Production Planning and

Control (PPC)
 Introduction

 Production planning and control (PPC) is one of

the most important areas of industrial

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management.
 It’s aimed at achieving the efficient utilization of
resources (material, men, facility, etc.) in any
organization through planning, coordination and
control of production activities that transform the
raw material into finished products.
 PPC department works with many industrial
engineering techniques for issuing directives to 2
the production department for issues such as:
 INTRODUCTION
CONTI_ _ _

 What to produce
 How much to produce

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 When to produce

 What means (resources) are needed in production

 How to coordinate different resources of the system

 How to control the deviations from plan, such as

meeting a due date of production, etc.

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 Objectives of PPC
1. It is used to establish target and check deviations
by comparing on some performance measures.
2. Decides the nature and magnitude of different

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input factors to produce the output.
3. Coordinates different resources of production
system in the most effective and economic manner
and to coordinate among different departments.
4. Elimination of bottleneck

5. Utilization of inventory in the optimal way

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 Objectives of PPC

6. Smooth flow of material

7. Forecasting of demand

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8. To produce in right quantity and quality at right
time
9. Scheduling production activities to meet delivery
schedule
10. Expediting they system under production
11. Quality management
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 Objectives of PPC

12. To ensure flexibility in production system to

accommodate changes and uncertainty

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13.Optimizes the uses of resources for minimum
overall production cost
14.To ensure the production of right product at right
time in right quantity with specification rightly
suited to customers
15.Stable production system, with least chaos,
confusion and undue hurry
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 Functions of PPC

PPC acts like the brain behind all the

production activity, as it acts like thought

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process in a human body.

Eilon defines it as “the direction and coordination

of the firm’s material and physical resources
towards the attainment of pre-specified
production goal in the most effective available
way.”
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 Functions of PPC
In the words of G. B. Carson, it is defined as “a
system of organisation and planning of the
manufacturing process. Specifically, it consists of

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planning of routing, scheduling, dispatching and
inspection, coordination and control of materials,
methods, machines, tooling and operating times.
The ultimate objective is the organisation of
supply and movement of material and labour,
machine utilization and related activates, in order
to bring about the desired manufacturing results in
terms of a quantity, time and place.” 8
 Phases of PPC
PPC INVOLVES THREE PHASES:
Preplanning, which is related to:
 Product development an design

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 Process design

 Work-station design

 Sales forecasting and estimating

 Factory layout and location

 Equipment policy

 Pre-planning production
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 Phases of PPC
Conti--

Another phase is Planning different

resources, which includes four Ms: material,
method, machine and men.

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In the changed scenario of information
dominated enterprise, information is also
included in this list.
Knowledge management is another area,
which will dominated the planning phase in
days to come.
Routing, estimating and scheduling are
other activities, related to planning. 10
 Phases of PPC
Conti--

The third phase is Control, which includes:

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 Dispatching

 Inspection

 Expediting and
 Follow up or evaluation.

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Functions of PPC Cycle

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 Steps in PPC
It is the duty of the PPC department to ascertain
if an order can be executed in the production
department.

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Once, the capacity of the production system is
sufficient to convert raw material into finished
goods as per the customer requirements.

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 Steps in PPC
PPC department follows four-steps activities to
accomplish production on the shop floor. These
activities are:

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1.Routing

2.Scheduling

3.Dispatching and

4.Follow-up or expediting

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 Steps in PPC
Routing
It is a process of deciding the sequence of operation
(or route) to be performed during the production

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process. It determines:
 What work (operations) will be done on a product.

 Where (on which machine/dept.) these operations

will be performed.
 How these operations will be performed.

 In which sequence the job (from raw material

stage to finished goods stage) will move in the 15
plant.
 Steps in PPC
Objectives of Routing
The main objective of routing is the
selection of best and cheapest way to

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perform a job. It depends upon:

a. Type of available machines

b. Capacity of each machine
c. Labor required for each machine

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 Steps in PPC
Objectives of Routing

d. Availability of tools and other resources

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e. Efficiency of employees
f. Types and quantities of the products to be
manufactured
g. Department in which the production is to
be carried out

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 Steps in PPC
Procedure of Routing
Following steps are needed in routing:
1. Conduct an analysis to determine the material

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needed for the product.
2. Determine the required manufacturing
operations and their sequence.
3. Determine the lot size (i.e., units of items to be
manufactured in each lot of production order)
to be produced (or purchased).

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 Steps in PPC

Procedure of Routing
4. Determine the scrap and rejections at each

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stage of production.
5. Estimate the cost of the product.
6. Prepare different forms for production
control, such as: production order form, job-
card, labor card, inspection card, tool tickets,
route sheet, movement ticket, etc

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 Scheduling
and Loading

Scheduling involves fixing the priorities for

different jobs and deciding the starting and

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finishing time (or date) of each job.
It also includes the scheduling of different
materials, parts, machines, tools,
equipments, inspection, etc.

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 Scheduling
and Loading
Objectives of Scheduling and Loading
 Main purpose of scheduling is to prepare a time-

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table indicating the time and date of production, as
indicated by staring and finishing time of each
activity.
 The scheduling cab be effective when it utilizes
the informational inputs, such as: existing work-
load, lead time, manufacturing time, importance of
each job, due date, priority rule to handle each part
when there is a queue before an operational
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facility.
 Scheduling
and Loading
Objectives of Scheduling and Loading
 For example, some urgent works, which are called

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as rush orders, may have to be given priority
preference over already existing repeat orders.
 Scheduling must be in tune with the availability of

machines and facilities, material, labor, part

drawing, process sheet (or route sheet), etc.
 Scheduling is one of the most important activities
of the PPC as it determines the real activities on
the shop floor. 22
 Master Production
Schedule (MPS)

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 Itis the list of items indicating each products to be
performed.
 This contains item name (and code), quantities to
be produced, and timing for the completion of the
production.

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 Master Production
Schedule (MPS)

 It is based on the accurate estimations of product

demand, which is normally available from sales

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forecast for a given period.
 MPS must consider the realistic assessment of the
production capacity, which determines whether the
production of the demanded items is possible or not.
 Generally, weekly or monthly breakdown of
production is listed in MPS.

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 Master Production
Schedule (MPS)

 Functions of MPS:
1.To translate aggregate plans into

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specific end items:
Aggregate plan determines level of
operations that tentatively balances the
market demands with the material, labor and
equipment capabilities of the company. A
master schedule translates this plan into
specific number of end items to be produced
in specific time period. 25
 Master Production
Schedule (MPS)
2. Evaluate alternative schedules:
Master schedule is prepared by trial and

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error. Many computer simulation models are
available to evaluate the alternate schedules.
3. Generate material requirement:
It forms the basic input for material
requirement planning (MRP).
4. Generate capacity requirements:
Capacity requirements are directly derived
from MPS. Master scheduling is thus a 26
prerequisite for capacity planning.
 Master Production
Schedule (MPS)
5. Facilitate information processing:
By controlling the load on the plant. Master

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schedule determines when the delivery
should be made. It coordinates with other
management information systems such as,
marketing, finance and personnel.
6. Effective utilization of capacity:
By specifying end item requirements
schedule establishes the load and utilization
requirements for machines and equipment. 27
Master Production
Schedule (MPS)

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 Master Production
Schedule (MPS)
MPS is based on sales forecast, route sheet, loading
chart, and promised delivery date of each product.
MPS for product P6 and P8 showing Weekly delivery

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schedule in number of items.

September’99 October’99

Week staring 6 13 20 27 4 11 18
on
Product # P6 70 100 350 10
Product # P8 40 80 10 50
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Dr. Dileep Singh
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 Master Production
Schedule (MPS)
Table 1 and table 2 show expected demands for items
‘X’ and ‘Y’. The beginning inventory levels are 60 and
40 respectively. The economic production run length

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(EPRL) for ‘X’ is 90 units and for ‘Y’ is 50 units. Item
‘Y’ has an uncertain demand and the company tries to
maintain 30 units of safety stock to ensure good
service. Develop the tentative master production
schedule for items ‘X’ and ‘Y’.

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 Master Production
Schedule (MPS)

Table 1: Expected demands for item ‘X’

Item ‘X’

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Initial inventory = 60 Weeks (Planning horizon)
EPRL = 90 1 2 3 4 5 6 7 8 9 10
Marketing forecast - 5 30 40 50 40 50 50 50 50
Interplant forecast - - 5 - - 5 - - 5 -
Customer order 40 40 30 10 10 5 - - - -
Warehouse order 15 10 - 5 - - - - - -

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 Master Production
Schedule (MPS)

Table 2: Expected demands for item ‘Y’

Item ‘Y’

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Initial inventory = 40 Weeks (Planning horizon)
EPRL = 50 1 2 3 4 5 6 7 8 9 10
Demand forecast - - 5 10 5 5 10 10 15 10
Service forecast - - 5 - 10 - - 10 - -
Domestic order 10 15 10 10 - - - - - -
International order - 5 - 5 - 5 - - - -

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 Master Production
Schedule (MPS)
Solution
Table 3: MPS for item ‘X’

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Initial inventory = 60 Weeks (Planning horizon)
EPRL = 90 1 2 3 4 5 6 7 8 9 10
Net Requirement 55 55 65 55 60 50 50 50 55 50
Beginning Inventory 60 5 40 65 10 40 80 30 70 15
MPS 90 90 90 90 90 90
Ending Inventory 5 40 65 10 40 80 30 70 15 55

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 Master Production
Schedule (MPS)

Table 4: MPS for item ‘Y’

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Initial inventory = 40 Weeks (Planning horizon)
EPRL = 50, SS = 30 1 2 3 4 5 6 7 8 9 10
Net Requirement 10 20 20 25 15 10 10 20 15 10
Beginning Inventory 40 30 60 40 65 50 40 30 60 45
MPS 50 50 50
Ending Inventory 30 60 40 65 50 40 30 60 45 35

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 Dispatching
 Dispatching determined the person who will do the
job.

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 Work order and authorizations are issued to perform
the work according to a planned sequence, using
prescribed tools and a time schedule.
 It is the duty of the dispatching function to issue
requisition for material and tools on a production
order.
 Dispatching is a process of translating production
plan into output (action). 36
 Dispatching
 Thisis because orders are issued for the
movement of material, parts, and tools to
the work centers, and it also includes

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instructions for the inspection and
recording of the work.

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 Dispatching
Function of Dispatching
1. Collecting and issuing to wok centre, all the

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concerned drawings, specifications, material list,
job tickets, route card requisition slip, tool card,
etc.
2. Ensures that right material, tools, parts, jigs and
fixtures, etc., are made available at right time
and at right machines from operation to
operation.
3. Issues authorization to start work in accordance
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with the predetermined date and time.
 Dispatching
Function of Dispatching
4. Obtains inspection schedules and issues those to

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the inspection section.
5. Distributes machine loading and schedule charts,
route sheets, identification tags, etc., to each
production and inspection stage.
6. Informing and updating progress report and
keeping records for reference.
7. At the end of the production, ensures that all the
drawings tools, etc., reach at the proper place. 39
 Expediting or Follow-up or
Progressing

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 It is the final stage of PPC.
 It is used for ensuring that the work is carried out
as per plans and due-dates are met.
 The main objective is to arrest the deviations from
the plan.

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 Expediting or Follow-up or
Progressing

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 The progress of the production process is
monitored.
 Another objective is to integrate different
production activities to meet the production target.
 Any deviation, disruption, or discrepancy from the
plan is immediately attended for rectification.
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Dr. Dileep Singh
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Thank you