05b5aea126563e - Ch-1 - Kiran - Production Planning & Control
05b5aea126563e - Ch-1 - Kiran - Production Planning & Control
05b5aea126563e - Ch-1 - Kiran - Production Planning & Control
Elements of
Production Planning and Control
Chapter takeaways
After completion of this chapter the reader would be able to
• Production Planning & Control has to ensure that all the operations are done on all
components without exception.
• PP&C must balance the extent of meticulous control against the costs.
Figure 1.1 illustrates the various functions involved in the manufacturing process,
each of which is detailed in subsequent chapters.
Planning is deciding the best alternative among others to perform different managerial
operations in order to achieve the predetermined goals
….. Henri Fayol
Planning is the determination in advance of line of action by which certain results are
to be obtained
….. Hart
Planning is an intellectual process, the conscious determination of the course of
action, the basing the decisions on purpose, facts and considered estimates
….. Koontz and O’Donnell
8 Production Planning and Control: A Comprehensive Approach
Quality control
Labour control
Financial control
(c) Short-range plans (Detailed plans):
- Machine loading
- Job assignments
While theoretically production planning encompasses all as the above factors, it
practically refers to those involving the short range planning especially of machine
scheduling and loading. Nevertheless the production planner has to ensure perfect
planning and control of all the other aspects to achieve an optimal production planning &
control objective.
In other words as Ray Wilde puts it,
“Production planning is that determination, acquisition and arrangement of all
facilities and materials necessary for the production of the products.
Management Control is the process by which a manager can assure that the resources
are obtained and used effectively in the accomplishment of the organization’s
objectives.
….. Robert Anthony
Managerial planning seeks consistent, integrated and articulated programs, while
management control seeks to compel events to conform to the plans.
….. Goetz
Management control is a conscious planned, directed, coordinated, and organized
process by and through which the manager ensures that the objectives, plans and
policies of the top management for the enterprise and carried out by the people for
whom he is personally responsible.
….. Cyril Hurdon
Controlling is the decision making and command work that related to the prevention,
correction and minimization of deviations from the performance level specified in the
mission and derivative plans.
….. Hodge & Johnson
The essence of control is the action which adjusts operations to determined standards
and its basis is the information in the hands of the manager.
….. Douglas Sherwin
Production control is the task of predicting, planning and scheduling work, taking into
account manpower, materials availability and other capacity restrictions, and cost so
as to achieve proper quality and quantity at the time it is needed and then following up
the schedule to see that the plan is carried out, using whatever systems have proven
satisfactory for the purpose.
….. American Production and Inventory Control Society
Production control provides the foundation on which most of the other controls are
based. It is the function of management which plans, directs and controls the material
supply and processing activities of an enterprise, so that specified products are produced
by specified methods to meet an approved sales programme. These activities being
carried out in such a manner that the labour force and capital available are used to the best
advantage. The production control has 4 phases – programming, ordering, dispatching
and post-operative.
¾ Programming phase plans the production output of products.
¾ Ordering phase plans the output of components from the suppliers and
department which is necessary to meet the programme.
12 Production Planning and Control: A Comprehensive Approach
¾ Dispatching phase considers each department in turn and plans the output from
machines and work centers necessary to carry out the orders.
¾ Post-operative phase evaluates the progress to get feedback information for
further planning.
5. Type of fixtures tools, jigs and dimensional gauging instruments that will be
required for production.
6. Standard times for each operations on each unit as available from time study,
from operation analysis and form technical experience.
7. Machine output or equipment capacity (at normal and peak loads): This can be
derived from the analysis of machine capacity and consists of the units of work
per hour capable of being handled by each machine or process.
8. Actual machine and operator capacities as obtained from production booking.
9. The economic lots of quantities for manufacture for each product.
10. Job analysis: This indicates the particulars of the work to be done, its condition,
skills needed and personnel type needed.
11. Factors to be coordinated at each of the production stage in order to accomplish
the plan according to the time schedules.
12. Rate of output per month or per week or per day.
13. Material cost per unit.
14. Obsolescence and its rate.
15. Inventory costs and the rate of interest on invested capital.
16. Ascertainment of customers order in hand and the delivery dates promised for
each product.
17. Quantities immediately required for delivery purposes and that required to stock
purposes.
18. Job analysis and personnel information about the labour available, the wage rates
and output of workers.
19. Other information relating to
(a) Completion time of all previous operations of part and assemblies
(b) Power production and consumption internal transport and materials handling
service
(c) The actual costs of all previous performance
(d) The customers order on hand and the delivery dates promised
(e) What immediate production is needed for customers and what for stock
purposes.
It should be noted that a balanced production planning would tend to increase the
operating efficiency by stabilizing productive activities facilitate selling and customer
service and help in reducing the production costs. Fig 1.3 alongside illustrates the flow of
information between the different departments for smooth manufacturing activities.
16 Production Planning and Control: A Comprehensive Approach
Data Information
Meaning Data is raw, unorganized facts that need When data is processed, organized,
to be processed. Data can be something structured or presented in a given context so
simple and seemingly random and as to make it useful, it is called information.
useless until it is organized.
Etymology "Data" comes from a singular Latin "Information" is an older word that dates
word, datum, which originally meant back to the 1300s and has Old French and
"something given." Its early usage dates Middle English origins. It has always
back to the 1600s. Over time "data" has referred to "the act of informing, " usually
become the plural of datum. in regard to education, instruction, or other
knowledge communication.
Table Contd...
Chapter 1: Elements of Production Planning and Control 17
Example Each student's test score is one piece of The average score of a class or of the entire
data. school is information that can be derived
from the given data.
4. Planning determines what and how much Control plans and organizes the control
to produce, the batch quantity and the charts etc., needed for follow up.
resources needed.
7. Planning sees that all the necessary Control keeps track of the activities, and
resources are available to make the sees whether everything is going as per
production at right quality and time. schedule or not.
especially with regards to creativity. In fact the industrial engineering has widened its
tentacles from its basic function of work study into several fields of management. The
Industrial Engineering Topics covered during The 2nd International conference on
Advances in Industrial Engineering Applications (ICAIEA - 2014) conducted by the IED
of Anna University on January 6 to 8, 2014, as listed below illustrates how industrial
engineering tentacles have widened,
1. Applied Operations Research
2. Business Process Reengineering
3. Clean /Lean /Cellular Manufacturing
4. Customer /Supplier Relations Management
5. Design of Experiments
6. Engineering Ergonomics
7. Engineering Optimization
8. Engineering Quality Control
9. Enterprise Resource Planning
10. Facility Location and Layout Design
11. Financial Engineering
12. Health Care Systems Engineering and Management
13. Industrial Scheduling
14. Inventory and Materials Management
15. Just in Time Manufacturing
16. Knowledge Management
17. Lean Six Sigma
18. Manufacturing Systems Engineering
19. Metaheuristics
20. Operations Management
21. Physical Asset Management
22. Product Design and Development
23. Project Management
24. Reliability Engineering and Maintenance
25. Robotics. AS/RS, Factory Automation
26. Safety Engineering
27. Strategic and Operational Management
28. Supply Chain and Logistics Management
29. System Dynamics
Chapter 1: Elements of Production Planning and Control 21
1.24 Conclusion
For efficient, effective and economical operation in a manufacturing unit of an
organization, it is essential to integrate the production planning and control system into
the overall operation management system, and the fundamentals of the PP&C activities
are detailed in this chapter, and their detailed discussions follow in the subsequent
chapters.
Criteria Questions
(The figures in the bracket provide a clue to the answer.)
9. Distinguish between long range planning and short range planning. (1.8)
10. Explain the production control function. (1.9, 1.10)
11. What are the basic elements of production control? (1.13)
12. Illustrate some factors that contribute to complex production control. (1.14)
13. What do you understand by O-A-A-E cycle? (1.15)
14. What do you think are the duties of a Production Controller? (1.16)
15. Discuss how Production Planning differs from Production Control. (1.18)
16. What are the advantages of Production Planning & Control? (1.19)
17. In one of the industrial discussions, a progressive entrepreneurs said that 'I do not
use any planning and control function in my unit, but it is functioning well.' Do
you agree with his statement? If so why? If not why?