Tuning the planning and control system to product and process design: G1

Tuning the planning and control system to product and process design

Technology and Innovation

Contents 1 Planning and control

2 The Planning-Control Relationship

3 Product and process design

4 Product Design Issues

5 Process Design

6 PPC approach in food production

7 Conclusion

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Planning and control

Within the constraints imposed by its design, an operation has to be run on an ongoing basis. ‘Planning and control’ is concerned with managing the ongoing activities of the operation so as to satisfy customer demand.

What is planning & control?

Planning and control is concerned with the reconciliation between what the market requires and what the operation’s resources can deliver. Planning and control activities provide the systems, procedures and decisions which bring different aspects of supply and demand together. The purpose is always the same – to make a connection between supply and demand


Planning and control

Planning and control are an essential ingredient for success of an operation unit. Benefits of production planning and control:

• It ensures that optimum utilization of production capacity is achieved, by proper scheduling of the machine items which reduces the idle time as well as over use.

• It ensures that inventory level are maintained at optimum levels at all time, i.e. there is no over-stocking or under-stocking.

• It also ensures that production time is kept at optimum level and thereby increasing the turnover time.

• Since it overlooks all aspects of production, quality of final product is always maintained.


Production Planning Objectives of production planning

• To ensure right quantity and quality of raw material, equipment, etc. are available during times of production.

• To ensure capacity utilization is in tune with forecast demand at all the time.

• A well thought production planning ensures that overall production process is streamlined providing following benefits:

• Organization can deliver a product in a timely and regular manner.

• Supplier are informed will in advance for the requirement of raw materials.

• It reduces investment in inventory.

• It reduces overall production cost by driving in efficiency.

Production planning takes care of two basic strategies’ product planning and process planning.

Production planning is done at three different time dependent levels i.e. long-range planning dealing with facility planning, capital investment, location planning, etc.; medium-range planning deals with demand forecast and capacity planning and lastly short term planning dealing with day to day operations.


Production Control Production control looks to utilize different type of control techniques to achieve optimum performance out of the production system as to achieve overall production planning targets.

Objectives of production control

• Regulate inventory management

• Organize the production schedules

• Optimum utilization of resources and production process

Advantages of robust production control

• Ensure a smooth flow of all production processes

• Ensure production cost savings thereby improving the bottom line

• Control wastage of resources

• It maintains standard of quality through the production life cycle.

Production control cannot be same across all the organization. Production control is dependent upon the following factors

• Nature of production( job oriented, service oriented, etc.)

• Nature of operation

• Size of operation

Production planning and control are essential for customer delight and overall success of an organization.


The Planning-Control Relationship

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The difference between planning and control

Planning concerns what should happen in the future.

Control copes with changes.

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Product and Process Design

Product Design can be defined as the idea generation, concept development, testing and manufacturing or implementation of a physical object or service.

The stages through which a product passes are:

1. Need identification

2. Advance Product Planning

3. Advance design, Detailed engineering

4. Production process design and development

5. Product Evaluation

6. Product Use and support


Product and Process Design


Product Design Process vs. Deming’s PDCA Cycle?

PDCA

P = plan

D = do

C = check (or study)

A = act

Product Design

Idea development

Product screening

Preliminary design and testing

Final design


Product Design Issues • Value analysis/value engineering

– Obtain better performance at lower cost

• Two Design Approaches: – Over the Wall Approach vs. Concurrent Engineering

• Complexity of design

– Implications??

• Reliability – How can it be increased?

• Standardization

– Advantages & disadvantages?

• Modular design – Advantages & disadvantages?

• Environmental Implications


Process Design Processes by Market Orientation • Make to stock: The goods usually are standard, mature

products. As a general rule make to stock products compete primarily on the basis of cost and availability. Example of such products includes most retail goods.

• Assemble to order: products are standard items that are assembled from in stock subassemblies. This allows customers to specify a wide range of options.

• Make to order: are made from previously designs, but are made only after an order has been received. Make to order products are used when the standard product is too costly to stock, have too uncertain demand, or will deteriorate if stocked on shelf.

• Engineer to order: This market orientation is used to make unique products that have not been previously engineered, Extensive customization to suite the customers’ need is possible but only if customer is willing to wait for this addition stage in the value creation process.


Process Design Processes as production systems

• Projects: These are one-off projects. It is based on extensive customization that is suited to the customer’s ‘need. Ex-construction projects, shipbuilding and civil engineering.

• Job shop: Construction is characterized by processing of small batched of a large number of products, most of which require a different set or sequence of processing steps. Production equipment is mostly general purpose to meet the specific customer orders.

• Batch production: Production is in discrete parts that are repeated at regular intervals. Such a structure is generally employed for relatively stable lines of products, each of which is produced in medium volume.

• Assembly Line: It is a mass production process. On assembly line, production follows in a predetermined sequence of steps which are continuous rather than discreet. The product moves from work station to workstation at a controlled rate following the sequence needed to build the product.

• Continuous flow: It is common in the food processing industry, and in industries involving undifferentiated materials. Most bulk products are manufactured using continuous flow production; generally, on-line control and continuous system monitoring is needed.


Good Product and Process Design

• Design products/services that match the needs and preferences of the targeted customer group

• Design products that are as easy as possible to make (product manufacturability).

• Use concurrent engineering instead of “over-the-wall” engineering.


Efficiency frontier


Relevant PPC approach in food production

Although all three PPC approaches are relevant in food production, on a facility level the decision most often comes down to; which production activities should be based on forecasts and which should be triggered by customer orders? For simplicity, the decision can therefore be reduced to a choice between MTO, where all processes are triggered by an order, and MTS, where all processes are performed to forecast.


Differentiated PPC in food production


Conclusion

• Tuning in PPC is done based on analyzing the benefits arising because of change.

• Anticipated effects are considered in six categories

– Quality

– Speed

– Dependability

– Flexibility

– Cost

– improvements in the performance of PPC function

The implementation of the new PPC solution should include a review and redesign of the PPC function and processes – which should lead to simplification, formalisation, standardisation and validation of PPC processes. In addition, the new PPC system should automate a number of PPC tasks, thus reducing the risk of human errors and freeing up central and local resources to focus on more value-adding activities.


References • http://catalogue.pearsoned.co.uk/assets/hip/gb/hip_gb_pearsonh

ighered/samplechapter/0273756192.pdf

• http://www.accel-team.com/control_systems/h_control_01.html


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Leadership & Management

Tuning the planning and control system to product and process design: G1