Unit-I

Production Planning and Control (PPC)

Production planning and control is concerned with directing
production along the lines set by the planning department.

Production planning and control is the co-ordination

of series of functions according to a plan which
will economically utilize the plant facilities and
regulate the orderly movement of goods through
the entire manufacturing cycle from the
procurement of all materials to the shipping of
finished goods at a predetermined rate.“ – by
Charles A Koepke
 Production Planning
• It involves the operations of an overall
manufacturing system to produce a product. It
involves various activities.
 Objectives of Production Planning

• Designing the product

• Determine the kinds of equipment for conversion process
• Designing the layout physical facilities
• Determine the material handling system
• Determine the sequence of operations
• Determine the time required to carry out each operation
• Specifying the production quantity & quality etc.
 Factors that determine the production
planning procedure

•Volume of Production
•Nature of production process
•Nature of operations
 Production Control
• Production control is a mechanism to monitor
the execution of the plans.

• Co-ordinating, monitoring, providing feedback

to production management for the results of
production activities, analyzing and
interpreting their significance and taking
corrective action if necessary.
Aim : To achieve the broad objectives of
low-cost production and reliable customer
service through
• Control of Inventory
• Control of quality and output
• Control of labor output
• Control of cost of production etc.
 Factors that determine the Production
Control system

•Nature of production
•Complexity of operation
•Magnitude of operation
Production planning and control
(PPC)
•It is a tool to coordinate and integrate the entire
manufacturing activities in a production system

•It is considered as the nerve centre of production

system

•It co-ordinates with the various departments in the

production system
Three objectives or criteria of operations management system are
1.Customer satisfaction
2.Effectiveness
3.Efficiency
⚫ Customer satisfaction refers to the extent to which customers are happy with
the products and services provided by an organization. Customer satisfaction
levels can be measured using survey techniques and questionnaires.
⚫ Effectiveness is any kind of practice which allows a business or other
organization to maximize the use of their inputs by developing products at a
faster pace than competitors or reducing defects.
⚫ Efficiency is Performing in the best possible manner with the least waste of
time and effort.

The highest efficiency in production is obtained by manufacturing the

required quantity of products, of required quality at a required time by
the best and cheapest method.
 PPC
• PPC comprises of actual production activities start
and then exercising control over those activities to
ensure that the planned production is realized in
terms of
• quantity,
• quality,
• delivery schedule(time) and
• cost of production.
 Objectives of PPC
• To deliver the quality goods in required quantities to
the customer
• To ensure maximum utilization of all resources
• To maintain optimum inventory levels
• To maintain flexibility in operations
• To co-ordinate between labor and machines and
various supporting departments
• To remove bottlenecks at all stages
• To ensure effective cost reduction
• To ensure promised delivery dates are met
• To contribute to profits of an enterprise
 Benefits of PPC

• Improvement in Profits

• Attaining competitive advantage

 Phases in Production Planning & Control

1. Planning Phases
a) Pre planning: Activity involves product planning &
development ,resource planning ,Plant planning
b)Active Planning: involves planning for quality

2.Action Phase : Execution or implementation phase

includes dispatching and progressing function

3.Control Phase : Includes status Reporting Material

control, Tool control,Quality control
 Phases in Production Planning & Control
Functions

The highest efficiency in production is obtained by

manufacturing the required quantity of product, of
the required quality, at the required time by the best
and cheapest method. The main functions of PPC
can be classified into ten categories.
 Functions of Production Planning & Control

1.Materials: Raw materials, as well as standard finished products

or parts and semi-finished products must be available when
required to ensure that each operation of production will start on
time. Duties include the specification of materials (both with
respect to dimensions and quality), quantities and availability;
delivery dates, standardization and reduction of variety,
procurement and inspection.

2. Methods: The purpose is to analyze possible methods to

manufacture and to try to define the best methods compatible with
a given set of circumstances and facilities. It results in determining
the sequence of operations and the division of the product into
assemblies and sub-assemblies, modified by the limitations of
existing layout and work flow.
 Production Planning & Control Functions
3.Machines and equipment: Methods of manufacture have to be
related to available production facilities, coupled with a detailed
study of equipment replacement policy. Maintenance policy,
procedure and schedules are also functions connected with
managerial responsibility for equipment. The duties include the
analysis of facilities and making their availability with minimum
down time because of breakdowns.

4. Routing: Once the overall methods and sequence of operations

have been laid down, each stage in production is broken down to
define each operation in detail, after which the issue of production
orders can be planned. Routing prescribes the flow of work in the
plant and is related to considerations of layout of temporary
storage location for raw materials and components and of material
handling systems. It is a fundamental production function on
which all subsequent planning is based.
 Production Planning & Control Functions

5.Estimating: When productions orders and detailed operation

sheets available with specification feeds, speeds and use of
auxiliary attachments and methods, the operation time can be
worked out, that is, estimated. This function involves the extensive
use of operation analysis in conjunction with methods and routing
as well as work measurement in order to set up performance
standards such as operation time.

6. Scheduling: It is planning the time element of production, that

is, prior determination of work to be done. It consists of the
starting and completion times for the various operations to be
performed. In other words, scheduling function determines when
an operation is to be performed or when work is to be completed,
the difference lies in the details of the scheduling procedure.
 Production Planning & Control Functions
7.Dispatching: It is the part of production control that translates the
paper-work into actual production. Dispatching function proceeds in
accordance with the details worked out under routing and scheduling
functions. Dispatching authorizes the start of the production operations by
releasing materials, components, tools, fixtures and instruction sheets to the
operator ensures that material movement is carried out according to the
planning routing sheets and schedules. Dispatching implies the issuance of
work orders. These work orders represent authority to produce. These orders
contain the following information:
• The name of the product;
• The name of the part to be produced, sub-assembly or final assembly;
• The order number;
• The quantity to be produced;
• Descriptions and numbers of the operations required and their sequence;
• The department involved in each operations;
• The tools required for particular operation and
• Machines involved in each operation and starting dates for the operations
 Production Planning & Control Functions

8.Expediting: This control tool is the executive arm that keeps a

close watch on the progress of the work expediting or follow up or
progress. This function is designed to keep track of the work
effort. Progressing function can be divided into three parts, i.e.,
follow-up of materials,
follow-up of work-in-process and
follow-up of assembly. It consists in reporting production data and
investigating variances from predetermined time schedules.

The duties include the identification of bottlenecks and delays and

interruption which may disrupt the production schedule; to devise
action plans (remedies) for correcting the errors; and to see that the
production rate is in line with schedule.
 Production Planning & Control Functions

9. Inspection: It helps to do correct evaluation. It involves the

quality control of the products looking into the methods and
machines used in the production. It brings out the limitations of
processes, methods and man-powers used in which these
limitations can form a base for future investigations in evaluating
with the view to improving production methods or indicating the
cost implications of quality at the design stage. This is very much
useful for the evaluation phase.

10.Evaluating: It is an essential link between control and future

planning. It provides a feedback mechanism on a longer term basis
so that past experience can be evaluated with the view to
improving utilization of methods and facilities.
PLANNING
❖ That may be defined as the technique of foreseeing every
step in a long series of seperate operations.
❖ Each step to be taken at the right time, and in the right
place and each operation to be performed in maximum
efficiency.

ROUTING
❖ Under this operations , their path and sequence are
established.
❖ The main aim of routing; determine the best and
cheapest sequence of operations and to ensure that this
sequence is strictly followed.
Routing procedure involves following different
activities;
An analysis of the article to determine what to make and
what to buy
To determine the quality and type of material
Determining the manufacturing operations and their
sequence
An analysis of cost of the article
Determination of scrap factors
SCHEDULING
❖ It mainly concerns with time element and priorities
of a job.
❖ The pattern of scheduling differs from one job to another
which is explained as below:

Production Schedule
Master Schedule
Manufacturing Schedule
LOADING
❖ Defined as the relationship between load and
capacity, so as to assign the work for the
production.
Capacity: the time available for work at work
centers expressed in machine hours or in man
hours.
Load: to assign work to the capacity available at
particular work centers.
❖ It includes the assignment of the work to the
operators at their machines or work places.
■ Production control; is the process of planning
production in advance of operations, establishing the
extract route of each individual item part or
assembly, setting, starting and finishing for each
important item, assembly

■ the finishing production and releasing the necessary

orders as well as initiating the necessary follow-up to
have the smooth function of the enterprise.
DISPATCHING

Involves issue of production orders for startingt he

operations.
❖ Movement of materials to different workstations
❖ Movement of tools and fixtures necessary foreach operation
❖ Beginning of work on each operation
❖ Recording of time and cost involved in each operation
❖ Movement of work from one operation to another in
et
accordance with the route she
rk
❖ Inspecting or supervision of wo
FOLLOW UP
❖ It includes delays or deviations from the
production plans.
❖ It helps to reveal detects in routing and scheduling,
misunderstanding of orders and instruction, under
loading or overloading of work

INSPECTION
❖ To ensure the quality of goods. It can
berequired as effective agency of
production
CORRECTIVE MEASURES

❖ involve any of those activities of adjusting the route,

rescheduling of work changing theworkloads, repairs and
maintenance of machinery or equipment, control over
inventories of the cause of deviation is the poor
performance of the employees