M3-

PRODUCTION
PLANNING &
CONTROL
PPC -

Managing production in an organization mainly involves

planning, organizing, directing, and controlling production
activities.

It deals with converting raw materials into finished goods

along with proper decision making regarding the quality,
quantity, cost, etc. involved in it.
 1.
OBJECTIVES &
TYPES OF
PRODUCTION
TECHNIQUES
 Production planning is

‘’ the controlling of
production &
manufacturing process
determined by a time
frame.
OBJECTIVES OF PPC

1. To dispatch the garments at required quality and

quantity in time to attain buyer satisfaction.
2. To ensure the maximum use of all resources.
3. To ensure that quality garments are produced.
4. To minimize the product manufacturing time.
5. To maintain optimum inventory levels.
6. To maintain flexibility in the manufacturing process.
7. To coordinate between operator, machines and
different departments.
8. To eliminate bottlenecks at all phases of production
and resolve the issues associated with production.
9. To ensure efficient cost reduction and control.
10. The vital objective is to increase the profit of the
garment industry.
PROCESS OF PPC

▣ Receiving the order.

▣ Proper planning to check if there is enough plant
capacity is available to achieve the delivery date
specified.
▣ Checking availability of cut parts and panels in the non
sewing areas (cut embroidery if any, print, wash, and
pack).
▣ Checking if there is ample time to order and receive
fabric, trims, approve sample, lab testing, etc.
▣ Confirmation of the delivery date to the customer.
▣ Proper communication between departments for
smooth flow of the process.
▣ Monitoring progress against plan.
▣ Replan if required.
TASKS TO BE FOLLOWED BY PPC

1. Capacity planning.
2. Time & Action (TNA)
3. Scheduling.
4. PP meeting.
5. Order Allocation.
6. Manpower & M/C allocation.
7. Execution Of every tasks.
8. Materials planning & In-house follow up.
9. Delivery Meet.
 TYPES OF
PRODUCTION
A production manager will have to choose
most appropriate method for his enterprise.
CHOOSING A PRODUCTION METHOD

The best method of production depends on the type of product

being made and the size of the market. Small firms operating in
the service sector, such as plumbers, use job production because
each customer has individual needs. Niche manufacturers of
items such as made-to-measure suits would also use job
production because each item, they make is different.

Batch production is used to meet group orders.

For example, a set of machines could be set up to make 500 size

12 dresses and then adjusted to make 600 size 12 dresses. Two
batches have been made.
CHOOSING A PRODUCTION METHOD

▣ Flow production is used to mass produce everyday

standardized (all the same) items such as soap powder and
canned drinks. Economies of scale lead to lower unit costs and
prices. Not many small manufacturers can afford the
investment needed to mass produce goods. They instead opt
for either batch or job production.

▣ There is usually a trade off between unit costs and meeting

specific customer needs. Flow production offers economies of
scale and low costs for a one-size-fits-all product.
IN SHORT…

Job production, Batch production, Flow production,

where items are where groups of where identical,
made individually, items are standardized
made together. items are produced
and each item is
Each batch is on an assembly
finished before the
finished before line. Most cars are
next one is started. starting the next mass-produced in
Designer dresses block of goods. For large factories
are made using example, a baker using conveyor
the job production first produces a belts and expensive
method. batch of 50 white machinery such as
loaves. Only after robot arms.
they are completed Workers have
will he or she start specialized jobs, for
baking 50 loaves of instance, fitting
brown bread. wheels.
 2.
MATERIAL
REQUIREMENT
PLANNING
WHAT IS MRP ?

1. Material Requirements Planning (MRP) is a computer-based

production planning and inventory control system.
2. Is concerned with both production scheduling and inventory control.
3. It is a material control system that attempts to keep adequate
inventory levels to assure that required materials are available when
needed.
4. MRP is a new name applied to an old concept, but it is a concept
that has come of age with currently available data processing
capabilities.
5. This synthesis of modern computers and some old (and some new)
concepts has resulted in a system that can be used effectively to
both plan and control production and materials flows.
6. The logic of MRP is based on the fact, that the demand for materials,
parts, and components, depends on the demand for an end product.
FUNCTIONS MRP

1. FORECASTING:

▣ One of the primary functions of MRP software is to assist in

accurate material forecasting.
▣ This requires integration with manufacturing activities, such
as inventory levels, production schedules, and customer
demand.
▣ The software takes all these aspects of manufacturing,
combined with a few others such as inventory lead times,
and then forecasts the level at which inventory should be
purchased and manufactured.
▣ This helps ensure that customer demand is realized, and
that out-of-stock situations are reduced.
FUNCTIONS MRP

2. REDUCING WASTE:

▣ Reducing the amount of unused materials or products is another

primary function of MRP software.
▣ The system combines data from current production levels and
customer demand to determine the optimum level of materials
and finished products.
▣ Changes in production can trigger automatic responses in bill of
materials handling, stock levels, and manufacturing activities.

▣ For example, if production is behind, the MRP software may

temporarily reduce the level at which inventory is received to
prevent a backup of inventory that could potentially become
waste if production is halted or changed.
FUNCTIONS MRP

3. FLOOR CONTROL AND SCHEDULING:

▣ The same data used by MRP to forecast materials and reduce

waste can also be used to manage and maintain shop floor
control and manufacturing scheduling.
▣ The data from PREVIOUS materials receipts is compared to data
from customer demand, which results in better manufacturing
schedules to ensure that customer demand is met without
shortages or materials waste.
▣ If adjustments need to be made to any aspect of the process, the
MRP system can automatically make those changes or create
flags and warnings to notify management that correction is
necessary.
 3.
INVENTORY
MANAGEMENT
/CONTROL
DEFINITION

▣ Inventory control or stock control can be

broadly defined as "the activity of checking a
shop's stock".

More specifically inventory control may refer to:

In operations management, logistics and supply

chain management, the technological system
and the programmed software necessary for
managing inventory.
CONCEPT

▣ Inventory can be described as stock maintained between any

two processes for uninterrupted operation.
▣ It can also be defined as assets that are intended for sale or are
in the process of being produced for sale or are to be used in
producing goods.
▣ Inventory is primarily maintained due to two reasons—to
optimize the sourcing cost (where requirement can be
predicted) and to minimize the risk of stock out (where
requirement cannot be predicted).
▣ The higher the inventory, the higher the capital blockage,
and/or the higher the space requirement; on the other hand,
lower inventory may lead to disruption in production or
unsatisfied customers.
HOW IT HELPS…
WHAT ARE ITS TYPES?

There are three inventory-costing methods that are widely used

by both public and private companies

1. FIFO (first in, first out): The first unit bought in the inventory is
the first to be sold or issued.
2. LIFO (last in, first out): The last unit bought in the inventory is
the first to be sold or issued.
3. Average cost: It takes the weighted average of all units
available for sale during the accounting period and then uses
that average cost to determine the value of goods sold and
ending inventory.

NOTE - Most garment factories that buy fabric on an order basis may
use the average cost method as the prices do not vary much in a small
span of time.
▣ Since inventories represent a sizeable investment of
company funds, and larger inventories mean higher costs
(space, insurance, taxes, capital costs, etc.), a common
inventory management goal focuses on improving inventory
turnover.

▣ Low inventory turnover means that the company is carrying

too much inventory, thereby unnecessarily restricting the
access to cash that could be used in other profit-making
activities.
SOME IMPORTANT CONCEPTS

1. COGS (cost of goods sold): It is the cost of the amount of

inventory sold and can be deduced from the records.

2. Average inventory: The average inventory is calculated on a

monthly basis. Companies can prefer it weekly or daily.

3. Dead stock: Material that has not been used for a significant
amount of time and cannot be sold anymore is termed as
dead stock. This material has gone out of fashion or more
was bought than that was required or is damaged and hence
cannot be used. Mostly it is sold at a reduced price.
Regularly checking/monitoring the storeroom avoids storing
the dead stock.
SOME IMPORTANT CONCEPTS

4. INVENTORY ACCURACY: Inventory accuracy is a measure of

checking how closely official inventory records match the physical
inventory. Inaccuracy in inventory can be because of many reasons
such as improper data entry, incorrect unit used in calculation,
poorly trained employees, stealing, or supplier errors.

5. AVERAGE DAYS OF INVENTORY IN HAND: The time for which the

organizations hold the inventory before selling or producing a
product is called average days of inventory in hand. If these days are
less, the organization requires less working capital to invest in
inventory.

For the garment industry the average days of inventory in hand is the
day fabric is procured until the planned cutting date. Manufacturers
who buy fabric must keep an eye on the number of stock, to maintain a
healthy cash flow.
SOME IMPORTANT CONCEPTS

6. Inventory carrying cost: Inventory carrying cost is the cost a

company incurs over a certain period, to hold and store its
inventory. The best way to avoid or reduce these costs is to
sell them as soon as they become obsolete. Inventory
carrying cost is expressed in percentage on the average
inventory throughout a full year.

Cost of carrying inventory x ¼ total annual costs = average

inventory value

Total annual costs include warehouse space, taxes, insurance,

material handling, cost of money invested, etc.
Thanks!