production planning and control

1
Production Planning Control

• An Introduction

2
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

3
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

4
Objectives

• Effectiveness goods to fulfill customers needs
• Maximising output maximum output with minimum
  input
• Quality control Product/service quality meets
  planned quality specifications
• Minimise throughput time conversion of RM to FG
  in minimum time

5
Objectives (continued)

• Capacity full utilisation of men machines
• Minimise cost minimum cost of production
• Maintaining inventory optimal inventory
• Flexibility flexibility in production operations
• Coordination between men machines

6
Objectives (continued)

• Capacity plan for current future needs
• Reduce bottlenecks solve production problems
  early
• Maximise profit minimise cost
• Production schedules as per plan
• Routes schedules to optimise use of men,
  material machinery
• Maintain performance maintain standards

7
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

8
Functions of Production Control

• Inventory control MRP JIT
• Time management
• Quality control
• Maintenance Replacement
• Cost reduction cost control
• Dispatch
• Expediting/Follow-up/Progressing

9
Scope of Production Planning Control

• Material RM, components, spares right quantity
  right time
• Methods
• Machines equipments
• Manpower
• Routing
• Estimating
• Loading sceduling

10
Scope of Production Planning Control (continued)

• Dispatching
• Expediting
• Inspection
• Evaluating
• Cost control

11
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

12
Phases (continued)

• Action phase execution dispatching progress
  function
• Control phase status reporting material
  control tool control inventory control quality
  control labour output control cost control

13
Benefits of Production Planning Control

• Higher quality
• Better resource utilization
• Reduced inventory
• Reduced manufacturing cycle time
• Faster delivery
• Better customer services
• Lower production costs

14
Benefits (continued)

• Lower capital investment
• Higher customer service
• Improved sales turnover
• Improved market share
• Improved profitability
• Competitive advantage
• Flexibility
• Dependability
• Lower prices

15
Limitations of Production Planning Control

• Based on assumptions
• Resistance to change
• Time consuming
• Difficult due to rapid environment changes

16
Measuring Effectiveness of Production Planning
Control

• Delivery
• Inventory levels
• Production/Operations Management

17
Requirements for Effective Production Planning
Control

• Sound organisational structure
• Delegation of authority
• Reliable, up-to-date feedback
• Standardisation
• Trained people
• Flexibility to adapt
• Appropriate management policies
• Accurate assessment of manufacturing/procurement
  lead times
• Adequate plant capacity

18
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 1 2
• Parallel structure 1
• 2

19
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 judgement

20
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