PRODUCTION PLANNING

AND CONTROL
DISCRETE PARTS MANUFACTURING
Discrete and Continuous production of a prdt

Discrete: Production of individual items

Subdivided: Mass,Batch and Job shop

Scheduling
JOBBING SHOP REPODUCTION
Very low volume

Very low level of standardization (few common components)

Manufacturing firm requires a highly flexible production capability

Flexible equipment highly skilled work force

Make to order/engineer to order policy

Eg: subcontract machine shop.

BATCH PRODUCTION
Medium volume

Production of products in small batches or lots by a series of operations ,each

operation typically being carried out on the whole batch before any subsequent
operation is started on that batch

Production system: reasonably flexible

Uses general purpose equipment inorder to accomodate varrying customer

requirements and fluctuations in demand

Due to different varriety: has same complexity of that of jobbing shop

Eg: manufacture and assembly of machine tools

MASS PRODUCTION
Larger volume production runs of relatively few products

Highly standardized

Demand is stable

Product design changes are very little

Highly specialized dedicated machines and associated tooling

Make o stock manufacturing enviornment

TOPOLOGY OF MANUFACTURING SYSTEMS
Make to stock

Assemble to order

Make to order

Engineer to order
MAKE TO STOCK
IMPLIES MANUFACTURE OF PRODUCTS BASED ON THE KNOWN AND
PREDICTABLE DEMAND PATTERN

Interface with customer is rather distant

Production volume of each sales unit is high

Customer delivery time : short and determined by the availability of finished goods

Finished goods inventory acts as a buffer against uncertain demand and stock
outs
ASSEMBLE TO ORDER
Uses same core assemblies for products ,has the capability to vary other
components of the final assembly

Contact with customer only at the sales level

Delivery time: medium to low and availability of major subassemblies

Demand uncertainty is handles by overplanning components and subassemblies

product routing is almost fixed

No final product inventory buffer exists and customer has limited input into the
design of the product
MAKE TO ORDER (MTO)
Manufacturing facility has many of the base components available along with the
engineering designs but the product is not actually completely specified

Manufacturing of the product begins upon receipt of a customer order and the
configuration of the product is likely to change from the initial specification during
the course of processing.

Interaction with the client is extensive ,nornmally involving sales and engineering,
while the delivery time ranges from medium to large.

Promise for completion of orders is based on the available capacities in

manufacturing and engineering
ENGINEER TO ORDER
Extension of the MTO system with the engineering design of the product based on
customer requirements and specifications.

Same characteristics but customer interaction is grater

One of a kind products are engineered to order

CLASSIFICATION OF PMS DECISIONS
Success of manufacturing-- dependent on the translation of the future vision of the business through all
layers in the organization

Lack of smooth flow of information

Overview of this production management systems architecture and outline it in terms of three main
approaches,namely

● Strategic (1-5 yrs)

● Tactical and (1 month -3 yrs)
● Operational(real time to one week)

Three levels: different planning horizons -length of these planning horizons vary---depending on which
production environment one is operating in.
PMS architecture

-PMS architecture reflects a situation where a factory has

been subdivided into a series of group technology based
cells, where each cell is responsible for a family of
products,assemblies or components

-PMS is managed by a production activity control system

-Factory coordination module ensures that the individual

cells interact to meet an overall production plan.
BUILDING BLOCKS OF PMS ARCHITECTURE

BUSINESS PLANNING:

-Plans that are necessary to drive the sales,manufacturing and financial activities of an organization
-Markets to be addressed,products to be manufactured,the required volumes and resources and financial
impact
MASTER PRODUCTION SCHEDULING:

Statement of the anticipated manufacturing schedule for selected items by quantity per planning period.

It is the listing of the end items that are to be produced,quantity of each item to be produced and when they
are ready for shipment.
REQUIREMENTS PLANNING
Resides in the tactical level of the PMS architecture.

Main function: take the build plan from the master schedule and explode the items in the MPS into its
constituent components

Achieved using Bill of materials (BOM),subassemblies and parts which makes the product and the
relationship between them.

RP process results in a series of scheduled planned orders for each assembly,subassembly and component in
the BOM.

Much more is required

Factory coordination
Set of procedures concerned with the planning and controlling of the flow of products at a plant level.
These procedures have close links with the manufacturing systems design task.

Function: is to manage the implementation of the MPS throughout the factory.

Transition from
RP tactical planning to FC and PAC
short term or
operational planning
and control

Ensure MPS (at RP stage) is realized across workcells

Complexity reduces- if production environment is designed efficiently

PRODUCTION ACTIVITY CONTROL (PAC)
At lowest level

Describes the principles and techniques used by the management to plan in the short term,to control and to
evaluate the production activities of the manufacturing organization

Operates in a very short time horizon (one week-real time)

 THREE BASIC LEVELS IN WHICH DECISION IS MADE:

STRATEGIC PLANNING: FACILITIES DESIGN

-Policy formulation,capital investment ,physical facilities design
-Long term growth and diversification strategies
-Responsible for maintaining the competitive capabilities of the firm,determining its rate of growth and
eventually its success

● Determining the products to be designed ,developed and manufactured

● Matching products to specific market sectors and hence meeting customer expectations
● The overall design and development of the physical manufacturing system itself
MANAGEMENT CONTROL (TACTICAL
PLANNING)
Process by which managers assure resources are obtained and used effectively and efficiently in the
accomplishment of the organization’s objectives

Decisions are re-planned on a frequent basis

● Effective resource utilization and allocation in product design,development and manufacture

● Effective budgeting processes,frequently covering a one to three year time horizon
● Demand management,MPS and aggregate production planning
OPERATIONAL CONTROL:DETAILED PRODUCTION
SCHEDULING
Day to day operational and scheduling decision making process: operational control

● The assignment of customer orders to individual machines

● The sequencing of these orders in the workshop
● Inventory accounting and inventory control activities
● Despatching,expediting and processing of orders
● Vehicular scheduling