PRODUCTION PLANNING

AND CONTROL
TYPES OF PRODUCTION AND
FORECASTING
TYPES OF PRODUCTION
SYSTEM
JOB ORDER PRODUCTION
A Small number of pieces produced only once
A Small number of pieces produced intermittently
when the need arises
A Small number of pieces produced periodically at
known intervals of time
Characteristics
Small production runs
Flow of materials
Manufacturing cycle time
Layout of plant and equipment
Skill required
Quality of supervision
Cost of production
TYPES OF PRODUCTION
SYSTEM
BATCH PRODUCTION
A batch produced only once
A batch produced repeatedly at irregular intervals when the
need arises
A batch periodically at known intervals to satisfy continuous
demand
Characteristics
Short runs
Investment
Planning
Skill of labor
Quality of supervision
Plant Layout
Material Handling
TYPES OF PRODUCTION
SYSTEM
CONTINUOUS PRODUCTION
Mass Production
Flow Production
Characteristics
Flow of material
Machines and Plant Layout
Material Handling
Skill of labor
Manufacturing Cycle Time
Quality of Supervision
TYPES OF PRODUCTION
SYSTEM
Characteristics Job Order Batch Continuous
Examples Special Projects,
Ship Building
Shoe, Cloth,
Chemical, Forging
Automobile, Sugar,
Glass
Quantity Very Small Small quantities in
lots
Few in large
quantities
Equipment General Purpose General Purpose Special Purpose
Skill Highly Skilled Skilled Semi skilled or
unskilled
Supervision Much Less Quite Less
MH Equipment Mobile Less Mobile,
Conveyors
Conveyors, Overhead
rails
In process Inventories High Relatively Low Low
Unit Cost High Less Quite Less
TYPES OF PRODUCTION
SYSTEM
Characteristics Job Order Batch Continuous
Prior Planning Complex Easy Very Easy
Control Complex Easy Very Easy
Cycle Time Long Relatively Short Very Short
Balance of Load Easier Relatively Difficult Very Difficult
Job Instructions Complex and in
details
Few Only at the outset of
new job
Investment in
Machine and
Equipment
Less Comparatively
More
High
Changes in machine
setup
Every time new
set up
New set up when
the batch changes
Remains Unchanged
FORECASTING
Definition and Concept

Purpose of Sales Forecasting

Sales Forecasting Techniques
FORECASTING
Historic Estimate

Sales Force Estimate

Trend Line Technique

Market Survey

Judgmental Techniques
FORECASTING
Prior Knowledge

Forecasting by past average

Forecasting by last periods sale

Forecasting by moving average

Forecasting by Weighted moving
average

QUESTIONS ?
THANK YOU!