Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
PLANNING AND
CONTROL
Assignment 1
1.1.APPC Defined
Any manufacturing activity requires resource input in terms of men, materials, capital and
machines. In any business that products a product or service, production activity must be
related to market demands as indicated by the continuous stream of customer's orders. For
maximum effectiveness, this must be done in such a way that customer demands are satisfied,
but at the same time production activities are carried on in an economic manner. The process
of developing this kind of relationship between market demands and production capability is
the function of production planning and control or sometimes referred to as production
control.
Production planning and control can be affected principally through the management of work
flow, inventories and backlogs and changing levels of operation.
The set of policies and procedures that are used to manage work flow, inventories backlogs
and changes in the level of production rate comprise, what is called a production planning
and control system.
1.3.Effects Of APPC
The effects of PPC can be grouped in two captions:
a) Material factors-Under this following category are included:
(i) Quality of the output. An improvement in volume of output within quality and
safety limits laid down by management is most common objective of PPC.
(ii) Plant utilisation. With ever increasing capital investment per producer in industry,
making fuller use of plant is of growing importance. Experience and research has
shown that in many types of plant the capital saving due to improved load factors
are proving the most substantial of all. These improvements are also being
achieved through better labour effectiveness.
(iii) Use of services. Again economic in the use of steam, water, air and electricity
may be paramount factors.
(iv) Quality of product. It may be sometimes desirable for economic or other reasons,
to improve the quality of product new or more consistent standard.
(v) Process efficiency. An operator can have a far more significant effect on process
efficiency than was previously envisaged.
(vi) Standard of safety. In dealing with many products quite apart from the normal
good standards a particularly high level of safety may be important, which is
being achieved by it.
(vii) Works cleanliness. It is another objective of management.
b) Human factors. Under this heading following may be included:
(i) Effectiveness of work. The work should be such that it meets the ego and emotion
of the worker and he feels the pride over it. In other words, the objective of
management is to choose right man for right job at right place at right time on
right wages and salaries.
(ii) Interest in work. The worker should take interest in work and he will put the heart
and hand in performing the task is another prime aim of good management.
(iii) Waiting time. The waiting time should remain minimum for the want of material
tools, equipment, supervision, inspection, delivery, etc. It can only be achieved
when the worker on the work will help fully and take interest in it.
(iv) Need for supervision. To make the worker expert and self-dependent in normal
day to day work is the other aim of the management. The supervisory time should
be reduced. The supervisors should be left to perform the task of planning,
coordination, and motivation, control and feedback information only.
(v) Ideas for new methods. Workers, working on the machine are said to be the best
man for new idea and suggestions, as he knows the various aspect of work fully.
(vi) To give encouragement to the worker for new ideas and new method the PPC is
brought in picture.
(vii) Team spirit. To develop the team spirit and feeling of brotherhood among workers
is another aim. The workers should do the work as a team, and should do the work
as a team, and should recognise their value and status in company as a group not
individuals.
(viii) Absenteeism. To minimise and regulate the absenteeism, PPC may be introduced.
(ix) Labour turnover. It helps the turnover to its minimum.
3.1.Analyzing is the process of determining the quality specifications of the product. The
analysis provides specification for the following element of production:
a. Raw materials
b. Production equipments and tools
c. Production personnel
That will yield the durability, utility, and emotional appeal required for the garments. This
presents the quality measuring scale for the product. The analysis also gives the basis of
quantitative production capacity of each operation, job or process. This is one of the
requirements for forecasting the anticipated load of production per unit time.
1. The production machine and equipment and the utility requirements needed for the
operations: preparation, sewing operation, and completion operations.
2. Work station layout:
a. The proper arrangement of materials, operators, machine and/or equipment or
tools,
b. The proper work cycle for the job of the work station.
3. Transportation to the next work station:
a. The method used
b. The equipment used
4. The flow process grid: the sequence of operation with respect to:
a. Spatial relationship
b. Time relationship
5. The production control plan: the production schedule.
Before it is possible to make some decisions on production equipments, work station layouts,
and transportation methods, it is necessary to know the amount of production required per
unit time. A type of production equipment that would be economical for one given volume
production may very well be uneconomical for another volume of production. Such decisions
cannot be mad without information based on sales forecasts. These forecasts often require
information regarding price of raw material and labor before they can be made properly. It is
therefore necessary to examine the scope and structure of the apparel and allied
manufacturing equipment in order to determine their elements and their relationship to
apparel manufacturing.
FORECASTING
3.2. Forecasting is the process of estimating the future volume of sales, the rate of sales, and
the rate of delivery. Forecasting plays a crucial role in the development of plans for the
future. It is essential for the organisation to know for what level of activities one is planning
before investments in inputs i.e., men, machines & materials are made. In modern production
activity, the activities are more complex technologically and the basic inputs are becoming
expensive and therefore there are lot of restrictions. Thus planning is very essential for any
production activity and is a fundamental activity of management. Forecasting forms the basis
of planning and enables the organisation to respond more quickly and accurately to market
changes.
Forecasting demand is a crucial issue for driving efficient operations management plans. This
is especially the case in the fashion industry, where demand uncertainty, lack of historical
data and seasonal trends usually coexist. Many approaches to this issue have been proposed
in the literature over the past few decades.
Demand forecasting plays an important role in basic Operations Management as an input for
planning activities. Poor forecasting effects are stock outs or high inventory, obsolescence,
low service level, rush orders, inefficient resource utilization and bullwhip propagating
through the upstream supply chain. As such, demand forecasting is a popular research topic
and many models for forecasting fashion products have been proposed in the literature over
the past few decades.
Typically, high performance companies focus on robust demand forecasting approaches;
however, the challenge of demand forecasting varies greatly according to company and
industry. In the fashion industry, products are usually characterized by long replenishment
lead times, short selling seasons and nearly unpredictable demand and therefore, inaccurate
forecasts [1]. All these features make the issue of forecasting demand particularly
challenging. Companies in the fashion industry have been trying to manage the demand for
many years, which has brought about the development of a number of specific forecasting
methods and techniques.
Much of this earlier work was intended to create insights and tools for improving the demand
forecasting of fashion products. However, the reality that is now gradually being accepted
both by those who work in the industry and those who research forecasting is that the demand
for fashion products cannot be forecast. Instead, we need to recognize that fashion markets
are complex open systems that frequently demonstrate high levels of chaoses. In such
conditions, managerial efforts may be better expended on devising strategies and structures
that enable products to be created, manufactured and delivered on the basis of ‘real‐time’
demand.
Methods of forecasting
Forecasting Methods
1. Forecasting for new Products
a. Direct survey method
b. Indirect survey method
c. Comparing with established
d. Limited market trial
2. Forecasting for established products
a. Projection method
b. Related information method
c. Market research
d. Sales force composite method
Indirect survey method
The attitude and behaviour of the consumers is predicated through salesman, intermediate
selling agent, wholesalers, retailers etc.
Limitations of Forecasting:
Forecasts are only estimates of future condition. They can never be actual position. They can
only give a best estimate of future courses of events, but they can never be hundred percent
accurate and reliable. The following are some of the limitations of sales forecast:
(i) Forecasting is based on postulations and assumptions and assumptions and hence it is
subject to some guess work and possibility of error.
(ii) Forecasting is usually based on past data but future may not be a copy of the past.
(iii) Changes in consumer’s need, taste fashion; style etc. many causes inaccuracy in
forecast.
(iv) There may be lack of history in case of a new product.
(v) Development of new products, materials methods may introduce error in the sales
forecast of a particular product.
(vi) There may be lack of efficient and experienced sales force.
(vii) Lack of sales history in case of a new product makes the forecast difficult.
(viii) Short term forecasting is more accurate than long term forecasting and hence its
usefulness is limited to short-term purposes.
(ix) Forecasts are not full proof and condition proof and if there are changes in the general
economy of the country; they may not materialise.
(i) General Business Conditions. While making sales forecast the marketer should take
into consideration the general conditions of the economy, growth of population,
distribution of wealth and income, general cons toms, fashion and seasonal fluctuations
etc., during the future period.
(ii) Conditions within the Industry. While making sales forecast the changes going on all
the time in the total demand of the product, technological developments should be
taken into consideration. The number of other units engaged in the industry and their
sales, research, potentials and product development, etc., have to be carefully
considered.
(iii) Conditions within the Company. Internal changes within the company in the coming
future also affect future sales. Such changes may be in price structure, distribution
channel, sales promotion measures, product or other marketing policies of the
company, future expansion plans, plans for product development etc. It is therefore
essential to anticipate the extent to which such measures may affect the future sales.
There are the internal factors which are well within the control of the company.
(iv) Factors Affecting Export Trade. If the company is engaged in the export trade, the
marketing manager must also consider the various factors in forecasting the export
sales. Such factors include export and import controls impressed by the government,
export conditions, export import policy, export finance, new agreements etc.
(v) Political Stability. If the nation is practically stable, the business flourishes. Things
outside the business remain static and stable. Generalisations come true and so the
forecasts.
(vi) Government Restrictions. Today Governments. All over the world are interfering
more and more in business activities through various restrictions and control. If these
are announced on a long term basis forecasting becomes easy and if they are for a short
period forecasting is rendered difficult.
(vii) Fiscal and Monetary Policy. The frequencies of changes in the fiscal and monetary
policy do affect the forecasting. From forecasting point of view a flexible but less
frequency changing fiscal and monetary policy is regarded as good.
(viii) Price Level and Trend. Frequent and wild changes in price levels do adversely affect
the forecasting. On the contrary stable price trends helps in achieving the objectives of
forecasting.
(ix) Technological research and development.
Market Potential
Market potential is the total possible sales by all the firms selling the product in a given
market. It gives an indication of the ultimate potential for that product and industry as a
whole, assuming that the ideal marketing effort is made.
Company potential refers a part of the market potential, which an individual firm can achieve
at the maximum in a given market, under ideal conditions and on the assumption that the
ideal marketing effort is made.
The term Market demand and company demand refers to those portions of market, market
potential and company potential that are achievable under existing conditions.
Market forecast and company forecast refer to what the industry and the firm respectively
will sell in actual practice during the period of the forecast.
Thus company potential is a part of market potential, company demand is a part of market
demand and company forecast is just a part of market forecast.
PLANNING
Planning implies that a course of action is established in advance. The whole activity must be
planned and exists on paper before the ver. first action takes place.
(1) Fore-casting (Estimation of future work): Fore-casting is defined as the estimation of
future activities i.e. the estimation of type, quantity and quality of future work.
These estimates provide the basis for establishing the future requirement for men, materials,
machines, time and money.
(2) Order writing (Preparation of work authorisation): If the work is to be controlled. It must
begin with specified documents authorising it. So it means giving the authority to one or
more persons to do a particular job.
(3) Product design (preparation of specifications): After the work authorisation has been
prepared the next step is to collect the information necessary to describe the work in details.
This includes blue prints or drawings, a list of specification, a bill of material and so on.
Action Planning:
In any type of work activity the following steps are necessary for planning details of the work
to be done:
(1) Process planning:
The determination of most economical method of performing an activity, all factors being
considered.
Routing. The arrangement of work stations is determined by the route.
(2) Material control:
Determination of material requirements and control of material (inventory control).
(3) Tool control: Tool control may be subdivided into two categories:
(a) Design and procurement of new tools.
(b) Control storage and maintenance of tools after procurement.
(4) Loading: Determination and control of equipment and manpower requirements. Loading
may be defined as the assignment of work to the facility. The facility may be equipment,
manpower or both.
(5) Scheduling: Determination when the work is to be done. Scheduling consists of time
phasing of loading (workload) i.e. setting both, starting and ending time for the work to be
done.
The common practice dictates that routing, loading and scheduling be performed
simultaneously.
Action Phase: The work is started in the action phase. There is only one production planning
activity in action phase i.e. dispatching. Dispatching is the transition form the planning phase
to action phase.
It consists of actual release of detailed work authorisation to the work centres.
Follow up or Control Phase:
Once the work is started in an activity it is necessary to evaluate continuously the progress in
terms of plan so that deviations can be detected and corrected as quickly as possible. The
control phase accordingly consists of two parts:
(1) Progress reporting: (Data collection). The first step in progress reporting is to collect data
for what is actually happening in the activity (Progress of work).
(2) Data interpretation. After the data has been collected then it is nece. It is interpret by
comparing the actual performance against the plan.
Corrective Action:
(1) Expediting. If the data collected from the production unit indicates that there is significant
deviation from the plan and the plan cannot be changed. Then some action must be taken to
get back on plan.
(2) Re-planning. It should be emphasised that the plan is not to be changed but to be
followed. However, if after expediting to correct deviation it is found that, it is impossible to
perform according to plan. It would be necessary to re-plan the whole affair. It may also be
found that there were errors made while developing the original plan. In all such cases re-
planning is necessary.
SCHEDULING
Scheduling may be defined as the assignment of work to the facility with the specification of
times, and the sequence in which the work is to be done. Scheduling is actually time phasing
of loading. The facility may be man power, machine or both.
Scheduling deals with orders and machines, it determines which order will be taken up on
which machine in which department, at what time and by which operator. Scheduling may
also be defined as the fitting of specific jobs into a general time-table so that orders may be
manufactured In accordance with the contractual liability. Or, in mass production, so that
each component may arise at and enter into assembly in the order and at the time required.
According to Sprigel and Lansburg, "scheduling involves establishing the amount of work to
be done and the time when each element of the work will start: In the words of Kimball and
Kimball, "The determination of time that is required to perform each operation and
also the time required to perform the entire series as routed is scheduling.
Objectives of Scheduling:
I. Scheduling aims to achieve the required rate of output with a minimum of delay, and
disruption in processing.
2. To provide quantities of goods necessary to maintain finished inventories at levels
predetermined to meet delivery commitments.
3. The aim of loading and scheduling is to have maximum utilization of men, machines and
materials by maintaining a free flow of materials along the production line.
4. To prevent unbalanced allocation of time among production departments or work centres
with a view to eliminate idle capacity.
5. To keep the production cost minimum. Since sales forecasts and customer's orders provide
the information for scheduling, close co-operation should exist between planning department
and the sales department. For example, the planning department should, when necessary,
make special provisions to fill "rush" orders and thus aid in giving new business, and the
sales department should endeavour to forecast sales sufficiently far in advance to enable the
ppc department to plan steady production, employment, and procurement.
Factors affecting Scheduling. The following factors govern the scheduling and arc to be
considered before establishing scheduling plan:
(a) External factors. The external factors are the factors which are not within the control of
the management. They are dictated by the outside forces to which the management tries to
adjust.
The important external factors are as under:
(1) Customer's demand.
(2) Customer's delivery dates
(3) Stock of goods already lying with dealers and retailers.
(b) Internal factors. These are the factors which are within the control of the management.
These factors should be manipulated in such a way that objectives of the production function
can be achieved most efficiently and economically.
Some important internal factors are as under:
(1) Stock of finished goods
(2) Time interval to process finished goods from raw material.
(3) Availability of equipments and machines.
(4) Availability of man power.
(5) Availability of materials.
(6) Additional manufacturing facilities if required and
(7) Feasibility of economic production runs.
Master Scheduling:
Let us consider a computer centre, from the past experience it is known that the maximum
number of hours that the equipment can be operated in a five days week is 100 hrs. The
remaining time must be available for routine maintenance and repair work. Assume that the
minimum number of hours will be eight hrs per day to run it economically. For a control
purpose it is necessary to plan the working of the computer centre. As each job arrives at the
centre the person maintaining the master schedule estimates the number of hours the job will
require. The number of hours in the weekly column of the master schedule indicates the
number of hours for the various jobs already assigned to the computer centre.
Assume that a new job arrives at the centre which requires completion during the second
week. If the number of hours required by the job does not exceed 27 hrs, it can be assigned
directly to second week's work schedule. If the number of hours required is less than 40 and
more than 27 hrs. It can be assigned to both the first and second weeks' work schedule and
still it can be completed before the due time.
Production Scheduling
Production scheduling involves setting the time of performance for the detailed operations of
manufacture i.e., establishing the order of work at each machine or stage of process in
fabrication of parts and in the assembly of products.
The objectives of production schedules are:
(1) To meet the output goals of the master schedule and to fulfil delivery promises.
(2) To keep constant supply of work ahead of each machine; and
(3) To put out manufacturing orders in the shortest possible time consistent with economical
operation. The schedules must, however, afford sufficient flexibility to accommodate the
normal irregularities and interruptions that occur in manufacturing.
Data required for production scheduling. In order to achieve the objectives, a production
schedule must be formulated on the basis of accurate information. Blue prints and bill of
materials, master schedules, route sheets, inventory records, and machine-load charts
provides this basis.
1. The blue prints and bill of materials show the kind of items required and the detailed work
to be carried out.
2. Master schedule indicates the priority and the quantity of finished products to be
completed within a given period and the amount of raw material required.
3. Route sheet stipulates the operations and machines to be scheduled and the processing
times.
4. Inventory records show the availability of materials and tools and the time required for the
procurement of items not in stock.
5. Machine-load charts show the quantity of work already scheduled to various machines
equipments and the amount of spare capacity available for use.
Preparation of production schedules. On the basis of available machine capacities, materials,
and labour the master schedule. The individual production schedule is prepared. The dates for
the beginning and completion of the work on various processes and operations are recorded
on production schedules. These dates are then entered on route sheets and load charts to show
machine allocation times. The planners therefore, prepare the detailed production schedule
from the master schedule as given below:
The production schedule when approved by the management becomes the blanket
manufacturing order that authorizes production. The schedule, breakdown by component
parts and production departments, tells the foreman the number of units they are required to
put out in the next period. The schedule should be released sufficiently in advance to enable
the foreman to recruit required labour and to prepare machines formerly idle and enable
purchasing agent to purchase needed supplies.
The schedule also can serve as the purchase requisition for the required materials and parts to
meet the stipulated rate of output. The quantities required to cover the needs of the production
period can be computed from the schedule.
Purchased orders can then be placed for consecutive deliveries, timed to maintain the rate of
output.
CONTROLLING
3.4. Production control is one of the most important and fundamental functions of an
enterprise. It ensures the desired output of specified quality at the prescribed time in the most
economical manner to meet the sales requirements. The production control directs and
regulates all the activities of a production process. It verifies whether the activities are going
in accordance with production plan or not. Control is some management process which
constrains events to follow plans. It is some sort of dynamic activity controlling the
production cycle to ensure that facilities and the personnel are economically utilised and that
the products are manufactured within minimum possible time and economically.
Production control provides the foundation on which most of the other industrial controls are
based. It is the hall mark of production efficiency. It is the pivot around which the success of
production revolves. It is a necessity and not luxury; a profitable investment and not an
expense.
1. Progress Reporting
This part of the follow-up phase is primarily a matter of communications. One of the
principles of sound production control system is that it must furnish timely, adequate and
accurate information about the actual progress of the work, delays, interruptions, bottlenecks
and under or overloading. It is a function by which one can give an early warning when
actual production deviates from planned production and thus makes it possible to take
corrective action. It discovers causes of delay which may be uneconomical lot sizes, schedule
beyond the capacity of the machines, underestimation of material, tools and manpower, errors
in processing and inspection.
Collecting Data (Recording actual production). The first step in progress reporting is to
collect data for what is actually happen 109 in the activity. This is a problem of
communication with production and requires a sound design of the means (media) by which
data will be gathered and transmitted. The progress report (collected data) should contain the
following information in order to evaluate actual performance against the anticipated plan
and then to lake corrective action.
(i) Job identification. It includes order number and operation number.
(ii) Time of report, and
(iii) Work completed.
Transmission of Report: - The collected data may be transmitted by employing anyone of the
following systems:
(i) Written system.
(ii) Oral system (Telephone, Radio etc.).
(iii) Electronic system (Teletype equipment etc.)
Interpreting the data (Data processing):- After the data has been collected, then it is necessary
to interpret It by comparing the actual performance against the plan. The system must be
designed to report progress in a simplified manner. The important point to remember in the
design of progress reports is that they must almost automatically evaluate the situation for
management. Management should not be required to interpret the raw data in order to come
up with the evaluation.
2. Corrective Action
After expediting it may be found that there is a significant deviation between the planned
work and the actual progress of the work. Since the plan is not being changed but to be
followed, some action must be taken to get back on plan. The deviation caused may be due to
production delays. The follow up man learns of the delays through investigation and analysis
of the production reports and also through the personnel observations. He must not only take
corrective action after the delay occurred but also anticipate and prevent It before It actually
develops.
(1) Lack of materials, tools etc. Shortage of materials, tools may arise because of:
(a) Delivery failure.
(b) Poor inventory control.
(c) Inaccurate estimate of future requirements of materials, tools etc.
This can be prevented by closer follow up by the purchasing department after the order for
the material is placed and by proper inventory control.
(2) Equipment Breakdown. Equipment breakdown also causes delays in production.
Equipment breakdown can be m1lllmised by preventive maintenance. Sometimes it may be
advisable to provide a stand by equipment, to prevent such production delays.
(3) Excessive rejections. Material scrapped at any point in the process in excess of the scrap
factor allowed subsequently causes a shortage in the finished item.
(4) Accumulation or in process inventories. This may be caused because of (i) improper or
inefficient material handling system, or (ii) capacity imbalance.
(5) Errors in planning. These are essentially errors of production management whereby
equipment is' scheduled with work beyond its capacity to produce and the set ups are
excessive. The follow up man by his close association with plant conditions is often able to
discover such errors and have them rectified before serious trouble is caused.
(6) Other factors:
a) Labour turnover or mass absenteeism.
b) Lack of necessary instructions and instruction materials.
c) Late starting of work.
d) Unexpected rush orders.
e) Change in priority of orders due to the arrival of some new orders or due to
cancellation of a few previous orders.
The format of the flow process grid must portray the following factors:
1. The spatial relationship necessary between work stations for the best plant layout.
2. The time relationships required among work stations necessary to yield minimum
total production time. In order to depict these relationships clearly, it is advisable that
the grid contain a phrase, word, or symbol for every process, inspection station,
transportation and temporary storage stations in the production sequence.
Symbols are used on many flow process charts to prefix statements identifying each phase of
the production system. This enables one to classify quickly the category of each phase of the
production. If flow process charts were constructed on the grid concept, one could easily
detect high ratios of transportation and storage in relation to processing. This would enable
one to evaluate a production system quickly. It would also highlight the measures necessary
to change the system in order to improve the production efficiency.
The special committees of the American society of mechanical engineers suggest the
following symbols for the process charts:
-Operation
- -Delay
-Transportation
-Storage
-Inspection
On evaluation of the factors it shows that it is best to place the armhole on the fourth level,
the final level sequence for T-shirt should be as follows:
Level listing 1:
1. Shoulder seam, collar seam
2. Neck seam
3. Covering stitch
4. Armhole seam
5. Side-under arm seam
6. Sleeve hems
7. Hip hems
Level listing 2:
1. Shoulder seam, collar seam
2. Neck seam
3. Covering stitch
4. Side seams, sleeve seams
5. Hip hem, sleeve hem
6. Armhole seam
Level listing such as 1 and 2 in fig.10-9 show one to what extent a garment may be produced
on subassembly basis, if volume, labor, equipment, and space conditions permit one to use
the subassembly system, this is system one should arm to formulate.
4.3. Flow process grid for production control
An FGP constructed for complete production control must not only list all operations of the
garment with a minimum level construction, it must also list the following:
1. Total processing time per garment (including inspection).
2. Total processing time per bundle.
3. Inventory in process time per bundle, without temporary storage time allowed
between the total of successive levels.
4. The amount of machines of each type, needed to produce the required hourly amount.
5. The amount of operators needed in the production line to produce the required daily
amount.
6. The temporary storage allowed totally, between successive levels, including a safety
factor tolerance to prevent bottlenecks due to machine breakdowns or changes in the
production line.
7. Total scheduled inventory in-process time; the time it takes to bundle to pass through
the entire production line after the bundle enters the first level temporary storage.
Fig.10-11 is a complete FGP which lists the above data. It contains columns for the
following, for the main assembly line and each assembly line on the grid:
1. Operation title, including the symbols.
2. Time per unit of each operation in the line.
3. Time per maximum (or average) bundle amount, for each operation.
4. Amount of operators (and machines) needed to produce the required daily amount.
5. BIBLIOGRAPHY:-
1. Book Reference:-
Apparel Manufacturing Handbook Part-II by Jacob Solinger
2. Articles:-
International Journal of Engineering Business Management
Special Issue on Innovations in Fashion Industry -Demand
Forecasting in the Fashion Industry: A Review
Robust Production Planning in Fashion Apparel Industry under
Demand Uncertainty via Conditional Value at Risk