PPC

(Production Planning and Control)

PRODUCTION CONTROL CONSIDERATIONS:

The Production Control System should be planned using the Theory of Constraints
popularized by Eli Goldratt, author of The Goal. This will help the system to provide
customer quick response. The loading and controlling should be considered in Standard
Allowed Hours. This will help in better prediction and controlling of production and will
lead to specific output daily.

The introduction of more style variations makes controlling production more difficult. In
order to avoid cropping-up of problems it is important to keep a very close check on each
and every step of the manufacturing process. There is a need to formalize all the activities
included in; production forecasting, planning, scheduling, loading and control. For proper
control people responsible for low inventory levels and elimination of constraints are
needed.

The manager will have to ensure a timely and accurate information flow that will allow
proactive production decisions. This may include knowing planned and produced
standard hours by factory, line and product; the matrix of available operator skills
inventory versus required skills by operation; expected output from operators an
operators transfers; when to make advance changes to keep adequate work supplies
available; when to reassign personnel due to unexpected schedule changes and
absenteeism; hoe to schedule sufficient product mix to utilize the minimum manpower
available and how to avoid constraints.

ROLE OF A SUPERVISOR:

1. Supervisors are expected to control production and keep the work moving. This
approach is quite inefficient. This is because the supervisor is usually busy
moving bundles and has little time to deal one-on-one with their people to help
them improve their efficiency and production. This makes direct labor more
expensive.

2. They are expected to reduce costs and improve production and quality. Here
supervisors job is divided into two parts: people and data. The entire data part
which is associated with directing and controlling work-in-process activities (i.e.
bundle people, production reports, etc.) should be the responsibility of Production
Control. This will give the supervisors more time to deal with their primary job
which is to see that everyone of theirs operators earn a minimum of one hour for
every hour they work.
OVERVIEW OF AN ENTIRE PRODUCTION CONTROL SYSTEM:

The main function of the production control is to produce products with minimum total
cost in the required planned delivery timeframe. The production plan should help in
anticipating:

1. The progress of the production of every product, from the receipt of the raw materials
to the shipment of the order.
2. The itemized and total cost of producing and delivering the product.

The efficiency of the production control performance is equal to the precision of the time
and cost anticipation. The greater the deviation from the scheduled time and cost figures,
the poorer the production control performance.

Production control is composed of a sequence of five activities:

1. ANALYZING: it is the process of determining the quality specifications of the

product. The analysis provides the specifications for the following elements of
production:
a. Raw materials
b. Production equipment and tools
c. Production personnel; that will yield the durability, utility and emotional
appeal required for the garment.
Analyzing presents the quality measuring scale for the product. It also gives
the basis of quantitative production capacity of each operation, job or process.
This is needed for forecasting the anticipated load of production per unit time.

2. FORECASTING: it is the process of estimating the future sales volume, the rate
of sales, and the rate of delivery.

3. PLANNING (organizing and scheduling): planning is the activity of organizing

the sequence of communications and material processing. Every production
process must be initiated by some communication. These devices lead to precision
scheduling. Scheduling forms the second half of the planning activity; it adds the
when to organizing what and where.

4. ROUTING: it consists of assigning the who to planning and executing the

what, where and when.

5. CONTROLLING: it is the activity with which the production manager inspects

and corrects the execution of the production plan. It is the action that must be
taken to change the plan whenever production is behind the planned schedule
because of improper planning, unforeseen emergencies, or unpredicted
occurrences.
WHAT DOES A PRODUCTION CONTROL SYSTEM ENTAIL?

Production Control System is split into two main sub-systems:

1. Production Planning and Resource Planning

2. Production Control and Cost Production Reporting

The main objectives of the Production Planning System are:

1. To assist in the planning and recording of over-all production requirements. This

includes analysis of production plan to orders, stock on hand or sales budgets to
ensure that the plan is reasonable in relation to requirements.
2. To assist in the translation of the over-all requirement into a production schedule.
3. Material requirement planning (M.R.P) to enable the user to correctly schedule
the ordering of raw materials. M.R.P combines the production plan with the bill of
materials structure to arrive at material requirements.
4. Resource Capacity Planning to enable the user to analyze physical capacity of
men and machines against capacity required by the order situation or the actual
production plan.
5. To provide facilities to plan the production schedule in detail and ensure that
production resources are fully utilized without under or over-utilization.
6. To launch Production Jobs with required documentation (Job Cards, Material
Requisition Forms, Bundle Tickets, etc.).
7. To capture and monitor details of work in progress and production quantities.
8. To maintain a tracking history of job progress.
9. To report on exceptional conditions to ensure that jobs progress according to plan.
10. To capture and record the true cost of production and to record abnormal costs
such as reprocessing costs, etc.
11. To report on the costs and efficiencies of completed jobs.
12. Planned quantities versus quantities actually produced.

Production planning, scheduling and control involve the organization and planning of
the manufacturing process. These activities include initial planning of workload
capacity versus sales, scheduling, dispatching and inspection coordination, control of
materials, methods, machines, and tooling and operation times.

The ultimate objective of all these activities is the organization of the supply and
movement of materials and labor, machine utilization and related activities in order to
help manufacture customer orders (or stock) in the most efficient time, at the lowest
possible cost with the highest quality.
 Production control involves people and activities that strive to plan, schedule,
coordinate, monitor work flow and control production within a manufacturing factory.
Their main objectives are:
1. Reviewing master production schedules and work orders and also revising
schedules according to availability of workers, materials and equipment.
Standard Allowed Hours (S.A.H.s) is used as a basis for determining
consistent flow while satisfying customer demand.
2. This system helps in locating the unbalanced conditions at the right time,
before it becomes an excess cost factor.
3. It helps the supervisor in guiding his/her line toward an optimum level of
productivity- in order to assure that scheduled completion dates are achieved.
4. It takes care that the products are being manufactured on a balanced and
timely program.

WHY PRODUCTION CONTROL?

As customer bases grow, there are more and more style variations within product groups.
Style variations also bring about situations where lines should be loaded in hours rather
than units. Ever-changing demands make it more difficult for lines to maintain their
balance or meet schedules. It becomes apparent that a closer check on the production is
necessary. Using control points in each line help to correct any excessive buildups or
deficits that would cause lines to be out of balance or would have adverse affect
production and/or shipping.

Production control should be responsible for the scheduling; loading, controlling and
reporting of balance conditions, lines and the attainment of scheduled completion dates.

FACTORS DETERMINIG CONTROL PROCEDURES:

Control procedures are determined by several conditioning factors:

1. Varied or repetitive character of operations.
2. Nature of manufacturing processes.
3. Magnitude of operations.

There is a basic pattern used for developing a production control organization and a
basic line of procedure that production control activities must follow. These have to
be adapted according to the kind of product and according to a specific factory. The
wide difference between the method of planning and operation from one factory to
another arises from the way in which the production control activities are necessarily
carried on, not from fundamental variations in the what, why ,when, where, and
how of such activities.

Varied and repetitive operation:

 Variety of operations complicates the problem of planning and control, whereas
repetitive operations reduce the variety and tend to simplify the problem.
There are all sorts of variants between these two extremes. These may be represented
by the continuous production of a single standardized product on the one hand and the
completely special-order business on the other. Some of the principal variants are:

1. Manufacturing to order, this may or may not be repeated at regular intervals.

2. Manufacturing for stock, where product is made up of parts but the processes are
not optional. Custom orders may be intermingled.
3. factors tending to a complex control system are:

a. Number of ultimate parts in the product.

b. Number of different operations on each part.
c. Extent to which processes are dependent, that is, processes which cannot be
performed until previous operations have been completed.

4. Variations in capacity of machines for different classes of work. For e.g. Speed of
machines varies according to the nature of the material being work on.
5. Degree to which subassembly exists.
6. Occurrence of customer orders containing specific delivery dates.
7. Receipt of orders for many small lots.
8. factors tending to simplicity of planning and control are:

a. Degree to which repetitive work occurs, that is, when the same work is done over
and over again in the sane way, preferably in cycles.
b. Absence of special dates for special items, as when everything is made for stock.
c. Fixed capacity of machines or processes.
d. Invariable method of operation of machines or processes.
e. Absence of discreet parts and assembly.
f. Completely balanced production in which capacity of every process is strictly
proportional to flow of work.

Nature of manufacturing:

The degree to which production control is developed varies with product. It is at a

minimum where a single homogenous product is treated by a fixed sequence of processes
in a continuous flow. Flow sheets at these factories exhibit a continuous stream of
production in which many operations are performed, materials added, and by-products or
wastes eliminated, but without break in flow or exceptions in work or processes. Very
little production control is required in these factories since it has already been embodied
in the product and equipment itself. On the other hand, quality control is highly
developed and long-range planning for raw materials, finished inventory levels, and
markets is extremely important.

In contrast to the continuous industries are repetitive operations in factories making many
products and/or lots at the same time. Here:

a. Great variety of materials is used in many ways and for many purposes.
b. There are hundreds of parts and many processes take place on each part on
different machines.
c. Planning and control functions are used to bring these together in proper
sequence, at the right time and place.

In custom manufacturing:

a. Less accurate planning is possible than when manufacturing for stock.

b. It is possible to forecast probable business rather closely, based on past experience
and known trade conditions.
c. Definite scheduling is not possible; the raw material situation can be surveyed in
the light of probable demands.
d. Custom orders require a certain time, over and above actual operating time, to
pass through the factory. This time lag gives opportunity for planning, scheduling
being effected immediately on receipt of order.
e. In some textile industries, orders are taken on samples made in advance of the
season, each sample being accepted by many customers in varying quantities.
f. When the bulk of order is in, a consolidation is made and the yardage of each
pattern found. These orders are then treated as being manufactured for stock.

In mixed stock and custom manufacturing, either stock or custom orders may
be the main feature. The routine will be, if:

(1) The stock-manufacturing situation prevails, surplus machine capacity is

ascertained from machine load charts and custom orders are scheduled to
absorb it.

(2) The custom manufacture predominates; the1111

(3) 2

(4) 5 reverse is true; stock manufacturing is fitted into whatever machine

capacity is left over from custom work.

Course (1) may mean slow delivery of custom orders; course (2) an uncertain
output of stock. A middle course is generally advisable, stock production
being interrupted at times convenient for custom orders, yet not so often or at
such moments as to hinder efficient output.
Magnitude of operations:

Scale of operations has an important bearing on the nature of the problem. In a

small-scale enterprise, control is more informal because it is more personal
and direct. As businesses increase in size, new techniques such as this
program had to be devised.

The degree to which the performance of any activity must be decentralized

depends upon the scope of operations and the convenience of their location. In
large factories, activities associated with warehousing, processing operations,
and custody of finished goods must of necessity be carried on in numerous
locations. The issue is then determining whether authority and control over
these various operations shall be centralized. When performance must be
decentralized, then centralized authority has to be buttressed with supporting
forms of organization and procedures for rapid two-way communication, if it
is to provide effective control.

Production Forecasting /Planning:

Coordinates the production department with other departments of the,

business. Considering future sales requirements, it determines what
manufacturing must produce, the quantities involved, when the products must
be available, and the time and quantity requirements for materials, parts, labor,
and facilities.
It presents production data to inventory control, purchasing, personal,
enginrrring, and administrative groups in the manner that most effectively
synchronizes their contribution to production activities.

Production Control:

Promotes effective factory operation through its control of activities within the
production department itself. This control may involves routing , the decision
on facilities and sequence for each operation; loading and scheduling, the
relationship between available capacity and current and future orders;
dispatching, the final placement of the order at a workstation with all the
materials, trim, and instruction necessary to perform required operations; and
follow-up. Production control compares progress with plans, to discover
potential delays and to promote action that prevents or minimizes them.
The importance of control functions and procedures will vary from factoy
factory. This variation steams from differences in:
1. The degree of control required.
2. The control organization.
 3. Factory Management
4. The market served.
5. The manufacturing process.
6. The product complexity.

Once the general forms of production control requirements are outlined, it is

necessary to develop the detailed procedures through which control can be
achieved. These procedures will involve both data and people.

Preparation of operational breakdowns and production orders:

Operational breakdowns deal with the specific operations and required to

manufacture the product. In large factories, operational breakdowns are
sometimes departmental; where operations in each department are listed
separately. The data usually included on an operational breakdown and
production order is as follow:
1. Number and other identification of product group.
2. Style number.
3. Number of pieces/ dozens to be made.
4. If put through in lots, the number in each lot.
5. Operational data including:
a. List of operations on the product.
b. Departments in which the work is to be done.
c. Machine to be used for each operation.
d. Fixed sequence in any of the operations.
6. Standard Allowed Hours (S.A.H.s) per piece, dozen or bundle (as noted on
the operational breakdown sheet)

Loading and scheduling:

Loading and scheduling are concerned with the flow of work to the factory and the
relationship between the S.A.H.s required by production orders and available
S.A.H.s in the line. The loading and scheduling functions may be set up to give any
desired degree of control over factory operation. However, it is impossible to
establish a realistic schedule without some knowledge of the S.A.H. load. It is in this
area of loading and scheduling procedures that the widest varieties of computer
programs exist. In line with and amount of control desired loading decision must be
reached on:
1. The units and required accuracy of loading data.
2. The use of graphic controls-charts or boards and the form they should take.
3. The design of control records.
4. Duplicating requirements.
5. Computer programs to sort and tabulate data.
6. Filling procedures.
7. The manner in which communication should bf handled.
LOADING AND SCHEDULING PROCEDURES

Loading and scheduling procedures usually vary widely from company to

company. Because of all these variances, it is beyond the scope of this manual to
discuss all the different types of production control systems and which one(s) are
best for each type of manufacturing process requirement. Suffice it to say that
this manual should and can provide the springboard for your system. suffice it to
say that this manual should and can provide the springboard for your system.
Keep in mind what is required in a proper production control system. It is the
ability to sue facts to making immediate knowing decision. The companys are
able to master this art and science will act far enough in advance to avoid
problems thereby satisfying their customers wants and needs.
While some of these differences in method are merely those of detail, major
difference stem from variations in the kind of manufacturing situation and in the
degree of control required. There are two general classes of intermittent
manufacturing and two types of continuous production that will be discussed.
Loading and scheduling products from various kinds of manufacturing situations
will illustrate some of these differences. None of these procedures is present as
an ideal method. No such procedure exists.

1. Procedure for Intermittent Manufacture:

Loading and scheduling for intermittent manufacture usually include three

different steps or stages:
a. Scheduling within the order or product. It is necessary to determine relative
dates at which each process on each part or lot shall be started and finished.
b. Scheduling of order in relation to other orders. In custom work this will
depend on the delivery date of order, in stock manufacturing, on the relative
dates at which each component should be completed for stock. The sequence
in which each order or lot should be assigned to machines is thus determined.
c. Scheduling to machine loading. With the required completion date for an
order or lot at hand, reference to a schedule of relative processing dates will
when each process should be started. Reference to machine load records will
then give the nearest available date for starting. When all process on all parts
or lots has been assigned to machines, scheduling is complete.

2. Custom Order Manufacture:

Whenever future production depends on outside factors (as opposed to stock

production), scheduling often becomes a compromise between the time at which
should be done and they day at which it can be done in view of previous
commitments. Where work is put through in comparatively large lots and where
the manufacturing program is made up months ahead, scheduling in absence of
rush orders is a much easier operation.
When companies manufacture to order they cannot carry finished inventory. This
absence of a stock of finished products means that the planning and production
requirements of an order cannot be undertaken until that order has been received.
The interval involved in filling the order corresponds to total planning and
manufacturing interval. In this type of work it is usually important that delivery
commitments, once given, be maintained as closely as possible. All these factors
emphasize the need for fairly tight control of production.
With no inventory to server as a buffer between the factory and the customer and
under pressure to meet delivery promises closely, schedule must make many
different moves and operation throughout the factory. Under these conditions,
factories must be kept flexible and must have at hand suffiently accurate load
data to make such detailed scheduling possible.

3. Production for Stock

Even through production still moves in lots separate process departments,

control problems are simplified when production for stock (inventory)
becomes possible. This is particularly, true where inventories of finished
products can be built up.
The same effect occurs on a more limited scale when items can be stocked in
a partially finished state. Finished or finished inventories sharply reduce the
interval between the receipt of an order and its delivery to the customer.
When the production departments operate to replenish inventories, some of
the pressure on them is eased. Although schedules must still be maintained
avoid shortages and unbalanced stocks, short delays are not likely to be as
serious as they are when they hold up final delivery dates. For these reasons,
some what looser control may be perfectly adequate when production for
stock is possible.

4. Procedures for Continuous Manufacture

Loading and scheduling procedures, for continuous manufacture are simpler

than those required for intermittent manufacture. On the other hand, the
careful planning required to coordinate production with sales, inventory
levels, purchasing, engineering, and financing operations becomes extremely
important because of the high and continuous rate of production.

COSTS AND BENEFITS OF PRODUCTION CONTROL

In evaluating the costs and benefits of a production control department, it is

necessary to recognize that in every production organization, someone is
performing the planning and control functions. Koepke (Plant production
control) says:
In any manufacturing enterprise, someone must perform the various
function of production control; whether it is done by a group of specialists or
whether it is done by the superintendents, foremen, and workmen are a matter
 for each organization to decide, after a consideration of the costs of each
method as related to results obtained.
Therefore, since production control is being paid for, either as a specialist
function or hidden costs, it is necessary to decide which method is most
efficient.

Although no standard method for budgeting the costs of a production control

group is available, a simple budgeting method that limits the costs is reported
by Moore (Production Control). He uses a ratio of factory man-hours to
production control hours on a weekly basis. Moore points out that the most
important offset to the costs of production control is the reduction in
manufacturing costs. The costs of poor production control can summed up as
low rates of production, high costs, high inventory of materials in process and
finished stock, poor moral and disappointed customers.
The benefits and advantages of production control on five segments of
society are as follows:

1. The consumers:
a. Increased productivity.
b. Better values.
c. On time deliveries.
2. The producers:
a. Adequate Wages.
b. Stable employment.
c. Job security.
d. Improved working conditions.
e. Increased personal satisfaction.
f. Security of investment.
g. Adequacy of return.
3. The community:
a. Economic and social stability.
4. The nation:
a. Security.
b. Prosperity.

MacNiece points out that good control procedure can direct the attention of the sales
department to the areas of the factory where the work load is lowest and, therefore,
encourage the sales division to concentrate their efforts on products that utilize these
areas.