Tuning the planning and control system to product and process design: G3

Tuning the planning and control systems to product and process design

Technology and Innovation

Contents 1 Introduction

2 The need for Production Planning

3 Planning

4 Aggregate Production Planning

5 Work Force Planning

6 Material Requirement Planning

7 Routing, Scheduling and Loading

8 Production Control and Production Control using JIT

9 Shop Floor control

10 Dispatching, Follow-up and Inspection

11 Corrective measures

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Introduction

• Production Planning may be said to be a technique of forecasting ahead every step in the long process of production, taking them at right time and in the right degree and trying to complete operations at the maximum efficiency.

• Production control is the process that keeps a watchful eye on the production flow and size of resources along with the location, of any deviation from the present action and to arrange for the prompt adjustment so that the production may run according to the original or revised schedule.

• Planned production is an important feature of the small industry.

• Planning and control involve generally the organization and planning of manufacturing process.

• The ultimate objective is the organization of the supply and movement of materials and labor, machines utilization and related activities.


Need for production planning

Addresses decisions on

Acquisition

Utilization

Allocation of limited production

resources

Resources include the production facilities, labor and materials.

Constraints include the availability of resources, delivery times for the products and management policies.

Optimum Utilization of Capacity Inventory control Economy in production time Ensure quality To sum up we may say that PPC is of

immense value to the entrepreneur in capacity utilization and inventory control.

More importantly it improves his response time and quality. As such effective PPC contributes to time, quality and cost parameters of entrepreneurial success.


Production planning and Control


Aggregate production planning

Objectives:

• To generate a medium-term production plan

• To establish rough product mix

• To anticipates bottlenecks

• To align capacity and workforce plans.

• It is usually done for next 2 to12 months.

• Demand changes over a period of time at a faster rate than the resources. Aggregate planning offers strategies to absorb these fluctuations.


Aggregate production planning

Output of Aggregate Planning

Production quantity from regular time, overtime and subcontracted time.

Inventory held for determination of how much

warehouse space and working capital is needed Backlog or stock-out quantity for determining the customer service levels


Production

Demand

Unit

s

Time

Level plans

• Use a constant workforce and produce similar quantities each time period • Use inventories and backorders to absorb demand peaks & valleys

Strategies in Aggregate production planning


Unit

s

Time

Series1

Production

Demand

Chase plans

Series1

Minimize finished good inventories by trying to keep pace with demand fluctuations



Hybrid or Mixed Strategies

• Build-up inventory ahead of rising demand and use backorders to level extreme peaks

• Layoff or furlough workers during lulls • Subcontract production or hire temporary • workers to cover short-term peaks • Reassign workers to preventive maintenance during

lulls. • Influencing Demand



Work Force Planning

To find out and direct: • Right people • Right place • Right time • Right price

Issues

• Basic Staffing Calculations and labor hours

• Working Environment • Flexibility/Agility • Quality


Hybrid or Mixed Strategies • Build-up inventory ahead of rising demand and use

backorders to level extreme peaks • Layoff or furlough workers during lulls

• Subcontract production or hire temporary • workers to cover short-term peaks

• Reassign workers to preventive maintenance during

lulls

• Influencing Demand



Material Requirement Planning

MRP is a production planning and inventory control system used to manage manufacturing processes. An MRP system has 3 major objectives Ensure materials are available for production and products are

available for delivery to customers. Maintain the lowest possible level of inventory

Plan manufacturing activities, delivery schedules and purchasing activities


Routing

• Under this, the operations, their path and sequence are established.

• To perform these operations the proper class of machines and personnel required are also worked out. The main aim of routing is to determine the best and cheapest sequence of operations and to ensure that this sequence is strictly followed.

• Routing procedure involves following different activities. • An analysis of the article to determine what to make and

what to buy. • To determine the quality and type of material • Determining the manufacturing operations and their

sequence. • A determination of lot sizes • Determination of scrap factors • An analysis of cost of the article • Organization of production control forms.


Scheduling

Types of scheduling

Forward scheduling

Backward scheduling

The pattern of scheduling differs

from one job to another which is

explained as below.

Master Schedule

Production Schedule

Manufacturing Schedule

Scheduling of Job Order

manufacturing


Production Control

“Production control is the process of planning production in advance of operations, establishing the exact route of each individual item part or assembly, setting, starting and finishing for each important item, assembly or the finishing production and releasing the necessary orders as well as initiating the necessary follow-up to have the smooth function of the enterprise.”


Production Control Using JIT

Pull production and kanban JIT is associated with pull systems. Toyota was the first developer of kanban system. Examples McDonalds' Office Xerox Paper

JIT is the technique for reducing inventories and elimination of waste in the production system. Objectives To eliminate waste To improve quality To minimize lead time To reduce costs To improve

productivity


Shop Floor Control

Pull production and kanban JIT is associated with pull systems. Toyota was the first developer of kanban system. Examples • McDonalds' • Office Xerox Paper

Objective To control flow of work through plant and coordinate with other activities (e.g., quality control, preventive maintenance, etc.)


Shop Floor Control

Material Flow Control


Shop Floor Control Functions • Gross Capacity Control

• Match line to demand by staffing (workers/shifts) • Varying length of work week (or work day) • Using outside vendors to augment capacity

• Bottleneck Planning • Handling of bottlenecks • Cost of capacity is the key • Stable bottlenecks are easier to manage

• Span of Control

• Physically or logically decompose system • Span of labor and process management


Shop Floor Control

Issues:

• Customization • SFC is often the most highly customized activity in

a plant.

• Information Collection • SFC represents the interface with the actual

production processes and is therefore a good place to collect data.


Dispatching Dispatching involves issue of production orders for starting the operations. Necessary authority and conformation is given for: • Movement of materials to different workstations.

• Movement of tools and fixtures necessary for each

operation.

• Beginning of work on each operation.

• Recording of time and cost involved in each operation.

• Movement of work from one operation to another in accordance with the route sheet.

• Inspecting or supervision of work


Follow Up and Inspection

• Every production program involves determination of the progress of work, removing bottlenecks in the flow of work and ensuring that the productive operations are taking place in accordance with the plans.

• It spots delays or deviations from the production plans. It helps to reveal detects in routing and scheduling, misunderstanding of orders and instruction, under loading or overloading of work etc.

• All problems or deviations are investigated and remedial measurer are undertaken to ensure the completion of work by the planned date.

• This is mainly to ensure the quality of goods. It can be required as effective agency of production control.


Corrective Measure

Corrective action may involve any of those activities of adjusting the route:

• rescheduling of work

• changing the workloads • repairs and maintenance of machinery or equipment

• control over inventories of the cause of deviation is the

poor performance of the employees.

• Certain personnel decisions like training, transfer, demotion etc. may have to be taken. Alternate methods may be suggested to handle peak loads.


Leadership & Management

Tuning the planning and control system to product and process design: G3