SMU MBA ASSIGNMENTS

Answer : Production planning is an activity that is performed before the actual production process takes place. It involves determining the schedule of production, sequence of operations, economic batch quantities, and also the dispatching priorities for sequencing of jobs.

Production control is mainly involved in implementing production schedules and is the corollary to short-term production planning or scheduling. Production control includes initiating production, dispatching items, progressing and then finally reporting back to production planning. In general terms, production planning means planning of the work to be done later and production control refers to working out or the implementation of the plan.

PPC comprise the planning, routing, dispatching in the manufacturing process so that the movement of material, performance of machines and operation of labour however are subdivided and are directed and coordinated as to quantity, quality, time and place. Planning and control are two basic and interrelated managerial functions. They are so interrelated that they can be and often are considered as being one function. Planning is the preparation activity while control is the post-operation function. Both of them are so closely related that they are treated as Siamese twins. Planning sets the objectives, goals, targets on the basis of available resources with their given constraints. Control is the integral part of effective planning. Similarly control involves assessment of the performance, such assessment can be made effectively only when some standard of are set in advance. Planning involves setting up to such standard. The controlling is made by comparing the actual performance with these present standard and deviations are ascertained and analyzed.

Production is an organised activity of converting raw materials into useful products but before starting that work of actual production, production planning is done in order to anticipated possible difficulties and decide in advance as to how the production should be carried out in the best and economical way.

Since mere planning of production is not only sufficient, hence management takes all possible steps to see that project or plan chalked by the planning department are properly adhered to and the standards set are attained in order to achieve it, control over production is exercised. The aim of production control is to produce the products of right quality, in right quantity at the right time by using the best and least expensive methods.

PPC thus defines as the process of planning the production in advance, setting the exact route of each item give “production order” to shops and lastly to follows up of  progress of produces according to order. The principles of PPC gives in the statement, “First plan your work, then work your plan”.

There are few other department associated with PPC are personnel department, manpower planning, costing department etc. Design department is important one as “ The design is the problem of anticipating or trying to do what will be required in future and improving what is being already produced.

 

PREPLANNING, PLANNING & CONTROL

The activities of preplanning, planning and control may be considered to take place in a time sequence. The preplanning is completed before production commences. Planning takes place immediately before production starts and control is exercised during production.

Preplanning :

It is the procedure followed in developing and designing a work or production of developing and installing a proper layout or tools. It may be involved many functions of the organization and draws upon forecasting, product design, jigs and tool design, machine selection and estimating to enable proper design to be made. In short, preplanning decides what shall be made and how it shall be made. In respective manufacture a large uneconomic output could be produced if  preplanning is omitted. It is also important in one of the operations such as setting up a new plants as preplanning can identify and avoid probable costly errors.

Planning :

This stage decides where and when the product shall be made. It includes the sequencing of operations via outing and the time schedule for manufacturing via scheduling. It also states procedures for material planning and supplies, machine loading and deliveries. To perform as functions properly it will need past records of performance and to control statistic which may be obtained from pre-planning, cost control or progress.

Control :

This refers to the stage of ensuring that the planned action is intact carried out. Control initiate the plan at the right time using dispatching and there after control makes appropriate adjustments through progressing to take care of any unforeseen circumstances that might arise. It includes measurement of actual results, comparison of the same with the planned action and feeding back information the planning stage to make any adjustments required. The pattern of control is seen in material control, machine utilization, labour control, cost control and quality control.

 

THE MAIN OBJECTIVES OF PRODUCTION PLANNING

1. To determine capacity of all manufacturing departments and to plan systematically coordinated and related production activities within the scope of the enterprise to meet salesrequirements.2. To translate orders received from sales department into orders on the works department and to ensure steady plans of production activities.3. To find ways and means through which product manufacturing requirements such as materials and their necessary constituents such may be available in right quality and quantity at the right time.4. To coordinate a number of different department groups so that a fine balance of activities may be maintained.5. To promote fuller utilization of plants.6. To assist labour towards right and greater earnings.7. To train staff in the effective performance of their duties.

 

CONTROL

The principles of control are the same for production control, quality control, budgetary control, cost control and other managerial controls. The basic cycle of events in the control are Action, Feedback, Evaluation and Adjustment. Since these events are dynamically in continuous they take the form of a closed-loop circuit. There are seven essential steps in the establishment and application of operating controls. These steps will be discussed in their normal sequence and is diagrammatically represented in figure 1.1.

(A) Operation :

The first step in the control cycle is operation. In this step, the act of doing something, some faults will be obvious and, therefore, easily corrected. Other faults will bemire deceptively concealed requiring the steps that follow to reveal them so that they can be dealt with.

(B) Measurement :

The second step is so measure what is being done. In the field of quality control for example, variations in physical, chemical, electrical, dimensional and other properties are measured. In production control, all operations are measured to determine the time required for their performance and the capacities of equipment with which work is done. In automatic electronic and mechanical operations must be measured accurately in terms of milliseconds before a whole system can be integrated.

(C) Capability Studies :

Analysis of measurements in step two, aided by many reliable statistical technique gives an accurate projection of what actually can be done. In production control we need to know quality process capabilities so that scrap and defer losses can be figured. Studies of process capabilities tell us what we can do.

(D) Objectives :

After we discover what we can do, we are ready to figure out what we should as this may either be more or less than our capabilities. This decision then leads to plans for using excess capabilities on other plans to increase capabilities either for quality or quantity so that the objective can be met.

(E) Evaluations :

As the information is fed back from operations, it is compared with plans and objectives other evaluations are used to adjust budgets and costs.

(F) Adjustment :

The last step in production control is adjustment. Production control adjustments are complicated because they often require increasing or reducing quantities based upon past operation and sales in quality control adjustments are made to maintain product quality requirement within limits. The figure 1.1 illustrates the best cycle in control of production. In it, image two rotating sequence on the basic elements of action, feedback and evaluation that come log rein compound adjustment. This is based on the current information.

(G) Feedback & Flexibility :

It we shoot at the target but cannot tell how close to the balls eye or bullet hits out next shot is likely to be no better than first. But if we do know where the first shot has hit, we can adjust the aim for next one and thus improve our marksmanship. Information received after the performance of an action in time to be used as the basis for future, performance is known as feedback, it is the vital control.

The keys to successful plant implementation are feedback and flexibility. Information must be provided to measure actual progress against the planned and when discrepancies exists, the manufacturing enterprise must be flexible enough to shift, if necessary. This implies the establishment of details, benchmarks during the planned period. Measures of progress, explicit statements concerning the assumptions made about the operating environment and a formal procedure for analyzing the process.“Doubling production within two years” is not a plan. It is a goal. The plan must indicate how this will be done, when the various steps will begin and be completed and what assumption underline the plan and goal. As the plan is being implemented, frequent checks are required to determine whether or not things are proceeding on schedule e.g. ordering of machinery, training of new workers, behaviour of market. The cause behind any discrepancies must be examined. Only then we will know whether to speed up or slow down present rate or progress or a shift is required ?

 

 

WHAT IS FUNCTIONS OF PPC :

The highest efficiency in production is obtained by manufacturing the required quantity of product of required quality, at the required time by best and cheapest method. To certain this objective management employs PPC tool which coordinates all manufacturing activities. The main functions of PPC are the coordination of all the activities, which exist during production or manufacturing.

(I) Materials :

Raw material, standard finished parts, finished parts of products must be available while starting the operation within the time.

(II) Methods :

The purpose of this function is to analyze all methods of manufacture and select the best method according to the given set of circumstances and facilities. It determines the sequence of operations and the division of product into the assemblies and sub-assemblies, modified by the limitation of existing layout and work flow.

(III) Machines And Equipments :

Methods of manufacturing have to be related to the available production facilities coupled with a detail study of equipment replacement policy. Maintenance policy, procedure and schedules are also functions connected with managerial responsibilities for equipment. Design of economy of jigs and fixtures constitutes some of major duties of PPC.

(IV) Routing :

Routing determines that work will be done on the product of parts as well as where and How it will be done. It estimates the operations, their path, sequence proper class of machines and personnel required for these operations. An analysis of the article do determine what to make and what to purchase. Decision as whether to fabricate component or purchase it from elsewhere. These are based on relative cost, technical consideration purchasing policies, availability of equipment, personnel, skill. An analysis of article to determine what material are needed :- It depends upon the drawing, specifications, standard of quality, identification symbol, application in product. This depicts the additional material needed Figure 1.2 demonstrate the general procedure in production routing.

(V) Estimating :

When production orders and detailed operation sheet available with specification feeds, speed and use of auxiliary attachments and method, the operation time can be worked out. It may be consequently results in wide scatter of operation times and unduly large fluctuation and perhaps instabilities in time schedules.

 

(VI) Loading & Scheduling :

Machines have to be loaded according to their capabilities performance the given and according to the capacity. Machine loading is carried out in connection with routing tonsure smooth work flow work estimating, to ensure that the prescribed methods feeds and speed are best utilized. Careful analysis of process capacities so that flow rates along the various production lines can be suitable coordinated. The distinction between planning and scheduling is largely semantically and based upon difference in detail and time period. The schedule is very detailed plan for an immediate and relatively short time period. The difference between the plan and the schedule can be illustrated by looking at the objectives. The plan may ask to double production within two years. The schedule will to produce 300 units of articles during week number 1,200 units during week and so on.

 

Q2. Bring out the difference between mass and batch production system

 

Q3. What are the chief elements to be considered while implementing the production control

functions/tasks in an organisation?

Q4. Bring out the differences between forecasting and prediction

Q5. Explain the inventory reduction options and tactics

Q6. A transmission manufacturer supplying to a car manufacturer at the rate of 25 per day

has a holding cost of the complete unit at Rs. 10/month and produces in batches with a

set up cost of Rs. 10000 each time when the set-up is changed. Its production capacity

is 40 transmissions per day and works for 300 days in a year. Cost of material inputs

per transmission is Rs. 3000. Calculate:

 

a. Most economical numbers that can be produced in one batch

 

 

b. How frequently should the batches be started in a day

c. What will be the minimum average inventory cost and production time ?