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Manufacturing Planning &
Scheduling
N.K.Agarwal
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PPC isthe organisation and planning of
manufacturing process
PPC
Co-ordinatessupplyand movement of materialsand labour
Ensures economic and balanced utilisation of machinesand
equipments,and
Otheractivitiesrelated with production
To achieve the desired manufacturingresults
Production Planning & Control(PPC)
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Production Planninginvolves
Formulation
Co-ordination,and
Determination ofactivities
In a manufacturingsystem
Production Controlinvolves
Process of maintainingabalance between variousactivities
involved in production planning providing
Most effective and efficient utilisation ofresources
Production Planning & Control(PPC)
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Production Planning
The function ofthe managementthat decides
The resourcesthe firm willrequire forits future
manufacturing operations,and
Allocatingthese resourcesto produce the desired outputin
required amountatleast cost
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Production planning prepares
Procurement plans formaterialsand personnel,
Establisheswork proceduresand control, Preparesand issuesworkauthorisation,establishes finished
goodsinventory control,and
Maintainsalternative plans ofaction
Production Planning-Procedures
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Categories of production planning procedures
Routing
Scheduling,and Loading
Production Planning-Procedures
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Routing means determination of path orroute over
which each piece isto travelin beingtransformed
from raw materialinto finished product Routinggenerallyinvolvesthe following
Whetherto make/buy
Form and shape ofthe material
Division ofworkto be done into operations
Production Planning-Routing
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Choice of machines/ work centers on which each operation
should be done and its duration
Sequence in which operationsare to be performed
Division of operationsinto work elements
Choice ofspecialtooling
Economic lotsize of production orderquantity
Estimation ofamount ofscrap
Production Planning-Routing
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Schedulingis
Decidingwhen and where each operation in a production
processisto be executed,and
Establishment oftime table atwhichto begin and/or
complete each event oroperation involved in a procedure
Production Planning-Scheduling
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Developed byreviewing market forecasts, customer
orders,inventorylevels, facilityloading & capacity
information regularly Plan for future production of end items overshort
range planninghorizon
An importantlinkbetween production and marketing
Master Schedule
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F
unctions of MPS
Translatingaggregate plansinto specific end items
Evaluatingalternative masterschedules
Generating materialrequirement Generating capacityrequirement
Facilitatinginformation processing
Maintaining valid priorities
Utilising capacity effectively
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MASTER PRODUCTION SCHEDULE- FLOW CHART
FORECAST & CUSTOMER
ORDERS
AGGREGATE PLAN
TENTATIVE MPS
TRIALFIT ON
MRP SYSTEM CRP SYSTEM
ARE
MATERIALSADEQUATE ?
ARE
CAPACITIESADEQUATE ?
FIRM MPS
TO MRP & CRP SYSTEM
DOMESTIC &INTERNATIONAL
REVISE MASTER
SCHEDULE
REVISE MASTER
SCHEDULE
END PRODUCTS &
SERVICE PARTS /
SPARE PARTS
CAPACITY
REQUIREMENTPLAN (CRP)
YESYES
NO NO
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MPS Environment
Make to stock
Production bythe companyin batches
Carries finished goodsinventory formost ofthe end items
Mostly consumerproducts
Orders from warehouses mostly
Lotsizes of ordersbased on economics
Efforts to prepare MPS are relatively less
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Make to order
Companies do not carry finished goodsinventory
Builds customerordersas needed
Customers expected to wait forthe design & manufacturinglead time
Example: Buildings, Jewellary making,Ship building
Lotsize and numberof products depends upon customer
orders
Many product designs, productsand ordersto be included
Efforts required to prepare MPS are more
MPS Environment
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Assemble to order Typicalwith verylarge numberof possible end items made from
combination ofbasic componentsand sub-assemblies
Customerdeliverytimes often lessthan totallead times
Flexibility maintained in manufacturing Basic componentsand sub-assemblies produced
Finalassembliestaken up onlyagainst customerorder
Example:Automobile manufacturing,Forkliftswith
differentspecifications
End items notscheduled Schedule unitsstated in planningbills of materials
Common partsand options form the MPS planningbill
MPS Environment
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Objectives
To plan newwork orders on the basis ofspare capacity
available
To balance the workload in a plant
To maintain delivery promises
To checkthe feasibility of production programmes
Production Planning-Loading
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PPC-Production Control
Production Controlisthe procedure
To regulate an orderly flow of materials,and
Co-ordinate various production activities
To accomplishthe objective of producingthe desired
item
In the right quantity of desired qualityatthe required
time bythe bestand the cheapest method
To attain highest efficiencyin production
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PPC-Production Control
Properco-ordination ofthe operation of varioussections/
departmentsresponsible forproduction
To ensure timelysupply ofraw materialatthe desired place
and of prescribed qualityand quantityto avoid delaysin
production
To perform inspection ofsemi finished and finished goods
and use of quality controltechniquesto ensure
manufactured goods meetingrequired specifications
Also responsible forproduct design and development
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Production Control- Levels
Three levelsin production control
Programming
Planningthe output of product forthe factoryasawhole
Ordering
Planningthe output of components from suppliersand
production departments
Dispatching
Considers each processing departmentin turn and plans
the output from the machines,toolsand otherworkcentersso asto complete the orderby due date
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Orderingis
Process of placing orders,also known aswork orders, to
the suppliersand the processing departments forthe
materialsand otherparts needed to manufacture theproduct,and
To arrange the ordering quantityand deliveryschedule in
suchaway
Thatallitemsare delivered in time to meetthe
production programme
Production Control- Ordering
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The decision ofassigning variousjobsto different
machinesisknown asDispatching
Functions To checkthe immediate availability of materials
Ensuringavailability ofall production and inspection aids for
use
Obtain appropriate drawingsand specifications
Collatejobs, operation layouts,routine etc.withthe design
Production Control- Dispatching
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Processinginformation orinspection schedule
Assign workto definite machine,work place and men
Issue necessary materialsand tools etc.to the required point
foruse
Issue production note indicatingthe startand finishtime of
the work
Inform progressregardingstart ofwork
Instruction to startthe work
Maintain all production records
Production Control- Dispatching
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Follow-up/expediting orprogressingis checking
production activitiesso that production maybe
carried outas perplan
Involves measurement of outputagainst plan,analysis of
performance forshort-fallsand following up the line
managementto apply corrective action
The chaserisresponsible forobservingthatany
detailwhichis overlooked ornot properly executed issetright
Production Control- Follow - up
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Schedulingbecomes complex due to
Delivery dateshave to be promised forwork ordersagainstcustomers orders
Production lotstend to become small & manyrequire
machine change over
Possibility ofassigning / reassigningworkers & machinesto
variouswork orders Schedulesto be specific and detailed machine wise to bring
orderliness
Scheduling of Process Focused
Production Systems
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Scheduling of
Product - Focused System Relatively fewerstandard product designs
Production usually on produce to stock & sellbasis
Finished goodsinventoriesare maintained Production rates ofindividual products exceed their
demand
Muchless pre production planning concerningroute sheets,job
instructions, process plansand product designs
Schedulesbased on economic production runs forproductswithoutfirm delivery commitments
Majorscheduling concernsare
Timing of production line change over
Length of production runs
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Reduces cost of production by minimisingwastage of
materialand economic utilisation ofresources
Leadsto lowerinvestmentby means of efficientandbalanced utilisation ofresources
Promotes employee morale byavoidingallsorts of
bottlenecks
Enhances customersatisfaction and confidence
PPC - Importance
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MPS and Shop Floor Planning &
Control
MPSand shop floorplanning & controlresultsin Lowinventorylevels,
Minimise the manufacturing cycle time,
Full utilization of production services,and
Helpsin the development of positive customerrelations
By meetingthe promised delivery dates
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References Production Operations Management :
Aswathappa / Bhat
Modern Production / Operations Management:Buffa / Sarin
Operations Management :
Donald Waters
Manufacturing Planning & ControlSystems :
Vollman / Bery / Whybark
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Thank You
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PPC - Objectives
Determiningthe nature and magnitude of variousinput factorsto manufacture the desired output
To co-ordinate labour, machinesand equipmentin
the most effective and economic manner
Establishingtargetsand checkingthese againstperformance
Ensuringsmooth flow of materialsby eliminating
bottlenecksin production
Utilisation of underemployed resources
To manufacture the desired output ofright qualityand
quantityatrighttime
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Production Planning-Objectives
Systematic co-ordination and regulation of variousactivities
To maintain properbalance ofthe activities for
efficient production
Determination ofraw materials, machines, equipmentetc.and otherinputs fordesired output
Anticipation ofbusiness changesand reactingto
them in propermanner
To have optimum usage orresourceswith optimum
costand time
To provide alternative production strategiesin case of
emergencies
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Varioustypes of proformasto record details of
production processat differentstagesalso to be
designed
In manufacturing plants,routing ofan ordercarried
out usingRoute Sheets
Production Planning-Routing
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Route Sheet
ManufacturingOrder no.
Drawing no. Date of completion
Description of
the item
Remarks
No. of pieces on
order/Economic
lot size
Spoilage
allowance
Total items to
be produced
Material description
Purchase Order no.
Time/ Piece
Tool Description
Quality of material allotted.
Stores requisition no.
Due date.
Setup time/lot operation no.
Time allowance
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Objectives of Production control
Provision ofraw materials, equipment, machinesand labour
To organise production in conformitywiththe demand
forecast
Ensure utilisation ofresourcesin the best possible manner
suchthatthe cost of production is minimised and delivery
date is maintained
Determination of economic production runswitha viewto
reduce the setup costs
PPC-Production Control
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Production Control- Techniques
Programming: Objectives
Reliable deliveryto customers
Even loading ofthe plant
Even loading ofthe labourin total man -hours perweek
Efficient use of capital
Lack of production programmingin any
manufacturingsystem resultsin late deliveryto
customers
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SCHEDULING SERVICES
ECONOMICACTIVITIES INWHICH PRIMARYOUTPUT IS
NEITHERA PRODUCT NORA CONSTRUCTION
VALUE ISADDED TO THISOUTPUT THAT CANNOT BE
INVENTORIEDLIKE CONVENIENCE, COMFORT,SECURITY,AND THEOUTPUT IS CONSUMEDAS PRODUCED
TRANSPORTATION
UTILITIES
COMMUNICATIONS
FINANCE,BANKING, INSURANCE, POST & TELEGRAPH
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SERVICE OPERATIONS
SERVICESYSTEMS
DONOT HOLD INVENTORIES
DEMANDON THEM HIGHLY VARIABLE
OPERATIONSLABOUR INTENSIVE PRIMARILY PERFORMED THROUGH PERSONNEL
ASSUCH, PERSONNELSCHEDULING BECOMES COMPLEX
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SERVICE OPERATIONS
ALSOKNOWNASNON-MANUFACTURING OPERATIONS, CAN
BE CLASSIFIEDAS
STANDARDSERVICES
CUSTOMERSERVICES CLASSIFICATIONACCORDING TO THEDEGREEOF
STANDARDISATIONOF THEOUTPUTSAND THE PROCESS
PERFORMEDBY THESERVICESYSTEM
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SERVICE OPERATIONS
STANDARDSERVICES
SYSTEMS MORELIKE PRODUCT-FOCUSSED MANUFACTURING
SERVICESSTANDARDFOR MOST CUSTOMERS
PROCESSONCEBEGUN CARRIED THROUGH TOCOMPLETIONWITHOUT MUCHDELAY
SIGNIFICANT DIFFERENCEWITH PRODUCT-FOCUSSED
MANUFACTURING BEING THAT SERVICES PRODUCED
ACCORDING TO CUSTOMERORDERRATHER THANFOR
FINISHED GOODS INVENTORY
TRNASPORT COMPANIES,FAST FOOD
RESTAURANTS, POSTALSERVICES,AIRLINES
SOPHISTICATEDSCHEDULING SUCHASON-LINE
COMPUTERBASEDSCHEDULING SYSTEMS USED
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SERVICE OPERATIONS
CUSTOMERSERVICES SYSTEMSLIKE JOBSHOPSANDHENCESCHEDULING MUCH
LIKE JOBSHOPS
SMALLSERVICESLIKEADOCTORS CLINIC,SMALLRETAILERS,LOCAL TRANSPORT COMPANIES
NOFORMALSCHEDULING SYSTEMSEMPLOYED
SIMPLESCHEDULING SYSTEMSSUCHASAPPOINTMENTSCHEDULES, TOKENSYSTEM,FIRST-COME-FIRST-SERVICEETCUSED TOASSIGN PRIORITIES TO CUSTOMERS
PART TIMEWORKERSANDSTAND-BYEQUIPMENT FREQUENTLYUSEDDURING HIGHDEMAND PERIOD
HOSPITALS USE MORESOPHISTICATEDSCHEDULING SYSTEM
INCLUDINGA MOST CRITICALNEED CRITERIA ;FIRST-COME-FIRST-SERVED
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SCHEDULING PERSONNEL IN
SERVICES PERSONNELSCHEDULESDEVELOPED TOALLOWSYSTEM
CAPACITIESWHICH MATCH THE CUSTOMERDEMAND SYSTEM CAPACITY VARIEDBY VARYING NUMBEROF PERSONNEL TO
WORKDURING EACHHOUROF THEDAY
PART TIME PERSONNEL MAYBEEMPLOYEDDURING PERIODSOFPEAKDEMAND
FOREMERGENCYSERVICESLIKEFIREOR POLICE,SCHEDULINGDONEFOR 24 HOURFULL CREW COVERAGE
DURING PEAKDEMAND PERIODS,OFF-DUTY PERSONNEL CALLED INAND COMPENSATEDWITHOVERTIME PAYMENT OR TIME-OFFS