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3. Production Planning and Control
Production Planning and Control (PPC) is the process of managing the production process in an efficient and systematic way to ensure the timely delivery of products. It involves organizing, coordinating, and controlling the production activities to maximize the use of resources and meet customer demand. Below are detailed notes for each topic under Production Planning and Control.
3.1 Introduction
Production Planning and Control (PPC) refers to the process of planning, organizing, and controlling the production activities in an organization. The goal is to ensure that production is carried out efficiently, and resources are used effectively to meet customer demands while minimizing waste and costs. PPC plays a crucial role in improving productivity, reducing costs, and maintaining product quality.
3.2 Major Functions of Production Planning and Control
The main functions of PPC include:
- Production Planning: Developing a plan to meet production goals, including determining what to produce, how much to produce, and when to produce.
- Routing: Deciding the path that materials and products will follow in the production process.
- Scheduling: Determining the timeline for production activities and ensuring that everything is completed on time.
- Dispatching: Authorizing the start of work and ensuring materials and resources are available for production.
- Controlling: Monitoring the production process and ensuring everything goes according to the plan, with adjustments made if necessary.
3.3 Pre-Planning
Pre-planning is the process of defining the necessary steps, resources, and constraints before the actual production begins. This involves:
- Analyzing the production requirements.
- Ensuring the availability of raw materials.
- Scheduling the workforce and machine availability.
- Setting up the necessary resources and facilities to avoid delays.
Pre-planning ensures that all variables are accounted for and that production can start smoothly.
3.4 Methods of Forecasting
Forecasting is the process of predicting future demand for products. Various methods include:
- Qualitative Methods: These rely on subjective judgment and experience (e.g., expert opinion, market research, and focus groups).
- Quantitative Methods: These rely on historical data and mathematical models (e.g., time series analysis, moving averages, and regression analysis).
Forecasting helps in determining production schedules, inventory management, and resource allocation.
3.5 Routing and Scheduling
Routing: Routing determines the path that materials, work-in-progress, or finished products will follow through the production process. It involves selecting machines, workstations, and the sequence of operations.
- Example: Deciding that raw materials will first go through cutting, then welding, followed by painting.
Scheduling: Scheduling refers to determining when each operation or process should occur to ensure that production happens on time. It involves deciding which jobs will be processed and when, allocating resources, and setting deadlines.
- Example: Scheduling the work shifts for machines, workers, and departments.
3.6 Dispatching and Controlling
- Dispatching: Dispatching is the process of issuing orders to begin production. It ensures that all required materials, tools, and instructions are available to begin work on time.
- Example: Issuing work orders to workers and assigning tasks.
- Controlling: Controlling involves monitoring the production process, comparing actual performance with planned performance, and making adjustments when necessary. It helps in identifying problems like delays, machine breakdowns, and quality issues.
3.7 Concept of Critical Path Method (CPM)
The Critical Path Method (CPM) is a project management tool used to schedule and coordinate project activities. The critical path is the longest sequence of activities that must be completed on time for the project to be finished on time. Any delay in activities on the critical path will delay the entire project.
- Steps in CPM:
- Identify the activities involved in the project.
- Determine the duration of each activity.
- Establish dependencies between activities (which activity depends on which).
- Calculate the critical path by finding the longest sequence of dependent activities.
3.8 Types of Production
There are various types of production systems, depending on the product, quantity, and production process:
3.8.1 Mass Production:
- Involves producing large quantities of standardized products, usually using assembly lines.
- Example: Car manufacturing.
- Characteristics: High efficiency, low cost per unit, continuous production.
3.8.2 Batch Production:
- Involves producing products in batches or groups. It is used when the production needs vary but are still repetitive.
- Example: Bakery products or pharmaceutical production.
- Characteristics: Flexible, suitable for varying demands, moderate costs.
3.8.3 Job Order Production:
- This method involves producing custom products based on specific customer orders.
- Example: Tailoring or custom-made furniture.
- Characteristics: High customization, low volume, higher costs, flexible production.
3.9 Economic Batch Quantity (EBQ)
Economic Batch Quantity (EBQ) is the optimal batch size that minimizes the total cost of production, including both setup costs and inventory holding costs.
The formula for EBQ is:
Where:
- D = Demand for the product.
- S = Setup cost per batch.
- H = Holding cost per unit.
EBQ helps balance the cost of setting up production batches and storing inventory.
3.10 Principles of Product and Process Planning
- Product Planning: Involves designing products that meet customer demands, ensuring they can be produced efficiently, and analyzing their lifecycle.
- Process Planning: Focuses on determining how a product will be manufactured, selecting the necessary equipment, and optimizing production workflows.
Both are critical for ensuring quality and cost-effective production.
3.11 Make or Buy Decision
The "Make or Buy" decision is the process of deciding whether to produce a product in-house or purchase it from an external supplier. Factors considered in this decision include:
- Cost: Which option is cheaper?
- Quality: Can the company maintain quality if it produces the product?
- Time: Does producing in-house save time, or does outsourcing speed up production?
- Capacity: Does the company have the necessary facilities and workforce?
3.12 Numerical Problems
Numerical problems in production planning and control might involve calculating the optimal production schedule, inventory levels, and costs. You may be required to apply formulas like EBQ, scheduling, and cost minimization equations.
3.13 Quality Control
Quality control ensures that products meet the required quality standards. It involves the use of various methods and techniques to monitor and improve product quality.
3.13.1 Definition
Quality Control is a process through which a company ensures that product quality meets specified standards by identifying defects, inspecting products, and taking corrective actions.
3.13.2 Objectives
- Ensure that products meet customer expectations.
- Minimize production costs due to defects.
- Maintain consistency and reliability of products.
- Comply with industry standards.
3.13.3 Types of Inspection
- 3.13.3.1 First Piece Inspection: Inspecting the first item produced to ensure it meets specifications before the production process continues.
- 3.13.3.2 Floor Inspection: Inspecting products at various stages of production on the shop floor.
- 3.13.3.3 Centralized Inspection: Having a central team responsible for quality checks at all stages of production.
3.13.4 Advantages and Disadvantages
- Advantages: Improved quality, reduced waste, customer satisfaction.
- Disadvantages: High costs, time-consuming, requires skilled inspectors.
3.13.5 Sampling Inspection; Single and Double Sampling Plan
- Single Sampling Plan: A batch is inspected, and if the number of defects is below a certain level, the entire batch is accepted.
- Double Sampling Plan: Two samples are taken; if the first sample is inconclusive, a second sample is inspected.
3.13.12 Concept of ISO 9001:2008
ISO 9001:2008 is a standard for Quality Management Systems (QMS) that focuses on meeting customer requirements and improving overall performance. It sets out criteria for a quality management system, including processes, policies, and procedures.
3.13.13 Quality Management System Registration/Certification Procedure
The process of obtaining ISO 9001 certification involves:
- Implementing a QMS: Establishing systems, processes, and procedures.
- Internal Audits: Conducting internal audits to check compliance.
- Certification Audit: A third-party audit to verify the QMS.
- Certification: Once approved, the company receives ISO 9001 certification.
3.13.14 Benefits of ISO to the Organization
- Improved efficiency: Streamlined processes and reduced errors.
- Increased customer satisfaction: Products meet quality standards.
- Market credibility: ISO certification enhances brand image.
- Compliance: Helps meet regulatory and legal requirements.
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