Production and planning control

Brief introduction about the PPC, what is the need for PPC, its objectives, techniques and limitation.

1. Submitted to : Mr. Vijay Bhaskar Assistant Professor, Department of Pharmaceutics, College of Pharmaceutical Sciences, DSU Banglore . Presented by: Arpitha B M M Pharm (I SEM), Department of Pharmaceutics, College of Pharmaceutical Sciences, DSU Banglore . PRODUCTION AND PLANNING CONTROL

2. CONTENTS Introduction Characteristics of PPC Need for production planning Objectives Production system and techniques Limitation Reference COPS DSU Department of Pharmaceutics 2

3. INTRODUCTION Once the entrepreneur has taken the decisions regarding the product design and product processes and system, his next task is to take steps for production planning and control, as this function is essentially required for efficient and economical production. The highest efficiency in production is obtained by manufacturing the required quantity of the product, of the required quality at the required time, with the best and cheapest method. 3 COPS DSU Department of Pharmaceutics

4. Charles A. Koepke : “Production planning and control is 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 the entire manufacturing cycle, from the procurement of all materials to the shipping of finished goods at a predetermined rate.” The process should be, a) economical and hence needs planning. b) validated , so as to produce products consistent with the established specifications. The production schedule is planned as per the needs of marketing. Planning is needed for meeting the changing economic and social conditions, seasonal demands and market fluctuations. COPS DSU Department of Pharmaceutics 4

5. Characteristics of PPC 1.It is the planning and control of manufacturing process in an enterprise. 2.All types of inputs like materials, men, machines are efficiently used for maintaining efficiency of the manufacturing process. 3.Various factors of production are integrated to use them efficiently and economically. 4.None of the work centers is either overworked or under worked. 5.The work is regulated from the first stage to the stage of finished goods. COPS DSU Department of Pharmaceutics 5

6. Need for Production Planning For increasing production. For co - ordinating plant activity. For cost control. For rationalization of production activity. Consumers. COPS DSU Department of Pharmaceutics 6

7. OBJECTIVE •Planning is required to produce economical products with in time •To avoid difficulties in production and marketing of products •Planning is needed for meeting and changing economic social conditions seasonal demands and marketing fluctuations •In case of series of operations are involved in the production of a product then planning will improves the efficiency and effectiveness. •To increase productivity too. COPS DSU Department of Pharmaceutics 7

8. Production sysytem • Productions system may be defined as a framework of activities with which the inputs are transformed into value added products. COPS DSU Department of Pharmaceutics 8

9. Types of production systems COPS DSU Department of Pharmaceutics 9 Continuous production system Intermittent production system It involves in the uninterrupted flow of materials into methods and machines to produce standardised products in large quantity • It involves in the interrupted flow of materials into methods and machines to produce finished small quantity products • Mainly materials are handled by automatic systems Expertised workers and machines are handle the materials • Eg . Large volume parenteral • Eg . Capsule, tablets, liquid orals

10. COPS DSU Department of Pharmaceutics 10

11. A. Planning: It is the first element of production planning and control with a separate department. Planning is deciding in advance what is to be done in future. Control devices are also decided in advance so that all activities are carried on properly. An organizational set up is created to prepare plans and policies. Various charts, manuals and production budgets are also prepared. If production planning is defective then control will also be defective. Planning provides a sound base for control. COPS DSU Department of Pharmaceutics 11

12. B. Routing: It is determining the exact path or route which will be followed in production. James L. Lundy: “Production routing involves the planning of the exact sequence of work stations to be used in processing a part of product. Once a layout has been established the routing of an item is the determination of the path that item should follow as it is manufactured.” COPS DSU Department of Pharmaceutics 12

13. Objects of Routing: The main object of routing is to determine the best and cheapest sequence of operations to be followed. In case of continuous manufacturing units where standardized products are produced routing becomes automatic . In case of job order and batch production every product requires different design and varying sequence of operations ,. A nother object of routing is to help in determining proper tools and equipment’s and the number of workers required for carrying out the work. COPS DSU Department of Pharmaceutics 13

14. Routing Procedure: 1 . Deciding what Part to be made /Purchased (a) The relative cost involved; (b) Purchase policies of the firm; (c) Technical considerations; and (d) Availability of equipment and personnel. 2. Determining Materials Required : The right type of quality, quantity, and time when needed should also be decided in advance. COPS DSU Department of Pharmaceutics 14

15. 3. Determining Manufacturing Operations and Sequences : The manufacturing operations and their sequences can be determined from technical experience and layout of machines. 4. Determining of Lot Sizes : A decision has to be taken about the number of units to be produced in one lot. If production is carried on the basis of orders => size of the lot. for the stock => lot is decided by considering various economies which may accruate . COPS DSU Department of Pharmaceutics 15

16. 5. Determining of Scrap Factors : There may be some scrap during the course of manufacture. The finished products are generally less than the units introduced at the beginning . If products pass through three processes and a normal scrap is 5% of input at every stage then it will be easy to anticipate the units entering various processes and arrange equipments and manpower. COPS DSU Department of Pharmaceutics 16

17. 6. Analysis of Cost of the Product: The determination of cost of products may be the duty of cost department but still production department makes records of direct materials, labour , direct and indirect expenses. These estimates are greatly useful to costing department also . 7. Preparation of Production Control Forms : The carrying out of routing will be facilitated if forms are prepared to collect information for control purpose. The requirements are: job cards, inspection cards, labour cards, tool tickets, etc. COPS DSU Department of Pharmaceutics 17

18. C. Scheduling: Production scheduling may be defined as a process of decision taking to start the work for production. Production scheduling optimises the production and inventory cost by properly sequencing the orders and time phasing. COPS DSU Department of Pharmaceutics 18 Types 1. Master Scheduling 2. Manufacturing or Operation Scheduling 3. Retail Operation Scheduling

19. 1 . Master Scheduling: This schedule is prepared by keeping in view the order or likely sales order in near future . Master scheduling is the breakup of production requirements . This may be prepared for a week, a fortnight, a month etc . It becomes complex when more products are required to be produced . Master schedule has to be adjusted as per the new order received. No definite pattern may be suggested for master schedules because it differs from industry to industry or in the same industry. COPS DSU Department of Pharmaceutics 19

20. The following information is provided in them: The number of personnel available and the projected man hours in various shifts etc. (b) The estimated requirements in man-hours per product . (c) The requirements of direct materials for the projected production. (d) The amount of normal overhead expenses required at the projected work-load. COPS DSU Department of Pharmaceutics 20

21. 2. Manufacturing /Operation Scheduling : Manufacturing schedule is used where production process is continuous. The name and number of the product and the quantity to be produced in a given time are required to prepare a manufacturing schedule. If the product to be produced is in a variety of sizes, colors , weights, types etc. then these things should also be mentioned in the schedule . The order of preference for the manufacture is also mentioned in the schedule for a systematic production planning. COPS DSU Department of Pharmaceutics 21

22. 3. Detail Operation Scheduling : It indicated the time required to perform each and every detailed operations of a given machine or process . COPS DSU Department of Pharmaceutics 22

23. D. Loading Load indicates the assingnment of work to men, machines or department in advance without specifying when the work is to be done. Loading is used for ensuring efficient utilization of plant and labour . COPS DSU Department of Pharmaceutics 23

24. E. Dispatching : Key link between production and sales Dispatching function may be routine one of issuing authorization to start work operation Few section authorization are follows Stores -authorized to deliver materials Tool stores- authorized to release necessary tools Line ticketing-It record the beginning and ending time of operations Inspection order-to carry out quality of the products COPS DSU Department of Pharmaceutics 24

25. Dispatching Procedures: (A) Centralised Dispatching : Under centralised dispatching orders are directly issued to workmen and machines . The dispatching section keeps full information of the capacity and work loads of various machines or work centres and sends instructions as per requirements . Centralised despatching helps in exercising effective control. COPS DSU Department of Pharmaceutics 25

26. (b) Decentralised Dispatching: Under this procedure all work orders are issued to the foreman or despatch clerk of the department or section. It is the responsibility of the department or section to decide about the actual start of work on priority among different products. The dispatch of orders of materials is left to the decision of the foreman or dispatch clerk. This system minimises red-tape, duplication of posting, production delays and other drawbacks involved in centralised dispatching. This procedure suffers from difficulties in achieving co-ordination among different departments. COPS DSU Department of Pharmaceutics 26

27. F . Follow Up and Expediting: It regulates the progress of materials and part through the production process. This is an important function of production control. If goods are to be produced as per the plans then a proper follow-up of work is essential to see whether production schedule is properly adhered to or not. In case there are any bottlenecks then these must be removed in time. COPS DSU Department of Pharmaceutics 27

28. G. Inspection: It is an important step in production control, because it tells whether the product is of desired quality or not. If inspection is not regularly undertaken then there may be a possibility of more rejections. Inspection is undertaken both of products and inputs. On the one hand work-in-progress and finished products are inspected. On the other hand the quality of materials issued, equipment’s used and machines employed is also taken into account. The final product will certainly be influenced by the quality of various inputs used in production. So inspection ensures the maintenance of predetermined quality of products. COPS DSU Department of Pharmaceutics 28

29. H. Corrective actions According to schedule received from production departments, the control of production consists of 2parts progress reporting & Corrective action COPS DSU Department of Pharmaceutics 29 Observation Analysis Corrective action Post-operation evaluations

30. Progress report Trying to achieve the standards set that is a certain level of efficiency a volume of production in a specified duration Production department transmits the progress report to controlling sector It interprets the progress report and suggest the corrective action COPS DSU Department of Pharmaceutics 30

31. Corrective action Depends on several factors external and internal External factors- these are beyond the control organization like change in priority of orders due to the arrival of new orders or due to cancellation of few previous order • Internal factors-these are with in the control organization like labour turnover become expansible, lack of necessary instruction and materials mass absenteeism COPS DSU Department of Pharmaceutics 31

32. Methods to take corrective action By making flexible schedules Capacity modification by changing the number of working hours and number of workers Flow control is a function of keeping each operation at the same rate of flow such that the sequence of operations will be completed on prescribed time By decreasing operating times of machines or equipment Routing and scheduling also done for this reason too. COPS DSU Department of Pharmaceutics 32

33. Limitation of PPC Lack of reliable data Time consuming process Expensive External factors may reduce utility Sudden emergencies Resistance to change COPS DSU Department of Pharmaceutics 33

34. Reference http://www.yourarticlelibrary.com/management/planning-management/production-planning-and-control-meaning-characteristics-and-objectives/53145 http://www.yourarticlelibrary.com/production-management/techniques-of-production-planning-and-control/53149 http://www.yourarticlelibrary.com/management/planning-management/advantages-and-limitations-of-planning/53191 Textbook of Pharmaceutical Production by CVS subramanyam , vallabha prakashan . COPS DSU Department of Pharmaceutics 34

35. COPS DSU Department of Pharmaceutics 35