planning management ppt

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planning management


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Presentation On: Production Planning and Management System:

Presentation On: Production Planning and M anagement S ystem By- Arti Kesarwani M.Pharm ( P’Ceutics ) 12 March 2012 1 IU


INTRODUCTION Production is a process whereby raw material is converted into semi finished products and thereby adds to the value of utility of products, which can be measured as the difference between the value of inputs and value of outputs. Production function encompasses the activities of procurement, allocation and utilization of resources. The main objective of production function is to produce the goods and services demanded by the customers in the most efficient and economical way. Therefore efficient management of the production function is of utmost importance in order to achieve this objective. 12 March 2012 2


OBJECTIVES Describe the production function and its component. Define production management. Analyze various factors, which are crucial for designing the production. Explain the design of production system and manufacturing process. List out the factors influencing the choice of production process. Discuss the benefits, which a small entrepreneur can reap by having properly designed production planning, and control system. 12 March 2012 3


PRODUCTION MANAGEMENT Production system is a system whose function is to convert a set of inputs into a set of desired outputs . Production management involves the managerial decisions regarding design of the product and design of the production system i.e. determination of production processes and production planning and control. 12 March 2012 4

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PRODUCT DESIGN Product design is a strategic decision as the image and profit earning capacity of a small firm depends largely on product design. Once the product to be produced isdecided by the entrepreneur the next step is to prepare its design. Product design consists of form and function. The form designing includes decisions regarding its shape , size, color and appearance of the product. The functional design involves the working conditions of the product. 12 March 2012 6


DESIGN OF PRODUCTION SYSTEM Production system is the framework within which the production activities of an enterprise take place. Manufacturing process is the conversion process through which inputs are converted into outputs . An appropriate designing of production system ensures the coordination of various production operations . There is no single pattern of production system which is universally applicable to all types of production system varies from one enterprise to another. 12 March 2012 7


TYPES OF PRODUCTION SYSTEM T hree types of production systems- Continuous production Job or unit production Intermittent production 12 March 2012 8

1. Continuous production:

1. Continuous production It refers to the production of standardized products with a standard set of process and operation sequence in anticipation of demand . It is also known as mass flow production or assembly line production. This system ensures less work in process inventory and high product quality but involves large investment in machinery and equipment. The system is suitable in plants involving large volume and small variety of output e.g. oil refineries reform cement manufacturing etc. 12 March 2012 9

2. Job or Unit production:

2. Job or Unit production It involves production as per customer's specification each batch or order consists of a small lot of identical products and is different from other batches. The system requires comparatively smaller investment in machines and equipment, It is flexible and can be adapted to changes in product design and order size without much inconvenience. This system is most suitable where heterogeneous products are produced against specific orders. 12 March 2012 10

3. Intermittent Production:

3. Intermittent Production Under this system the goods are produced partly for inventory and partly for customer's orders . E.g. components are made for inventory but they are combined differently for different customers. Automobile plants , printing presses, electrical goods plant are examples of this type of manufacturing . 12 March 2012 11


MANUFACTURING PROCESS Selection of manufacturing process is also a strategic decision as changes in the same are costly . It should meet the basic two objectives i.e. to meet the specification of the final product and to be cost effective. 12 March 2012 12


TYPES OF MANUFACTURING PROCESS The manufacturing process is classified into four types. ( i ) Jobbing production (ii) Batch production (iii) Mass or flow production (iv) Process Production 12 March 2012 13

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Jobbing Production : - Herein one or few units of the products are produced as per the requirement and specification of the customer. Production is to meet the delivery schedule and costs are fixed prior to the contract . ( ii) Batch Production : - In this, limited quantities of each of the different types of products are manufactured on same set of machines. Different products are produced separately one after the other. 12 March 2012 14

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(iii) Mass or flow production : Under this, the production run is conducted on a set of machines arranged according to the sequence of operations . A huge quantity of same product is manufactured at a time and is stocked for sale . Different product will require different manufacturing lines. Since one line can produce only one type of product, this process is also called as line flow . ( iv) Process Production : Under this, the production run is conducted for an indefinite period. 12 March 2012 15

Factors affecting the choice of manufacturing process:

Factors affecting the choice of manufacturing process a) Effect of volume/variety : When the volume is low and variety is high, intermittent process is most suitable and with increase in volume and reduction in variety continuous process become suitable. b) Capacity of the plant : Projected sales volume is the key factor to make a choice between batch and line process. In case of line process, fixed costs are substantially higher than variable costs. The reverse is true for batch process thus at low volume it would be cheaper 12 March 2012 16

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c) Lead time : - The continuous process normally yields faster deliveries as compared to batch process. Therefore lead-time and level of competition certainly influence the choice of production process. d ) Flexibility and Efficiency : - The manufacturing process needs to be flexible enough to adapt contemplated changes and volume of production should be large enough to lower costs. 12 March 2012 17


PRODUCTION PLANNING AND CONTROL Once the entrepreneur has taken the decisions regarding the product design and production processes and system, his next task is to take steps for production planning and control, as this function is essentially required for efficient an economical production The ultimate objective is the organization of the supply and movement of materials and labour, machines utilization and related activities, in order to bring about the desired product. 12 March 2012 18


STEPS OF PRODUCTION PLANNING AND CONTROL Production Planning and control Production Planning Production Control Planning Routing Loading Scheduling Dispatching Following up Inspection Corrective 12 March 2012 19

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Production planning : Production planning may be defined as the technique of foreseeing every step in a long series of separate operations, each step to be taken at the right time and in the right place and each operation to be performed in maximum efficiency . It helps entrepreneur to work out the quantity of material, manpower , machine and money requires for producing predetermined level of output in given period of time . 12 March 2012 20

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Routing - The main aim of routing is to determine the best and cheapest sequence of operations and to ensure that this sequence is strictly followed. Routing procedure- (1) An analysis of the article to determine what to make and what to buy. (2) To determine the quality and type of material (3) Determining the manufacturing operations and their sequence. (4) A determination of lot sizes (5) Determination of scrap factors (6) An analysis of cost of the article (7) Organization of production control forms. 12 March 2012 21

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Scheduling: It means working out of time that should be required to perform each operation and also the time necessary to perform the entire series as routed. Production schedule : The main aim is to schedule that amount of work which can easily be handled by plant and equipment without interference . Its not independent decision as- ( 1) Physical plant facilities of the type required to process the material being scheduled . (2) Personnel who possess the desired skills and experience to operate the equipment and perform the type of work involved. (3) Necessary materials and purchased parts. 12 March 2012 22

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Manufacturing schedule : It is prepared on the basis of type of manufacturing process involved. It is very useful where single or few products are manufactured repeatedly at regular intervals . Thus it would show the required quality of each product and sequence in which the same to be operated Scheduling of Job order manufacturing : Scheduling acquires greater importance in job order manufacturing. This will enable the speedy execution of job at each center point. 12 March 2012 23

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Dispatching: Dispatching involves issue of production orders for starting the operations . Necessary authority and conformation is given for: 1.Movement of materials to different workstations. 2. Movement of tools and fixtures necessary for each operation. 3. Beginning of work on each operation. 4. Recording of time and cost involved in each operation . 5 . Movement of work from one operation to another in accordance with the route sheet. 6. Inspecting or supervision of work 12 March 2012 24

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Inspection: This is mainly to ensure the quality of goods. It can be required as effective agency of production control. Corrective measures: Corrective action may involve any of those activities of adjusting the route, rescheduling of work changing the workloads, repairs and maintenance of machinery or equipment, control over inventories of the cause of deviation is the poor performance of the employees. 12 March 2012 25

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Thank you..!! 12 March 2012 26

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