Note for Production Planning and Control - PPC by SHAIK ABDUL LATHIF

Topics ( 3 )

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PRODUCTION PLANNING AND CONTROL UNIT-I INTRODUCTION : Definition – Objectives of production Planning andControl – Functions of production planning and control – Elements ofproduction control – Types of production – Organization of productionplanning and control department – Internal organization of department – Product design factors – Process Planning sheet. UNIT-II FORECASTING – Importance of forecasting – Types of forecasting,their uses – General principles offorecasting – Forecasting techniques– qualitative methods and quantitive methods. UNIT-III INVENTORY MANAGEMENT : Functions of inventories – relevantinventory costs – ABC analysis – VED analysis – EOQ model – Inventorycontrol systems – P–Systems and Q-Systems. Introduction to MRP & ERP, LOB (Line of Balance), JIT inventory, andJapanese concepts, Introduction to supply chain management. UNIT-IV ROUTING : Definition – Routing procedure – Route sheets – Bill ofmaterial – Factors affecting routing procedure. Scheduling – definition –Difference with loading. SCHEDULING POLICIES : Techniques, Standard scheduling methods. Line Balancing, Aggregate planning, Chase planning, Expediting, controllingaspects. UNIT-V DISPATCHING : Activities of dispatcher – Dispatching procedure –follow up – definition – Reason for existence of functions – types of followup, applications of computer in production planning and control. TEXT BOOKS: 1. Samuel Eilon, “Elements of Production Planning and Control”, 1st Edition, Universal Publishing Corp., 1999. 2. Baffa&RakeshSarin, “Modern Production / OperationsManagement”, 8th Edition, John Wiley & Sons, 2002. 1

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UNIT -I INTRODUCTION Production Planning is a managerial function which is mainly concerned with the following important issues: What production facilities are required? How these production facilities should be laid down in the space available for production? and How they should be used to produce the desired products at the desired rate of production? Broadly speaking, production planning is concerned with two main aspects: (i) routing or planning work tasks (ii) layout or spatial relationship between the resources. Production planning is dynamic in nature and always remains in fluid state as plans may have to be changed according to the changes in circumstances. Production control is a mechanism to monitor the execution of the plans. It has several important functions: • • • • • Making sure that production operations are started at planned places and planned times. Observing progress of the operations and recording it properly. Analyzing the recorded data with the plans and measuring the deviations. Taking immediate corrective actions to minimize the negative impact of deviations from the plans. Feeding back the recorded information to the planning section in order to improve future plans. OBJECTIVES AND BENEFITS o • Minimize costs / maximize profits o • Maximize customer service o • Minimize inventory investment o • Minimize changes in production rates o • Minimize changes in work-force levels o • Maximize the utilization of plant and equipment FUNCTIONS OF PRODUCTION CONTROL • • • Production function encompasses the activities of procurement, allocation and utilization of resources. The main objective of production function is to produce the goods and services demanded by the customers in the most efficient and economical way. Therefore efficient management of the production function is of utmost importance in order to achieve this objective. 2

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A block diagram depicting the architecture of a control system is shown in Figure. Figure 1: Architecture of Control System Important functions covered by production planning and control (PPC) function in any manufacturing system are shown in Table1along with the issues to be covered. 3

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Table 1: Production Planning and control Functions Functions Issues to be covered Product Customer needs, market needs, availability of similar product, demand-supply gap, Design& Developme functional aspects, operational aspects, environmental aspects etc. nt Quantity, Quality, Demand Demand pattern. Forecasting Capacity Planning Equipment s Selection & Maintenan ce Tooling Selection Material Selection & Manageme nt Process Planning No. of machines, No. of tooling, workers, No.of flow lines, Quantity, Quality and rate of production, demand pattern. No. of machines, type of M/c, Quality aspects, Quantity aspects, rate of production, Cost of equipments, support from the supplier, maintenance policy, storage of spare parts. Compactability between w/c steels, No. of tools, their cost, their material etc, storage policy. Types, specification, quality aspect, quantity aspect, cost, supplies reputation , lot size, inventory levels, setup cost, mode of transportation etc. Generation of manufacture instruction, selection of M/c, tools, parameters, sequence etc. Division of work load, assignment of tasks, uniform loading, matching between Loading capability & capacity with job requirements. Path selection for material movement as per the process plan and loading, minimum Routing material handling and waiting time. Scheduling Time based loading, start and finish times, due dates, dispatching rules, re-scheduling. Expediting Operation Scheduling and order and progress reporting. Types of Production Systems A production system can be defined as a transformation system in which a saleable product or service is created by working upon a set of inputs. Inputs are usually in the form of men, machine, money, materials etc. Production systems are usually classified on the basis of the following: Type of product, Type of production line, Rate of production, Equipments used etc.     4