Production and service operations planning

Production
and service
operations
planning
UNIT - 4
04/28/17 PREPARED BY: DIVYA PAULOSE 1

Learning Objective:-
 Definition of the term “Production/Operations
Planning and Control”
 Classification of production planning
 Functions.

Production Planning &
Control
 Production planning and control is the
organization and planning of the manufacturing
process.
 It co-ordinates supply and movement of
materials and labor, ensures economic and
balanced utilization of machines and equipment as
well as other activities related with production to
achieve the desired manufacturing results in terms
of quantity, quality, time and place.

Production Planning &
Control
There are three stages in PPC
Planning : The choice from several alternatives of the best
utilizing the available resources to achieve the desired
objective .
Operations: Performance in accordance with details set out in
production plan.
Control: The monitoring of performance through a feed back
by comparing the results achieved with planned targets so
that performance can be improved. .

Objective of PPC
To deliver goods in required quantities to customers in
required delivery schedule
To ensure maximum utilization of all resources
To ensure production quality products
To minimize the product throughput time
To maintain optimum level inventory
To maintain flexibility in manufacturing operations
Coordinate between labour and machines and various
supporting departments

Functions of PPC
 Routing
 Estimating
 Scheduling
 Loading
Dispatching
Expediting (follow-
up)
Evaluating
Inventory Control

Levels of PPC
Strategic Planning(Long range): It is process of thinking though
the organizations current mission and environment and setting a
guide for future decisions and results. e.g. Technology forecasting
and choice of appropriate technology for the long range time
horizon.
Tactical Planning(Intermediate Range): It is done over an
intermediate term or medium range time horizon by middle level
management. These plans focus on aggregate products rather
than individual products.
Operational Planning(Short Range ): It is done over a short range
time span developed by junior level management. It is concern
with utilization of existing facilities rather than creation of new
facilities.

Benefits of PPC
PPC coordinates all the phases of production /
Operating system
An efficient plan results in higher quality ,better
utilization of resources, reduced inventories, better
customer services.
An efficient plan enable the firm to improve its
sales turnover , market share and profitability.

Limitations of PPC
PPC function is based on certain assumptions or
forecasts of customer’s demand, Plant capacity,
availability of materials etc
Employee may resist change in production levels
set as per production plans.
This process is time consuming when we need to
carry out routing and scheduling function for large
products.
This function become difficult when
environmental factors changes rapidly.

Factors determining
production planning process
 Volume of production

PRODUCTION
PLANNING SYSTEM
There are two inter-related subsystem:
1. Product planning System
2. Process planning System

Product planning System
04/28/17
PREPARED BY: DIVYA PAULOSE 12

Process planning System

Benefits of PPC
PPC coordinates all the phases of
production / Operating system
Reduce Manufacturing cycle time
An efficient plan results in higher quality
better utilization of resources
 Lower capital investment

Benefits of PPC
Reduced inventories
Timely delivery
Better customer services
An efficient plan enable the firm to
improve its sales turnover
Market share and profitability.

PLANNING
It is the first element of production planning and control.
Planning is deciding in advance what is to be done in
future.
An organisational set up is created to prepare plans and
policies.
Various charts, manuals and production budgets are also
prepared.
Planning provides a sound base for control.
A separate department is set up for this work.

ROUTING
 Routing is determining the exact path which
will be followed in production.
It is the selection of the path from where each
unit have to pass before reaching the final
stage.
The stages from which goods are to pass are
decided in this process.

SCHEDULING
 Scheduling is the determining of time
and date when each operation is to be
commenced or completed.
The time and date of manufacturing
each component is fixed in such a way
that assembling for final product is not
delayed in any way.

LOADING
 Loading of facility or work center as per a
predetermined schedule.
 Loading is the process of converting operations
schedules into practice
 A machine loading chart (Gantt chart) is prepared
showing planned utilization of men and machines.

DESPATCHING
Despatching refers to the process of
actually ordering the work to be done.
It involves putting the plan into effect
by issuing orders.
It is concerned with starting the process
and operation on the basis of route
sheets and schedule charts.

1.Moving of materials from process to
process.
2.Assigning of work to machines.
3.Issuing of tools to production
departments.
4.Issuing of job orders.
5.Recording of time taken.
6.Ensuring necessary changes.
7.Having proper liaison with routing

FOLLOW UP &
EXPEDITING
“Follow up or expediting is that branch of
production control procedure which regulates
the progress of materials and part through the
production process.”
PROCEDURE:
1.Progress should be checked
2.Causes of differences should be ascertained
3.Helping in removing the deviations
4.Report with departments supplying
materials.

INSPECTION
Inspection is also an important function of
control.
The purpose of inspection is to see whether
the products manufactured are of requisite
quality or not.
It is carried on at various levels of production
process so that pre-determined standards of
quality are achieved.

PPC IN DIFFERENT
PRODUCTION SYSTEMS
 PPC in Job Production
 PPC in Batch Production or
Intermittent Production
 PPC in Continuous Production
 PPC in Process Industry

PPC in Job Production
Job Production: manufacturing products to meet specific
customer requirements of special order.
Example: Large turbo generator, Boilers …. etc

DIFFICULTIES DURING
PPC in Job Production
A. Every job order is of different nature and
have different sequence of operations. No
standardize routing for job orders.
Production schedules drawn depends on the
relative priority assigned to various orders.
Scheduling and estimating is based on
judgment.
Specific job orders are assigned to different
workstations as per availability of capacity

PPC in Batch Production or
Intermittent Production
Batch Production: the manufacture of number of identical
articles to meet a specific order or to satisfy continuous
demand.

PPC in Batch Production
Before issuing manufacturing orders, need for
new raw materials and tools, overloading and
unloading of work machines must be
anticipated.
There are several order handled
simultaneously at different work centres,
scheduling and follow up becomes a difficult
task.
Dispatching has to be done efficienty t avoid
delay and bottlenecks in production process.

PPC in Continuous
Production
Continuous Production:- Large quantities of production and high
rate of demand.
A. Mass Production:- identical articles.
B. Flow Production :- a particular product.
PPC in Continuous Production is far simpler than job and batch
production.
Extensive efforts are done for both scheduling and control

PPC in Process Industry
Relatively simple.
Routing is automatic and uniform.
Standard equipments are used.
Steady flow of materials throughout the pant.
Main task of PPC is to maintain continuous and
uniform flow of work at the predetermined rate in
order.

THANK YOU

Production and service operations planning

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