16 PRODUCTION PLANNING AND CONTROL ‘* Introduction * Need for production planning and control * Objectives of PPC * Functions of PPC + Comparison of production planning and production control * Information requirement of. PPC ‘* Production procedure # Organisation for PPC'® Centralised and decentralised PPC. 16.1. INTRODUCTION Production activity constitutes the transformation of materials into a desirable output (Products), Production consists of a series of sequential operations to produce a desirable product acceptable to customer and meets the customer demand, with respect to the quality and intended function, Production is an organised activity which has got specific objectives. “The efficiency of production system is stated in terms of its ability to produce the products with required quantity and specified quality at predetermined cost and pre-established time.” Production planning and control is a tool available to the management to achieve the stated objectives. Thus, a production system is encompassed by the four factors, i.e., quantity, quality, cost and time. Production Planning starts with the analysis of the given data, i.e, demand for products, delivery schedule, etc., and on the basis of the information available, a scheme of utilisation of firms resources like », machines, materials and men are worked out to obtain the target in the most economical way. Once the plan is prepared, then operations (execution of plan) are performed in line with they, details given in the plan, Production control comes into action if there is any deviation between, the actual and planned. The corrective action is taken so as to achieve the targets set as per plan by using control techniques. ‘Thus production planning and control can be defined as the “direction and coordination of firms resources towards attaining the prefixed goals.” Production planning and control helps to achieve uninterrupted flow of materials through ‘production line by making available the materials at right time and required quantity. ; 16.2. NEED FOR PPC . ‘The present techno-economic scenario of India emphasize on competitiveness in matafacturing. To be in competition, Indian industries have to streamline the production activities and attain the maximum utilisation of firms resources to enhance the productivity. Production planning and control serves as a useful tool to coordinate the activities of the Production system by proper planning and control system. ° Production system can be compared to the nervous system with PPC as a-brain. Production Planning and Control is needed to achieve: : 1. Effective utilisation of firms resources. z 228| or joN PLANNING AND CONTROL if 229 qo achieve the production objectives wit D paclivery. fo obtain the uninterrupted production flow i 4 Mah respect {0 quality and committed deliver ee meet customers varied demand To help the company to supply a ute. + jasis at competitive rates, Ui th respe spect to quality, quantity, cost and timeliness 300d it 800d quality products to the customer on-the continuous E pRODUCTION PLANNING AND PRODUCTION CONTROL fivton Cee is a pre-production activity. It is the pre-determination of manufacturing fi sirements such as biti materials, machines and manufacturing process. ay wild oo . oe planning is the determination, acquisition and arrangement of all, ies grees ry ‘ future production of products. It represents the design of production Zen. Apart from planning the resources, it is going to organise the production. used on the estimated demand for company’s products, it is going to establish the production sgamme t0 meet the targets set using the various resources. duction Control fspte of planning to the minute details, yet always (most of the time) it is not possible to give production 100 per cent as per the plan. There may be innumerable factors which affect deduction system and because of which there is a deviation from the actual plan. Some of the igors that affect are— {, Non-availability of materials (due to shortage, etc.). "), Plant, equipment and machine breakdown. 4, Changes in demand and rush orders. 4, Absenteeism of workers. 5, Lack of coordination and communication between various functional areas of business. this if there is a deviation between actual production and planned production, the control kssion comes into action, Production control through control mechanism tries to take corrective ‘ed and actual production. Thus production control reviews the progress ure that programmed production takes place. Ition o match the plan Ite work, and takes corrective steps in order to ens ‘essential steps in control activity are: “Initiating the production. * Progressing. #* Corrective action bas ed upon the feedback and reporting back to the Production Planning. Hit. OBJECTIVES OF PPC ; 1 Shae cste Planning of production activities to achieve the highest efficiency in produc ~ tion of goods/services. a achines, men, etc,, to achieve stated production. 2. do org duction facilities like m: y anise the produc ik ‘i eepantity and quality time and cost, i objectives w.r-t. q ||2: Optimum Scheduling of resource’. ther departments relatin : rod to achie 4. Coordinate with 0 go production to achieve regular balanced and Uninterrupted production flow. 'S:-To conform to delivery commitments. + Mater ing and control. 7 Metals planing ent eC changes in demand and rsh odes . FUNCTIONS OF PPC , . fundies oF Production Planning and controlling are depicted in the Fig. 16.1. Pre-planning230 INDUSTRIAL ENGINEERING AND PRODUCTION MANa graye is of Line of the plan, alysis of data and is an out Planning yor. alysis and product design and develop PY stage is concerned with process design (new processes and CS Saeco Policy and replacement and work flow (Plant layout). The preplanning Mar eaithemeses encermed with decision-making with respect to methods, machines and work f10 PeCt t0 availability, scope and capacity. is a macro level planning and deals with an based upon the forecasted demand, market orm CONTROL i i (Macro Level) (Micro Level) ee | Product Planning Resources Design , 4M's ee ae ae A Process Design, » | Inspecting | Flow Design | Process Planning et (Layout) ' outing) i Expediting | Forecasting : Scheduling Demand 1 Pe eS la Work Station =! Estimating Evaluation | Design H Feedback Fig. 16.1: Functions of Production Planning and Control. ‘The planning function starts once the task to be accomplished is specified, with the analysis of 4 M’s, ie., Machines, Methods, Materials and Manpower. This is followed by process planning (routing). Both’short-term (near future) and long-term planning are considered. Standardisation, simplification of products and processes are given due consideration. Control phase is effected by despatching, inspection and expediting Materials control, analysis of work-in-process. Finally, evaluation makes the PPC cycle complete and corrective actions are taken through a feedback from analysis. A good communication, and feedback system is essential to enhance and ensure effectiveness of PPC. The Main Functions of PPC 1, Materials function: Raw materials, finished parts and bought out components should be made available in required quantities and at required time to ensure the ‘correct start and end for each operation resulting in uninterrupted production. The function includes the specification of materials (quality and quantity) delivery dates, variety reduction (standardisation) procurement cand make or buy decisions. 2, Machines and equipment: This function is related with the detailed analysis of available production facilities, equipment down time, maintenance policy procedure and schedules. Concerned with economy of jigs and fixtures, equipment availability. Thus, the duties include the analysis of facilities and making their availability’ with minimum down ‘time because of breakdowns.TION PLANNING AND CONTROL, 231 his function is concerned wi Frethod with due consideration to conte analysis of alternatives dnd selection ofthe vet Res is an important aspect of PPC and deter S imposed. Developing specifications for 0%" process planning (Routing): tis concern, piction of sequence of operations. should follow to get transformed into finshed gee ath oF route whch the raw (Fixation of path of travel giving due consiae a Product. The duties include, (Breaking down of operations to define each aes ' {o) Deciding the setup time and process time foreach 0 ccaien ( gstimating: Once the overall method and sequence of operat | goa'for each operation is available, then the peatons toes re etna i Rinctalis ed out using extensive analysis of operations along ih eta out Fagg nands rd fine for operation are established using work measurement techniques, a eed Loading and scheduling: Scheduling is concerned with preparation of machine loads and | juation of starting and completion dates for each of the operations. Machines have to be loaded eect a capability of performing the given task and according to their capacity. Thus the Gulies include: © (@) Loading the machines as per their capability and capacity. |p) Determining the start and completion times for each operation. | (@) Tocoordinate with sales department regarding delivery schedules. 7, Dispatching: This is the execution phase of planning. It is the process of setting production. activities in motion through release of orders and instructions. It authorises the start of | poduction activities by releasing materials, components, tools, fixtures and instruction sheets,to “ihe operator. The activities involved are, (a) To assign definite work to definite machines, work centres and men. (b) To issue required materials from stores. © Toissue jigs, fixtures and make them available at correct point of use. (@ Release necessary work orders, time tickets, etc. to authorise timely start of operations. (€) To record start and finish time of each job on ‘each machine or by each man: 8, Expediting: This is the control tool that keeps aclose observation on the progress of the “Work, It is a logical step after dispatching which is called “follow-up” or “progress”. Tt ordinates extensively to execute the production plan. Progressing function can be divided into lie parts, ie. follow up of materials, follow up of work-in-process and follow up of assembly. The duties include: i nN . 7 (@) Identification of bottlenecks and delays and interruptions because of which the production schedule may be disrupted. : () To devise action plans (remedies) for correcting tise © i eis in line with schedule. : Tieton nar eonal tool. Though the aspects of quality control are the separate function, this is of very much important to PPC both for the execution of the current plans and its ne for future planning. This forms the basis for MNO the limitations with respects to ‘Methods, processes, etc., Which is very much useful for evaation pase | 10. Evaluation: This stage though eglected isa crucial to the improvement of productive ficiency, A thorough analysis of all the factors influencing the production planning and control Pebsig identify push ak spots and the corrective anion with epee eligi tie be effected by a feedback. The success of this step dep ee / ation gathering and analysis. ——— 232 INDUSTRIAL ENGINEERING AND PRODUCTION MANAGE ey 16.6, COMPARISON BETWEEN PRODUCTION PLANNING AND PRODUCTIOy CONTROL Production Control Production Planning Ton control will be in actio jion activity. | Production cont nv 1, Production Planning is a pre-production activity. rrodueion activity begins. hen, is with i 2. Planning involves the collection, maintenance | Control is eens producing wacation and analysis of data with respect to time | their information ft Ht eine like standards, materials and their specification, | output reports, P " ‘ale, etc, machines and their process capabilities. ves in taking correct 4 par involve Ve steps i 3. Planning is useful to anticipate the problems and | Control invol rah actual neste PS in pa ; in case the problem | case of error to mat performance agains devising remedial measure in case the pi the planned performance. ay cunittns* ‘ is a widespread activity. Inch 4, Planning is a centralised activity and includes | Control is a wiiesprete includes functions like materials control, tool control, | functions such as dispatching programming ang process planning and control. inspection, etc. : Control keeps track of the activities and sees 5. + Planning sees that all the necessary resources ack of th ‘are available to make the production at right | whether everything is going as per schedule or not. quality and time. 16.7. INFORMATION REQUIREMENT OF PPC The effectiveness of production planning and control depends to a greater extent upon the accuracy of the information it gets from other departments. The following information is vital to the success of PPC function in an organisation. The information required and its sources and the department responsible for providing the information is given below in Table 16.1. Table 16.1: Information Required for PPC Information Required Sources of Information Department 1, Production Programme The sales order or the order | Marketing department * Quantity to be produced accepted by the marketing deptt. * Delivery date ‘+ Variety and different models and special features 2 Quality Standards-Specifications | Engineering or design department | Engineering purchase and tolerances. who translate the customers needs | and stores. 1 into specifications. 3. Production materials Drawing and Bill of materials | PPC. 2 # Types of materials (BOM) Material Stock cards. * Quality and quantity le * Procurement lead time i * Stock Position : 4, Toolings Standard and special toolings.. PPC Deptt. 5. Operational Details Process sheets * ial Engineering. |; Sequence of operations Load charts Process capability of machines and | Process capability studies equipment’s i Jigs and fixtures needed Cutting parameters or Process parameters | 6 Standard times for operation and set | Work measurement data, PPC. up time, 7. Starting and finishing dates. Machine load and schedule charts. | Production. 8._ Progress of work (Status of work). | Production reports. Production.uct iON PLANNING AND CONTA, fo 233 i slants racturi AW! Soring the same product, ‘The ‘dite ts or manufacturing units even though they are gv manufacturing processes, tynes see ™4Y bE because of many reasons vine the fle is difference is the root x ane a yous, organisation structure and management pitt ems. The PPC functions norey “rent practices of production, planning and tally i ant it 7 | eon changes from industry to industry. The pres fons ae tron the tbe of hic requires all the function of PPC, os prodvotion procedure (cycle) starts with t siomer by delivering products. Production Procedure consi of: 74, Sales aie oF sales department after a thorough analysis and market flcomes out Pc ike acceptability. of the product by customers, consumers Fee a forecast wih aC esiBns. Based upon the analysis ofthe data, sales department jepues a sales forecast with breakdown of products and models as a function of time periods. pulled forecast is submitted to the management, [2 Preparation of production budget: The production budget is prepared by the finance jent in consultation with Production department. The management reviews the forecast and fe budget to take decision regarding annual quantities to be produced, | Engineering department to prepare details: The engineering department is instructed bpepare drawing, B.O.M (Bill of Materials) specifications or to check and modify the existing he customer and ends up with satisfying the needs of hoe E Production Planning activity: Production planning activity begins as soon as the ical information is received from the engineering department. The production planning fiity results in a schedule or time table of production. The inventory levels are checked in order ale procurement activity of materials. Make or buy decision is made. The production Hating section supplies the compete data on methods, process sheets, machine loading and Poluction schedule to the dispatching section, 5, Dispatching. Detailed production orders are dispatched to the shop specifying what, how Biwhen and where the operations are to be performed. ['Progressing. Control action is exercised throughout the manufacturing period and Paes is continuously compared with planned schedule so that suitable corrective steps are Renin case of difference between planned and actual production. | 7 Inspeection. Inspections are carried out and quality control ensures that the desired Pallcations are in conformance with the actual. | . | 8 Evaluation, Evaluation is carried out after and before production so that corrective actions Edevised to improve methods, down times and finally the management gets reports from both Plustion and financial departments. 9. The fi 1 is transferred to stock. Wi) Fctly te noes ivered to the customer—Thus, the production procedure requires 1 Final tis deli ; f Eoordinaed eee Wf all the functional departments of the organisation. The production [ats shown in Fig, 162 *.0R FR PPC 1 ca & RGANISATION ae ‘and control department in the organisation depends upon many Bors sich ction Peentralisation desirable, composition of internal structure of PPC, ae gree ement policy. Pens a ee ete type of production with higher degree of automation, the plan- ri ig} | ing work is carried out by line staff. There may not be a formal planning department. rk is c i234 INDUSTRIAL ENGINEERING AND Customer Te he ‘SALES FORECAST Semel on eared coach, emprocantte peepee rou breakdown of products as function of time \CTION BUDGET PREPARATION OF PRODU : for review Prepared by Finance Deptt. and sent to Mt. and decision-making PREPARATION OF DETAILS BY ENGG. DEPT. Drawings, part list (B.O.M.) specificat PRODUCTION PLANNING ‘Supplies complete data to dispatching section AUTHORISARTION FOR PRODUCTION Despatch of production orders 1 CONTROL FUNCTION Progress is compared with the plan on the continuous basis INSPECTION, QUALITY CONTROL ‘To ensure the production of items as per the specifications + EVALUATION OF PRODUCTION SYSTEM ‘And Feedback on improvements + Finished Goods Stock en Se DISPATCH TO CUSTOMERS Fig. 16.2: Production procedure. a PRODUCTION MANAGE yay 6i Jon PLANNING AND CONTRO, yor 235 ¢ e J proxtct type of layout w 1 Pye part of manufacturing department itsetp bndependent PPC department ig to pene A jot variety iS More, requires ditte here the Sequence of cel OPEations is prefixed, then PPC may Set-up if each s Product requires varying capacity 5 TEN seque fone ith eine capacity, porarate department with a PPC ject sth tic of Operations with a functional layout, pss ng directly to the works manager should ist sod and Decentralised ppc ponte ing the functions of i ised planning ions of product F { ang is more effective in oy tion planning are Controlled by a staff specialist. 5 se of multi i Aan ; pe ihe burden of plaming tron. i Product, multi-plant organisations and it vay vec mstion to allow them to concentrate on fu wv) , aan he ing. The decentralised planning involves the line staff in planning the producti and ing 0 take away the majority oftheir time ig Performing functions, Be degree of ezntatzation i secommended for multiproduct (large Variety), multiple iurge Workforce, ree of centralisation is preferred, for the organisations having ed sequence of operation and having small wen sai ssi ation is shown in Fig, 16.3. orkforee. The typical organisation for PPC GM. (Plant) aD Production PPC Quality Controi] ~ | Maintenance r ee, ici atl | | Scheduting | [Despatching Program l Fig. 16.3: Typical organisation for PPC in a fim, ) " MANUFACTURING METHODS AND PPC Production-Functions of PPC Materials are purchased on receipt of the order. , [andard tools are stocked and special tools are either made in house or purchased from Sutside, Potess planning activity normally does not exist. Based upon the drawings and specifica: "supervisor decides the work methods, fixes up the machines and estimates time for Jauiletion of the operation. r Schedule is reparea to mark the beginning and finish ofeach activity. The day-to-day uling is at the descretion of the supervisor. 'tessing is through the meeting with the supervisors. Et Production-Functions of PPC Xe more complex. ‘ ; Musas cone oe ro i t and systematic stock replenish 1 are more important and sy plenishment AYsiq2!S Control and tools cont Vat ts essential. Deed Toute sheets (Process sheets) are prepared, I | | }