Production Planning and

Control - I
Dr. Alok Choudhary

Reading guide: Chapters 10 Slack. et al., Operations

management, 7th Edition, FT/Prentice Hall, 2013.
(or other version)
Production Planning and Control - 1

Learning Outcomes
To understand: What is planning and control?
What is P:D ratio

What are the activities of planning and control?

Loading, sequencing, scheduling and control

Calculations and case studies

Production Planning and Control - 1

Slack et als model of operations management

Transformed
resources
Materials
Information
Customers
Input
resources
Transforming
resources

Direct

Design

Operations
Management

Develop

Output
products and Customers
services

Deliver

Facilities
Staff
3

Slack et als model of operations management

Direct

Design

Operations
Management

Develop

Deliver
Capacity
Planning and
Control

My Lectures

Supply
Chain
Management

Production
Planning
and Control

Inventory
Planning and
Control

What is planning and control?

Supply of
products
and services

Planning
and
control

Demand for
products and
services

The
operations
resources

The activities
which reconcile
supply and
demand

The
operations
customers

Production Planning and Control - 1

Slack et als model of operations management

Direct

Design

Operations
Management

Develop

Deliver
Capacity
Planning and
Control

Todays
Session

Supply
Chain
Management

Production
Planning
and Control

Inventory
Planning and
Control

Planning and control

Planning is a formalization of what is intended to

happen at some time in the future.
A plan does not guarantee that an event will
actually happen; it is a statement of intention.
Proactive
Control is the process of coping with any changes
that affect the plan.
It may also mean that an intervention will need
to be made in the operation to bring it back on
track
Reactive
7
Production Planning and Control - 1

Planning and control

Planning is deciding

what activities should take place in the

operation
when they should take place
What resources should be allocated to them

Control is

understanding what is actually happening in

the operation

deciding whether there is a significant deviation

from what should be happening
(if there is deviation) changing resources in order
to affect the operations activities

Production Planning and Control - 1

Long-term planning and control

Uses aggregated demand forecasts
Determines resources in aggregated form

Days/weeks/months

PLANNING

Objectives set in largely financial terms

Medium-term planning and control

Uses partially disaggregated demand forecasts
Determines resources and contingencies
Objectives set in both financial and operations
terms

Short-term planning and control

Hours/days

Time horizon

Months/years

Significance of planning and control

CONTROL

Uses totally disaggregated forecasts or

actual demand
Makes interventions to resources to correct
deviations from plans
Ad hoc consideration of operations objectives

Production Planning and Control - 1

The development cycle is long & difficult to manage

Rolls-Royce data-strictly
private

Revenues
generated throughout service life
Business model
Income

Expenditure

Net
Overhaul

Overhaul

$mn

Overhaul
Overhaul

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Year after EIS

Rolls-Royce data-strictly
private

Responding to demands
Dependent Demand is derived from the demand of something else
Independent Demand is more random

Demand type

Planning and control

strategy

Resources required in
stock

Dependent

Resource to order

None

Independent (low
variability)

Make-to-order

Transforming

Independent (high
variability)

Make-to-stock

Transforming transformed

Production Planning and Control - 1

12

Responding to demands
In conditions of dependent demand, an operation will only start the process
of producing goods and services when it needs to. Both transforming and
transformed resources may be acquired at the appropriate time of delivery
The planning and control necessary for this kind of operation can be called
resource to order planning and control or resource to order production
strategy
Resource to order: When it is not necessary to activate planning system and
acquire resources until a delivery date for an order is received.
Make-to-order: A planning policy that acquires the raw material which is used
to construct the product on the receipt of a customer order.
Make-to-stock: A planning policy that produces to a forecast of demand for
the product (Independent Demand)

Production Planning and Control - 1

13

P : D ratios
Customer
orders
Obtain resources

Produce product / service

Deliver to customer

Produce to stock
D

Part produce to order

D

Produce to order
P

Resource to order
D
P

Allow time for

resourcing

Allow time
for creation
Production Planning and Control - 1

Allow time
for delivery
14

P : D ratios
Resource to order

Dependent demand

Each product or
service large
compared with
total capacity of
the operation

Make to order

Make to stock

Independent demand

Production Planning and Control - 1

Each product or
service small
compared with
total capacity of
the operation
15

Dell Case study

Production Planning and Control - 1

16

The activities of planning and control

How much
to do?

When to
do things?

Scheduling

Sequencing

Loading

Monitoring
and control

In what
order to do
things?

Are activities
going to plan?

Production Planning and Control - 1

17

Loading
Maximum time available
Normal time available

Not worked

Planned time available

Planned running time

Set-ups

Available time
Actual running time

Down
time

Loading: Amount of work allocated to a work-center

18
Production Planning and Control - 1

Finite and infinite loading

19

Infinite loading occurs when work is assigned to a work centre simply

based on what is needed over a period of time. No consideration is given
directly whether there is a sufficient capacity at resources to complete that
task or not. Nor the actual sequence of work done.

Finite loading: In this approach, it schedule in detail each resource using

the setup and run time required for each order. System determines
exactly what will be done by each resource at every moment during
working day.

Production Planning and Control - 1

Sequencing

Has a process (transforming resource)

A bunch of people or objects to be processed (resource to be transformed)
Sequencing is a criteria to plan the order in which they are processed
After having determined loading profiles for each work center, decisions must be taken on the
order in which the work will be tackled.
This activity is termed Sequencing.

1. FIFO
2. DD
3. SOT
4. LIFO
5. LOT

Various sequencing rules are used in operations:

First in first out

- fairness
Due date - customer focus
Shortest processing time
- queue size reduction
Last in first out
- physical advantage
Longest processing time
- organising resources
20
Production Planning and Control - 1

TRIAGE system in Hospital case

Production Planning and Control - 1

21

Production Planning and Control - 1

22

Sequencing through a single resource

e.g. a medical doctor

Sequencing rules
1. FIFO
2. DD
3. SOT
4. LIFO
5. LOT

Name

Arrival
time

Process
time

Due to
leave

Anders

9:07

9:15

Brown

9:00

9:15

Cluff

8.58

9:05

Dani

9:10

9:15

Evans

9:20

9:25

Production Planning and Control - 1

23

Comparison of sequencing rules

- random criteria (alphabetical)
Name

Arriv
al
time

Process
time

Due
to
leave

Start
time

Finish
time

Total
Latetime for ness
Dr

Anders

9:07

9:15

9.07

9.12

12

Brown

9:00

9:15

9.12

9.15

15

Cluff

8.58

9:05

9.15

9.21

21

16

Dani

9:10

9:15

9.21

9.23

23

Evans

9:20

9:25

9.23

9.24

24

Performance measure:
total Dr time : 24 min
total lateness: 24 mins average 4.8 min
Patients late: 2

Production Planning and Control - 1

24

Comparison of sequencing rules

- FIFO
Also DD
Name

Arriv
al
time

Process
time

Due
to
leave

Start
time

Finish
time

Total
Latetime for ness
Dr

Cluff

8.58

9:05

9.00

9.06

Brown

9:00

9:15

9.06

9.09

Anders

9:07

9:15

9.09

9.14

14

Dani

9:10

9:15

9.14

9.16

16

Evans

9:20

9:25

9.20

9.21

21

Performance measure:
total Dr time : 21 min
total lateness: 2 mins average 0.4 min
Patients late: 2
Production Planning and Control - 1

25

Comparison of sequencing rules

- DD then SOT where possible
(Dani cant start till after 9:10)
Name

Arriv
al
time

Process
time

Due

Start
time

Finish
time

Total
Latene
time for ss
Dr

Cluff

8.58

9:05

9.00

9.06

Brown

9:00

9:15

9.06

9.09

Anders

9:07

9:15

9.09

9.14

14

Dani

9:10

9:15

9.14

9.16

16

Evans

9:20

9:25

9.20

9.21

21

Performance measure:
total Dr time : 21 min
total lateness: 2 mins average 0.4 min
Patients late: 2 (unless start before 9:00)

Production Planning and Control - 1

26

Comparison of sequencing rules

- LOT
Name

Arriv
al
time

Process
time

Due

Start
time

Finish
time

Total
Latene
time for ss
Dr

Cluff

8.58

9:05

9.00

9.06

Anders

9:07

9:15

9.07

9.12

12

Brown

9:00

9:15

9.12

9.15

15

Dani

9:10

9:15

9.15

9.17

17

Evans

9:20

9:25

9.20

9.21

21

Performance measure:
total Dr time : 21 min
total lateness: 3 mins average 0.6 min
Patients late: 2

Production Planning and Control - 1

27

Comparison of sequencing rules

- LIFO
Name

Arriv
al
time

Process
time

Due

Start
time

Finish
time

Total
Latene
time for ss
Dr

Evans

9:20

9:25

9.20

9.21

21

Dani

9:10

9:15

9.21

9.23

23

Anders

9:07

9:15

9.23

9.28

28

13

Brown

9:00

9:15

9.28

9.31

31

16

Cluff

8.58

9:05

9.31

9.36

36

31

Performance measure:
total Dr time : 36 min
total lateness: 31 mins average 6.2 min
Patients late: 4
Production Planning and Control - 1

28

Sequencing rules - comparison

Rule

Order

Dr time

Total
lateness

No patients
late

Random

ABCDE

24

24

FIFO Also DD

CBADE

21

FIFO with
SOT

CBDAE

21

LOT

CABDE

21

LIFO

EDABC

36

31

FIFO performed best in this case

Different approaches make a big difference
Sometimes there is no clear best way (for all cases)
Can get optimisation algorithms but with high visibility fairness is
sometimes more important

Production Planning and Control - 1

29

Scheduling
Has a process (transforming resource)
A bunch of people or objects to be processed
(resource to be transformed)
Scheduling plans when they are to be started

30

Production Planning and Control - 1

Scheduling:
Gantt chart showing the schedule for jobs at each process stage
Process
stage

Week
12

Initial spec Job A

Pre- coding

Job W

Final test

Job B

Job A

Job X

Coding

Compact. check

Week
13

Week
14

Job C

Job Z

Job B

Job C

Job B

Job A

Job X

Production Planning and Control - 1

Job E

Job D

Job C

Job A

Job Y

Week
18

Job D

Job B

Job X

Job Y

Week
17

Week
16

Week
15

Job A

Job B

31

Gantt chart showing the schedule for individual jobs over

time
JOB

Mon
5

Tue
6

Wed
7

Thur
8

Fri
9

Mon
12

Tue
13

Table
Shelves

Kitchen
units
Bed

Actual progress
Production Planning and Control - 1

Time now

Scheduled
activity time

32

JOB

Mon
5

Wood
preparation

Assembly

Tue
6

Thur
8

Paint

Mon
12

Tue
13

Fri
9
K

Finishing

V Time
now

Scheduled
activity time

Wed
7

Production Planning and Control - 1

Non-productive time
Actual progress

33

Shift allocation
Shift allocation for the technical hot line
(a) on a daily basis (b) on a weekly basis
Mon
Number of staff
required

Peter
Walter

Marie

04:00

08:00

Jo

Claire

12:00

16:00

Shift pattern (24 hour clock)

Jo
Jo

Tue

Wed
5

Thu

Fri

Sat

Sun

Peter

Marie

Claire

Walter

Jo

20:00
X

(a)

Full day

Day off

(b)

Production Planning and Control - 1

34

Backward Scheduling

Schedule the activity or product based on when the due date is.

Week 1 Week 2 Week 3

Week 4

Week 5

Week 6

Week 7

Product A
Advantages: Can cope with customers specification changes etc.
Disadvantages: Cannot cope with uncertainties.

Product B
Product A due date: end wk 6, processing time 3 weeks
Product B due date: end wk 7, processing time 5 weeks

Forward Scheduling - suppose we are week 1

Schedule the activity or product when the resources arrive, without taking into
account the due date.

Week 1 Week 2 Week 3

Week 4

Week 5

Week 6

Week 7

Product A

Product B
Production Planning and Control - 1

35

Backward schedule with processes

Week 1 Week 2 Week 3

Week 4

Week 5

Product A
Process 1
Process 2

Process 3
Product B
Process 1
Process 2
Process 3
Capacity issue
36
Production Planning and Control - 1

Week 6

Week 7

This process was then automated

into MRP

37

Production Planning and Control - 1

Increasing impact on the whole supply

network

The development of ERP

Web-integrated Enterprise Resource
Planning (Collaborative Commerce,
c-commerce)
Enterprise Resource
Planning (ERP)
Manufacturing Resource
Planning (MRPII)
Material
Requirements
Planning (MRP)
Increasing integration of information systems
Production Planning and Control - 1

38

Todays session
Planning and control?
P:D ratio
supply and demand affect planning and control?
activities of planning and control?

Loading, sequencing, scheduling and control

Calculations and case studies

39

Production Planning and Control - 1