Session 1.pptx Introduction to Production planning and control Semester IV

Production Planning and Control - Introductory slide

1. PRODUCTION PLANNING AND CONTROL

2. PRODUCTION PLANNING Meaning:- Production planning involves management decisions 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. Definition:- "The planning of industrial operations involves four considerations, namely, what work shall be done, how the work shall be done and lastly, when the work shall be done - kimball and kimball

3. OBJECTIVES OF PRODUCTION PLANNING 1.To determine the requirements of men, material and equipment. 2.Arranging production schedules according to the needs of marketing demand. 3.Arranging various inputs at a right time and in right quantity. 4.Making most economical use of various inputs. To achieve coordination among various departments relating to production. To make all arrangements to remove possible obstacles in the way of smooth production. To achieve economy in production cost and time. To operate plant at planned level of efficiency. 9.Making efforts to achieve production targets in time. 10.Providing for adequate stocks for meeting contingencies.

4. PRODUCTION CONTROL Meaning:- Production control guides and directs flow of production so that products are manufactured in a best way and conform to a planned schedule and are of the right quality.Control facilitates the task of manufacturing and see that every theme goes as per the plan. Definition:- "Production control refers to ensuring that all which occurs is in accordance with the rules established and instructions issued.“ -HENRY FAYOL

5. OBJECTIVES OF PRODUCTION CONTROL 1.To implement production plans by issuing orders to those who are supposed to implement them. 2.To ensure that various inputs like men, machine, materials etc. are available in the required quantity and quality. Making efforts to adhere to the production schedules. To ensure that goods are produced according to the prescribed standards and quality norms. To undertake the best and most economic production policies. To introduce a proper system of quality control. To ensure rapid turnover of production and minimizing of inventories of raw materials and finished products.

6. PRODUCTION PLANNING AND CONTROL Meaning:- Production planning and control is concerned with directing production along the lines set by the planning department . Definition:- "Production planning and control is the co-ordination of 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." -CHARLES A. KOEPKE

7. CHARACTERISTICS OF PRODUCTION PLANNING AND CONTROL It is the planning and control of manufacturing process in an enterprise. Questions like-what is to be manufactured? when it is to be manufactured? etc. 3. All types of inputs like materials, men, machines are efficiently used for maintaining efficiency of manufacturing process . Various factors of production are integrated to use them efficiently and economically. The manufacturing process is organized in such a way that none of the work centers is either overworked or under worked. The work is regulated from the first stage of procuring raw materials to the stage of finished goods.

8. PPC : OBJECTIVES 8

9. PPC : HISTORY 9 Planning Department bulletin board - 1911

10. PPC : HISTORY 1776 - Specialization of labor in manufacturing - Adam Smith 1799 -Interchangeable parts, cost accounting - Eli Viihitney and others 1832 -Division of labor by skill; assignment of jobs by skill; basics of time study - Charles Babbage 1900 - Scientific management time study and work study developed; dividing planning and doing of work - Frederick W. Taylor 1900 - Motion of study of jobs - Frank B. Gilbreth 1901 - Scheduling techniques for employees, machines jobs in manufacturing - Henry L. Gantt 1915 -Economic lot sizes for inventory control - F.W. Harris 10

11. PPC : HISTORY 1927 - Human relations; the Hawthorne studies - Elton Mayo 1931 -Statistical inference applied to product quality: quality control charts - W.A. Shewart 1935 -Statistical sampling applied to quality control; inspection sampling plans - H.F. Dodge &H.G. Roming 1940 - Operations research applications in World War ll - P.M. Blacker and others. 1946 - Digital computer - John Mauchlly and J.P. Eckert 1947 -Linear programming - GB. Dantzig , Williams & others 11

12. PPC : HISTORY 1950 - Mathematical programming, on- Iinear and stochastic processes – A. Charnes , W.W. Cooper & others 1951 - Commercial digital computer; large scale computations available. - Sperry Univac 1960 - Organizational behavior; continued study of people at work - L. Cummings, L. Porter 1970 - Integrating operations into overall strategy and policy. Computer applications to manufacturing. Scheduling and control. Material requirement planning (MRP)- W. Skinner J. Orlicky and G. Wright 1980 -Quality and productivity applications from Japan robotics. CAD-CAM - W.E. Deming and J. Juran 12

13. PPC : HISTORY PPC concept developed since late 19 th Century Factories were simple and relatively small Small number of products with large batches Work for each man and each machine used to be chalked out even as factories grew , they were just bigger , not more complex Main Industry – Textiles , Railways 13

14. Addresses decisions on Acquisition Utilization Allocation of limited production resources Resources include the production facilities, labor and materials. Constraints include the availability of resources, delivery times for the products and management policies. 14 A p r - 15

15. Main objective is to take appropriate decisions. Typical decisions Work force level Production lot sizes Assignment of overtime Sequencing of production runs 15 A p r - 15

16. Importance of Production Planning and Control ▶ For Increasing Production ▶ For Co-coordinating Plant Activity ▶ For Cost Control ▶ For Rationalisation of Production Activities ▶ Consumers

17. Process of PPC

18. Limitations of production planning and control Based on Assumptions : - Production planning and control is based on certain assumptions. In case the assumptions prove correct then the planning and control will go smoothly, otherwise it may not. The assumptions generally are about plant capacity, orders, availability of raw materials and power etc. if these assumptions go wrong then the process of planning and control will go weak. Rigidity: - Under production planning and control the things are pre- decided and fixed. There is rigidity in the behavior of employees and it ma y not h el p in smooth e ni n g the fl ow of w o rk. Difficult for Small Firms: - This process is time consuming and small firms may not be able to make use of production planning and control. Costly: - It is a costly device as its implementation requires separate persons to perform the functions of planning, dispatching, expediting etc. Small firms cannot use the services of specialists due to cost factor.

19. 5. Dependence on External Factors : - The external factors sometimes reduce the effectiveness of production planning and control. The factors like natural calamities, change in technology, change in fashion, breakdown of power, government controls etc. limit the use of production planning and control.

20. ISSUES ON PRODUCTION PLANNING AND CONTROL ▶ Non-availability of materials (due to shortage, etc.) facing one problem while creating process order when we do batch determination system is showing material is not available in quantity this but when we check stock through MMBE it shows there is sufficient stock in unrestricted use , also there is no safety stock , also there is no open reservation for such quantity but at the time of process order system is showing missing part message ▶ Plant, equipment and machine breakdown Equipment Breakdown Machinery Breakdown, boiler and pressure vessels, spoilage of food and specific computer cover are not automatically included under LCA Property Insurance. Coverage for these incidences is available at an additional cost as requested. Machinery Breakdown Breakdown is defined as the actual breaking, seizing or burning out or explosion of any part of the machine whilst the machine is in use arising from either mechanical or electrical defects in the machine causing sudden stoppage, necessitating repair or replacement before further use.

21. ▶ Optimum utilization of resources The closest reference to the expression "optimal utilization of resources" is " v a l u e - f o r - m o ne y " . Ac c ord i ng to this univer s al l y - rec ogniz e d c o n ce p t, a l l b usi n ess p r o cesses a re c h ara c t e riz e d by the u s e o f a gr ou p o f in p u t s (reso u rc e s), whic h a r e t r ansfor m ed (a ctiviti e s) into o ut p u t s ( r e s ults). T h e optimization of resources is based on three characteristics: economy, effectiveness and efficiency. The economy of resources consists of acquiring resources of the required quality, at a reasonable cost and in a timely manner. The effectiveness of resources is aimed at ensuring the adequacy of resources relative to business needs and their appropriate use. The efficiency of resources is measured by the attainment of an organization’s business objectives. ▶ Working capital capacity Working capital is the money needed to fund the normal, day-to-day operations of your business. It ensures you have enough cash to pay your debts and expenses as they fall due, particularly during your start-up period. Very few new businesses are profitable as soon as they open their doors. It takes time to reach your breakeven point and start making a profit.

22. ▶ Ensure the quality of products In the manufacturing business, organization wants to make sure that their produce a high level of quality in everything that they make! There are many different ways to ensure the quality of products, which range from the physical composition components of the product to the actual product performance itself. Don't get overwhelmed when organization start to think about ensuring quality control - there are a couple of different ways that organization can ensure the quality of products. ▶ How to strike the balance between demand and supply of products ▶ Changes in demand and rush orders

23. ▶ Absenteeism of workers Employee absenteeism is one of the most common workplace problems facing employers in today’s workplace. Legitimate illnesses still account for the majority of employee absences, but some studies have shown that less than one- third of absences from the workplace are related to poor health. Most employers offer their workers vacation, sick leave, paid time off, or other kinds of paid and unpaid leave ▶ Lack of coordination and communication between various functional Coordination is a managerial function in which different activities of the business are properly adjusted and interlinked. Managers should strengthen communication across all facets of the organization to increase the level of integration between each moving part. If there is a lack of coordination and communication between various functional areas of business, there is a risk that responsibility will become dispersed and tasks will be left unclaimed. Organizing accountability for every task helps to ensure that efforts are tangibly coordinated and communication between various functional areas of business.

24. Thank you..