7 Production Planning & Control

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Production Planning & Control: 

Production Planning & Control

The Concept: 

The Concept Planning: consideration of all input variables to achieve predetermined output goals; a pre-production activity to determine optimal production schedule, operation sequence, economic batch quantity, etc. Control: remedial action to prevent variance of output from planned levels; tracking operations to ensure compliance with planned levels

Production Planning Stages: 

Production Planning Stages Defining objectives Setting priorities to attain objectives Examining internal & external environments of planned system Determining achievable targets Determining inputs needed to achieve targets


Objectives Effectiveness: goods to fulfill customers’ needs Maximizing output: maximum output with minimum input Quality control: Product/service quality meets planned quality specifications Minimize throughput time: conversion of RM to FG in minimum time

Objectives (continued): 

Objectives (continued) Capacity: full utilization of men & machines Minimize cost: minimum cost of production Maintaining inventory: optimal inventory Flexibility: flexibility in production operations Coordination: between men & machines

Objectives (continued): 

Objectives (continued) Capacity: plan for current & future needs Reduce bottlenecks: solve production problems early Maximize profit: minimize cost Production schedules: as per plan Routes & schedules: to optimize use of men, material & machinery Maintain performance: maintain standards

Functions of Production Planning: 

Functions of Production Planning Product selection & design Process selection & planning Facility location Facility layout & materials handling Capacity planning Systems & procedures Estimating quantity/costs of production, men Routing operation sequence Job scheduling & loading

Functions of Production Control: 

Functions of Production Control Inventory control: MRP; JIT Time management Quality control Maintenance & Replacement Cost reduction & cost control Dispatch Expediting/Follow-up/Progressing

Scope of Production Planning & Control: 

Scope of Production Planning & Control Material: RM, components, spares; right quantity; right time Methods Machines & equipments Manpower Routing Estimating Loading & scheduling

Scope of Production Planning & Control (continued): 

Scope of Production Planning & Control (continued) Dispatching Expediting Inspection Evaluating Cost control

Phases in Production Planning & Control System: 

Phases in Production Planning & Control System Planning: Pre-planning – product planning & development; demand forecasting; resource planning; facilities planning; plant location & layout Active planning – quantity planning; product mix; routing; scheduling; material planning; process planning; capacity planning; tool planning

Phases (continued): 

Phases (continued) Action phase: execution – dispatching; progress function Control phase; status reporting; material control; tool control; inventory control; quality control; labor output control; cost control

Benefits of Production Planning & Control: 

Benefits of Production Planning & Control Higher quality Better resource utilization Reduced inventory Reduced manufacturing cycle time Faster delivery Better customer services Lower production costs

Benefits (continued): 

Benefits (continued) Lower capital investment Higher customer service Improved sales turnover Improved market share Improved profitability Competitive advantage Flexibility Dependability Lower prices

Limitations of Production Planning & Control: 

Limitations of Production Planning & Control Based on assumptions Resistance to change Time consuming Difficult due to rapid environment changes

Measuring Effectiveness of Production Planning & Control: 

Measuring Effectiveness of Production Planning & Control Delivery Inventory levels Production/Operations Management

Requirements for Effective Production Planning & Control: 

Requirements for Effective Production Planning & Control Sound organizational structure Delegation of authority Reliable, up-to-date feedback Standardization Trained people Flexibility to adapt Appropriate management policies Accurate assessment of manufacturing/procurement lead times Adequate plant capacity


Techniques Planning & Control of Reserves; deterministic/non-deterministic systems Network analysis: PERT – Project Evaluation & Review Technique CPM – Critical Path Method Reliability Theory: probability Series structure Parallel structure

Planning & Control in Different Production Systems: 

Planning & Control in Different Production Systems Job Production: Difficult – no standardised routing of job orders Orders assigned to workstations as available Scheduled on relative priority of job order Scheduled on assessed production times; estimates of judgment

Different Production Systems (continued): 

Different Production Systems (continued) Batch: Produced once Repeated at irregular intervals as needed Produced periodically at known intervals Solution depends on: External customers orders Internal consumption – sub-assembly

Production Planning and Control General Framework: 

Production Planning and Control General Framework