PPC unit I notes and ppt
PPC unit I notes and ppt
Definition of PPC:
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ii) It is costly and time-consuming exercise.
iii) It becomes a difficult exercise especially when external environmental factors
changes veryrapidly.
iv) The employees may resist changes when planning involves several changes.
1. PRE-PLANNING FUNCTION
Pre-planning is a macro level planning and deals with analysis of data and is an outline
of theplanning policy based upon the forecasted demand, market analysis and product
design and development. This stage is concerned with process design (new processes and
developments, equipment policy and replacement and work flow (Plant layout). The pre-
planning function of PPC is concerned with decision-making with respect to methods,
machines and work flow with respect to availability, scope and capacity.
2. PLANNING FUNCTION
The planning function starts once the task to be accomplished is specified, with the analysis
of four M’s, i.e., Machines, Methods, Materials and Manpower. This is followed by process
planning (routing). Both short-term (near future) and long-term planning are
considered. Standardization, simplification of products and processes are given due
consideration.
3. CONTROL FUNCTION
Control phase is effected by dispatching, inspection and expediting materials control,
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analysis of work-in-process. Finally, evaluation makes the PPC cycle complete and
corrective actions are taken through a feedback from analysis. A good communication, and
feedback system isessential to enhance and ensure effectiveness of PPC.
1. Materials: Raw materials, finished parts and bought out components should be made
available in required quantities and at required time to ensure the correct start and end for
each operation resulting in uninterrupted production. The function includes the
specification of materials (quality and quantity) delivery dates, variety reduction
(standardization) procurement and make or buy decisions.
2. Methods: This function is concerned with the analysis of alternatives and selection of
the best method with due consideration to constraints imposed. Developing specifications
for processes isan important aspect of PPC and determination of sequence of operations.
3. Machines and equipment: This function is related with the detailed analysis of
available production facilities, equipment down time, maintenance policy procedure and
schedules.Concerned with economy of jigs and fixtures, equipment availability. Thus, the
duties include the analysis of facilities and making their availability with minimum
down time because ofbreakdowns.
4. Routing: It is concerned with selection of path or route which the raw material should
followto get transformed into finished product. The duties include:
(a) Fixation of path of travel giving due consideration to layout.
(b) Breaking down of operations to define each operation in detail.
(c) Deciding the set up time and process time for each operation.
5. Estimating: Once the overall method and sequence of operations is fixed and process
sheet for each operation is available, then the operations times are estimated. This function
is carried out using extensive analysis of operations along with methods and routing and a
standard time for operation are established using work measurement techniques.
6. Loading and scheduling: Scheduling is concerned with preparation of machine loads
and fixation of starting and completion dates for each of the operations. Machines have to
be loaded according to their capability of performing the given task and according to their
capacity.
Thus the duties include:
(a) Loading, the machines as per their capability and capacity.
(b) Determining the start and completion times for each operation.
(c) To coordinate with sales department regarding delivery schedules.
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7. Dispatching: This is the execution phase of planning. It is the process of setting
production activities in motion through release of orders and instructions. It authorizes the
start of production activities by releasing materials, components, tools, fixtures and
instruction sheets to the operator.
The activities involved are:
(a) To assign definite work to definite machines, work centres and men.
(b) To issue required materials from stores.
(c) To issue jigs, fixtures and make them available at correct point of use.
(d) Release necessary work orders, time tickets, etc., to authorise timely start of operations.
(e) To record start and finish time of each job on each machine or by each man.
8. Inspection:
Physical identification of activities in the production floor. It is a major control tool.
Though the aspects of quality control are the separate function, this is of very much
important to PPC both for the execution of the current plans and its scope for future
planning. This forms the basis for knowing the limitations with respects to methods,
processes, etc., which is very much useful for evaluation phase.
9. Expediting: This is the control tool that keeps a close observation on the progress of the
work. It is logical step after dispatching which is called ‘follow-up’. It coordinates
extensively to execute the production plan. 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.
The duties include:
(a) Identification of bottlenecks and delays and interruptions because of which the production
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PHASES OF PRODUCTION PLANNING AND CONTROL
Production planning and control has three phases namely:
1. Planning Phase
2. Action Phase
3. Control Phase
Planning Phase
Planning is an exercise of intelligent anticipation in order to establish how an objective can
be achieved or a need fulfilled in circumstances, which are invariably restrictive.
Productionplanning determines the optimal schedule and sequence of operations economic
batch quantity, machine assignment and dispatching priorities for sequencing. It has two
categories of planning namely
1. Prior planning
2. Active planning.
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PRIOR PLANNING:
Prior planning means pre-production planning. This includes all the planning efforts,
which are taking place prior to the active planning. Modules of pre-planning The modules
of prior planning are as follows:
1. Product development and design is the process of developing a new product with all
the features, which are essential for effective use in the field, and designing it accordingly.
At the design stage, one has to take several aspects of design like, design for selling,
design formanufacturing and design for usage.
2. Forecasting is an estimate of demand, which will happen in future. Since, it is only an
estimate based on the past demand, proper care must be taken while estimating it. Given
the sales forecast, the factory capacity, the aggregate inventory levels and size of the work
force, the manager must decide at what rate of production to operate the plant over an
intermediateplanning horizon.
3. Aggregate planning aims to find out a product wise planning over the intermediate
planning horizon.
4. Material requirement planning is a technique for determining the quantity and timing
for the acquisition of dependent items needed to satisfy the master production schedule.
ACTION PHASE:
Action phase has the major step of dispatching. Dispatching is the transition from planning
phase to action phase. In this phase, the worker is ordered to start manufacturing the
product.
The tasks which are included in dispatching are job order, store issue order, tool
order, timeticket, inspection order, move order etc.
The job order number is the key item which is to be mentioned in all other
reports/orders. Job order is the official authorization to the shop floor to start
manufacturing the product.
Stores issue order gives instruction to stores to issue materials for manufacturing the
product asper product specifications.
Tool order, instruct the tool room to issue necessary tools for manufacturing the product
Time ticket is nothing but a card which is designed to note down the actual time taken at
variousprocesses.
This information is used for deciding the costs for future jobs of similar nature and
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also forperforming variance analysis, which helps to exercise control.
Inspection order for timely testing and inspection so that the amount of rework is
minimized. Move order. Instruction is given to the materials handling facilities for
major movements ofmaterials/subassemblies.
CONTROL PHASE:
The control phase has the following two major modules:
1. Progress reporting, and
2. Corrective action.
1. PROGRESS REPORTING In progress reporting, the data regarding what is happening
with the job is collected. Also, it helps to make comparison with the present level of
performance. The various data pertaining to materials rejection, process variations,
equipment failures, operator efficiency, operator absenteeism, tool life, etc., are collected
and analyzed for the purpose of progress reporting. These data are used for performing
variance analysis, which would help us to identify critical areas that deserve immediate
attention for corrective actions.
2. CORRECTIVE ACTION The tasks under corrective action primarily make provisions for
an unexpected event. Some examples of corrective actions are creating schedule flexibility,
schedule modifications, capacity modifications, make or buy decisions, expediting the work,
pre- planning, and so on. Due to unforeseen reasons such as, machine breakdown, labour
absenteeism, too much rejection due to poor material quality etc., it may not be possible to
realize the schedule as per the plan. Under such condition, it is better to reschedule the
whole product mix so that we get a clear picture of the situation to progress further. Under
such situation, it is to be re-examined for selecting appropriate course of action. Expediting
means taking action if the progress reporting indicates deviations from the originally set
targets. Pre- planning of the whole affair becomes essential in case the expediting fails to
bring the deviated plan to its right path.
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Classification of Production System
Production systems can be classified as Job Shop, Batch, Mass and Continuous
Production systems.
A job shop comprises of general purpose machines arranged into different departments.
Each job demands unique technological requirements, demands processing on machines in
a certain sequence.
Characteristics
The Job-shop production system is followed when there is:
1. High variety of products and low volume.
2. Use of general purpose machines and facilities.
3. Highly skilled operators who can take up each job as a challenge because of uniqueness.
4. Large inventory of materials, tools, parts.
5. Detailed planning is essential for sequencing the requirements of each product,
capacities foreach work centre and order priorities.
Advantages
Following are the advantages of job shop production:
1. Because of general purpose machines and facilities variety of products can be produced.
2. Operators will become more skilled and competent, as each job gives them
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learningopportunities.
3. Full potential of operators can be utilized.
4. Opportunity exists for creative methods and innovative ideas.
Limitations
Following are the limitations of job shop production:
1. Higher cost due to frequent set up changes.
2. Higher level of inventory at all levels and hence higher inventory cost.
3. Production planning is complicated.
4. Larger space requirements.
BATCH PRODUCTION
Batch production is defined by American Production and Inventory Control Society (APICS)
“as a form of manufacturing in which the job passes through the functional departments in
lots or batches and each lot may have a different routing.” It is characterized by the
manufacture of limited number of products produced at regular intervals and stocked
awaiting sales.
Characteristics
Batch production system is used under the following circumstances:
1. When there is shorter production runs.
2. When plant and machinery are flexible.
3. When plant and machinery set up is used for the production of item in a batch and
change ofset up is required for processing the next batch.
4. When manufacturing lead time and cost are lower as compared to job order production.
Advantages
Following are the advantages of batch production:
1. Better utilization of plant and machinery.
2. Promotes functional specialization.
3. Cost per unit is lower as compared to job order production.
4. Lower investment in plant and machinery.
5. Flexibility to accommodate and process number of products.
6. Job satisfaction exists for operators.
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Limitations
Following are the limitations of batch production:
1. Material handling is complex because of irregular and longer flows.
MASS PRODUCTION
Manufacture of discrete parts or assemblies using a continuous process are called mass
production. This production system is justified by very large volume of production. The
machines are arranged in a line or product layout. Product and process standardisation
exists and all outputs follow the same path.
Characteristics
Mass production is used under the following circumstances:
1. Standardization of product and process sequence.
2. Dedicated special purpose machines having higher production capacities and output rates.
3. Large volume of products.
4. Shorter cycle time of production.
5. Lower in process inventory.
6. Perfectly balanced production lines.
7. Flow of materials, components and parts is continuous and without any back tracking.
8. Production planning and control is easy.
9. Material handling can be completely automatic.
Advantages
Following are the advantages of mass production:
1. Higher rate of production with reduced cycle time.
2. Higher capacity utilization due to line balancing.
3. Less skilled operators are required.
4. Low process inventory.
5. Manufacturing cost per unit is low.
Limitations
Following are the limitations of mass production:
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1. Breakdown of one machine will stop an entire production line.
2. Line layout needs major change with the changes in the product design.
3. High investment in production facilities.
4. The cycle time is determined by the slowest operation.
CONTINUOUS PRODUCTION
Production facilities are arranged as per the sequence of production operations from the
first operations to the finished product. The items are made to flow through the
sequence of operations through material handling devices such as conveyors, transfer
devices, etc.
Characteristics
Continuous production is used under the following circumstances:
1. Dedicated plant and equipment with zero flexibility.
2. Material handling is fully automated.
3. Process follows a predetermined sequence of operations.
4. Component materials cannot be readily identified with final product.
5. Planning and scheduling is a routine action.
Advantages
Following are the advantages of continuous production:
1. Standardization of product and process sequence.
2. Higher rate of production with reduced cycle time.
3. Higher capacity utilization due to line balancing.
4. Manpower is not required for material handling as it is completely automatic.
5. Person with limited skills can be used on the production line.
6. Unit cost is lower due to high volume of production.
Limitations
Following are the limitations of continuous production:
1. Flexibility to accommodate and process number of products does not exist.
2. Very high investment for setting flow lines.
3. Product differentiation is limited.
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Difference between continuous and intermittent systems
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Organization of a Production Planning and Control (PPC) department
The organization of a Production Planning and Control (PPC) department varies depending
on the size and complexity of the manufacturing operation. However, a well-structured PPC
department typically includes several key roles and functions, each contributing to the
overall efficiency and effectiveness of production management. Here’s a common
organizational structure for a PPC department:
1. PPC Manager/Director
Role: Oversees the entire PPC department, develops strategic plans, and ensures alignment
with organizational goals.
Responsibilities: Setting departmental goals, coordinating with other departments and
providing leadership and direction.
2. Production Planners
Role: Develop and manage detailed production plans and schedules.
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Responsibilities: Creating production schedules, forecasting demand, and ensuring that
resources are allocated efficiently.
3. Production Schedulers
Role: Focus on scheduling specific production runs and managing day-to-day production
activities.
Responsibilities: Assigning production tasks, monitoring progress, and adjusting
schedules based on real-time data and changes in demand.
4. Material Requirement Planners (MRP)
Role: Ensure that all necessary materials are available for production.
Responsibilities: Calculating material needs, managing inventory levels, and coordinating
with procurement to maintain material availability.
5. Inventory Control Specialists
Role: Manage inventory levels of raw materials, work-in-progress, and finished goods.
Responsibilities: Monitoring stock levels, conducting inventory audits, and
implementing inventory management strategies.
6. Capacity Planners
Role: Assess and manage production capacity to meet demand.
Responsibilities: Evaluating current capacity, forecasting future needs, and
recommending adjustments to production resources or processes.
7. Quality Control Coordinators
Role: Ensure that products meet quality standards throughout the
Production process.
Responsibilities: Implementing quality checks, monitoring quality metrics, and
addressing quality issues.
8. Workforce Planners
Role: Manage labor resources and ensure that staffing levels align with production needs.
Responsibilities: Scheduling shifts, managing labor costs, and coordinating with
human resources for recruitment and training.
9. Production Control Analysts
Role: Monitor production performance and manage deviations from the plan.
Responsibilities: Tracking key performance indicators (KPIs), analyzing production data,
and implementing corrective actions as needed.
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10. Workflow Coordinators
Role: Optimize the movement of materials and products through the production process.
Responsibilities: Designing efficient workflows, managing production layouts and
resolving bottlenecks.
11. Reporting and Analysis Specialists
Role: Provide insights and reports on production performance.
Responsibilities: Generating reports, analyzing performance metrics and supporting
decision-making with data-driven insights.
12. Continuous Improvement Managers
Role: Focus on improving production processes and implementing best practices.
Responsibilities: Identifying areas for improvement, implementing process changes and
fostering a culture of continuous improvement.
Supporting Roles
Administrative Support: Provides administrative assistance to the PPC team, including
managing documentation and coordinating meetings.
IT Support: Ensures that PPC systems and software are functioning properly and supports
data management needs.
Integration with Other Departments
Sales and Marketing: Coordinate with PPC to align production schedules with sales forecasts
and promotional activities.
Procurement: Work closely with procurement to ensure timely acquisition of materials.
Logistics: Collaborate with logistics to manage the movement of materials and finished
goods.
This organizational structure helps ensure that all aspects of production planning and
control are effectively managed, leading to improved production efficiency, cost control, and
overall performance.
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“The highest efficiency in production is obtained by
manufacturing the required quality of product, of required
quantity, at the required time by the best and cheapest
method.”
ROUTING
• Related to production planning
SEQUENCING
• Related to production planning
SCHEDULING
• Related to production control
DISPATCHING
• Related to production control
FOLLOW UP
• Related to production control
Routing
• Routing is the first step in production planning and control.
• Routing can be defined as the process of deciding the path
(route) of work and the sequence of operations.
• In short, routing determines ‘What’, ‘How much’, ‘With
which’, ‘How’ and ‘Where’ to produce.
Sequencing
• Defined as the order in which jobs pass through machines or
work stations for processing.
• The main aim is to find out such sequence out of the possible
sequence that will complete the work in shortest time.
• Sequencing problems becomes tedious as the number of jobs
and machines increases.
Steps /procedure of routing
Product analysis determines what to manufacture and purchase
PLANNING
PHASE CONTROL PHASE
ACTION PHASE
ACTIVE
PRIOR PLANNING
PLANNING
PROGRESS
CORRECTIVE ACTION
REPORTING
PROCESS
PLANNING AND
ROUTING
FORECASTING EXPEDITING
REPLANNING
TOOL CONTROL
PRODUCT DESIGN
DISPATCHING
LOADING
SCHEDULING
PLANNING PHASE PRIOR ACTIVE
PLANNIN PLANNIN
G G
PROCE S S
Estimation of type, quality & quantity of future FORE C ASTING PLANNING AND
work ROUTING
Collection of information
TOOL
regarding PR ODUC T C ONTROL
speifications,BOM,drawings etc DESIGN
Finding the most economical process of doing a work and deciding where and
how work will be done
LOADING
Determines when and in what sequence the work will be carried out. It fixes
the starting as well as ending time for the job
ACTION PHASE
ACTION PHASE
1. PPC Manager/Director
• Role: Oversees the entire PPC department, develops strategic plans, and
ensures alignment with organizational goals.
• Responsibilities: Setting departmental goals, coordinating with other
departments, and providing leadership and direction.
2. Production Planners
• Role: Develop and manage detailed production plans and schedules.
• Responsibilities: Creating production schedules, forecasting demand, and
ensuring that resources are allocated efficiently.
3. Production Schedulers
• Role: Focus on scheduling specific production runs and managing day-to-day
production activities.
• Responsibilities: Assigning production tasks, monitoring progress, and
adjusting schedules based on real-time data and changes in demand.
4. Material Requirement Planners (MRP)
• Role: Ensure that all necessary materials are available for production.
• Responsibilities: Calculating material needs, managing inventory levels, and
coordinating with procurement to maintain material availability.
5. Inventory Control Specialists
• Role: Manage inventory levels of raw materials, work-in-progress, and finished
goods.
• Responsibilities: Monitoring stock levels, conducting inventory audits, and
implementing inventory management strategies.
6. Capacity Planners
• Role: Assess and manage production capacity to meet demand.
• Responsibilities: Evaluating current capacity, forecasting future needs, and
recommending adjustments to production resources or processes.
7. Quality Control Coordinators
• Role: Ensure that products meet quality standards throughout the production
process.
• Responsibilities: Implementing quality checks, monitoring quality metrics, and
addressing quality issues.
8. Workforce Planners
• Role: Manage labor resources and ensure that staffing levels align with production
needs.
• Responsibilities: Scheduling shifts, managing labor costs, and coordinating with
human resources for recruitment and training.
9. Production Control Analysts
• Role: Monitor production performance and manage deviations from the plan.
• Responsibilities: Tracking key performance indicators (KPIs), analyzing
production data, and implementing corrective actions as needed.
10. Workflow Coordinators
• Role: Optimize the movement of materials and products through the
production process.
• Responsibilities: Designing efficient workflows, managing production layouts,
and resolving bottlenecks.
11. Reporting and Analysis Specialists
• Role: Provide insights and reports on production performance.
• Responsibilities: Generating reports, analyzing performance metrics, and
supporting decision-making with data-driven insights.
12. Continuous Improvement Managers
• Role: Focus on improving production processes and implementing best
practices.
• Responsibilities: Identifying areas for improvement, implementing process
changes, and fostering a culture of continuous improvement.
Supporting Roles
• Administrative Support: Provides administrative assistance to the
PPC team, including managing documentation and coordinating
meetings.
• IT Support: Ensures that PPC systems and software are functioning
properly and supports data management needs.
• Integration with Other Departments
• Sales and Marketing: Coordinate with PPC to align production
schedules with sales forecasts and promotional activities.
• Procurement: Work closely with procurement to ensure timely
acquisition of materials.
• Logistics: Collaborate with logistics to manage the movement of
materials and finished goods.
This organizational structure helps ensure that all aspects of
production planning and control are effectively managed, leading to
improved production efficiency, cost control, and overall performance.