Unit3-presentation-POM meaning and types of material handling

production planning and control and its process

1. PRODUCTION
PLANNING AND
CONTROL
31 July, 2024Prepared by group 1

2. Meaning
Production Planning and Control refers to the process
of planning and managing the production activities
to ensure that products are manufactured efficiently
and meet quality standards while minimizing costs
and meeting delivery schedules.
Scope
Production Planning: Forecast demand, schedule
activities, determine resources, set goals.
Production Control: Monitor process, adjust as
needed, ensure efficient resource use.

3. Objectives
Efficient Resource Use: Optimize labor, materials, and equipment.
Meeting Targets: Achieve planned volumes and timelines.
Quality Assurance: Maintain consistent product quality.
Cost Minimization: Reduce costs through resource management.
Flexibility: Adjust plans for changes or disruptions.

4. Concepts
Forecasting: Predict demand.
Scheduling: Plan production timetable.
Resource Allocation: Manage materials, machinery, and labor.
Inventory Management: Maintain proper inventory levels.
Quality Control: Ensure product quality.
Process Optimization: Improve efficiency and quality.
Production Tracking: Monitor performance and identify improvements.

5. Capacity
Planning
Lead Time Management
Elements of Capacity Planning
Ensures that the production capacity
meets the demand requirements.
Involves determining the amount of
production resources needed over time.
Considers different time periods: seconds,
minutes, hours, days, months, or years.

Flexibility
Scalability

6. What is production planning and control process?
Production planning and control manage the allocation of human
resources, raw materials, machinery, and production processes to
efficiently produce goods within required lead times.
Production Planning: Determines what, when, and how much to
produce, focusing on resource allocation and scheduling.
Production Control: Ensures the production system performs
optimally, using various control techniques to achieve throughput
targets.

7. What are the benefits of Production planning and control?
Optimized manufacturing capacity
Reduced inventory costs
On-time deliveries
Better procurement of materials
Streamlined production processes
Minimal resource waste

8. What is the role of production planning and
control in manufacturing?

9. Routing
Routing determines the path raw materials flow within the factory. Using this sequence, raw
materials are transformed into finished goods. 
Routing procedure
Deciding the part to be made or purchased : The product is analysed to find which parts are required.
Some parts are manufactured by firm and others are procured from the market.
Determining materials required : Analysis of product for the required material to produce various
components.
Analyze the cost of the product : The production department makes records of direct materials labour
direct and indirect expenses
Scrap factors : There will be some scrap during the course of manufacturing. The finished products are
less than the units introduced at the beginning.

10. Scheduling
This schedule is prepared by
keeping in view the order or likely
sales in near future.
This may be prepared for a week,
a fortnight, a month as these may
differ from industry to industry.
It is used were 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.
It indicates the time required to
perform each and every detail
operation of a given machine or a
process.
Master schedule : Operation schedule : Detail operation schedule :
Scheduling determines the time and date when each operation should be started.

11. Dispatching
Assigning orders, instructions, and tasks. Bridges gap between planning and production.
Coordinates resources, manages work allocation, provides essential information.
Job Allocation: They determine which jobs are suitable for specific machines and workers.
Quality Control: Inspection orders are issued to assess product quality.
Store Issue Order: Authorizes material shipment from the store.
Tool Order: Authorizes the release of necessary tools.
Definition and Purpose:
Functions of Dispatching:
Procedures:
Dispatching in production and operational management is a critical process that ensures the smooth
execution of production activities.

12. Follow-up
Systematically checking production
activities.
Measuring actual output against
planned targets. Analyzing
performance for shortcomings.
Taking corrective actions to
prevent excessive shortfalls.
Assesses alignment of production
output with planned goals. Tracks
actual production quantities,
quality, and schedule adherence.
Identifies deviations related to
production volume, quality
standards, or timeframes.
Efficiency: Minimizes wastage and
reduces downtime. Optimizes
resource utilization.
Quality Assurance: Ensures
consistent quality standards
through close production
monitoring.
Meaning: Functions: Significance:
Follow-up in production and operational management is a critical process that ensures the
effective execution of production plans.

13. What is PERT?
PERT (Program Evaluation and Review
Technique) is used for planning and
scheduling tasks by analyzing time
estimates and dependencies.
Purpose: To handle uncertainty in task
durations and provide a range of
possible project completion times.
Key Concept: Probabilistic time
estimates (Optimistic, Most Likely,
Pessimistic).
What is CPM?
CPM (Critical Path Method) is a method
for identifying the critical tasks in a
project. Example: Construction projects
use CPM to ensure timely completion
Key Features of CPM :
Focus on critical tasks and
dependencies
Network diagram with activities and
durations
Early start, late start, and slack
calculations.

14. Applying CPM - Example: Mahindra & Mahindra
Scenario: Manufacturing a new vehicle.
Tasks:
Raw Material Procurement (1 month)
Assembly Line Setup (2 months)
Production (3 months)
Quality Control (1 month)
Distribution (1 month)
Critical Path: Raw Material Procurement → Assembly Line Setup → Production → Quality Control
→ Distribution (Total: 8 months).
Application: Mahindra & Mahindra uses CPM to optimize their production schedule, focusing on tasks
that directly impact the launch date to minimize delays.

15. Method Study
Steps in Method Study:
Select the process or activity to be studied.
Record all the details of the current method, using techniques like flowcharts or
process charts.
Examine the recorded data to identify any inefficiencies or areas for improvement.
Develop an improved method by brainstorming and considering various alternatives.
Evaluate the new method to ensure it is more efficient than the current one.
Install the new method by training staff and implementing changes.
Maintain the new method by monitoring its performance and making further
adjustments as needed.
Method study, also known as work study, is a production and operations management technique that
analyzes current work methods to identify better, cost-effective, and quality-enhancing approaches.

16. Example
Imagine a coffee shop where the barista first takes
orders, then makes coffee, and finally serves it to
customers. This process causes delays during busy
times.
Current Method: One barista handles all tasks
(ordering, making, serving).
Identified Issue: Customers wait longer during peak
hours.
Proposed Improvement:
Split tasks: one barista takes orders, another
makes coffee, and a third serves.
Result: Faster service, shorter wait times, and more
satisfied customers.

17. Time and Motion Study
Time and Motion Study is a method of analyzing the time and motion involved in performing
a task. It aims to identify and eliminate inefficiencies, setting benchmarks for performance
and improving overall task execution.
Objectives:
Establish Standard Times: Determine how long tasks should take under normal conditions.
Optimize Work Methods: Reduce time spent and improve efficiency.
Enhance Productivity: Increase output by refining task performance.
Benchmark Performance: Set performance standards for workers.

18. Steps in Time and Motion Study
Select the Task: Choose a specific task or operation for study.
Record the Task: Observe and record the time taken to perform the task using
tools such as stopwatches or digital timers.
Analyze the Data: Evaluate the recorded times and motions to identify areas for
improvement.
Develop Improvements: Propose changes to reduce time and streamline task
performance, such as redesigning workstations or modifying procedures.
Implement Changes: Apply the proposed improvements and provide training if
necessary.
Review and Adjust: Monitor the impact of changes and make further adjustments
to optimize performance.

19. Summary
Production Planning and Control (PPC) ensures that production is efficient, meets
quality standards, and stays within cost and time limits. PPC involves predicting
demand, scheduling activities, managing resources, and adjusting plans as
needed.
For example, a car manufacturer might use PPC to forecast the number of cars
needed each month, schedule the assembly line activities, allocate materials like
steel and components, and monitor production to ensure timelines are met.
Key Techniques:
PERT/CPM: Planning and controlling schedules
Work Study: Analyzing work methods
Method Study: Refining processes
Time and Motion Study: Optimizing tasks and movements

20. Forecasting Scheduling Resource Allocation Monitoring & Adjusting
Predict Demand Create Timetable Allocate Materials, Track Progress &
Machinery, Labor Make Adjustments
Ex: Clothing Ex: Bakery Ex: Furniture Ex: Smartphone
Retailer Scheduling Manufacturer Manufacturer
Forecasts Daily Runs Allocates Monitors
Winter Coats Resources Assembly Lines
Production Planning and Control (PPC)

21. Questions

22. Why is forecasting
important in PPC?

23. Why is forecasting
important in PPC?
Answer: Forecasting predicts future
demand, allowing better planning of
production levels, resource allocation,
and scheduling. For example, a bakery
can forecast holiday demand to ensure
enough ingredients and staff are
available.

24. How does PPC help
reduce production
costs?

25. How does PPC help
reduce production
costs?
Answer: PPC reduces costs by optimizing
resources, minimizing waste, and
improving process efficiency. For
instance, a smartphone manufacturer can
streamline assembly to use fewer
materials and reduce labor costs.

26. What are the main
steps in the PPC
process?

27. What are the main
steps in the PPC
process?
Answer:
Routing: Planning the path of
materials through production.
Scheduling: Setting timelines for
production tasks.
Dispatching: Starting production
activities.
Follow-up: Monitoring progress and
making adjustments.

28. Thank You
For Your Attention