NAME = HAOPU HAOKIP
ROLL NO = 17107022
SEM = VII
YEAR = 4rd
SUB = INDUSTRIAL ENGG &
OPERATION RESEARCH
PPT TOPIC = PRODUCTION
PLANING
Production Planning
Production Planning (PP) is the lifeblood of any
manufacturing firm. It entails finding the delicate tradeoff
between satisfying customers and managing suppliers.
Production planning is gradually becoming one of the most vital activities of
an organization's operations. It is strategic for every establishment, no
matter how large or how small to embrace production planning in some
form. Production is a process or procedure developed to transform a set of
inputs like men, materials, capital, information, and energy into a specified
set of output like finished products and services in proper quantity and
quality, thus achieving the objectives of an enterpris
Production planning, on the other hand, is a sequential step taken within a manufacturing setting
in ensuring that strategic raw materials (materials, men, money, and machine) are available at
the right time and in the right quantity to create finish products according to the schedule
specified. It is a management function concerned with deciding the requirements of production
facilities base on the availability of space, and on market demands
The most important objective of production planning (PP ) is to ensure that there is
coordination among departments in an organization. By working together, production
obstacles can be removed in the production process. Production planning helps an organization
in determining the requirements of men, material, and equipment, arranging production schedules
according to the needs of marketing demand, arranging various inputs at the right time and in
the right quantity, and making most economical use of
various inputs
Production planning 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.
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?
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
Production planning is dynamic and always
remains in a fluid state as plans may have to be
changed according to the changes in
circumstances. Production planning cannot be
effective without control. Control in production
is a mechanism to monitor the execution of the
plans.
It has many essential
i) Making sure that production operations are started at planned places and
planned times,
ii) Observing progress of the operations and recording it accurately,
iii) Analyzing the recorded data with the plans and measuring the deviations,
iv) Taking immediate corrective actions to minimize the negative impact of
deviations from the plans and
v) Feeding back tIt has several essential he recorded information to the planning
section in order to
improve plans.
The objectives of PPC include the following:
a. To deliver quality goods in the required quantities to the customer in the requireddelive
schedule in order to achieve maximum customer satisfaction,
b. To ensure optimum utilization of resources/materials,
c. To minimize the production/manufacturing cycle time,
d. To maintain optimum inventory levels,
e. To schedule production facilities in an optimum manner,
f. To coordinate the activities of different departments relating to
production to achieve regular, steady and balanced flow of production,
g. To ensure confirmation of delivery commitments,
h. To ensure the production of quality products,
i. To keep the plant free from production bottleneck,
j. To ensure effective cost reduction and cost control.
k. To evaluate the performance of various shops & individuals,
l. To develop alternative plans in order to meet any emergency or
contingency and
m. To maintain spare capacity to deal with rush orders.
Factors affecting PPC
The various factors which affect the production planning and control of an
organization include
i) The interdependence of various operations involved in the transformation
process,
ii) The nature of the product and the quantity of the product,
iii) The nature and availability of various equipment and materials required
for the manufacturing process,
iv) The size of orders and the production run,
v) The nature and type of manufacturing system and
vi) The nature and type of manufacturing method adopted
. Conclusion and Recommendations
This study has investigated the effect of production planning on organizational
effectiveness. The significant constraints in the successful attainment of remarkable
organizational output have been the inability to properly plan before embarking on
production thereby resulting to shortage or excess of inventory, poor handling of
materials and equipment, unskilled personnel, poor scheduling, ineffective on-time
delivery of products to customers’ as at when due.
The following recommendations were suggested;
i. Business decisions on customers’ demand should not base on a mere guess,
preferably on a care analysis. It then means that there need for demand forecasting
for all firms especially for corporate that their demands are seasonal. The
adoption such management technique (demand forecasting), will help
organizations in knowing how many products are needed to be produced during a
specified period, which will result in increased sales, market share, etc.
ii. Customers’ satisfaction cannot be achieved without proper production
planning via material requirement planning (MRP). For an organization to be
committed to meeting customers’ satisfaction, such an organization must be
ready to implement material requirement planning (MRP) this will enable them in
knowing what their customers’ want, how they want it, and when they want it.
iii. Minimizing inventory costs cannot be achieved without adequate
production planning of inventory. Inventory holding cost
(deterioration cost, security cost, pilferage cost), shortage cost (cost
due to lots of sales or lost goodwill of customer, and idle production
time arising
from the delay in receiving materials ordered), salvage cost (goods
sold at a lower price due to deterioration), can be curtailed with the
help of demand forecasting and material requirement planning .
