Meaning Of Production Management A few definitions of production management are being reproduced here under to understand the meaning

of the term clearly: Production management is the process of effectively planning and regulating the operations of that part of an enterprise which is responsible for actual transformation of materials into finished products. Elwood S. Buffa has defined the term in a broader sense as: Production management deals with decision making related to production process so that the resulting goods or services are produced according to specifications, in amounts and by the schedules demanded and at a minimum cost. Production management, thus, is assigned with the following tasks.

Specifying and accumulating the input resources, i.e., management, men, information, materials, machine and capital. Designing and installing the assembling or conversion process to transform the inputs into output, and Coordinating and operating the production process so that the desired goods and services may be produced efficiently and at a minimum cost. The production department in an enterprise is not only concerned with the full exploitation of production facilities but also the human factor that indirectly affects the production, utilization of latest techniques of production and the production of quality goods to the satisfaction of customers of the product. The various activities that form scope of production function can be studied in the following

broad areas: Product selection and design: the product mix marks the production system either efficient or inefficient. Choosing the right products keeping the mission and overall objective of the organization in mind is the key to success. It is the design of the product, which makes the organization competitive or noncompetitive. Activities relating to production system designing: decision related to the production system design is one of the most important activities of the production management. This activity is related to production engineering and includes problems regarding design of tools and jigs, the design, development and installation of equipment and the selection of the optimum size of the firm. All these areas require the technical expertise on the part of the production manager and his staff.

Facilities location: the selection of an optimum plant location very much depends upon the decision taken regarding production engineering. A wrong decision may prove disastrous. Location

should as far as possible cut down the production and distribution cost. There are diverse factors to be considered for selecting the location of a plant. Method study: the next decision regarding production system design concerns the use of those techniques, which are concerned with work environment and work measurement. Standard method should be devised for performing the repetitive functions efficiently. Unnecessary movements should be eliminated and suitable positioning of the workers for different processes should be developed. Such methods should be devised with the help of time study and motion study. The workers should be trained accordingly. Facilities layout and materials handling: plant layout deals with the arrangements of machines and plant facilities. The machine should be so arranged that the flow of production remains smooth. There should not be overlapping, duplication or interruption in production flow. Product layout where machines are arranged in a sequence required for the processing of a particular product, and process layout, where machines performing the similar processes are grouped together are two popular methods of layout. The departments are layout in such a way that the cost of material handling is reduced. There should be proper choice of material handling equipment. Capacity planning: This deals with the procurement of productive resources. Capacity refers to a level of output of the conversion process over a period of time. Full capacity indicates maximum level of output. Capacity is planned for short-term as well as for long term. Process industries pose challenging problems in capacity planning, requiring in the long run, expansion and contraction of major facilities in the conversion process. Tools for capacity planning are marginal costing (Break Even Analysis), learning curves, linear programming, and decision trees. Production planning: the decision in production planning include preparation of short-term production schedules, plan for maintaining the records of raw materials, finished and semi-finished stock, specifying how the production resources of the concern are to be employed over some future time in response to the predicted demand for products and services. Production control: after planning, the next managerial production function is to control the production according to the production plans because production plans cannot be activated unless they are properly guided and controlled. Acc. To Soriebal and Lansburgh Production control is the process of planning production in advance of operations; establishing the exact route of each individual item, part or assembly; setting, starting and finishing dates for each important item, assembly and the finished products; and releasing the necessary orders as well as initiating the

required follow-up to effect the smooth functioning of the enterprise. Inventory Control: inventory control deals with the control over raw-materials, work-in-progress, finished products, stores, supplies, tools, and so is included in production management. The raw materials, supplies etc should be purchased at right time, right quality, in right quantity, from right source and at right price.

An operation may be defined as the process of changing inputs into outputs thereby adding value to some entity. Right quality, right quantity, right time and right price are the four basic requirements of the customers and as such they determine the extent of customer satisfaction. And if these can be provided at a minimum cost, then the value of goods produced or services rendered increases. Thus the objectives of production management are to produce goods and services of the right quality, in the right quantities, according to the time schedule and a minimum cost. Objectives of production management may be amplified as under: Producing the right kind of goods and services that satisfy customers needs (effectiveness objective). Maximizing output of goods and services with minimum resource inputs (efficiency objective). Ensuring that goods and services produced conform to pre-set quality specifications (quality objective). Minimizing throughput-time- the time that elapses in the conversion process- by reducing delays, waiting time and idle time (lead time objective). Maximizing utilization of manpower, machines, etc. (Capacity utilization objective). Minimizing cost of producing goods or rendering a service (Cost objective). Types of Production Systems A production system can be defined as a transformation system in which a saleable product or service is created by working upon a set of inputs. Inputs are usually in the form of men, machine, money, materials etc. Production systems are usually classified on the basis of the following:

Type of product, Type of production line, Rate of production, Equipments used etc.

They are broadly classified into three categories:

Job shop production Batch production Mass production

Job Production In this system products are made to satisfy a specific order. However that order may be produced

only once or at irregular time intervals as and when new order arrives or at regular time intervals to satisfy a continuous demand

The following are the important characteristics of job shop type production system:

Machines and methods employed should be general purpose as product changes are quite frequent. Planning and control system should be flexible enough to deal with the frequent changes in product requirements. Man power should be skilled enough to deal with changing work conditions. Schedules are actually non existent in this system as no definite data is available on the product. In process inventory will usually be high as accurate plans and schedules do not exist. Product cost is normally high because of high material and labor costs. Grouping of machines is done on functional basis (i.e. as lathe section, milling section etc.) This system is very flexible as management has to manufacture varying product types. Material handling systems are also flexible to meet changing product requirements.

Batch Production Batch production is the manufacture of a number of identical articles either to meet a specific order or to meet a continuous demand. Batch can be manufactured either

only once or repeatedly at irregular time intervals as and when demand arise or repeatedly at regular time intervals to satisfy a continuous demand

The following are the important characteristics of batch type production system:

As final product is somewhat standard and manufactured in batches, economy of scale can be availed to some extent. Machines are grouped on functional basis similar to the job shop manufacturing. Semi automatic, special purpose automatic machines are generally used to take advantage of the similarity among the products. Labor should be skilled enough to work upon different product batches. In process inventory is usually high owing to the type of layout and material handling policies adopted. Semi automatic material handling systems are most appropriate in conjunction with the semi automatic machines. Normally production planning and control is difficult due to the odd size and non repetitive nature of order.

Mass Production In mass production, same type of product is manufactured to meet the continuous demand of the product. Usually demand of the product is very high and market is going to sustain same demand for sufficiently long time. The following are the important characteristics of mass production system:

As same product is manufactured for sufficiently long time, machines can be laid down in order of processing sequence. Product type layout is most appropriate for mass production system. Standard methods and machines are used during part manufacture. Most of the equipments are semi automatic or automatic in nature. Material handling is also automatic (such as conveyors). Semi skilled workers are normally employed as most of the facilities are automatic. As product flows along a pre defined line, planning and control of the system is much easier. Cost of production is low owing to the high rate of production. In process inventories are low as production scheduling is simple and can be implemented with ease.

locational decisions generally arise when:

A new manufacturing (or servicing) unit is to be set up. Existing plant operations are difficult to expand due to poor selection of site earlier. The growth of the business makes it advisable to establish additional facilities in new territories. The product development has over weighted the advantages of the existing plant. There is emergence of new social (chronic labor problems) political (political instability or economic conditions that suggest a change in the location of the existing plant. The changes in the industrial Policy of the Government, favoring decentralizing and dispersal of industries to achieve overall development of the country, do not permit expansion of the existing plant. Factors governing plant location: Plant location studies are conducted in three phases:

General territory selection Community selection Site selection Proximity to market: Every company is in business to market and it can survive only if their product reaches the consumers on time and at the competitive price. The ratio of selling costs to sales generally increases with distance. Therefore, in the choice of location o the plant, the factor of proximity to the market is given the highest priority. Locating a plant nearer to the market is preferred if:

The product is fragile. The product is susceptible to spoilage. The promptness of service is required. The product is relatively inexpensive and transportation costs add significantly to the cost. Bread, soap factories, etc. require the market to be nearby. If the product is exported, location near ports is desirable. This is particularly important for producers who sell bulky commodities, which incur high transportation costs. Nearness to market not only lowers transportation costs but also gives many other benefits namely:

A good many administrative problems, which cause perpetual headaches and add to costs, are avoided. Liaison with dealers or whole sellers can be maintained economically and easily Other costs such as commission to middlemen, which at times run as high as 20 to 50 percent can be reduced significantly. Customers accounts do not remain outstanding for settlement. This recovery is easy and less time saving which itself reduces selling costs. Proximity to source of raw materials: Since raw materials usually constitute 50 to 60 percent of the total product cost, it is important that the firm gets its requirements of raw materials at the right time and at the reasonable price for which the plant must be located in the neighborhood of some source which can meet the raw materials requirement of the unit Proximity to supply of raw materials factor assumes still greater importance if raw materials are of perishable nature or if they are expensive to transport, or if their weight is substantially reduced by processing. Proximity to sources of raw materials is equally important for small units. This is because usually small units are not considered important customers. They get least priority and in the event of scarcity are the one to be struck off first from the list. The availability of materials to small units to a large extent thus depends on their follow up and personal visits to the suppliers plant which is possible only if the buyers plant is close by. Infrastructure facilities: Infrastructure facilities consider availability of utilities like power water, disposal of waste etc. These form the life-blood of many types of industries without which there facilities may come to a stand still. Underestimating the need of any one of the utilities can be extremely costly and inconvenient. Certain industries, for example, aluminium, steel, etc are power intensive and must be located close to the sites of power generation failing which the shortage of, or increase in cost of generating power may spell problems for their survival. Similarly, chemical process industries like paper and pulp, cement, steel, sugar laundries, metal plating, food preparation etc. requires perennial source of water. Mineral content of water may also be an

important factor. Treatment of water is an expense to be considered while comparing economics of different locations. Drainage facilities are important for process industries otherwise disposal of process waster can create lot of difficulties. Transport facilities: Transportation cost to the value added is a key determinant of the plant location. The structure of the transportation cost depends on (i) Characteristics of the commodity (ii) average distance of shipment (iii) medium of shipment: rail, road, and air sea. The need for transport arises because raw materials and fuel are to be moved to factory site and finished goods are to be transported from factory to markets. Other things being equal since transport cost has a major effect on product cost, the regions well served by transport facilities are most suitable for industrial locations. Labor and wages: Plant location should be such that required labor is easily available in the neighborhood. Importing labor from outside is usually costly and it causes lot of administrative problems. Availability of required labor locally is better since problem of arranging accommodation and other related problems do not arise. Since normally workers with specific skills are required, some sort of training facility should also be available in the neighborhood. Skilled employees are easily available if ITIs, or Engineering colleges are there in the neighborhood. Legislation and taxation: The policies of the state Government and Local Bodies relating to issue of licenses, building codes, labor laws, etc. are the factors in selecting/rejecting a particular community/site. In order to disperse industries and ensure balanced economic growth, both Central and State government offer a package of incentives for setting up industries in particular locations. Exemption from excise duty, sales tax and octroi, soft loans from financial institutions, subsidy in electricity charges, etc. are some of the incentives offered. Since taxes and duties levied by the State Government and Local bodies substantially influence product cost, the incidence of such taxes/levies must be taken into account while selecting a community/site. Climatic conditions: Climatic factors may not have a major influence these days because of modern air conditioning facilities available today. However, it may be important factor for certain industries like textile mills, which require high humidity. Industrial and labor attitudes: Community attitudes towards supporting hostile trade union activities are an important factor. Locating facilities in a certain region/community may not be desirable as frequent labor problems and interruptions are harmful to the plant in the long run. Political situation in the state and attitude of the government towards labor activities also influences selection of the site for the plant. Safety requirement: Safety factor may be important for certain industries such as: Nuclear power plants and Explosive factories. Location of such industries close to border areas is undesirable. Community facilities (or social infrastructure): Community facilities imply accommodation, educational, entertainment and transport facilities. Accommodation is needed unless the employees are local residents. Accommodation should be easily available, comparatively cheap and near some public transport stop. The location area should be fully developed, be accessible by road and should

have a convenient and efficient public transport system operating between the area and the township to enable employees, officials, customers and suppliers to make easy trips for their work Community attitudes: Community attitudes towards work (i.e. whether the people in the location are hard working or otherwise) as well as their attitudes towards the incoming entrepreneurs (helpful and cooperative or otherwise) can make or mar an industry. Location decisions, therefore, must take such factors also into account particularly while setting up labor-intensive units. Supporting industries and services: Location factors should also include proximity of services needed by the firm. A firm desirous of getting some or all parts made from outside or some of the operations done from outside must see that such sub-contractors are located in the neighborhood. Getting a job done from units located at far off places will mean not only additional transportation cost but also time consuming and costly. Also if units are too far off, the control on quality of work done by them cannot be exercised. Suitability of the land: Site selection should also take into account topography and soil structure of the land. The soil structure must be capable of bearing loads of foundations. Though modern building techniques can overcome the limitations of the soil, but if considerable improvement is required then selection of a low cost and may ultimately turn out to be expensive. Availability and cost of the land: Site size (Plot size) must be large enough to accommodate the present production facilities, parking and access facilities but also leave sufficient room for future expansion. As a general rule, a site five times the actual plant size is considered minimum for all these things including future expansion. Economy survey of the site selection: An ideal location is one where the cost of obtaining materials and processing them into finished product plus the cost of distributing the finished product to customers is minimum. One of the most commonly used approaches consists of following steps:

Prepare a list of all relevant factors. Estimate expenses on materials, transport, wages, power etc for each location on each of the above factors. Collect data on intangible factors like community facilities, community attitudes etc. Analyze the tangible data for each location and calculate rate of return on investment. Select provisionally a locational based on financial data. Compare the intangible data for the different locations and select the optimal location considering intangible data. Plant layout means the disposition of the various facilities (equipments, material, manpower etc.) within the areas of the site selected. Plant layout begins with the design of the factory building and goes up to the location and movement of work. All the facilities like equipment, raw material,

machinery, tools, fixtures, workers etc. are given a proper place. In the words of James Lundy, It identically involves the allocation of space and the arrangement of equipment in such a manner that overall cost are minimized. According to MoNaughton Waynel, A good layout results in comforts, convenience, appearance, safety and profit. A poor layout results in congestion, waste, frustration and inefficiency. Plant layout is very complex in nature as it involves concept relating to such fields as engineering, architecture, economics and business administration. Hence a plant layout, with proper design, encompasses all production and service facilities and provides for the most effective utilization of men, with materials and machines constituting the process, is a master blue print for coordinating all operations. Objectives of a Good Plant Layout The principal objective of a proper plant layout is to maximize the production at the minimum of the costs. This objective should be kept in mind while designing a layout for a new plant as well as while making the necessary changes in the exiting layout in response to change in management polices and processes and techniques of production with the production system, i.e. workers, supervisors and managers. If a layout is to fulfill this goal, it should be planned with the following clear objectives in mind.

There is the proper utilization of cubic (i.e. length, width and height). Maximum use of volume available should be made. For example, conveyors can be run above head height and used as moving work in progress or tools and equipments can be suspended from the ceiling. The principle is particularly true in stores where goods can be stored at considerable height without inconvenience. Waiting time of the semi-finished products is minimized. Working conditions are safer, better (well ventilated rooms etc.) and improved Material handling and transportation is minimized and efficiently controlled. For this , one has to consider the movement distances between different work areas as well as the number of times such movements occur per unit period of time. The movements made by the worker are minimized. Suitable spaces are allocated to production centers. Plant maintenance is simpler.

There is increased flexibility for changes in product design and for future expansion. It must be capable of incorporating, without major changes, new equipment to meet technological requirement or to eliminate waste. A good layout permits material to move through the plant at the desired speed with the lowest cost. There is increased productivity and better product quality with reduced capital cost. Boosting up employee morale by providing employee comforts and satisfaction. The work should be so arranged the there is no difficulty in supervision, coordination and control. There should be no hiding-places into which goods can be mislaid. Goods raw materials and ready stocks must be readily observed at all times. It will reduce the pilferage of material and labour. It should be noted here that the above stated objectives of plant layout are laudable in themselves; it is often difficult to reconcile all of them in a practical situation. And as such, the highest level of skill and judgment are required to be exercised. For this, close association between the entrepreneurs and experienced engineers is a must. There are three basic types of plant layouts and these correspond to the three types of processing systems. Product layouts are most conducive to continuous processing, process layouts are used for intermittent processing and fixed position layouts are used when projects require layouts. Product Layout Product layout is used to achieve a smooth and rapid flow of large volumes of products or customers through a system. This is made possible by highly standardized products or services which require highly standardized, repetitive processing operations. A job is divided into a series of standardized tasks, permitting specialization of both labor and equipment. The large volumes handled by these systems usually make it economical to invest substantial sums of money in equipment and in job design. Because only one or few very similar items are involved, it is feasible to arrange an entire layout to correspond to the technological processing requirements of the product or service involved. This layout is for product focused systems, and are popularly known as Assembly Line. The work centers are arranged in the job sequence. The raw materials enters at one end of the line and individual operations are performed in the pre-fixed sequence and get converted to the final shape. There is one flow for each product. The work in-process and the material handling are minimum. Following conditions favor the selection of product layout.

High volume of production Standardization of product Reasonably stable product demand

Uninterrupted supply of material Holding up of inventory is possible. Product layouts achieve a high degree of both labor and equipment utilization, and this offsets the high equipment costs. the investment in work-in-process is minimum because the items move quickly from operation to operation. This also reduces congestion and ensures smooth flow of items in the shop floor. Overall supervision and control are effective. 2. Process Layout These layout are designed to facilitate processing items or providing services which present variations in their processing requirements. The processing units are organized by functions into departments on the assumption that certain skills and facilities are available in each department. Similar equipments and operations are grouped together. For example, turning, milling, foundry, heat treatment. Items which require these operations are frequently moved in batches to the departments in a sequence dictated by technical considerations. Different products may cal for different processing requirements and different sequence of operations. Consequently, variable path material handling equipment is needed to handle variety of routes and items. These layouts, also known as Functional Layout is process focused systems and are used widely in manufacturing and service sectors. The use of general purpose machines provides flexibility necessary to handle a wide range of processing requirements. Workers who operate the equipments are usually skilled or semi-skilled. The example of process layout includes hospitals, colleges and universities, banks, airlines and public libraries. For instance, hospitals have many departments like surgery, maternity, emergency, etc. Similarly universities have separate departments that concentrate on different areas of study as engineering, business management, mathematics, and physics. In business organization, there will be departments like accounts, personnel, and systems. Because process layouts arrange equipments by type rather than according to processing sequence, the system is much less vulnerable to shutdown caused by either mechanical failure or absenteeism. Material handling in inefficient and unit handling costs are generally much higher than in product layouts. The investment in work-in-process is high and material movements will take a zig-zag route. The equipment utilization comparatively will be less. Hence, this layout is more suited for low volumes of production and particularly when the product is not standardized. It is economical when flexibility is the basic system requirements. 3. Fixed Layout In this layout, the material remains in a fixed position, but machinery, tools handling equipment, workers are brought to the place the material. This is in contrast to both product and process

layouts. Such a layout may be preferred when the equipment and the machinery is small in number and size, and where the workmen are highly skilled to perform the various small jobs on the product. Fixed position layouts are used in large construction projects, ship building, aircraft manufacturing etc. The following are some important factors, which influence the planning of effective layout to a significant degree. 1. Nature of the product: The nature of the product to be manufactured will significantly affect the layout of the plant. Stationary layout will be most suitable for heavy products while line layout will be best for the manufacture for the light products because small and light products can be moved from one machine to another very easily and, therefore, more attention can be paid to machine locations can be paid to machine locations and handling of materials. 2. Volume of production: Volume of production and the standardization of the product also affect the type of layout. If standardized commodities are to be manufactured on large scale, line type of layout may be adopted. 3. Basic managerial policies and decisions: The type of layout depends very much on the decisions and policies of the management to be followed in producing the commodity with regard to the size of plant, kind and quality of the product, scope for expansion to be provided for, the extent to which the plant is to be integrated, amount of stocks to be carried at anytime, the kind of employee facilities to be provided etc. 4. Nature of plant location: The size shape and topography of the site at which the plant is located will naturally affect the type of layout to be followed in view of the maximum utilization of the space available .For e.g., if a site is near the railway line the arrangement of general layout for receiving and shipping and for the best flow of production in and out the plant may be made by the side of the railway lines .If space is narrow and the production process is lengthy, the layout of plant may be arranged on the land surface in the following manner:

5. Type of industry process: This is one of the most important factors influencing the choice of type of plant layout. Generally the types of layout particularly the arrangement of machines and work centers and the location of workmen vary according to the nature of the industry to which the plant belongs. For the purpose of lay out, industry may be classified into two broad categories:

(i) Intermittent and (ii) continuous. Intermittent type of industries is those, which manufacture different component or different machines. Such industries may manufacture the parts, when required according to the market needs. Examples of such industries are shipbuilding plants. In this type of industry functional layout may be the best. The second type of industry in continuous industry. in this type of industry raw material are fed at one end and the finished goods are received at another end. A continuous industry may either be analytical or synthetic . A analytical industry breaks up the raw material into several parts during the course of production process or changes its form, e.g. oil and sugar refineries. A synthetic industry on the other hand mixes the two or more materials to manufacture one product along with the process of production or assembles several parts to get finished product. Cement and automobiles industries are the examples of such industry. Line layout is more suitable in continuous process industries. 6. Types of methods of production: Layout plans may be different according to the method of production proposed to be adopted. Any of the following three methods may be adopted for production- (1) Job order production, (2) batch production, and (3) mass production. Under job production goods are produced according to the orders of the customers and therefore, specification vary from customer to customer and the production cannot be standardized. The machines and equipment can be arranged in a manner to suit the need of all types of customers. Batch production carries the production of goods in batches or group at intervals. In this type of manufacturing the product is standardized and production is made generally in anticipation of sales. In such cases functional or process layout may be adopted. In case of mass production of standardized goods, line layout is most suitable form of plant layout. 7. Nature of machines: Nature of machines and equipment also affects the layout of plants. If machines are heavy in weight or create noisy atmosphere, stationery layout may reasonably be adopted. Heavy machines are generally fixed on the ground floor. Ample space should be provided for complicated machines to avoid accidents. 8. Climate: Sometimes, temperature, illumination and air are the deciding factors in the location of machines and their establishments. For example, in lantern manufacturing industry, the spraypainting room is built along the factory wall to ensure the required temperature control and air expulsion and the process of spray painting may be undertaken. 9.Nature of material: Design and specification of materials, quantity and quality of materials and combination of materials are probably the most important factors to be considered in planning a layout. So, materials storage, space, volume and weight of raw materials, floor load capacity, ceiling height ,method of storing etc. should be given special consideration. This will affect the space and the efficiency of the production process in the plant. It will facilitate economic production of goods and prompt materials flow and soundly conceived materials handling system. 10. Type of machine: Machines and equipment may be either general purpose or special purpose. In addition certain tools are used. The requirements of each machine and equipment are quite

different in terms of their space; speed and material handling process and these factors should be given proper consideration while choosing out a particular type of layout. This should also be considered that each machine and equipment is used to its fullest capacity because machines involve a huge investment. For instance, under product layout, certain machines may not be used to their full capacity so care should be taken to make full use of the capacity of the machines and equipment. 12.Human factor and working conditions: Men are the most important factor of production and therefore special consideration for their safety and comforts should be given while planning a layout, specific safety items like obstruction-free floor, workers not exposed to hazards, exit etc. should be provided for. The layout should also provide for the comforts to the workers such as provision of rest rooms, drinking water and other services etc. sufficient space is also to be provided for free movement of workers. 13. Characteristics of the building: Shape of building, covered and open area, number of storeys, facilities of elevators, parking area and so on also influence the layout plan. In most of the cases where building is hired, layout is to be adjusted within the spaces available in the building. Although minor modification may be done to suit the needs of the plants and equipment. But if any building is to be constructed, proper care should be given to construct it according to the layout plan drawn by experts. Special type of construction is needed to accommodate huge or technical or complex or sophisticated machines and equipment.

Planning and control are interrelated and interdependent. Planning is meaningless unless control action is taken to ensure the success of the plan. Control also provides information feedback which is helpful in modifying the existing plans and in making new plans. Similarly, control is dependent on planning as the standards of performance are laid down under planning. Therefore, production and control should be considered an integrated function of planning to ensure the most efficient production and regulation of operations to execute the plans successfully. Production planning and control may be defined as the direction and coordination of the firms material and physical facilities towards the attainment of pre-specified production goals in the most efficient available way .It is the process of planning production in advance of operations, establishing the exact route of each individual item, part or assembly, setting starting and finishing dates for each important item or assembly and finished products, and releasing the necessary orders as well as initiating the required follow up to effectuate the smooth functioning of the enterprise. Thus, production planning and control involves planning, routing, scheduling,

dispatching and expediting to coordinate the movements of materials, machines and manpower as to quantity, quality, time and place. It is based upon the old adage of first plan your work and then work your plan. Objectives of Production Planning and Control The main objective of production planning and control is to ensure the coordinated flow of work so that the required number of products are manufactured in the required quantity and of required quality at the required time at optimum efficiency. In other words, production planning and control aims at the following purposes:

Continuous Flow of Production: It tries to achieve as smooth and continuous production by eliminating successfully all sorts of bottlenecks in the process of production through well-planned routing and scheduling requirements relating to production work. Planned Requirements of Resources: It seeks to ensure the availability of all the inputs i.e. materials, machines, tools, equipment and manpower in the required quantity, of the required quality and at the required time so that desired targets of production may be achieved. Co-ordinated work Schedules: The production activities planned and carried out in a manufacturing organization as per the master schedule. The production planning and control tries to ensure that the schedules to be issued to the various departments/units/supervisors are in coordination with the master schedule. Optimum Inventory: It aims at minimum investment in inventories consistent with continuous flow of production. Increased Productivity: It aims at increased productivity by increasing efficiency and by being economical. This is achieved by optimizing the use of productive resources and eliminating wastage and spoilage. Customer Satisfaction : It also aims at satisfying customers requirements by producing the items as per the specifications or desires of the customers. It seeks to ensure delivery of products on time by co-ordinating the production operations with customers orders. Production and Employment Stabilisation: Production planning and control aims at ensuring production and employment levels that are relatively stable and consistent with the quantity of sales. Evaluation of Performance: The process of production planning and control is expected to keep a constant check on operations by judging the performance of various individuals and workshops and taking suitable corrective measures if there is any deviation between planned and actual operations.

Ppc is one of the most important phases of production management, it is, as a matter of fact, the nervous system of a manufacturing organization. In manufacturing organization, it is essential that production is carried on in the best manner at the lowest cost, and the goods are of right quality and are produced at the proper time. This can be ensured only through proper planning of production. but mere planning of production will not solve the problem becauseproduction plans are not capable of self-actuating and do not lead to automatic accomplishment. For that the production manager has to take certain steps like, he has to regulate work assignment, review the work progress, and devise methods to bring conformity between the actual performance and planned performance so that plans chalked out are adhered to and the standards set at the planning stage are properly attained and improved. This is the function of production control. Production control, therefore, is a directive function which involves the coordination and integration of operations and activities of different factors of production with a view to optimizing efficiency. Optimum efficiency is attainable by proper planning of work, laying down of exact routes which operations shall follow, correct fixing of time-table within which productive operations shall start and come to a close, uninterrupted releasing of orders and work facilities, and timely initiation of appropriate follow-up steps toensure smooth functioning of the enterprise. In other words, production control involves planning, routing, scheduling, dispatching and follow-up. Steps in Production Planning and Control 1. Planning The first important step in production planning and control is concerned with the careful preparation of production plans. Production plans determine what will be produced and where, at what type, by whom, and how. For detailed planning of operations, the relevant information may be obtained from several sources in the enterprise. Information about quantity and quality of products to be manufactured may be obtained from customers orders and the sales budget, and information about production facilities may be obtained from the management and the engineering department. Thus, the planning function formulates production plans, and translates them into requirements for men, machinery and materials. Whatever be the planning period, production planning helps in avoiding randomness in production, providing regular and steady flow of production activities, utilizing production facilities to its maximum for minimizing operating costs and meeting delivery schedules; coordinating various departments of the enterprise for maintaining proper balance of activities, and above all, providing the basis for control in the enterprise. 2. Routing The next important function of production planning and control is routing which involves the determination of the path (i.e. route) of movement of raw materials through various machines and operations in the factory. Routing includes the planning of where and by whom work shall be done, the determination of the path that work shall follow, and the necessary sequence of operations. To find this path, emphasis is placed on determining operating data, which usually includes planning of where and by whom work should be done, the determinations of the path

that work shall follow, and the necessary sequence of operations. These operating data are contained in the standard process sheet which helps in making out a routing in the standard process sheet which helps in making out a routing chart showing the sequence of operations and the machines to be used. If the machine loan chart indicates the non-availability of certain machines, alternate routing may also be included on the routing chart. The most efficient routing may have to be compromised with the availability of the machines at a particular time. In other words, routing establishes the operations, their path and sequence, and the proper class of machines and personnel required for these operations. From the above, it can be inferred that routing is one of the highly essential elements and prime considerations of production control because many production control functions are closely related processes and are dependent on routing functions. Thus, it is essential to solve the different problems concerning: appropriate personnel; full utilization of machines; and determining with precise degree the time required in the production process. 4. Scheduling Scheduling is planning the time element of production i.e. prior determination of when work is to be done. It consists of the starting and completion times for the various operations to be performed. In other words, scheduling function determines when an operation is to be performed, or when work is to be completed, the difference lies in the details of the scheduling procedure. To work out effectively, the scheduling, as a part of production control function, determines the time when each operation called for on the route sheet is to be done on the specified machine in order to meet the desired delivery dates. Good control function directs not only the time that each particular operation should start but also indicates the progress of each manufacturing part, the amount of work ahead of each machine, and the availability of each machine for the assignment of new work. Schedules are of two types: Master schedule and Detailed schedule. Activities, if recorded on plantwise basis, would be preparing master schedule, while mere detailed schedules are employed to plan the manufacturing and assembly operations required for each product. 5. Dispatching Dispatching is the part of production control that translates the paper work into actual production. It is the group that coordinates and translates planning into actual production. Dispatching function proceeds in accordance with the details worked out under routing and scheduling functions. As such, dispatching sees to it that the material is moved to the correct work place, that tools are ready at the correct place for the particular operations, that the work is moving according to routing instructions. Dispatching carries out the physical work as suggested by scheduling. Thus, dispatching implies the issuance or work orders. These work orders represent authority to produce. These orders contain the following information:

The name of the product;

The name of the part to be produced, sub-assembly or final assembly; The order number; The quantity to be produced; Descriptions and numbers of the operations required and their sequence, The departments involved in each operation The tools required for particular operation; and Machines involved in each operation and starting dates for the operations. 6. Expediting Expedition or follow-up is the last stage in the process of production control. This function is designed to keep track of the work effort. The aim is to ensure that what is intended and planned is being implemented. Expediting consists in reporting production data and investigating variances from predetermined time schedules. The main idea behind expedition is to see that promise is backed up by performance. It includes the following functions:

1. Check-up to ensure that all materials, tools, component parts, and accessories are available at all work centers in specified quantities for starting and carrying out manufacturing operations. 2. Check-up on the status of work-in-progress and completed work at various work stations. This includes collecting information relating to the starting and completion time and date of work completed, status of work-in-progress relative to scheduled completion dates, position of movements of materials, component parts, and sub-assemblies within the plant, and inspection results. 3. Preparation of progress records and keeping the control boards up-to-date. 4. Reporting to manufacturing management on all significant deviations so that corrective action may be taken. It also includes reporting to production planning department so that future plans may be adjusted. Thus production planning and control by completing the above discussed phases ensures the manufacturing of goods of right quality, quantity and at competitive market rates. One thing must be borne in mind that production planning and control is a never-ending process, and its various functions are inter-dependent.

he principal advantages of production planning and control are summarized below:

Better Service to Customers: Production planning and control, through proper scheduling and expediting of work, helps in providing better services to customers is terms of better quality of goods at reasonable prices as per promised delivery dates. Delivery in time and proper quality, both help in winning the confidence of customers, improving relations with customers and promoting profitable repeat orders. Fewer Rush Orders : In an organization, where there is effective system of production planning and control, production, operations move smoothly as per original planning and matching with the promised delivery dates. Consequently, there will be fewer rush orders in the plant and less overtime than, in the same industry, without adequate production planning and control. Better Control of Inventory : A sound system of production planning and control helps in maintaining inventory at proper levels and, thereby, minimizing investment in inventory. It requires lower inventory of work-in-progress and less finished stock to give efficient service to customers. It also helps in exercising better control over raw-material inventory, which contributes to more effective purchasing. More Effective Use of Equipment : An efficient system of production planning and control makes for the most effective use of equipment. It provides information to the management on regular basis pertaining to the present position of all orders in process, equipment and personnel requirements for next few weeks. The workers can be communicated well in advance if any retrenchment, lay-offs, transfer, etc. is likely to come about. Also, unnecessary purchases of equipment and materials can be avoided. Thus, it is possible to ensure proper utilization of equipment and other resources. Reduced Idle Time : Production planning and control helps in reducing idle time i.e. loss of time by workers waiting for materials and other facilities; because ensures that materials and other facilities are available to the workers in time as per the production schedule. Consequently, less man-hours are lost, which has a positive impact on the cost of production. Improved Plant Morale : An effective system of production planning and control co-ordinates the activities of all the departments involved in the production activity. It ensures even flow of work and avoids rush orders. It maintains healthy working conditions in the plant thus ,there is improve plant morale as a by-product. Good public image: A proper system of production planning and control is helpful in keeping systematized operations in an organization .Such an organization is in a position to meet its orders in time to the satisfaction of its customers. Customers satisfaction leads to increased sales,increased profits ,industrial harmony and, ultimately, good public image of the enterprise .

Lower capital requirements: Under a sound system of production planning and control , everything relating to production is planned well in advance of operations. Where, when and what is required in the form of input is known before the actual production process starts .Inputs are made available as per schedule which ensures even flow of production without any bottlenecks

.Facilities are used more effectively and inventory levels are kept as per schedule neither more nor less .Thus ,production planning and control helps, in minimizing capital investment in equipment and inventories.