Production/Operations Planning & control (A)

Production/Operations Planning & control

Production planning / Operation planning: Involves the organization of an overall manufacturing / operating system to produce a product. Various activities involved are i) designing the product ii) determining the equipment & capacity requirements, iii) designing the layout of physical facilities & MH system, iv) determining the sequence of operations to be performed along with time requirements (standard times) & v) specifying certain production quantity & quality levels Objective is to provide a physical system together with a set of operating guidelines for efficient conversion of raw materials, human skills & other inputs in to finished products

Production/Operations Planning & control-contd

Factors determining Production Planning procedures It differs from company to company. It may begin with a product idea & a plan for the design of the product & the entire production / operating system to manufacture the product. It also includes the task of planning for the manufacturing of a modified version of an existing product, using the exiting facilities. The wide difference between the planning procedures of one company from the other is primarily due to the differences in the economic & technological conditions under which the firms operate. 3- major factors determining the planning procedures are: (1) Volume of production (2) Nature of production processes (3)Nature of operations. Contd on next slide

Production/Operations Planning & control-contd

(1) Volume of production- The Production Planning is expected to reduce manufacturing costs. In case of custom order job shop, the planning of production is limited to planning for purchase of raw materials & components & determination of work centers which have the capacity of manufacturing the product In high volume operations, extensive production planning is necessary in planning for design of both the product & the production processes in order to achieve substantial cost reduction when large number of products are produced. (2) Nature of production processes In job shop- Production planning may be informal & the development of methods is left to the individual workman who is highly skilled. In high volume production- many product designers, equipment designers, process designers & method engineers are involved in designing the product & manufacturing process.

Production/Operations Planning & control-contd

(3) Nature of OperationsDetailed production planning is required for repetitive operations, e.g. in case of a single standardized product. Variants in manufacturing approach are: i) Manufacture to order which may or may not be repeated at regular intervals. ii) Manufacturing to stock & sell (under repetitive batch or mass production). Ex - Manufacture of Automobiles, watches etc. iii) Manufacturing to stock & sell (under continuous process manufacturing) Ex.- Chemicals, soap, food products, yarn etc The degree to which production planning is carried, varies with the nature of the process. Production planning system has Two - interrelated sub systems i) Product planning system & ii) Process planning system Refer the figure on the next slide

Production/Operations Planning & control-contd

Product Planning System Market Requirements Product specifications Product Ideas Process Planning System Process R&D Work Station Selection Operation Design Operation Control Operation Method Sequence Feedback Process Design Work Flow Analysis Product Research Product Development Final Product Design

Production Planning System

Production/Operations Planning & control-contd

Production Control:Importance of control function:The function of production control is to: i) Provide for the production of parts, assemblies & products of required quality & quantity at the required time. ii) Coordinate, monitor & feed-back to manufacturing management, the results of the production activities, analyzing & interpreting their significance & taking corrective action if necessary. iii) Provide for optimum utilization of all resources. iv) Achieve the broad objectives of the low cost production & reliable customer service. Benefits of Production Control!) Improvement in profits througha) Maintenance of balanced inventory of materials, parts, w.i.p & finished goods b) Balanced & stabilized production c) Maximum utilization of men, machines & equipments & space d) Minimum investment in inventory e) Reduction in indirect & set-up costs f) Reduction in scrap & rework costs g) Reduction in inventory costs contd-next slide

Production/Operations Planning & control-contd

Benefits of Production Control- contd 2) Competitive advantagea) Reliable delivery to customers. b) Shortened delivery schedule to customers c) Lower production costs & greater pricing flexibility d) Orderly planning & marketing of new or improved products. Elements of Production Control1) Control of planning 2) Control of materials 3) Control of tooling 4) Control of Manufacturing activities 5) Control of activities 6) Control of Quantity 7) Control of material handling 8) Control of due dates 9) Control of information

Production Planning & control (B)

Production Planning & control-(PPC)

This function is concerned with decision making regardinga) What to produce- Product Planning & development includes product design b) How to produce- Process planning, materials planning, tools planning etc c) Where to produce- Facilities planning, capacity planning, subcontracting planning d) When to produce- Production scheduling & machine loading. e) Who will produce- Man-power planning f) How much to produce- Planning for quantity & economic batch size etc

Production Planning & control

Production Planning & control function essentially consists of planning in a manufacturing organization before actual production activities starts & exercises control activities to ensure that the planned production is realized in terms of quality, quantity, delivery schedule & cost of production. Objectives of Production Planning & control : 1 Delivery of quality goods in required quantities to customer in the required delivery schedule 2 Maximum utilisation of all resources. 3 Production of quality goods 4 Minimise product throughput time or production / manufacturing cycle time. 5 Maintain optimum inventory level. 6 Maintain flexibility in manufacturing operations 7 Coordination between labour, m/cs, & supporting deptts.

Production Planning & control-contd

Objectives of Production Planning & control-contd 8 Plan for plant capacity for future requirements 9 Remove bottle-neck at all stages, & solve production related problems 10 Effective cost reduction & cost control 11 Prepare production schedule & delivery by scheduled dates. 12 Produce effective results for least total cost . 13 Establish routes & schedules for work that will ensure optimum utilisation of labour, equipments & machines, & provide the means for ensuring the operation of the plant in accordance with these plans. 14 Ultimate objective is to contribute to the profit of the enterprise.

Production Planning & control-contd

Scope of Production Planning & control- It encompasses 1) Materials: Planning for procurement of RM, components/ parts in right quantities/specifications, right time, from right source & at the right price. Other activities associated with the materials are purchasing, storage, inventory control, standardization, variety reduction, value analysis & inspection. 2) Methods: Choosing the best method of processing from several alternatives, including the best sequence of operations (Process Planning) & planning for tooling /Jigs/Fixtures. 3) Machines & equipments : Manufacturing methods are related to production facilities available in the production system. It involves facilities planning, capacity planning, allocation & utilization plant & equipments, machineries etc It also involves equipment replacement policy, maintenance schedules, Tools manufacturing & maintenance etc.

Production Planning & control-contd

Scope of Production Planning & control contd 4) Manpower: Planning for Human resources (labour, supervisory, & managerial levels) having appropriate skills & expertise. 5) Routing: Determining the flow of work, material handling in the plant, sequence of operations or processing steps. This is related to considerations of appropriate shop layout, temporary storage locations for raw materials, components & semifinished goods & material handling systems. 6) Estimating: Estimating operations time leading to fixation of performance standards both for workers & machines. 7) Loading & scheduling: Machine loading is allocation of jobs to the machines in conjunction with due consideration for capacity of machines & priority for jobs in order to utilize the machines to the maximum possible extent.

Production Planning & control-contd

Scope of Production Planning & control contd 8) Dispatching: It is concerned with execution of planning function. It gives necessary authority to start a particular work already planned under routing & scheduling. It is the release of orders & instructions for starting of production as per route sheets & schedule charts. 9) Expediting: Means chasing, follow-up or progressing which is done after the dispatching function. It keeps a close liaison with scheduling in order to provide an efficient feed-back & prompt review of targets & schedules. 10)Inspection: This relates to maintenance of quality in production (evaluating processes/methods/ workers for improvements) to achieve the quality standards set by product design. 11) Evaluating): Its objective is to improve the performance (m/cs, process/labour performance evaluation for improvement) 12)Cost control: By waste reduction/ value analysis, inventory control & efficient utilization of all resources.

Production Planning & control-contd

Phases in PPC Function: (1) Planning phase- (a) Pre-planning (b) Active planning. (a) Pre-planning- Involves Product planning & development, demand forecasting, facilities planning, plant planning, Plant location & plant layout. (b) Active planning-Involves planning for quantity, determination of product-mix, routing, scheduling, materials planning, process planning, capacity planning, & tools planning (2) Action Phase-Execution or implementation phase includes the dispatching & progressing function. (3) Control Phase- Includes status reporting, materials control, tools control, inventory control, quality control, labour output control & cost control.

Production Planning & control-contd

Main functions of PPC department are shown in the following figure. Production Planning & Control

Production Planning

Production Control

i) ii) iii) iv)

Estimating Routing Scheduling Loading

i) ii) iii) iv)

Dispatching Expediting/Follow-up Inspection Evaluating & Corrective action

Production Planning & control-contd

Levels of Planning in a Production Planning System
Planning Horizon Inputs Plans / Schedules

Out-Puts i) Production capacity plans. (Plant location, layout, size, capacities etc ii) Major sub contracting plans. iii) Major machinery & process plans. i) Employment plan ii) Machinery & utility plans iii) contract & material supply contract iv) Facility modification plan
i) Short range production schedule for end products ii) Short range production schedule for parts, components, subassemblies & final assembly iii) Short range plan for purchasing materials iv) Short range shop-floor plans

1) Long Range (Strategic Planning)

2)Interme-diate range (Tactical plan) 3) Short Range (Operatio nal Plan)

i) Long Range demand forecast ii) Availability of fund & Business analysis iii) Capacity data & Analysis Intermediate Range demand forecast

Long range capacity plan

Aggregate capacity plans

i) Short Range demand forecast ii) On hand customer orders iii) Other orders ( IntraCompany) iv) Availability of material from suppliers

i) Master production schedule ii) Capacity requirement Planning iii) Material requirement planning

PP&C-contd Information required for PPC

Information required
1 Production programme Quantity to be produced Delivery date Variety / different models & spl features 2 Quality standards-specs & tolerance 3 Production materials Type of materials Quality & quantity Procurement lead-time Stock position 4 Toolings 5 Operational details Sequence of operations, Process capability of machines/ equipments Jigs & Fixtures needed Cutting parameters/ Process parameters 6 Standard times for operations/ set-up time 7 Starting & finishing dates. 8 Progress/Status of work

Source of Information
1-The sales order or the order accepted by marketing 2-Design deptt which translate customer needs in to specifications 3-Drawing & Bill of materials (BOM), Material stock card 4-Standard & special tools 5-Process sheets Load charts Process capability study

Department
1-Marketing deptment 2-Engg, purchase & stores 3-PPC deptt

4 PPC deptt 5 Industrial Engg deptt

6-Work measurement Data 7-M/c load & sch. Chart 8-Production report

6 PPC deptt 7 Production 8 Prroduction

Sales forecast
Preparation of production Budget FIN/PRODUCTION Preparation of details by Engg Deptt (Drg/BOM/Spec Production Planning- supplies data to dispatch section Customer Authorisation for production- despatch of prodn order Management Feedback

Control function- compare progress with plan continuously

Inspection, Quality control Evaluation of Production System- feedback for improvement Finished goods stock Dispatch to customer

Production Procedure

Production Planning & control-contdTypical Organization for PPC in a manufacturing firm

G.M. (Plant)

R&D

Production

PPC

Quality Control

Maintenance

Order preparation

Material Control

Tools Control

Scheduling

Dispatching

Program