Production Planning & Control An Introduction

The Concept Planning: consideration of all input variables to achieve predetermined output goals; a pre-production activity to determine optimal production schedule, operation sequence, economic batch quantity, etc. Control: remedial action to prevent variance of output from planned levels; tracking operations to ensure compliance with planned levels

Production Planning Stages Defining objectives Setting priorities to attain objectives Examining internal & external environments of planned system Determining achievable targets Determining inputs needed to achieve targets

Objectives Effectiveness: goods to fulfill customers’ needs Maximising output: maximum output with minimum input Quality control: Product/service quality meets planned quality specifications Minimise throughput time: conversion of RM to FG in minimum time

Objectives (continued) Capacity: full utilisation of men & machines Minimise cost: minimum cost of production Maintaining inventory: optimal inventory Flexibility: flexibility in production operations Coordination: between men & machines

Objectives (continued) Capacity: plan for current & future needs Reduce bottlenecks: solve production problems early Maximise profit: minimise cost Production schedules: as per plan Routes & schedules: to optimise use of men, material & machinery Maintain performance: maintain standards

Functions of Production Planning Product selection & design Process selection & planning Facility location Facility layout & materials handling Capacity planning Systems & procedures Estimating quantity/costs of production, men Routing operation sequence Job scheduling & loading

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