Production Planning and Control: Scope, Utility, Functions, Parameters, Factors Affecting

What is Production Planning and Control?

Production Planning and Control (PPC) is the process of organizing the production activities in a manufacturing unit in such a way that materials, machines, and manpower are utilized efficiently to produce the right quantity of goods at the right time and cost.

According to Gordon and Carson, PPC usually involve the organization and planning of the manufacturing process. Principally, it includes entire organization. The various activities involved in production planning are designing the product, determining the equipment and capacity requirement, designing the layout of physical facilities and material and material handling system, determining the sequence of operations and the nature of the operations to be performed along with time requirements and specifying certain production and quantity and quality levels.

Production planning also includes the plans of routing, scheduling, dispatching, inspection, and coordination, control of materials, methods machines, tools and operating times. Its ultimate objective is to plan and control the supply and movement of materials and labour, machines utilization and related activities, in order to bring about the desired manufacturing results in terms of quality, quantity, time and place. This provides a physical system together with a set of operating guidelines for efficient conversion of raw materials, human skills and other inputs to finished product.

Scope of Production Planning and Control

• Nature of Inputs: To manufacture a product, different types of inputs are used. The quality of the product depends upon the nature of the inputs are used. Hence the planning is done to determine the nature of various types of inputs which is a complicated process.
  
  
• Quantity of Inputs: To achieve a level of production, determination of quantity of the inputs and their composition is very important. A product can be prepared only when there is an estimate of the required composition of inputs.
  
  
• Proper Co-ordination: It ensures the proper coordination among the workforce, machines and equipment. This leads to avoidance of wastages and smooth flow of production.
  
  
• Better Control: Production planning is the method of control. For a better control, planning is a precondition. Only then, one can compare the performance and calculate the deviationg which lead control of the production.
  
  
  
• Ensure Uninterrupted Production: The planning of materials ensures the regular supply of raw materials and other components. The regular flow of materials and supplies are helpful in the uninterrupted production.
  
  
• Capacity Utlization: There is a need to use the available resources effectively. It is helpful in bringing down various costs of production.
  
  
• Timely Delivery: If there is good production planning and control, there will be timely production and the finished product will be rushed to the market in time. This also ensures the better relationship with the customers.

Utility of PPC Productions

The implementation of PPC based production system yields various advantages to any organization for various functional activities, which include the following:

• Last hour rush avoided: Production is well planned and controlled as per the given time schedules. Therefore, production control reduces the number of emergency order and overtime works on plant and thus reduces the overheads.
  
  
• Problems areas of bottleneck get reduced: The incomplete work or work-in-transit does not get piled up because production control balances the line and flow of work.
  
  
• Cost reduction: An appropriate production control increases the men-machines utilization, which maintains in process inventories at a satisfactory level, leads to a better control on raw material inventories, reduces costs of storage and materials handling, helps in maintaining quality and limits rejections and thus ultimately reduces the unit cost of production.
  
  
• Optimum utilization of resources: It reduces the time loss of the workers waiting for materials and makes most effectives use of equipment.
  
  
• Better coordination of plants activities: PPC coordinates the activities of the plant that leads to control concerted effort by workforce. Benefits to workers: PPC results into better efficiency and productivity, which leads to adequate wages stable employment, job security, improved working conditions increased job satisfaction and ultimately high morale.
  
  
• Improved services to customers: PPC leads to better services to the customers as it ensures production in accordance with the time schedules and therefore, deliveries are made as per the committed schedules.

Factors Affecting Production Planning and Control

Planning and Monitoring of output is very critical decision which is necessary to ensure a productive and economical production. PPC is an instrument for coordinating and integrating the entire manufacturing cycle into a production system.

• Use of Computers: Modern factories are using office automation equipment like PC, punch cards etc. It helps in accurate computation of required of men and material.
  
  
• Seasonal Variations: Demand of certain products is affected by seasons, for instance umbrellas and raincoats during the monsoons nd outputs. Production Planning and Control must take such changes into consideration while planning and control activities of inputs and outputs.
  
  
• Test Marketing: In an aggressive marketing strategy, new products are to be test marketed in order to know the trends. This is a short-cycle operation, intermittent in nature and often upsets regular production.
  
  
• After Sales Service: This has become an important parameter for success. In after sales services, many items are returned for repair. These are unscheduled Work and also overload the production line.
  
  
• Losses due to Unpredictable Factors: Losses occur due to accidents, fire and theft of production inputs, mainly materials and Components. These are unpredictable. Shortage of input due to such factors upset the planned production schedule in time and quantity.
  
  
• Losses due to Predictable Factors: There are losses of imputs, due to natural engineering phenomena like production losses and changes in consumption of materials and occurrence of defectives.

Elements of Production Planning and Control

• Materials: Planning for procurement of raw material, component and spare parts in the right quantities and specifications at the right time from the right source at the right place. Purchasing, storage, inventory control, standardization, variety reduction, value analysis and inspection are the other activities associated with material.
  
  
• Method: Choosing the best method of processing form several alternatives. It also includes determining the best sequence of operations (process plan) and planning for tooling, jigs and fixtures etc.
  
  
• Machines and equipment: Manufacturing methods are related to production facilities available in production systems. It involves facilities plarning, capacity planning, allocations, and utilization of plant and equipment, machines etc.
  
  
• Manpower: Planning for manpower (labour and managerial levels) having appropriate skills and expertise.
  
  
• Routing: Determining the flow of work, material handling in the plant, and sequence of operations or processing steps. This is related to consideration of appropriate shop layout plant layout, temporary storage location for raw materials, component and semi- finished goods, and of materials handling system.
  
  Route Sheet: A Route Sheet is a document providing information and instructions for converting the raw material in finished part or product. It defines each step of the production operations and lay down the precise path or route through which the product will flow during the conversion process.
  
  
  Route sheet contains following information:
  
  • The operation required at their desired sequence
  • Machines or equipment to be used for each operations
  • Estimated set-up time and operation time per piece
  • Tools, jigs, and fixtures required for operations
  • Detailed drawings of the part, sub-assemblies and final assemblies
  • Specification, dimensions, tolerances, surface finishes and quality standard to be achieved
  • Specification of raw material to be used.
  • Speed, feed etc. to be used in machines tools for operations to be carried on.
  • Inspection procedure and metrology tools required for inspection
  • Packing and handling instructions during movement of parts and sub-assemblies through the operation stages.
    
    
• Estimating: Establishing operation times leading to fixations of performance standards both for worker and machines. Estimating involves deciding the quantity of the product which needs to be produced and cost involved in it on the basis of sale forecast. Estimating manpower, machine capacity and material required meeting the planned production targets are like the key activities before budgeting for resources.
  
  
• Loading: machine loading is the process of converting operation schedule into practices in conjunctions with routing. Machine loading is the process assigning specific jobs to machines, men, or work centres based on relative priorities and capacity utilization.
  
  
• Scheduling: Scheduling ensure that parts and sub-assemblies and finished goods are completed as per required delivery dates. It provides a timetable for manufacturing activities.
  
  
• Dispatching: This is concerned with the execution of the planning functions. It gives necessary authority to start a particular work which has already planned under routing and scheduling functions. Dispatching is release of orders and instructions for starting of production in accordance with routing sheet and scheduling charts.
  
  
• Inspection: This function is related to maintenance of quality in production and evaluating the efficiency of the processes, methods and labours so that improvement can be made to achieve the quality standard set by product design.
  
  
• Evaluating: The objective of evaluating is to improve performance. Performance of machines, processes and labour is evaluated to improve the same.
  
  
• Cost control: Manufacturing cost is controlled by wastage reduction, value analysis, inventory control and efficient utilization of all resources.

Requirements for an Effective Production Planning and Control

• Appropriate organization structure with sufficient delegation of authority and responsibility at various levels of manpower.
  
  
• Right person should be deputed at right place for right job.
  
  
• Maximum level of standardization of inventory, tooling, manpower, job, workmanship, equipment, etc.
  
  
• Appropriate management decision for production schedule, material control, inventory and manpower turnover and product mix.
  
  
• Flexible production system to adjust any changes in demand, any problem inproduction or availability of material maintenance requirements, etc.
  
  
• Estimation of accurate lead times for both manufacturing and purchase.
  
  
• Management information system should be reliable, efficient and supporting.
  
  
• Capacity to produce should be sufficient to meet the demand.
  
  
• The facility should be responsive enough to produce new products change of products mix and be able to change the production rates.

Functions of Production Planning and Control

Functions of production planning and controlling is classified into:

Pre-planning Function

Pre-planning is a macro-level planning and deals with analysis of data and is an outline of the planning 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 workflow (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.

Planning Function

The Planning function starts once the task to be accomplished is specified, with the analysis of four M’s, ie., Machines, Methods, Materials and Manpower. This is followed by process planning (routing). Both short-term (near future) and long-term planning are considered. Standardisation, simplification of products and processes are given due consideration.

Control Function

Control phase is effected by dispatching, inspection and expediting materials control, 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 is essential to enhance and ensure effectiveness of PPC.

Parameters of PPC

The finctions of PPC can be explained with the following parameters:

• 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 (standardisation) procurement and make or buy decisions.
  
  
• Machines and equipment: This function is related with the detailed analysis of available production facilities, equipment down time, maintenance policy procedure and schedules. It is 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 of breakdowns.
  
  
• Methods: This function is concerned with the analysis of alternatives and selection o f the best method with due consideration to constraints imposed. Developing specifications for processes is an important aspect of PPC and determination of sequence of operations.
  
  
• Process planning (Routing): It is concerned with selection of path or route which the raw material should follow to get transformed into finished product.
  
  
• 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.
  
  
• 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.
  
  
• 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 authorises the start of production activities by releasing materials, components, tools, fixtures and instruction sheets to the operator.
  
  
• 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.
  
  
• Inspection: 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.
  
  
• Evaluation: This stage though neglected is a crucial to the improvement of productive efficiency. A thorough analysis of all the factors influencing the production planning and control helps to identify the weak spots and the corrective action with respect to pre-planning and planning will be effected b y a feedback. The success of this step depends on the communication, data and information gathering and analysis.