PLANNING PRODUCTION AND CONTROL
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This document discusses forecasting, planning, and scheduling for production. It covers qualitative and quantitative forecasting approaches, qualitative forecasting methods like jury of executive opinion and Delphi method, and how aggregate production plans relate to demand forecasts, master production schedules, and work schedules. It also discusses factors for choosing a scheduling method and common priority rules for dispatching jobs. The document provides an overview of production planning and control, including functions like planning, routing, scheduling, loading, dispatching, following up, inspection, and taking corrective measures.
PLANNING PRODUCTION AND CONTROL
- 1. 1 Forecasting, Planning and Scheduling
- 2. 2 Forecasting Approaches Qualitative Methods • Used when situation is not clear & little data exist ▫ New products ▫ New technology • Involves intuition, experience ▫ e.g., forecasting sales on Internet Quantitative Methods • Used when situation is ‘stable’ & historical data exist ▫ Existing products ▫ Current technology • Involves mathematical techniques ▫ e.g., forecasting sales
- 3. 3 Overview of Qualitative Methods • Jury of executive opinion ▫ opinions of high-level executives, sometimes augment by statistical models • Delphi method ▫ Panel of experts, queried two or more rounds • Sales force composite ▫ Estimates from individual salespersons are reviewed for reasonableness, then aggregated • Consumer Market Survey ▫ Ask the customer
- 4. 4 Relationships of the Aggregate Plan Aggregate Plan for Production Demand Forecasts, orders Master Production Schedule Detailed Work Schedules External Capacity Subcontractors Inventory On Hand Raw Materials Available Work Force Marketplace and Demand Research and Technology Product Decisions Process Planning & Capacity Decisions
- 5. 5 Choosing a Scheduling Method • Qualitative factors ▫ Number and variety of jobs ▫ Complexity of jobs ▫ Nature of operations • Quantitative criteria ▫ Average completion time ▫ Utilization (% of time facility is used) ▫ WIP inventory (average # jobs in system) ▫ Waiting time (average lateness)
- 6. 6 Priority Rules for Dispatching Jobs • FCFS --First come, first served ▫ The first job to arrive at a work center is processed first • EDD -- Earliest due date ▫ The job with the earliest due date is processed first • SPT -- Shortest processing time ▫ The job with the shortest processing time is processed first • LPT -- Longest processing time ▫ The job with the longest processing time is processed first • CR -- Critical ratio ▫ The ratio of time remaining to required work time remaining is calculated, and jobs are scheduled in order of increasing ratio.
- 7. 7 Inputs to the Production Plan Aggregate Production Plan Marketing Customer Demand Engineering Design Completion Management Return on Investment Capital Human Resources Manpower Planning Procurement Supplier Performance Finance Cash Flow Production Capacity Inventory
- 8. 8 Production Planning Production Planning and Control Production Control •Planning •Routing •Scheduling •Loading •Dispatching •Following up •Inspection •Correction PPC Process
- 9. 9 Production Control: Production control is the process of planning production in establishing the extract 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.
- 10. 10 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. Movement of work from one operation to another in accordance with the route sheet. Inspecting or supervision of work Dispatching is an important step as it translates production plans into production.
- 11. 11 • Follow up: Every production programme 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 measure are undertaken to ensure the completion of work by the planned date. • Inspection: This is mainly to ensure the quality of goods. It can be required as effective agency of production control.
- 12. 12 • Corrective measures: 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 etc. may have to be taken. Alternate methods may be suggested to handle peak loads.
- 13. 13 PPC functions: ▫ To produce the required product with minimum total cost and time for required delivery. ▫ Minimum total cost includes- direct labour, indirect labour, raw material, equipment, capital, utility, rent, maintenance, supplies and supervisory control
- 14. 14 PPC FUNCTIONS • Analysing: It is the process to determining the quality specifications of the products- raw materials, production equipments and tools, production personnel • Forecasting: It is the process of estimating the future volume of sales, rate of sales and rate of delivery • Planning: It is the activity of organising the sequence of communication and managerial processing. • Scheduling: Scheduling is to When, What and Where to organised • Controlling : Controlling/ Supervising is an activity with which production manager inspects and corrects the execution of his production plan. And also to change the plan whenever required.
- 15. 15 • Production Analysis- Quality Specification Examine the sketch Style Specification Fabric Analysis Trimming Analysis Process (Construction) analysis • Production Analysis- Quantitative Production m/c & equipments Work station layout Transportation Flow process grid Production control plan
- 16. 16 • 3 basic controls are ▫ Directives – orders which give one the authority to do something ▫ Records- tabulated results of doing ▫ Identification- Labels giving specific identity to the products being processed
- 17. 17 Types of control form • Sales order • Sales Tally sheet • Purchase Order • Receiving memo • Cut Order Plan • Cutting Production control chart • Cutting Projection tally • Re-cut or swatch ticket • Daily factory Report • Daily Projection Report • Bi-hourly Production Status • Inline Checking Report • Inline Audit Report • End line Quality Report • Daily Packing Status
Editor's Notes
- #3: This slide distinguishes between Quantitative and Qualitative forecasting. If you accept the argument that the future is one of perpetual, and perhaps significant change, you may wish to ask students to consider whether quantitative forecasting will ever be sufficient in the future - or will we always need to employ qualitative forecasting also. (Consider Tupperware’s ‘jury of executive opinion.’)
- #4: This slide outlines several qualitative methods of forecasting. Ask students to give examples of occasions when each might be appropriate. The next several slides elaborate on these qualitative methods.
- #5: This slide illustrates the relationship between the aggregate schedule and other decisions areas within the organization.
- #6: Ask students to identify at least one example of a scheduling based on qualitative factors, and one one quantitative factors.