The document discusses various aspects of production planning including planning, routing, scheduling, activating, and monitoring. It provides definitions and explanations of each term. Planning involves deciding in advance what to do, how to do it, when to do it and who is to do it. Routing determines the most advantageous path for a product to follow from raw materials to finished goods. Scheduling fixes the time and date for each operation. Activating starts the production processes by releasing orders. Monitoring reports daily progress and investigates deviations from plans.
3. 1. Planning is deciding in advance what to do, how to do it, when to do it and who is to
do it.
Planning bridges the gap from where we are, to where we want to go. It makes it possible for things
occur which would not otherwise happen.
2. Routing may be defined as the selection of path which each part of the product will
follow, which being transformed from raw material to finished products.
Routing determines the most advantageous path to be followed from department to department and
machine to machine till raw material gets its final shape.
3. Scheduling determines the program for the operations. Scheduling may be defined
as ‘the fixation of time and date for each operation’ as well as it determines the
sequence of operations to be followed.
4. Activating is concerned with the starting the processes. Activating is ‘release of
orders and instruction for the starting of production for any item in acceptance with
route sheet and schedule charts’.
5. Monitoring is related to report daily the progress of work in each shop in a
prescribed proforma and to investigate the causes of deviations from the planned
performance.
Introduction
5. 1. Production Planning
Production Planning is one of
the step of a sequence of activity
under Production/ Operation
Management.
Production/
Operation
managemen
t
Location of
Facilities Plant layout
and
Material
Handling
Product
Design
Process
Design
Production
Planning
Quality
control
Material
Manageme
nt
Maintenanc
e
Manageme
nt
Production planning can be
defined as the process of
planning the production in
advance, setting the exact route
of each item, fixing the starting
and finishing dates for each
item.
6. Characteristics of Production Planning
It is the planning of manufacturing process in an enterprise.
Questions like- what is to be manufactured? when it is to be
manufactured? etc.
All types of inputs like materials, men, machines are efficiently used for
maintaining efficiency of manufacturing process.
Various factors of production are integrated to use them efficiently and
economically.
The manufacturing process is organized in such a way that none of the
work centers is either overworked or under worked.
The work is regulated from the first stage of procuring raw materials to
the last stage of finished goods.
7. What is Importance ??
1. To Increase Production:
The main purpose of production planning is to arrange various inputs like men,
machines & materials, and integrating them for making their best use.
When various factors of production are economically used then production will
certainly go up.
Efforts are made to avoid production stoppages.
2. For Coordinating Plant Activity:
If production is carried out in a number of chunks then their activities are synchronized
for smooth working.
Production targets are set on the basis of sales forecasts. And The raw materials, men
and equipment are procured by keeping production plans in view.
Different production activities are coordinated as per the plans.
3. For Rationalization of Production Activities:
An important objective of production planning and control is also to regulate the flow
of various inputs into the production system for running it smoothly.
The system is planned in such a way that everything is done automatically.
The quality standards are followed in routine and sub-standard products are discarded
in the processes.
8. What is Importance ??
4. For Cost Control:
In the absence of a proper production plan, the idleness of men, material and equipment
may not be noticed.
Whenever performance is below standards then corrective measures are taken to rectify it.
A properly planned system of production will help in controlling costs by not only making
full utilization of various inputs but also by increasing output and lowering overhead
expenses per unit.
5. Essurance of quality to Consumers:
The consumer is ensured good quality goods.
The planning helps in raising quality standards of products.
The supply of goods is also prompt and consumer has not to wait for them.
The increase in production also helps the consumer in getting sufficient supply of goods.
9. Limitations
1. Based on Assumptions:
Production planning and control is based on certain assumptions.
In case the assumptions prove correct then the planning and control will go smoothly, and if these
assumptions go wrong then the process of planning and control will fail.
The assumptions generally are about plant capacity, orders, availability of raw materials and power etc.
2. Rigidity:
Under production planning and control the things are pre-decided and fixed.
There is rigidity in the behavior of employees and it may not help in smoothening the flow of work.
3. Difficult for Small Firms:
This process is time consuming and small firms may not be able to make use of production planning
and control.
4. Costly:
It is a costly device as its implementation requires separate persons to perform the functions of
planning, dispatching, expediting etc.
Small firms cannot use the services of specialists due to cost factor.
5. Dependence on External Factors:
The external factors sometimes reduce the effectiveness of production planning and control.
The factors like natural calamities, change in technology, change in fashion, breakdown of power,
government controls etc. limit the use of production planning and control.
10. 2. Routing
Routing may be defined as the selection of path which each part of the
product will follow while being transformed from raw materials to
finished products.
Path of the product will also give sequence of operation to be adopted
while being manufactured
This selection of a particular path, i.e. sequence of operations must be
the best and cheapest to have the lowest cost of the final product.
Involves the following steps:
Type of work to be done on product or its parts
Operation required to do the work
Sequence of operation required
Where the work will be done
A proper classification about the personnel required and the machine for doing the work
Routing provides the basis for scheduling, activating and monitoring
11. Techniques of Routing
Route card:
This card always accompanies with the job throughout all operations. This
indicates the material used during manufacturing and their progress from
one operation to another.
In addition to this the details of scrap and good work produced are also
recorded.
12. Techniques of Routing
Route sheet:
It deals with specific production order.
Generally made from operation sheets.
One sheet is required for each part or component of the order.
13. 3. Scheduling
Scheduling can be defined as “prescribing of when and where each
operation necessary to manufacture the product is to be performed.”
OR
It is also defined as “establishing of times at which to begin and
complete each event or operation comprising a procedure”.
The principle aim of scheduling is to plan the sequence of work so
that production can be systematically arranged towards the end of
completion of all products by due date.
14. Principles of Scheduling
Principle of optimum task size: Scheduling tends to
achieve maximum efficiency when the task sizes are
small, and all tasks of same order of magnitude.
Principle of optimum production plan: The planning
should be such that it imposes an equal load on all plants
Principle of optimum sequence: Scheduling tends to
achieve the maximum efficiency when the work is
planned so that work hours are normally used in the
same sequence.
16. Scheduling Methodology
The scheduling methodology depends upon the type of industry,
organization, product, and level of sophistication required.
They are:
1. Charts and boards,
2. Priority decision rules,
3. Mathematical programming methods.
1. Charts and boards
a) Gantt Charts and Boards
It show the work assigned to a group of workers or machines v/s
time. (Shows today’s job schedule by employee)
17. Scheduling Methodology
b) Processes Schedule Chart
Illustrate the planned schedule compared to actual performance
Brackets show when activity is scheduled to be finished. Note: design
& pilot run both finish late; feedback has not started yet.
18. Scheduling Methodology
2. Priority Decision Rules
Priority decision rules are simplified guidelines for determining the
sequence in which jobs will be done. In some firms these rules take the
place of priority planning systems such as MRP systems.
Following are some of the priority rules followed.
First come, first served (FCFS)
Last come, first served (LCFS)
Earliest due date (EDD)
Shortest processing time (SPT)
Longest processing time (LPT)
Critical ratio (CR): (Time until due date)/(processing time)
Slack per remaining Operations (S/RO): Slack /(number of remaining
operations)
19. Scheduling Methodology
Example using SPT and EDD rule
Example Using SPT and EDD at Jill's Machine Shop-Work Center 101
Job Time Days to SPT Rule EDD Rule
Job Number (includes Setup & Run Time) Due Date Sequence Sequence
AZK111 3 days 3 EZE101 AZK111
BRU872 2 days 6 BRU872 EZE101
CUF373 5 days 8 AZK111 DBR664
DBR664 4 days 5 DBR664 BRU872
EZE101 1day 4 FID448 CUF373
FID448 4 days 9 CUF373 FID448
20. Scheduling Methodology
3. Mathematical Programming Methods
Scheduling is a complex resource allocation problem.
Firms process capacity, labour skills, materials and they seek to allocate their
use so as to maximize a profit or service objective, or perhaps meet a demand
while minimizing costs.
The following are some of the models used in scheduling and production control.
Linear programming model: Here all the constraints and objective functions are
formulated as a linear equation and then problem is solved for optimality.
Simplex method, transportation methods and assignment method are major methods used
here.
PERT/CPM network model: PERT/CPM network is the network showing the
sequence of operations for a project and the precedence relation between the
activities to be completed.
Note: Scheduling is done in all the activities of an organization i.e., production,
maintenance etc. Therefore, all the methods and techniques of scheduling are
used for maintenance management.
21. 4. Activating
Activating is concerned with the starting the processes.
It is the transition from planning to action phase.
In this phase the worker is ordered to start the actual work.
It is the physical handing over of a manufacturing order to the
operating facility (a worker) through the release of orders and
instructions in accordance with a previously developed plan of
activity (time and sequence) established by the scheduling section of
the production planning and control department.
It transmits order to the various shops.
22. Activating Procedure
Store Issue Order - Authorized stores (department) to deliver required raw
material.
Tool Order - Authorized tool store to release the necessary tools. The tools can
be collected by the tool room attendant.
Job Order - Instruct the worker to proceed with the operation.
Time Ticket - It records the beginning and ending time of the operations and
forms the basis for worker's pay.
Inspection Order - Notify the inspectors to carry out necessary inspections and
report the quality of the component.
Move Order – Authorize the movement of materials and components from one
facility (machine) to another for further operations.
23. 5. Monitoring
Progress reporting:
(i) Data regarding the job progress is collected.
(ii) It is interpreted by comparison with the preset level of
performance.
Corrective action :
(i) Expediting - taking action if the progress reporting
indicates a deviation of the plan from the originally set
targets.
(ii) Re-planning of the whole affair becomes essential, in case
expediting fails to bring the deviated plan to its actual (right)
path.
Editor's Notes
Suryanagri
Main functions of production planning and control includes planning, routing, scheduling, dispatching and follow-up.
For Increasing Production:- The main purpose of production planning, function is to arrange various inputs like men, materials and machines and integrating them for making their best use. When various factors of production are economically used then production will certainly go up. Efforts are made to avoid production stoppages for want of various inputs. A production control Programme will minimize the idleness of men and machines.
For Co-coordinating Plant Activity: - Production planning helps in controlling plant activities. Production targets are set on the basis of sales forecasts. The raw materials, men and equipment are arranged by keeping in view production plans. Different production activities are adjusted as per the plans. If production is carried out in a number of processes then their activities are synchronized for smooth working.
For Cost Control: - It helps in controlling various costs. In the absence of a proper production plan, the idleness of men, material and equipment may not be noticed. Whenever performance is below standards then corrective measures are taken to rectify it. A properly planned system of production will help in controlling costs by not only making full utilization of various inputs but also by increasing output and lowering overhead expenses per unit.
For Rationalisation of Production Activities: - An important objective of production planning and control is also to regulate the flow of various inputs into the production system for running it smoothly. The system is planned in such a way that everything is done automatically. The supply of materials and men follows the demand for goods. The quality standards are followed in routine and sub-standard products are discarded in the processes. The process of entering of raw materials and converting them into finished
5. Consumers: - The consumer is ensured good quality goods. The process will help in raising quality standards of products. The supply of goods is also prompt and consumer has not to wait for them.Production schedules are prepared by keeping in mind the requirements of consumers. The supplies are regulated for meeting the demand for goods. The increase in production also helps the consumer in getting sufficient supply of goods.
For Cost Control: - It helps in controlling various costs. In the absence of a proper production plan, the idleness of men, material and equipment may not be noticed. Whenever performance is below standards then corrective measures are taken to rectify it. A properly planned system of production will help in controlling costs by not only making full utilization of various inputs but also by increasing output and lowering overhead expenses per unit.
For Rationalization of Production Activities: - An important objective of production planning and control is also to regulate the flow of various inputs into the production system for running it smoothly. The system is planned in such a way that everything is done automatically. The supply of materials and men follows the demand for goods. The quality standards are followed in routine and sub-standard products are discarded in the processes. The process of entering of raw materials and converting them into finished
5. Consumers: - The consumer is ensured good quality goods. The process will help in raising quality standards of products. The supply of goods is also prompt and consumer has not to wait for them.Production schedules are prepared by keeping in mind the requirements of consumers. The supplies are regulated for meeting the demand for goods. The increase in production also helps the consumer in getting sufficient supply of goods.
Limitations of production planning and control
1.Based on Assumptions: - Production planning and control is based on certain assumptions. In case the assumptions prove correct then the planning and control will go smoothly, otherwise it may not. The assumptions generally are about plant capacity, orders, availability of raw materials and power etc. if these assumptions go wrong then the process of planning and control will go weak.
2.Rigidity: - Under production planning and control the things are pre-decided and fixed. There is rigidity in the behavior of employees and it may not help in smoothening the flow of work.
3. Difficult for Small Firms: - This process is time consuming and small firms may not be able to make use of production planning and control.
4. Costly: - It is a costly device as its implementation requires separate persons to perform the functions of planning, dispatching, expediting etc. Small firms cannot use the services of specialists due to cost factor.
5. . Dependence on External Factors: - The external factors sometimes reduce the effectiveness of production planning and control. The factors like natural calamities, change in technology, change in fashion, breakdown of power, government controls etc. limit the use of production planning and control.
Routing may be defined as the selection of path which each part of the product will follow while being transformed from raw materials to finished products. Path of the product will also give sequence of operation to be adopted while being manufactured. In other way, routing means determination of most advantageous path to be followed from department to department and machine to machine till raw material gets its final shape, which involves the following steps:
Type of work to be done on product or its parts. Operation required to do the work. Sequence of operation required. Where the work will be done. A proper classification about the personnel required and the machine for doing the work. For effective production control of a well-managed industry with standard conditions, the routing plays an important role, i.e., to have the best results obtained from available plant capacity. Thus routing provides the basis for scheduling, dispatching and follow-up.
Techniques of Routing While converting raw material into required goods different operations are to be performed and the selection of a particular path of operations for each piece is termed as ‘Routing’. This selection of a particular path, i.e. sequence of operations must be the best and cheapest to have the lowest cost of the final product. The various routing techniques are:
Route card: This card always accompanies with the job throughout all operations. This indicates the material used during manufacturing and their progress from one operation to another. In addition to this the details of scrap and good work produced are also recorded Work sheet: It contains Specifications to be followed while manufacturing.Instructions regarding routing of every part with identification number of machines and This sheet is made for manufacturing as well as for maintenance. Route sheet: It deals with specific production order. Generally made from operation sheets. One sheet is required for each part or component of the order. This includes the following:Number and other identification of order.Symbol and identification of part.Number of pieces to be made.Number of pieces in each lot if put through in lots.Operation data which includes:List of operation on the part.Department in which operations are to be performed.Machine to be used for each operation.Fixed sequence of operation, if any. Move order: Though this is document needed for production control, it is never used for routing system. Move order is prepared for each operation as per operation sheet. On this the quantity passed forward, scrapped and to be rectified are recorded. It is returned to planning office when the operation is completed.
Techniques of Routing While converting raw material into required goods different operations are to be performed and the selection of a particular path of operations for each piece is termed as ‘Routing’. This selection of a particular path, i.e. sequence of operations must be the best and cheapest to have the lowest cost of the final product. The various routing techniques are:
Route card: This card always accompanies with the job throughout all operations. This indicates the material used during manufacturing and their progress from one operation to another. In addition to this the details of scrap and good work produced are also recorded Work sheet: It contains Specifications to be followed while manufacturing.Instructions regarding routing of every part with identification number of machines and This sheet is made for manufacturing as well as for maintenance.
maintenance.Route sheet: It deals with specific production order. Generally made from operation sheets. One sheet is required for each part or component of the order. This includes the following:Number and other identification of order.Symbol and identification of part.Number of pieces to be made.Number of pieces in each lot if put through in lots.Operation data which includes:List of operation on the part.Department in which operations are to be performed.Machine to be used for each operation.Fixed sequence of operation, if any. Work sheet: It contains Specifications to be followed while manufacturing.Instructions regarding routing of every part with identification number of machines and This sheet is made for manufacturing as well as for maintenance.
Scheduling can be defined as “prescribing of when and where each operation necessary to manufacture the product is to be performed.” It is also defined as “establishing of times at which to begin and complete each event or operation comprising a procedure”. The principle aim of scheduling is to plan the sequence of work so that production can be systematically arranged towards the end of completion of all products by due date.
Principles of Scheduling
The principle of optimum task size: Scheduling tends to achieve maximum efficiency when the task sizes are small, and all tasks of same order of magnitude.Principle of optimum production plan: The planning should be such that it imposes an equal load on all plants.Principle of optimum sequence: Scheduling tends to achieve the maximum efficiency when the work is planned so that work hours are normally used in the same sequence. Inputs to Scheduling
Performance standards: The information regarding the performance standards (standard times for operations) helps to know the capacity in order to assign required machine hours to the facility.Units in which loading and scheduling is to be expressed.Effective capacity of the work centre.Demand pattern and extent of flexibility to be provided for rush orders.Overlapping of operations.Individual job schedules.Scheduling Strategies Scheduling strategies vary widely among firms and range from ‘no scheduling’ to very sophisticated approaches. These strategies are grouped into four classes:
Detailed scheduling: Detailed scheduling for specific jobs that are arrived from customers is impracticable in actual manufacturing situation. Changes in orders, equipment breakdown, and unforeseen events deviate the plans.Cumulative scheduling: Cumulative scheduling of total work load is useful especially for long range planning of capacity needs. This may load the current period excessively and under load future periods. It has some means to control the jobs.Cumulative detailed: Cumulative detailed combination is both feasible and practical approach. If master schedule has fixed and flexible portions.Priority decision rules: Priority decision rules are scheduling guides that are used independently and in conjunction with one of the above strategies, i.e., first come first serve. These are useful in reducing Work-In-Process (WIP) inventory. Types of Scheduling Types of scheduling can be categorized as forward scheduling and backward scheduling.
Forward scheduling is commonly used in job shops where customers place their orders on “needed as soon as possible” basis. Forward scheduling determines start and finish times of next priority job by assigning it the earliest available time slot and from that time, determines when the job will be finished in that work centre. Since the job and its components start as early as possible, they will typically be completed before they are due at the subsequent work centers in the routing. The forward method generates in the process inventory that are needed at subsequent work centers and higher inventory cost. Forward scheduling is simple to use and it gets jobs done in shorter lead times, compared to backward scheduling.Backward scheduling is often used in assembly type industries and commit in advance to specific delivery dates. Backward scheduling determines the start and finish times for waiting jobs by assigning them to the latest available time slot that will enable each job to be completed just when it is due, but done before. By assigning jobs as late as possible, backward scheduling minimizes inventories since a job is not completed until it must go directly to the next work centre on its routing. Forward and backward scheduling methods are shown in the following figure.Forward and backward scheduling
Performance standards: The information regarding the performance standards (standard times for operations) helps to know the capacity in order to assign required machine hours to the facility.Units in which loading and scheduling is to be expressed.Effective capacity of the work centre.Demand pattern and extent of flexibility to be provided for rush orders.Overlapping of operations.Individual job schedules.Scheduling Strategies Scheduling strategies vary widely among firms and range from ‘no scheduling’ to very sophisticated approaches.
Types of Scheduling Types of scheduling can be categorized as forward scheduling and backward scheduling.
Forward scheduling is commonly used in job shops where customers place their orders on “needed as soon as possible” basis. Forward scheduling determines start and finish times of next priority job by assigning it the earliest available time slot and from that time, determines when the job will be finished in that work centre. Since the job and its components start as early as possible, they will typically be completed before they are due at the subsequent work centers in the routing. The forward method generates in the process inventory that are needed at subsequent work centers and higher inventory cost. Forward scheduling is simple to use and it gets jobs done in shorter lead times, compared to backward scheduling.Backward scheduling is often used in assembly type industries and commit in advance to specific delivery dates. Backward scheduling determines the start and finish times for waiting jobs by assigning them to the latest available time slot that will enable each job to be completed just when it is due, but done before. By assigning jobs as late as possible, backward scheduling minimizes inventories since a job is not completed until it must go directly to the next work centre on its routing. Forward and backward scheduling methods are shown in the following figure.Forward and backward scheduling
The scheduling methodology depends upon the type of industry, organization, product, and level of sophistication required. They are:
Charts and boards,Priority decision rules, andMathematical programming methods. Gantt Charts and Boards Gantt charts and associated scheduling boards have been extensively used scheduling devices in the past, although many of the charts are now drawn by computer. Gantt charts are extremely easy to understand and can quickly reveal the current or planned situation to all concerned. They are used in several forms, namely,Scheduling or progress charts, which depicts the sequential schedule;Load charts, which show the work assigned to a group of workers or machines; andRecord a chart, which are used to record the actual operating times and delays of workers and machines.Priority Decision Rules Priority decision rules are simplified guidelines for determining the sequence in which jobs will be done. In some firms these rules take the place of priority planning systems such as MRP systems. Following are some of the priority rules followed.
Mathematical Programming Methods Scheduling is a complex resource allocation problem. Firms process capacity, labor skills, materials and they seek to allocate their use so as to maximize a profit or service objective, or perhaps meet a demand while minimizing costs. The following are some of the models used in scheduling and production control. Linear programming model: Here all the constraints and objective functions are formulated as a linear equation and then problem is solved for optimality. Simplex method, transportation methods and assignment method are major methods used here.PERT/CPM network model: PERT/CPM network is the network showing the sequence of operations for a project and the precedence relation between the activities to be completed.Note: Scheduling is done in all the activities of an organization i.e., production, maintenance etc. Therefore, all the methods and techniques of scheduling are used for maintenance management.
MRP- material requirement planning
Mathematical Programming Methods Scheduling is a complex resource allocation problem. Firms process capacity, labor skills, materials and they seek to allocate their use so as to maximize a profit or service objective, or perhaps meet a demand while minimizing costs. The following are some of the models used in scheduling and production control. Linear programming model: Here all the constraints and objective functions are formulated as a linear equation and then problem is solved for optimality. Simplex method, transportation methods and assignment method are major methods used here. PERT/CPM network model: PERT/CPM network is the network showing the sequence of operations for a project and the precedence relation between the activities to be completed.Note: Scheduling is done in all the activities of an organization i.e., production, maintenance etc. Therefore, all the methods and techniques of scheduling are used for maintenance management.
PERT stands for Program Evaluation Review Technique, a methodology developed by the U.S. Navy in the 1950s to manage the Polaris submarine missile program. A similar methodology, the Critical Path Method (CPM) was developed forproject management in the private sector at about the same time.