best and least expensive methods/procedure. Definition: PPC may be defined as the direction and co-ordination of the firms materials and physical facilities towards the attainment of pre-specified production goals in the most efficient and economical way.

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Function of PPC: The various functions of PPC dept. can be systematically written as: Prior planning forecasting Order writing Product design information Active planning Process planning & routing Materials req. planning tools req. planning Loading scheduling 1. Planning phase Action phase – Dispatching Progress reporting Control phase Corrective action Explanation of each term (a) Forecasting: Estimation of quality & quantity of future work. (b) Order writing: Giving authority to one or more persons to do a particular job. (c) Product design information: Collection of information regarding specification, bill of materials, drawing. (d) Process planning and routing: Finding the most economical process of doing work and then deciding how and where the work will be done? (e) Materials planning: It involves the determination of materials requirement. (f) Tools planning: It involves the requirements of tools to be used. (g) Loading: Assignment of work to men & m/c. (h) Scheduling: When and in what sequence the work will be carried out. It fixes the starting and finishing time for the job. (i) Dispatching: It is the transition from planning to action phase. In this phase the worker is ordered to start the actual work.

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(j) Progress reporting: i. Data regarding the job progress in collected. ii. It is compared with the present level of performance. (k) Corrective action: Expediting the action if the progress deviates from the planning. (c) Aggregate Planning Intermediate range planning which is done for a period of 3-12 months of duration is called Aggregate Planning as obvious from the following diagram. Planning process ↓ Long range planning ↓ Intermediate range planning (=aggregate (= strategic planning)(for planning)(for 3-12 1-5 years of duration) months) ↓ Short term planning (for scheduling and planning for day to day shop floor activities). (for 1-90 days) Aggregate plans acts as an interface (as shown below by planning hierarchy) between strategic decision and short term planning.

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Planning hierarchy Strategic decision (1-5 months) ↓ Aggregate planning (3-12 months) ↓ Short term planning (1-90 days) Aggregate planning typically focuses on manipulating several aspects of operations –     Aggregate production volume Inventory level Personal level Machinery & other facility level To minimize the total cost over some planning horizon while satisfying demand and policy requirements. In brief, the objectives of aggregate planning are to develop plans that are feasible and optimal. Aggregate Planning ↓ Aggregate production planning (it indicates the level of output) ↓ Aggregate capacity planning (keep desired level)