Operations Management Production Planning & Control William J.

Stevenson

8th edition

Production Planning & Control An Overview

Production Planning & Control

In any organization, if Operations is the body then Production System is nervous system & Production Planning & Control is the brain Ray Wilde

Objectives of PPC
1.

To maintain the delivery schedule

2. 3. 4. 5. 6. 7. 8. 9.

10.
11. 12.

To ensure maximum utilization of all resources To ensure production of quality products To minimize manufacturing cycle time To maintain optimum inventory level To maintain flexibility in manufacturing operations To coordinate with various departments To plan for plant capacities for future requirements To ensure effective cost control and cost reduction To prepare production schedule To establish routes (paths) To contribute towards profit maximization

Objectives of Operations Management

Operations consists of sequence of activities to achieve highest efficiency through Right Quantity Right Quality Right Time Right Place Right Method To achieve these objectives Operations Management employs a function known as Production Planning & Control (PPC) a management tool to coordinate ALL manufacturing activities

Factors Determining PPC Procedure

Volume of Production Nature of Production Processes

Manufacturing to Order (may or may not be repeated at regular intervals. Examples

Boilers, Cranes, Airplanes)

Manufacturing for Stock & Sell (under repetitive batch or mass production. Examples Automobiles, Watches, Medicines etc.) Manufacturing for Stock & Sell (under continuous process manufacturing. Examples Chemical, Synthetic Yarn, Paper etc)

Production Planning & Control

Three Stages of PPC Planning (sometimes referred to as Pre-

planning) The choice from several alternatives of the best means of utilizing the available resources

Operations

(sometimes referred to as

Planning) Performance in accordance with the details set out in the production plan

Control
Monitoring the performance through feedback mechanism

PPC Functions

What to Produce

How to Produce

Product Planning and Development including Product Design Process Planning, Material Planning, Tools Planning etc. Aggregate Planning, Facilities / Capacity Planning, Sub-contract / Outsource Planning (Make / Buy Decisions) Production Scheduling and Machine Loading Manpower Planning

Where to Produce
When to Produce

Who will Produce

How much to Produce

Planning for Quantity, EBQ etc.

Difference Between Production Planning & Production Control

Production Planning

Production Control

A pre-production activity Involves collection, maintenance & analysis of data with respect to:

Time Standards Materials & Specifications Men & their Capabilities Machine & their Capabilities

Will be in action after production begins Is concerned with communication of information and producing reports like

Output Reports, Productivity Reports, Rejection Reports, etc. includes functions like dispatching programs, inspection etc. keeps track of activities & sees that whether not everything is moving as per plan and schedule.

Centralized activity:

Decentralized activity:

includes functions like Materials Control, Tools Control, Scheduling etc. ensures that all resources are available to make the production of right- Quality, Quantity, Cost & Time.

Functions of PPC
Scheduling PRE-PLANNING

PLANNING (MICRO LEVEL) Planning Resources (4 Ms) Process Planning (Routing) Estimating

CONTROL Dispatch Inspection Expediting

(MACRO LEVEL) Product Design

Process Design
Flow Design Demand Forecasting Work Station Design

(Man, Machine, Materials, Methods)

Scheduling

Evaluation

Feedback

Feedback

PPC Functions
Production Planning & Control

Production Planning
1. Estimating 2. Routing

Production Control
1.Dispatching 2.Expediting 3.Inspection 4.Evaluation 5.Corrective Action

3. Scheduling
4. Loading

Production Planning

Estimation

Operation Times to fix performance standards - workers and machines Materials Requirement Production Budget, Capital Equipment Budget & Manpower Budget

Routing (Route / Operation Sheet)

Process of determining the sequence of operations Routing determines what work must be done, where and how? Determining flow of work, material handling in the plant Takes into account plant layout, temporary storage locations for raw materials, components and semi finished goods (WIP), and of materials handling systems.

Production Planning

Loading

Allocation of jobs to machines in conjunction with Routing with due consideration for machine capacity Priority for jobs

Scheduling

Provides time table of manufacturing activities Ensures parts, sub-assemblies and finished products are completed as per required delivery dates Ensures balanced load on all work centres

Elements of Scheduling

Demand Forecast Aggregate Planning Production Plan Master Production Schedule (MPS)

Production Control

Dispatching
Action Phase

Setting production activities in motion through the release of orders (work orders) and instructions in accordance with the previously planned time Schedules and Routings Execution of the Planning functions Gives necessary authority to start a particular work which has already been planned under Routing and Scheduling functions

Production Control
Expediting / Progressing / Follow Up

Ensures that work is carried out

as per plan delivery schedules are met

Includes activities such as status reporting, attending to bottlenecks and removing the same Controlling deviations from planned performance levels Coordinating with Purchase, Stores, Tool Room, Maintenance etc. Departments Modifying the production plans and re-plan if necessary

Need for Expediting may arise due to Delay in supply of materials Excessive absenteeism Changes in design specifications Changes in delivery schedules initiated by customers Break down of machines or tools, jigs and fixtures Errors in design drawings and process plans

Production Control

Inspection

Maintenance of quality of product / services Evaluating the efficiency of the processes, methods and labour so that improvements can be made to achieve the quality standards set by product design

Evaluating
The objective of evaluation is to improve performance Performance of machines, processes and labour is evaluated for further improvement

Measuring Effectiveness of PPC Function

Delivery
Inventory Level

Comparison of Planned v/s Actual

Performance

Overtimes Hours,
Machine Utilization Ratios

etc.

Sequencing

When several jobs compete for completion for the capacity of a work center, a question of sequencing arises.
Question is answered by determining the priority for all jobs waiting in the queue by applying priority sequencing rules

Single-Criterion Priority Sequencing Rules

First Come First Served (FCFS) Last Come First Served (LCFS) Shortest Processing Time (SPT) / Shortest Operation Time (SOT) / Minimum Processing (MINPRT)

Longest Processing Time (LPT) / Longest Operation Time (LOT)

Least Slack Job (LS) First / Min. Slack Job First (MIN SLACK) Preferential Customer Order (PCO) Random Selection (RS)

Cost Over Time (COVERT)

Johnsons Rules / Algorithm

Questions Please?

End of Unit

Thank you