Process Planning Strategies

Production Planning &

Control

Kannan

MBA2014, August 2015

Process Planning Strategies

Production Planning &

Control

Production Planning and Control system assures efficient and economical

production. PPC is concerned with estimating, routing, scheduling, loading,
sequencing, dispatching, expediting and evaluating. It is intended to achieve
better manufacturing results in forms of quality, quantity and honoring marketing
commitments by timely deliveries.

Learning Objectives

Understand the concept of Production Planning and Control (PPC).

To know the objectives and importance of Production Planning and Control.
To know the role of Production Planning System in Manufacturing.
Understand the factors which influence the Production Planning and Production
Control.
To compare between Production Planning and Production Control.
To understand the various functions of Production Planning and Production Control.
To know the different stages in Production Planning and Control Function.
Understand the role and responsibilities of PPC Department.

Kannan
2015

MBA2014, August

Production Planning &

Control

Introduction
Process Planning Strategies

Production planning and control function is essentially required for efficient and
economical production. It is the next step after the decision making regarding the
product design and production processes and system. One of the major problems
that enterprises face is of low productivity which can be solved by production
planning and control.

Production/ Operations Planning and Control (PPC)

Production planning and control involve the organization and planning of

manufacturing process. It is also known as operations planning and control.

a) Production Planning

Production planning refers to the various types of planning techniques used to

maximize production and profitability.

Aspects of Production Planning

Generally production is planned for a long-term, medium-term or short-term span.

Kannan
2015

MBA2014, August

Production Planning &

Control

b) Production Control

Process Planning Strategies

It is the process of planning production in advance of operations; establishing the standards; setting
finishing dates for each item, and initiating the required follow-up for effective functioning of the
enterprises.
Objectives of Production Planning and Control

Production planning and control includes planning, steering, consigning and following up these functions
during the manufacturing process for the purpose of achieving maximum capacity.
Benefits of Production Planning and Control [PPC]
Production planning and control facilitates an enterprise in the following ways:

Last hour rush is avoided

Problem areas / bottlenecks gets reduced

Optimum Utilization of Capacity / Resources

Inventory control

Economy in production time

Ensures quality

Cost reduction

Better coordination of plant activities

Improved service to customers

Benefits to workers due to increase in productivity & job satisfaction

Kannan
2015

MBA2014, August

Production Planning &

Control
Production Planning
Process Planning Strategies

Production planning involves looking ahead, anticipating bottlenecks and identifying the steps
required for smooth and uninterrupted flow of production.

Objectives of Production Planning

Evaluation and appraisal of resources at input stage like raw materials, labour, data, information and
methods required for a production process with respect to their quantity and quality

To achieve optimum production with maximum efficiency and minimum wastage

A proper production planning increases operating efficiency by stabilizing productive activities,

facilitate selling and customer service and reduce production cost.

Benefits of Production Planning

Timely delivery to customers

Timely receipt of supplies from suppliers due to good relationship
Reduction of investment in inventory
Balances workload on different machines
Reduces cycle time / cost of production
Better utilisation of men / machinery
Enhances productivity

Kannan
2015

MBA2014, August

Process Planning Strategies

Production Planning &

Control

Production Planning System

The various concepts of Production Planning such as routing, estimating, loading, scheduling, dispatching
and expediting are covered in production planning system.

These two are describing as under:

(I) Product Planning

(II) Process Planning

Levels of Production Planning
Production planning can be done at three levels which are as follows:

Factory Planning

Process Planning

Operations Planning
Factors Influencing Production Planning
The production planning in any organization depends on many issues. Production Planning varies from one
organization to another because of certain factors which are listed below:

Nature of product

Quantity to be produced

Available technology to produce that product

Possible enhancements in technology

Nature of production process

Available space for operation

Type of possible layout

Kannan
2015

MBA2014, August

Production Planning &

Control

Production Control
Process Planning Strategies

Production control involves the use of various control techniques to achieve

production performance as per plans. Coordinating different resources are the
task of production control. Production control is intended to achieving
production targets, optimum use of available resources, increased profits through
productivity, better quality and more economic goods etc.

Objectives of Production Control

Provision of raw material, equipment, machines and labour
Organisation of production schedule in conformity with demand
forecasts
Better utilisation of resources
Determination of economic production
The objective of production control is to regulate and control the various operations
of production process for orderly flow of material.

Kannan
2015

MBA2014, August

Process Planning Strategies

Production Control
Benefits of Production Control
The production control function gives competitive edge to the
production function and thus to the whole business. It provides the
following benefits:
Smoothens the production flow
Reduces the direct and indirect cost such as inventory cost, setup
cost, rework cost etc.
Reduces scrap and waste
Ensures effective utilisation of resources
Effective coordination of operations with various departments
QC of semi-finished and finished goods
Reliable and assured delivery to customers
Items produced are of right quality, in right quantity at the right
time with minimum effort and cost

Kannan
2015

MBA2014, August

Process Planning Strategies

Levels of Production Control

Production control starts with some objectives and formulation of
strategy for the accomplishment of desired objectives. Three
levels of production control are:
Programming plans the output of products for the production
plant
Ordering involves planning output from suppliers and
processing departments
Despatching considers the output from the machine, tools and
other work centers so as to deliver orders at the right time

Kannan
2015

MBA2014, August

Elements of Production Control

Process Planning Strategies

Production control system has various activities in its fold and various elements of
this system are listed below:
It controls quality and quantity of materials

It controls availability and issue of tooling to various shop floor activities

It controls available capacity of labour, equipment and machinery

It controls timing and release of orders

It controls material handling to reduce breakage and spoilage

It controls the production of different items for timely delivery on due dates

Factors Determining Production Control operations:

The production control operations differ from organization to organization and
depends on nature of production, nature of operations and magnitude of operations.

Kannan
2015

MBA2014, August

Production Control System (PCS)

The purpose of production control system is basically to monitor the progress of

various elements of the process of production, so that the gap between the planned

Process Planning Strategies

and actual activities with respect to their efficiency and effectiveness can be
minimized.
Tasks of PCS are:
Production orders execution and progress monitoring

Delivery dates monitoring & expediting

It monitors exactly what, when, how, where and why to be done

Maintaining records of man - machine utilisation, scrap generation and other

overheads to facilitate optimum utilisation of resources / cost minimisation

Data retrieval for processing and flow of material information

Kannan
2015

MBA2014, August

Process Planning Strategies

Importance of Production Planning and Control

The production planning and control system functions like
the nervous system of a plant. The importance of production
planning and control system can be explained by following
points:
1. Better Service to Customers
3. Better Control of Inventory
5. Reduced Idle Time
7. Good public image

Kannan
2015

2. Fewer Rush Orders

4. More Effective Use of Equipment
6. Improved Plant Morale
8.Lower capital requirements

MBA2014, August

Procedure for Production Planning and Control

Process Planning Strategies

PPC ensures that plans are implemented as per the time schedule and
costs that include the capital cost of the facility, assets and labour.

PPC consists of the following steps:

Forecast demand of customers for the product or service

Prepare the production budget
Design the facility layout
Specify the types of machines and equipment
Project requirements of raw material, men and machinery
Draw the schedule of production
Ascertain shortage or excess of the end product
Accommodate changes in the demand

Kannan
2015

MBA2014, August

Elements of PPC
Process Planning Strategies

Before implementing PPC in an organisation, the following aspects to be

considered:
Appropriate organisation structure with delegation of authority and
responsibility
Right person at right place for right job
Maximum level of standardisation of inventory, tooling, manpower, job,
workmanship, equipment etc.
Appropriate management decisions for production scheduling,
materials / inventory control and product mix
Flexible production system to adjust any changes in demand, short
supply of raw materials & new product development
Estimation of lead times for procurement and manufacture
Suitable MIS to be in place
Sufficient capacity to meet demand

Kannan
2015

MBA2014, August

Differences between Production Planning and Production Control

Process Planning Strategies

Production Control

Production Planning

Data related to various inputs are collected and

maintained
Load charts and fitting work orders with inputs,
machinery for given time schedules are prepared

Reports related to outputs, machines and manpower are

prepared

Jobs are really started and completion as per the given

schedule is monitored

Issue and real use of forms and paper work

All paper works and necessary forms are prepared

Feedback system is designed

Feedback is collected

Involves forward thinking regarding remedial action

in case of failure

Taking remedial action to fill the gap or to modify the

failure

It is a centralised activity and is done in office such

as process planning, job scheduling and materials
planning

It is a decentralised activity and is done at the shop

floor such as progressing and expediting.

Kannan

MBA2014, August

Process Planning Strategies

Classification of Production Planning and Control Functions

Different functions of production planning and production control are listed:
a) Production Planning Functions
i) Estimating
ii) Routing
iii) Scheduling
o Production schedule
o Master Schedule
o Manufacturing schedule
o Scheduling of Job order manufacturing
iv) Loading
v) Sequencing

b) Production Control Functions

i) Dispatching
ii) Expediting/Follow-up
iii) Inspection
iv) Evaluating and Corrective Action
Kannan
2015

MBA2014, August

Process Planning Strategies

PPC & various types of production

systems
(I) Production Planning and Control in Mass Production
Henry Ford made a major contribution for the modern mass
production.

(II) Production Planning and Control in Job Production

Job shops are concerned with an array of jobs and each job is
different.

(III) Production
Production

Planning

and

Control

in

Batch

Batch production is required when a product is made in different

varieties and the volume is less.
Kannan
2015

MBA2014, August

Process Planning Strategies

Role of PPC in Operations Management

Kannan

MBA2014, August

Process Planning Strategies

List of Required Documents in PPC Functions

Demand forecast, firm orders and estimates of possible sales

Long term plan for production of existing and new products
Product wise production plan with budget
MPS for a given time period
Sales order
Work order on the production department
Order with job card
Route sheet with process planning , tools required, time schedules etc
Inventory report
Estimates for costing
Materials / tools requisition slip
Materials receipt report
Goods inward & finished goods quality report
Action taken and job completion report
Shortage report
Customer feedback report

Kannan
2015

MBA2014, August

Process Planning Strategies

Constraints/ Limitations of PPC

PPC is a time consuming activity particularly when framing the routing, scheduling
and loading functions

It works on certain assumptions, conditions and on uncertain demand forecast

Production capacity, quality & availability of materials, availability of power /

manpower are the main constraints

Plans, checks and controls provided by PPC are resisted by workers / supervisors

Changes in technology , customer demand & taste, government policy are the
challenges that PPC has to face

The above constraints have to be overcome for the effective functioning

of PPC and optimising the objective functions of Operations Minimising
Costs and Maximising Profits.

Kannan
2015

MBA2014, August