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    Production Planning and Controlling 2-1

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    radhika
    The document discusses production planning and controlling. It covers key areas like production, planning, controlling, objectives, importance, limitations and techniques. Production planning involves determining resource needs and selecting resources to produce goods on time and at low cost. Production controlling guides production flow to ensure efficiency and quality. The objectives are to optimize inputs, coordinate production, facilitate uninterrupted production and timely delivery. Techniques include routing, scheduling, loading, dispatching and expediting. [/SUMMARY]

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    Production Planning and Controlling 2-1

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    radhika
    25 views22 pages
    The document discusses production planning and controlling. It covers key areas like production, planning, controlling, objectives, importance, limitations and techniques. Production planning involves determining resource needs and selecting resources to produce goods on time and at low cost. Production controlling guides production flow to ensure efficiency and quality. The objectives are to optimize inputs, coordinate production, facilitate uninterrupted production and timely delivery. Techniques include routing, scheduling, loading, dispatching and expediting. [/SUMMARY]

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    The document discusses production planning and controlling. It covers key areas like production, planning, controlling, objectives, importance, limitations and techniques. Production planning involves determining resource needs and selecting resources to produce goods on time and at low cost. Production controlling guides production flow to ensure efficiency and quality. The objectives are to optimize inputs, coordinate production, facilitate uninterrupted production and timely delivery. Techniques include routing, scheduling, loading, dispatching and expediting. [/SUMMARY]

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    25 views22 pages

    Production Planning and Controlling 2-1

    Uploaded by

    radhika
    The document discusses production planning and controlling. It covers key areas like production, planning, controlling, objectives, importance, limitations and techniques. Production planning involves determining resource needs and selecting resources to produce goods on time and at low cost. Production controlling guides production flow to ensure efficiency and quality. The objectives are to optimize inputs, coordinate production, facilitate uninterrupted production and timely delivery. Techniques include routing, scheduling, loading, dispatching and expediting. [/SUMMARY]

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    of 22

    PRODUCTION

    PLANNING AND
    CONTROLLING
    Submitted by

    Submitted to
    • PRODUCTION
    • PRODUCTION PLANNING
    • PRODUCTION CONTROLLING
    • OBJECTIVES
    • IMPORTANCE
    • LIMITATIONS
    • TECHNIQUES
    • PRODUCTION IS CONCERNED WITH TRANSFORMING RAW
    MATERIAL INTO FINISHED PRODUCT WITH THE HELP OF ENERGY,
    CAPITAL, MANPOWER AND MACHINARY
    • THE AIM OF GOOD PRODUCTION POLICY IS TO ACHIEVE MAXIMUM
    OUTPUT WITH MINNINMUM INPUT
    • PRODUCTION POLICIES AND PROCEDURES ARE CONCERNED WITH
    PRODUCT PLANNING AND CONTROL
    • PRODUCTION PLANNING INVOLVES MANAGEMENT DECEISIONS ON
    THE RESOURCES THAT THE FIRM WILL REQUIRE FOR ITS
    MANUFACTURING OPERATIONS AND THE SELECTION OF THESE
    RESOURCES TO PRODUCE THE DESIRED GOODS AT THE
    APPROPRIATE TIME AND AT THE LEAST POSSIBLE COST.
    • DEFINATION : ACCORDING TO RAY WILD, PRODUCTION PLANNING
    IS DEFINED AS FOLLOWS,” PRODUCTION PLANNING IS CONCERNED
    WITH THE DETERMINATION, ACCQUSITION AND ARRANGEMENT OF
    ALL FACILITIES NECCESARY FOR FUTURE OPERATIONS”.
    PREPRATION OF PRODUCTION BUDGET

    DEVISING MANUFACTURING METHODS AND SEQUENCE OF OPERATIONS

    DECIDING TYPES OF MACHINES AND EQUIPMENTS

    PREPRATION OF OPERATION SHEETS AND INSTRUCTION CARDS

    ESTIMATING MEN, MATERIAL AND MACHINARY REQUIREMENTS

    UNDERTAKING TIME AND MOTION STUDIES

    PREPARING MASTER SCHEDULES


    • PRODUCTION CONROLL GUIDES AND DIRECT FLOW OF PRODUCTION SO
    THAT PRODUCTS ARE MANUFACTURED IN A BEST WAY AND CONFORM TO
    PLAN SCHEDULE AND ARE OF A RIGHT QUALITY. CONTROL FACILLITATES THE
    TASK OF MANUFACTURING AND SEES THAT EVERY THEME GOES AS PER THE
    PLAN
    • DEFINATION,” PRODUCTION CONTROL IS THE ART AND SCIENCE OF
    ENSURING THAT ALL WHICH OCCURS IS IN ACCORDENCE WITH THE RULES
    ESTABLISHED AND THE INSTRUCTIONS ISSUED.- HENRY FAYOL
    • PRODUCTION PLANNING AND CCONTROL IS CONCERNED WITH
    DIRCTING PRODUCTION ALONG THE LINES SET BY THE PLANNING
    DEPARTMENT. IN OTHER WORDS PPC is a technique of forecasting ahead,
    every steps of the proposed production process, taking them at the right time, at
    the right place, in the right quantity, in the right quality and at the right price in
    order to ensure efficiency and effectiveness of the overall production operation.
    • According to Charles A. Koepke :"Production planning and control may be
    defined as the coordination of a series of functions according to a plan which
    will, economically utilize the plant facilities and regulate the orderly movement
    of goods through their entire manufacturing cycle, from the procurement of all
    materials to the shipping of finished goods at a predetermined rate".
    • Objectives of Production Planning & Control

    Following are the objectives of the production planning and control

    • 1) Nature of Input : Manufacturing of product requires varied inputs. Quality of final product
    is directly proportional to the quality of the inputs that are being put into the production
    process. So, planning is also required to ensure that the right inputs go into the production
    process

    • 2) Quantum of Inputs : In achieving a production level, the right mix of the inputs is quite
    essential. The perfect product can only be produced if the requisite mix of the inputs is taken.
    However, any variation in the composition will alter the final product.

    • 3) Proper Coordination : Proper coordination between machines, equipment's and the


    labour must be ensured. This will reduce the wastage's and ultimately the cost will come down.

    • 4) Facilitates Uninterrupted Production : Planning ensures that the material and the
    components are supplied continuously and there is no interruption. This ensures that there exist
    zero idle time in the production process.
    • 5) Timely Delivery : Uninterrupted production leads to timely delivery of the output, leading
    to minimum loss of revenue. This further builds healthy relation with the customers.
    1. DECISION MAKING : Production planning aids in decision-making. When we understand
    current demands and trends, it helps management decide what new products or services are needed.
    This data in turn informs the product design, marketing and delivery.
    2.PRODUCTION LEVELS : By planning every stage of the production process, managers will know
    how much stock they’ll need. Keeping enough stock on hand to fulfill demand, but not so much that
    it becomes expensive to store, is a key part of production planning and control. While product
    shortfalls can spell disaster for a brand, surplus can lead to expensive damage and waste.
    3.RESOURCE MANAGEMENT : A production plan accounts for direct materials, semi-finished
    goods, finished goods and work-in-process inventory. Production planning and control can analyze
    how much of each is required per month as well as if the quantity suffices for meeting demand.
    4.COST ELEMENTS : Production cost elements are all the factors that go into making a product.
    These include labor, materials, equipment, facilities costs and energy costs. There’s also a cost
    associated with the disruption of production due to acquiring raw materials, equipment problems
    and setting up temporary storage capacity.
    5.ORDER FULFILLMENT : Only with careful planning through the entire cycle can a business
    ensure its orders are shipped in time. Managing inventory and shipping schedules are a crucial part
    of this planning. If shipments are backed up, warehouses can grow overcrowded and this is an
    expensive problem to solve. Similarly, delays in delivery can cause a poor customer experience.
    • Unless we plan every part of the production process in advance, it’s impossible to deliver on time.
    Production planning is thus a core part of running a successful enterprise.
    DRAWBACKS OF PPC:

    • BASED ON ASSUMPTIONS
    • RIGIDITY
    • TIME CONSUMING
    • COSTLY
    • DIFFICULT FOR SMALL FIRMS
    • DEPENDENT ON EXTERNAL FACTORS
    TECHNIQUES OF PRODUCTION
    PLANNING AND CONTROL
    ROUTI NG

    SCHEDULING

    LOADING

    DISPATCHING

    EXPEDITING
    1.ROUTING:

    • Routing is determining the exact path which will be followed in


    production. It is the selection of the path from where each unit
    have to pass before reaching the final stage. The stages from
    which goods are to pass are decided in this process.

    • “Routing is the specification of the flow sequence of operations


    and processes to be followed in producing a particular
    manufacturing lot.”Alford & Beatty
    PROCEDURE OF ROUTING:

    • Deciding what part to be made or purchased (make or buy)


    • Determining Materials required
    • Determining Manufacturing Operations and Sequences
    • Determining of Lot Sizes
    • Determining of Scrap Factors
    • Analysis of Cost of the Product
    • Preparation of Production Control Forms
    FACTORS AFFECTING ROUTING
    PROCEDURE:
    • TYPE OF MANUFACTURING PROCESS/ TECHNIQUE
    EMPLOYED
    • PLANT EQUIPMENT CHARACTERSTICS
    • AVAILABILITY OF PLANT AND EQUIPMENT ETC
    • DIFFICULTIES FACED DUE TO NON-AVAILABILITY OF
    REQUISITE SKILLED MANPOWER
    2.SCHEDULING:

    • Scheduling is the determining of time and date when each


    operation is to be commenced or completed. The time and date
    of manufacturing each component is fixed in such a way that
    assembling for final product is not delayed in any way.
    • “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.”(Kimball)
    OBJECTIVES OF SCHEDULING:
    • Minimizing delay and interruption in production process.
    • Reducing waiting and cost of production.
    • Providing required inventories on right time at right place.
    • Maximising the utilisation of avaliable resources.
    • Balancing the allocation of time among various work centres ,
    floors and departments to reduce or eliminate idle capacity
    Types of scheduling:

    • 1) Master Production Scheduling :Master Production Scheduling (MPS) is a


    scheduling strategy that dictates when and how much of each product is going to
    be produced based on criteria such as demand, capacity, and inventory availability.
    • 2) Manufacturing and Operation Scheduling :This type of scheduling fixes a time
    and a date to each operation in a continuous timeline rather than in time buckets.
    Each process can then be visualized in terms of its start time and completion time-
    frame. The subsequent stages of production planning and control depend on this
    timeline.
    • 3) Detailed Operation Scheduling: IT indicates the time required to perform each
    and every detailed operations of a given process.
    3.Loading
    • The next step is Loading which is execution of the scheduled plan as per the route
    chalked out. It includes the assignment of the work to the operators at their
    machines or work places. So Loading determines who will do the work.
    • OBJECTIVES OF LOADING:
    • Balancing work load among processes and machines.
    • Fulfill delivery commitments.
    • Continuous mapping of capacity under utilization.
    • Plan new orders if there is spare capacity available.
    • Run feasibility test for production programmes.
    • Maintain consistency in work flow.
    4.DISPATCHING:

    • Dispatching refers to the process of actually ordering


    the work to be done. It involves putting the plan into
    effect by issuing orders. It is concerned with starting the
    process and operation on the basis of route sheets and
    schedule charts.
    • “Dispatches put production in effect by releasing and
    guiding manufacturing order in the sequence previously
    determined by route sheets and schedules.”(John A.
    Shubin)
    STEPS FOLLOWED IN DISPATCHING :
    Dispatching includes the following:
    • Issue of materials, tools, fixtures, etc., which are necessary for actual production.
    • Issue of orders, instructions, drawings, etc. for starting the work.
    • Maintaining proper records of the starting and completing each job on time.
    • Moving the work from one process to another as per the schedule.
    • Starting the control procedure.
    • Recording the idle time of machines taken from starting to completion of each
    job.
    Types of dispatching: Dispatching may be
    either centralized or decentralized:
    • CENTRALIZED DISPATCHING: Under this orders are directly
    issued to workmen and machines. It helps in exercising effective
    control

    • DECENTRALIZED DISPATCHING: Under this procedure all work


    orders are issued to the foreman or dispatch clerk of the
    department or section. It suffers from difficulties in achieving
    coordination among different departments.
    5. Expediting :
    • Expediting (also called “progressing”) is a Progress –Control function.
    • Progress may be assessed with the help of routine reports or communication with
    operating departments. The follow up procedure is used for expediting and
    checking the progress.
    • “Follow up or expediting is that branch of production control procedure which
    regulates the progress of materials and part through the production process.”

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