Production planning and
control
Levels in Production Planning and
Control
Strategic planning
Aggregate planning
Shop floor planning
Planning devices
Gantt chart,
Master Production Schedule
PERT/CPM
Production Planning and Control (PPC)
Production planning and control is the most
important system of the production operation.
PPC aims at efficient utilization of material,
resources, people and facilities through
planning, coordination and controlling the
production activities that transform the raw
materials into finished products or
components at a most optimal manner.
All the activities in the manufacturing or
production cycle must be planned,
coordinated, organized and controlled to its
objectives.
Definition
◦ “PPC is the coordination of a series of
functions according to a plan which
will, economically utilize the plant
facilities and regulate the orderly
movement of goods through their
entire manufacturing cycle, from the
procurement of all materials to the
shipping of finished goods at a
predetermined rate”
- Charles A. Koepke
Classification of PPC
1. Materials : Procurement, Storage, inventory
2. Methods : Process, Operations and their sequence
3. Machines : Allocation of Jobs
4. Routing : Flow of work
5. Estimating : Operations time
6. Scheduling : timetable of production, priority sequence
7. Dispatching : authorizing start of operations
8. Expediting : Follow up and keeping records of progress
9. Evaluating : Assesing the performance effectiveness
Objectives of PPC
1. Nature of the inputs
2. Quantity of inputs
3. Proper coordination
4. Better Control
5. Ensures uninterrupted production
6. Capacity Utilization
7. Timely Delivery
Functions of Production planning and control
PPC
Production Production
Planning Control
Planning Dispatching
Routing Follow-up
Scheduling Inspection
Corrective
Loading
Measures
Production Planning
◦ It is the planning of production and
manufacturing modules in a company or
industry.
◦ It utilizes the resource allocation of activities
of employees, materials and production
capacity, in order to serve different
customers.
◦ Functions
Planning
Routing
Scheduling
Loading
Production Controlling
◦ Production control is the activity of
monitoring and controlling any
particular production or operation.
◦ Production control is often run from a
specific control room or operations
room.
◦ Functions
Dispatching
Follow up
Inspection
Corrective Measures
Levels of PPC
The Planning and Controlling of
Production Process can be done in
different levels and which can be
classified as
Strategic Planning
Aggregate Planning
Shop floor Planning
Strategic Planning
It is process of thinking though the
organizations current mission and
environment and setting a guide for
future decisions and results.
Usually, Strategic Planning can be done
for the long period of time.
e.g. Technology forecasting and choice
of appropriate technology for the long
range time horizon.
Framework of Strategic Planning and Implementation
Org.
Control
Strategy Org. HR Output
Structure Management
Org.
Culture
Components of Strategic Planning
◦ Vision
◦ Mission
◦ Objectives
◦ Policies
◦ Environmental Analysis
Internal Analysis
External Analysis
Tools of Strategic Planning
◦ SWOT Analysis
◦ PEST Analysis
◦ Balanced Score Card
◦ Porters Five Force Model
◦ Growth Share Matrix
Aggregate Planning
Aggregate planning is the process of
developing, analyzing, and maintaining a
preliminary, approximate schedule of the
overall operations of an organization.
The aggregate plan generally contains
targeted sales forecasts, production levels,
inventory levels, and customer backlogs.
This schedule is intended to satisfy the
demand forecast at a minimum cost.
Aggregate planning involves
translating long-term forecasted
demand into specific production rates
and the corresponding labor
requirements for the intermediate term.
The process of determining output
levels of product groups over the
coming 6 to 18 months on a weekly or
monthly basis ; the plan identifies the
overall level of outputs in support of
the business plan.
Objectives
•Minimize cost / maximize profits
•Maximize customer service
•Minimize inventory investment
•Minimize changes in production
rates
•Minimize changes in workforce levels
•Maximize utilization of plant and
equipment
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Aggregate Planning Process
Determine Determine
Identify policies
demand for capacities for
that are pertinent
each period . each period .
Develop
Determine units Select the best
alternative plans
costs for units plan that satisfies
and compute
produced . objectives
costs for each.
Aggregate Planning Strategies
A level strategy seeks to produce an aggregate plan
that maintains a steady production rate and a
steady employment level.
Level
strategy Chase
strategy
A chase strategy implies matching demand and
capacity period by period.
Shop floor planning
Shop floor planning and control include the
principles and techniques that are necessary
to plan, schedule, control and evaluate the
effectiveness of production operations.
Shop floor activity integrates the activities of
the factors of production of a manufacturing
facility such as workers, machines, and
material handling systems.
Shop-Floor Decisions
Master Product Design
Production and
Schedule (MPS) Process Plans
Material Capacity Order-
Requirements Requirements Processing or
Plan (MRP) Plan (CRP) Routing Plans
Planned Work Center Assignment of
Order Releases Loading and Orders to
Report Overtime Plan Work Centers
Day-to-Day Scheduling and Shop-Floor Decisions
Common Shop Floor Control
Activities
• The production control department controls
and monitors order progress through the
shop.
– Assigns priority to orders
– Issues dispatching lists
– Tracks WIP and keeps systems updated
– Controls input-output between work centers
– Measures efficiency, utilization, and productivity
of shop
Shop Floor Planning and
Control
• Input-Output Control
• Gantt Chart
• Finite and Infinite Loading
• Forward and Backward Scheduling
PPC Devices
Gantt chart
Master Production Schedule
PERT/CPM
The Gantt Chart
The Theory of
Henry Laurence
Gantt
The Purpose of a Gantt Chart:
• To illustrate the relationship between project
activities & time.
• To show the multiple project activities on one chart
• To provide a simple & easy to understand
representation of project scheduling
Example of a simple Gantt Chart
You will see that a Gantt Chart is basically a Bar Chart.
Representing project activities against time.
Steps to Creating a Gantt
Chart:
1.Determine Project start date and deadline.
2.Gather all information surrounding the list of
activities within a project – the Work Breakdown
Structure may be useful for this.
3.Determine how long each activity will take
4.Evaluate what activities are dependant on others
5.Create Graph shell including the timeline and list of
activities.
6.Using either Forward Scheduling or Backward
Scheduling, Begin to add bars ensuring to include
dependencies and the full duration for each activity.
Example: Project Start Date = 1st September
Deadline = 20th December
Consider the following:
Activity Duration Dependant On
1. Read Literature 21 days N/A
2. Conduct Literature Review 14 days 1
3. Arrange Client Visits 7 days N/A
4. Prepare Surveys 5 days 1 and 3
5. Conduct Surveys 14 days 4
6. Analyse Surveys 10 days 5
7. Write Up 30 days 1,2,3,4,5 and 6
Master Production Schedule
A master production schedule is a statement
of what will be made, how many units will be
made, and when they will be made.
It is a production plan, not a sales plan.
The MPS considers total demand on a plant’s
resources, including finished product sale,
spare parts needs, and interplant needs.
The MPS must also consider the capacity of
the plant and the requirements imposed on
vendors.
All planning for materials, manpower, plant,
equipment, and financing for the facility is
driven by the master production schedule.
Objectives of MPS
• To provide top management
with a means to authorize,
and control manpower levels,
inventory investment, and cash flow.
• To coordinate marketing, manufacturing,
engineering, Finance activities by a
common performance objective.
• To reconcile marketing and manufacturing
needs.
• To provide an overall measure of
performance.
• To provide data for material and capacity
planning.
Functions of MPS
1.Translating aggregate plans
2.Evaluating alternative master schedules
3.Effectively utilizing the capacity
4.Generating material requirements
5.Generating capacity requirements
6.Facilitating information processing
7.Maintaining valid priorities
Master Production Schedule
