PRODUCTION PLANNING AND CONTROL PPC PLANNING CONTROL PRODUCTION

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PRODUCTION PLANNING AND CONTROL (PPC)

PRODUCTION PLANNING AND CONTROL (PPC)

PLANNING CONTROL PRODUCTION

PLANNING CONTROL PRODUCTION

PRODUCTION PLANNING Production Planning can be referred to as a technique of forecasting every

PRODUCTION PLANNING Production Planning can be referred to as a technique of forecasting every step in the long process of production, taking them at right time and in the right degree and trying to complete operations at the maximum efficiency. “The planning of industrial operations involves Three considerations, namely, what work shall be done, how the work shall be done and lastly, when the work shall be done. ” (by – Kimball) 3

PRODUCTION CONTROL Production control is the process that keeps a watchful eye on the

PRODUCTION CONTROL Production control is the process that keeps a watchful eye on the production flow, size of resources along with any deviation from the planned action. It also includes arrangement for the prompt remedy or adjustment in case of any deviation so that the production may run according to the original or revised schedule. “Production control refers to ensuring that all which occurs is in accordance with the rules established and instructions issued. ” (By – Henry Fayol) 4

PRODUCTION…

PRODUCTION…

PRODUCTION PLANNING AND CONTROL (PPC) n PRODUCTION: that transformation of raw materials to finished

PRODUCTION PLANNING AND CONTROL (PPC) n PRODUCTION: that transformation of raw materials to finished goods. n PLANNING: looks ahead, anticipates possible difficulties and decides in advance as to how the production, best, be carried out. n CONTROL: phase makes sure that the programmed production is constantly maintained.

PPC : CHARACTERISTICS n Inputs like materials, men and machines are efficiently used n

PPC : CHARACTERISTICS n Inputs like materials, men and machines are efficiently used n Factors of production are integrated to use them economically n Division of work is undertaken carefully so that every available element is properly utilized n Work is regulated from the first stage of procuring raw materials to the stage of finished goods n Questions like what, when and how to be manufactured are decided 7

PPC : OBJECTIVES 8

PPC : OBJECTIVES 8

PRODUCTION PLANNING involves…. n Preparation of production budget n Devising manufacturing methods and sequence

PRODUCTION PLANNING involves…. n Preparation of production budget n Devising manufacturing methods and sequence of operations n Deciding type of machines and equipments n Preparation of operation sheets and instruction cards n Estimating men, machine and material requirements n Undertaking time and motion studies n Preparing master schedules 9

PPC : PROCESS 10

PPC : PROCESS 10

Methods of Production Planning n Job n Batch n Flow

Methods of Production Planning n Job n Batch n Flow

Job Production n A single product is produced from start to finish as a

Job Production n A single product is produced from start to finish as a result of an individual customer order n Can suit both small scale production e. g. a tailor made suit, and large scale production e. g. a cruise liner n Tends to be a labour-intensive production process

Job Production Advantages Disadvantages Each piece is made to The products are very the

Job Production Advantages Disadvantages Each piece is made to The products are very the customer’s exact requirements Job satisfaction is high for the worker Quality of the goods is very high The design is flexible and can be changed expensive The work is very time consuming The advantages of economies of scale are lost

Batch Production n Is used to produce a number of similar products - a

Batch Production n Is used to produce a number of similar products - a batch n When an order has been completed another batch is produced n Most manufacturing occurs through batch production. For example clothes manufacturers use batch production to produce a given item, such as a blazer, in batches of different sizes or colours n All of the items in the batch are the same, so production is speeded up. This reduces the cost of labour and results in the final product being less expensive for the customer

Batch Production Advantages Workers may specialise to some degree Labour costs reduced so final

Batch Production Advantages Workers may specialise to some degree Labour costs reduced so final price is lower Machinery may be used Production is faster Begins to take advantage of economies of scale Disadvantages The work is less interesting and very repetitive More space is required for working and storage Larger stocks of raw materials must be kept Machines have to be re -set between batches, losing time

Flow Production n Also known as mass production or assembly line production n Product

Flow Production n Also known as mass production or assembly line production n Product is passed along a production line - raw materials to ready for sale n Flow production is a capital-intensive process n Employees are only required to perform repetitive tasks so they are usually unskilled or semi-skilled employees n The finished product is usually not expensive for the customer

Flow Production Advantages n The final product is n n n n inexpensive Large

Flow Production Advantages n The final product is n n n n inexpensive Large quantities can be manufactured The quality of the product is standardised Machinery can be used so labour costs are reduced Unskilled wages further reduce costs Assembly lines can run continuously Production is fast Takes full advantage of economies of scale Disadvantages n The work is repetitive n There is an increased risk of n n n n accidents Employee motivation is low The products are all identical Large capital investment is required Larger buildings are usually needed Large stocks of raw materials must be kept Machinery breakdown can halt production There is a loss of traditional skills

Job Batch Flow Craft goods Luxury cars Designer clothes Newspapers Bread Clothing Motor vehicles

Job Batch Flow Craft goods Luxury cars Designer clothes Newspapers Bread Clothing Motor vehicles Machinery Televisions Stained glass windows Landscape gardening Furniture Inexpensive clothing Toys Books

PRODUCTION SYSTEM n System is a whose function is to convert a set of

PRODUCTION SYSTEM n System is a whose function is to convert a set of inputs into a set of desired outputs.

PRODUCTION PLANNING n Given a specific process planning, process technologies and production conditions n

PRODUCTION PLANNING n Given a specific process planning, process technologies and production conditions n predetermine varieties, quantities, qualitiy, and scheduled of products to be produced according to market demand of products. .

TIME DIMENSIONS v Long Range Planning; is done annually and focus on a planning

TIME DIMENSIONS v Long Range Planning; is done annually and focus on a planning horizon greater than one year. v Medium Range Planning; usually covers a period from 6 months to 18 months, with monthly or sometimes quarterly time increments. v Short Range Planning; covers a period from one day or less to six months, with weekly time increment usually.

PRODUCTION PLANNING v. ROUTING v. SCHEDULING v. LOADING

PRODUCTION PLANNING v. ROUTING v. SCHEDULING v. LOADING

PRODUCTION PLANNING v That may be defined as the technique of foreseeing every step

PRODUCTION PLANNING v That may be defined as the technique of foreseeing every step in a long series of seperate operations. v Each step to be taken at the right time, and in the right place and each operation to be performed in maximum efficiency.

PRODUCTION PLANNING ROUTING v Under this operations , their path and sequence are established.

PRODUCTION PLANNING ROUTING v Under this operations , their path and sequence are established. v The main aim of routing; determine the best and cheapest sequence of operations and to ensure that this sequence is strictly followed. v Routing is the specification of the flow sequence of operations and processes to be followed in producing a particular manufacturing lot

PRODUCTION PLANNING Routing procedure involves following different activities; Ø An analysis of the article

PRODUCTION PLANNING Routing procedure involves following different activities; Ø An analysis of the article to determine what to make and what to buy Ø To determine the quality and type of material Ø Determining the manufacturing operations and their sequence Ø An analysis of cost of the article Ø Determination of scrap factors

PRODUCTION PLANNING SCHEDULING v It mainly concerns with time element and priorities of a

PRODUCTION PLANNING SCHEDULING v It mainly concerns with time element and priorities of a job. v The pattern of scheduling differs from one job to another which is explained as below: Production Schedule Master Schedule Manufacturing Schedule The determination of the 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

PRODUCTION PLANNING LOADING v Defined as the relationship between load and capacity, so as

PRODUCTION PLANNING LOADING v Defined as the relationship between load and capacity, so as to assign the work for the production. Capacity: the time available for work at work centres expressed in machine hours or in man hours. Load: to assign work to the capacity available at particular work centres. v It includes the assignment of the work to the operators at their machines or work places.

PRODUCTION PLANNING n Loading determines; who will do the work as routing determines; where

PRODUCTION PLANNING n Loading determines; who will do the work as routing determines; where and scheduling determines; when it shall be done.

PLANNING PHASE PRIOR PLANNING Forecasting v Type, Quantitiy, Quality Product Design v Specifications, Bill

PLANNING PHASE PRIOR PLANNING Forecasting v Type, Quantitiy, Quality Product Design v Specifications, Bill of Materials Order Writing v To undertake a particular job.

PLANNING PHASE ACTIVE PLANNING Process Planning and Routing v Economic Process, How to do,

PLANNING PHASE ACTIVE PLANNING Process Planning and Routing v Economic Process, How to do, Where to Work Materials and Tools Control v Requirements, Controls Loading v Assignment of Work, Manpower, Machinery Scheduling v Time Phase, Sequence of Work

PLANNING PHASE ACTION PHASE Dispatching v Ordering to start the working CONTROL PHASE Progress

PLANNING PHASE ACTION PHASE Dispatching v Ordering to start the working CONTROL PHASE Progress Reporting v Data Reporting, Performance Comparison Corrective Phase v Expediting, Replanning

PRODUCTION CONTROL v. DISPATCHING v. FOLLOWING UP v. INSPECTION v. CORRECTIVE

PRODUCTION CONTROL v. DISPATCHING v. FOLLOWING UP v. INSPECTION v. CORRECTIVE

PRODUCTION CONTROL n Production control; is the process of planning production in advance of

PRODUCTION CONTROL n Production control; is the process of planning production in advance of operations, establishing the extract route of each individual item part or assembly, setting, starting and finishing for each important item, assembly n the finishing production and releasing the necessary orders as well as initiating the necessary follow-up to have the smooth function of the enterprise.

PRODUCTION CONTROL DISPATCHING Involves issue of production orders for starting the operations. v Movement

PRODUCTION CONTROL DISPATCHING Involves issue of production orders for starting the operations. v Movement of materials to different workstations v Movement of tools and fixtures necessary for each operation v Beginning of work on each operation

PRODUCTION CONTROL DISPATCHING v Recording of time and cost involved in each operation v

PRODUCTION CONTROL DISPATCHING v Recording of time and cost involved in each operation v Movement of work from one operation to another in accordance with the route sheet v Inspecting or supervision of work

PRODUCTION CONTROL FOLLOW UP v It includes delays or deviations from the production plans.

PRODUCTION CONTROL FOLLOW UP v It includes delays or deviations from the production plans. v It helps to reveal detects in routing and scheduling, misunderstanding of orders and instruction, under loading or overloading of work.

PRODUCTION CONTROL INSPECTION v To ensure the quality of goods. It can be required

PRODUCTION CONTROL INSPECTION v To ensure the quality of goods. It can be required as effective agency of production CORRECTIVE MEASURES v involve any of those activities of adjusting the route, rescheduling of work changing the workloads, repairs and maintenance of machinery or equipment, control over inventories of the cause of deviation is the poor performance of the employees

MATERIAL REQUIREMENT PLANNING (MRP) PHILOSOPHY MRP- Materials should be expedited when their lack would

MATERIAL REQUIREMENT PLANNING (MRP) PHILOSOPHY MRP- Materials should be expedited when their lack would delay the overall production schedule. AIM of MRP Ø Renawal of products inventory Ø To meet customer orders

FACTORS OF MRP n. Main Production Plan n. Product Tree n. Inventory Situation Folder

FACTORS OF MRP n. Main Production Plan n. Product Tree n. Inventory Situation Folder n. Performance Report n Planned Order Schedule n Special Situation Report

ADVANTAGES OF MRP n Ability to price more competitively n Reduced inventory n Reduced

ADVANTAGES OF MRP n Ability to price more competitively n Reduced inventory n Reduced price n Better customer service n Better response to market demand n Ability to change master schedule n Reduced idle time

PPC : LIMITATIONS n Assumption based n Rigidity n Difficult for small firms n

PPC : LIMITATIONS n Assumption based n Rigidity n Difficult for small firms n Costly n Dependence on external factors n Team work is a must n Demands high level of co-ordination & efficiency 43

PPC : SIGNIFICANCE n Structured & Planned Process n Increased Production n Seamless Plant

PPC : SIGNIFICANCE n Structured & Planned Process n Increased Production n Seamless Plant Activity n Better Co-ordination n Optimal Resource Utilization n Cost Control n Rationalization of production Activities 44

CONCLUSION : Production planning and Control represents the beating heart of any manufacturing process

CONCLUSION : Production planning and Control represents the beating heart of any manufacturing process and are essential for customer delight and overall success of an organization. 45

Location of Stores : § Store should be manufacturing area. located adjacent to the

Location of Stores : § Store should be manufacturing area. located adjacent to the §It depends up on nature and value of items to be stored and frequency which items are received and issued Objectiveswith : ü ü Minimum wastage of space Maximum ease of operation Minimum handling cost Minimum other operational cost

Facilities of Store q. Inspection center q. Quarantine room q. Washing room q. Centralized

Facilities of Store q. Inspection center q. Quarantine room q. Washing room q. Centralized weighing department q. Adequate space

Functions of stores General function : Ø Maintenance of Stock (materials and tools) Ø

Functions of stores General function : Ø Maintenance of Stock (materials and tools) Ø Maintenance of hygiene, sanitation, and pest control Ø Maintenance of material handling equipment

Functions of stores Specific functions : q Receiving & recording of raw materials q

Functions of stores Specific functions : q Receiving & recording of raw materials q Quarantine storage – Sampling & approval by QC q Positioning & Storage q Issuing & recording of materials q Receiving & Dispatching of finished goods q Distribution Optional functions : q Dispensing, Maintenance of weights & measures

THANK YOU FOR YOUR LISTENING

THANK YOU FOR YOUR LISTENING