Functions of Production

Planning & Control

DR.S.YOGANANTHAN
Content
Introduction
Time horizon
Types of decision
Objectives of PPC
Functions of PPC
PPC - Introduction
Production may be understood as “the step-by-step conversion of one form of material into
another form through chemical or mechanical process to create or enhance the utility of the
product to the user. Thus production is a value addition process.
The main purpose of production planning and control (PPC) is to establish routes and schedules
for the work that will ensure the optimum utilization of materials, workers, and machines and to
provide the means for ensuring the operation of the plant in accordance with these plans.
This uses different inputs mainly including 6M’s namely, man, material, machine, money,
method and management.
Different forms of production based on the processes used:
1. Production by extraction or separation: like petrol, kerosene, sugar etc
2. Production by assembly: car, television, furniture
Time horizon & Business decisions
3 phases of PPC
Planning Phase
Action Phase
Control Phase
3 phases of PPC
Control - Functions
Introduction to PPC
Gorden and Carson observe production; planning and control involve generally the organization
and planning of manufacturing process.
Especially it consists of the planning of routing, scheduling, dispatching inspection, and
coordination, control of materials, methods, machines, tools and operating times.
The ultimate objective is the organization of the supply and movement of materials and labour,
machines utilization and related activities, in order to bring about the desired manufacturing
results in terms of quality, quantity, time and place.
Objectives of PPC
The main objectives of PPC may be summarized as followings:-
a) It is used to establish target and check the deviations by comparing on some performance measures.
b) Decides the nature and magnitude of different input factors to produce the output.
c) Coordinates different resources of production system in the most effective and economic manner and to coordinate among different departments.
d) Elimination of bottleneck
e) Utilization of inventory in the optimal way
f) Smooth flow of material
g) To produce in right quantity and quality at right time
h) Scheduling production activities to meet delivery schedule
i) Expediting the system under production
j) To ensure flexibility in production system to accommodate changes and uncertainty
k) Optimizes the use of resources for minimum overall production cost
l) To ensure the production of right product at right time in right quantity with specification rightly suited to customers m) Stable production system,
with least chaos, confusion and undue hurry.
Importance
Optimum utilization of capacity
Inventory Control
Economy in production activities/functions
Ensuring quality
Adherence to parameters of focus – “Cost, Time, Agility & Volume”
PRODUCTION PLANNING
Production planning may be defined as the technique of foreseeing every step in a long series of
separate operations, each step to be taken at the right time and in the right place and each
operation to be performed in maximum efficiency.
It helps entrepreneur to work out the quantity of material, manpower, machine and money
requires for producing predetermined level of output in given period of time.
Routing
Under this, the operations, their path and sequence are established.
To perform these operations the proper class of machines and personnel required are also worked out.
The main aim of routing is to determine the best and cheapest sequence of operations and to ensure that this
sequence is strictly followed. Routing procedure involves following different activities.
1. An analysis of the article to determine what to make and what to buy.
2. To determine the quality and type of material
3. Determining the manufacturing operations and their sequence.
4. A determination of lot sizes
5. Determination of scrap factors
6. An analysis of cost of the article
7. Organization of production control forms.
Scheduling
It means working out of time that should be required to perform each operation and also the
time necessary to perform the entire series as routed, making allowances for all factors
concerned. It mainly concerns with time element and priorities of a job.
The pattern of scheduling differs from one job to another which is explained as below:
Production schedule: The main aim is to schedule that amount of work which can easily be
handled by plant and equipment without interference. Its not independent decision as it takes
into account following factors.
1. Physical plant facilities of the type required to process the material being scheduled.
2. Personnel who possess the desired skills and experience to operate the equipment and
perform the type of work involved.
3. Necessary materials and purchased parts.
Master Schedule
Scheduling usually starts with preparation of master schedule which is weekly or monthly break-
down of the production requirement for each product for a definite time period, by having this
as a running record of total production requirements the entrepreneur is in better position to
shift the production from one product to another as per the changed production requirements.
This forms a base for all subsequent scheduling acclivities.
A master schedule is followed by operator schedule which fixes total time required to do a piece
of work with a given machine or which shows the time required to do each detailed operation of
a given job with a given machine or process.
Manufacturing schedule
It is prepared on the basis of type of manufacturing process involved. It is very useful where
single or few products are manufactured repeatedly at regular intervals. Thus it would show the
required quality of each product and sequence in which the same to be operated.
Scheduling of Job Order Manufacturing:
Scheduling has acquires greater importance in job order manufacturing. This will enable the
speedy execution of job at each center point.
Loading
The next step is the execution of the schedule plan as per the route chalked out it includes the
assignment of the work to the operators at their machines or work places.
So loading determines who will do the work as routing determines where and scheduling
determines when it shall be done.
Gantt Charts are most commonly used in small industries in order to determine the existing load
and also to foresee how fast a job can be done.
The usefulness of their technique lies in the fact that they compare what has been done and
what ought to have been done.
Production Control: Dispatching
Dispatching involves issue of production orders for starting the operations. Necessary authority
and conformation is given for:
1. Movement of materials to different workstations.
2. Movement of tools and fixtures necessary for each operation.
3. Beginning of work on each operation.
4. Recording of time and cost involved in each operation.
5. Movement of work from one operation to another in accordance with the route sheet.
6. Inspecting or supervision of work.
Follow up
Every production programme involves determination of the progress of work, removing
bottlenecks in the flow of work and ensuring that the productive operations are taking place in
accordance with the plans. It spots delays or deviations from the production plans. It helps to
reveal detects in routing and scheduling, misunderstanding of orders and instruction, under
loading or overloading of work etc. All problems or deviations are investigated and remedial
measures are undertaken to ensure the completion of work by the planned date.
Reference
 S.N.Chary,
“Theory and Problems in Production & Operations Management”,
Tata McGraw Hill, 2012.
Paneer Selvam, “Production & Operations Management”, PHI 3rd Edition, 2012.