Production Planning and Control Introduction
Production and Inventory Control Introduction (1)
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Overview • The main components of the PPC system • Qualitative/quantitative forecasting •Steps In PPC •Aggregate planning • Material requirement planning • Inventory control • Scheduling • The theory of constraints and its applications • Push and Pull production systems Production and Inventory Control Introduction (2)
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PPC •
MEANING:- Production Production planning and control can be viewed as the the nervous system of the production operation. It comprises planning, routing, scheduling, dispatching & follow up in the productive process. Production/Operations Production/Operations Planning and Control: Planning, direction and co-ordination co-ordination of the firm’s facilities to achieve the predetermined production objectives in the most economical manner manner
Definition: “The highest efficiency in production is obtained by manufacturing the required quantity of the product at the required time, by the best & cheapest method”
Production and Inventory Control Introduction (3)
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Production Planning and Control The Production Control System Demand forecasting
Aggregate planning
Materials requirement planning
Shop-floor scheduling and control
Inventory management
Production and Inventory Control Introduction (4)
Sales and order entry
Customer
Production
Shipping and receiving
Inventory
Vendors
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STEPS OF PRODUCTION PLANNING AND CONTROL
Production and Inventory Control Introduction (5)
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Scope/steps of Production Planning and Control PPC encompasses • Materials • Methods • Machines and Equipments • Manpower • Routing • Estimating
Loading and Scheduling Dispatching Expediting Inspection Evaluating Cost control
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Main Functions of Production Planning and Control Department
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PRODUCTION PLANNING. •
It may be defined as the technique of foreseeing foreseeing every step in in a long series of separate operations, each step to be taken at the right time & in the right place & each operations to be performed in maximum efficinecy.It helps producers to work out the quantity of material , man power , machine machine & money money required for producing predetermined level of output in given period of time.
Production and Inventory Control Introduction (8)
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><<>Routing:
Under this, the operations, their path and sequence are established. To To perform these operations the proper class of machines and personnel required are also worked out. The main aim of routing is to determine the best and cheapest sequence of operations and to ensure that this sequence is strictly followed. In small enterprises, this job is usually done by entrepreneur himself in a rather adhoc manner. Production and Inventory Control Introduction (9)
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LOADING •
Assignment of work to manpower, machinery etc.It includes the assignment of the work to the operators at their machines or work places.It will will determine who will do the the work as routing determines determines where scheduling determines when it shall be done.
Production and Inventory Control Introduction (10)
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Loading:
The next step is the execution of the schedule plan as per the route chalked out it includes the assignment of the work to the operators at their machines or work places. So loading determines who will do the work as routing determines where and scheduling determines determines when it shall be done. Gantt Charts are most commonly used in small industries in order to determine the existing load and also to foresee how fast a job can be done. The
Production and Inventory Control Introduction (11)
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Scheduling: It means working out of time that should be required to perform each operation and also the time necessary to perform the entire series as routed, making allowances for all factors concerned. It mainly concerns with time element and priorities of a job. The pattern of scheduling schedulin g differs from one job to another which is explained as below:
Production and Inventory Control Introduction (12)
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Production schedule:
The main aim is to schedule that amount of work which can easily be handled by plant and equipment without interference. Its not independent decision as it takes into account following factors. (1)Physical plant facilities of the type required to process the material being scheduled. (2)Personnel who possess the desired skills and experience to operate the equipment and perform the type of work involved. (3) Necessary materials materials and purchased purchased parts. parts. Production and Inventory Control Introduction (13)
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Production control:
Production control is the process of planning production in advance of operations, establishing the extract route of each individual item part or assembly, assembly, setting, starting and finishing for each important item, assembly or the finishing production and releasing the necessary orders as well as initiating the necessary follow-up to have the smooth function of the enterprise. The production control is of complicated nature nature in small industries. The
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Dispatching:
Dispatching involves involves issue of production orders for starting the operations. Necessary authority and conformation is given g iven for: 1. Movement of materials to different workstations. 2. Movement of tools and fixtures necessary for each operation. 3. Beginning of work on each operation. 4. Recording of time and cost involved in each operation.
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Follow up:
Every production programme involves determination of the progress of work, removing bottlenecks in the flow of work and ensuring that the productive productiv e operations are taking place in accordance with the plans. It spotsdelays or deviations from the production plans. It helps to reveal detects in routing and scheduling, misunderstanding of orders and instruction, under loading or overloading of work etc.
Production and Inventory Control Introduction (16)
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Inspection:
This is mainly to ensure the quality of goods. It can be required as effective agency of production control.
Production and Inventory Control Introduction (17)
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Corrective measures:
Corrective action may involve any of those activities of adjusting the route, rescheduling of work changing the workloads, repairs andmaintenance of machinery or equipment, control over inventories of the cause of deviation is the poor performance of the employees. Certain personnel decisionslike training, transfer, transfer, demotion demotion etc. may may have to be taken.
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Classification of Production Planning and Control Functions
The functions of PPC can be classified under the following : i. Materials ii. Methods iii. iii. Mach Machin ines es and and Equ Equip ipme ment ntss iv. Routing v. Estimating vi. vi. Load Loadin ing g and and Sche Schedu duli ling ng Scheduling vii. Dispatching viii. Expediting or Progressing ix. Inspection x. Evaluating or Controlling Gaafar 2005
Production Planning and Control Purpose 1.Effectively 1.Effectively utilize limited resources in the production of goods so as to satisfy customer cus tomer demands and create a profit for investors. 2. Resources Resources include the production facilities, labor and materials. 3.Constraints 3.Constraints include the availability of resources, delivery times for the products, and management policies. 4.Receiving orders for customers 5.Direction and control of the movement of materials through production process. .6.Maintaining stocks of materials and parts. 7.Analyzing the orders Production and Inventory Control Introduction (20)
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Production Objectives High Profitability
Low Costs
High Sales
Low Unit Costs
High Throughput
High Utilization
Less Variability
Quality Product
Low Inventory
Short Cycle Times
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High Customer Service
Fast Response
Low Utilization
Many products
High Inventory
More Variability
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Role of Production Planning and Control in Operations Management The Production/Operations Management Cycle
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Material Requirement Planning • Objective: Determine all purchase and production components needed to satisfy the aggregate/disaggregate aggregate/disaggregate plan. • Issues:
Billl of Materi ria als: Determines components, quantities – Bi and lead times. ntory y Manag Manage ement: Must be coordinated with – I nventor inventory.
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Sequencing and Scheduling • Objective: develop a plan to guide the release of work into the system and coordination with needed resources (e.g., machines, staffing, materials).
• Methods: – Sequencing: • Gives order of releases but not times. – Scheduling: • Gives detailed release times.
Production and Inventory ControlControl- Introduction (24)
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Materials Requirements planning
Materials Requirements planning (MRP-1 or mrp): Computer based information system for ordering and scheduling of dependent demand inventories. Objectives of MRP 1. To improve customer service by meeting delivery schedules promised and shortening delivery lead times. 2. To reduce inventory costs by reducing inventory levels. 3. To improve plant operating efficiency by better use of productive resources. Three main purposes of a basic MRP system are to: • Control inventory levels • Assign operating priorities • Assign capacity to load production systems. Gaafar 2005
Manufacturing Resource Planning (MRP II ): Broad based resource co-ordination system involving other areas of a firm in the planning process, such as marketing, finance and the human resource. Three important functions of MRP are: • Order planning and control • Priority planning and control • Providing a basis for planning capacity requirements.
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Enterprise Resource Planning
• 1. 2. 3. 4. 5. 6.
Enterprise Resource Planning (ERP); A software package developed for optimum use of resources of an enterprise in a planned manner. It integrates the entire enterprise starting form the supplier to the customer, covering, logistics, financial and human resources. Features of ERP Accommodating variety Integrated Management Information Seamless integration Supply chain management Resource management Integrated data model Gaafar 2005
• Scope of ERP a. Financials b. Logistics c. Human re resources d. Work flow • Application of ERP ERP is gaining popularity in India at a rapid pace. This is mainly due to the need for reducing costs especially when the sales are sluggish in the sub-merging markets.
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TECHNIQUES OF PRODUCTION CONTROL •
GANTT CHART
•
PERT & CPM
•
BAR CHART
•
LINE OF BALANCE.
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