OPERATIONS MANAGEMENT

 

PRODUCTION PLANNING + PRODUCTION CONTROL = PRODUCTION PLANNING AND CONTROL

• PRODUCTION PLANNING involves management decisions relating to how much to produce, what materials, parts and tools will be needed, what steps should be followed in the production process, within what time limit the production is to be completed and how much work to be done by each workstation.

It is a pre-production activity involving arranging facilities and designing the production system.

 

• PRODUCTION CONTROL involves implementation of production plans or schedules by coordinating different activities. It seeks to ensure that production operations and actual performance occur according to planned operations and performance. Product operations are constantly evaluated, guided and directed along the plans formulated by the planning department. Production control endeavors to give the best possible service, consistent with available capacitates and at the same time to secure the lowest possible cost.

 

NECESSITY OF PRODUCTION PLANNING AND CONTROL

• To design a system by which production can be achieved to meet promised delivery date with minimum cost and quality standard.

• To ensure efficient utilization of production facilities.

• To coordinate the production activities of various departments.

• To maintain appropriate stock of work in process, raw materials and finished products to meet the production requirements.

• To ensure smooth flow of materials by eliminating production bottlenecks if any.

• To ensure the production of right product, a right quality at right time.

• To coordinate equipment and labor in most effective and economic way.

• Establishing goals and checking the performance against set targets.

• To provide alternative production strategies in case of emergent condition.

• To find out the magnitude and nature of various inputs for the manufacture of desired output.

 

FUNCTION OF PRODUCTION PLANNING AND CONTROL

1. Planning
2. Routing
3. Loading
4. Scheduling
5. Dispatching
6. Follow up
7. Inspection
8. Corrective Measures, if any

 

PLANNING:

• It is the first element of production planning and control. Planning is deciding in advance what is to be done in future. An organizational set up is created to prepare plans and policies. Various charts, manuals and production budgets are also prepared. Planning provides a sound base for control. A separate department is set up for this work.

• Production planning may be defined as the technique of foreseeing every step in a long series of separate operations, each step to be taken at the right time and in the right place and each operation to be performed in maximum efficiency.

• It helps entrepreneur to work out the quantity of material , manpower, machine and money requires for producing predetermined level of output in given period of time.

 

ROUTING:

• Routing is determining the exact path which will be followed in production. It is the selection of the path from where each unit have to pass before reaching the final stage. The stages from which goods are to pass are decided in this process.

 

• Routing Procedure :-
  • Deciding what part to be made or purchased.

• • Determining Materials required.

• • Determining Manufacturing Operations and Sequences.

• • Determining of Lot Sizes.

• • Determining of Scrap Factors.

• • Analysis of Cost of the Product.

• • Preparation of Production Control Forms.

 

LOADING:

• The next step includes the assignment of the work to the operators at their machines or work places.

• So loading determines who will do the work as routing determines where and scheduling determines when it shall be done.

• Loading ensure maximum possible utilization of productive facilities and avoids bottleneck in production. It is important to avoid either over loading or under loading the facilities , work centers or machines to ensure maximum utilization of resources.

 

SCHEDULING:

• Scheduling is the determining of time and date when each operation is to be commenced or completed. The time and date of manufacturing each component is fixed in such a way that assembling for final product is not delayed in any way.

• Types of scheduling :-
  • Master Scheduling – It is the breakup of production requirements. It is the start of scheduling. It is prepared by keeping in view the order or likely sales order in near future.

• • Manufacturing Scheduling – It is used where production process is continuous. The order of preference for manufacture is also mentioned in the schedule for a systematic production planning.

• • Detail Operation Scheduling – It indicates the time required to perform each and every detailed operations of a given process.

 

DISPATCHING:

• Dispatching refers to the process of actually ordering the work to be done. It involves putting the plan into effect by issuing orders. It is concerned with starting the process and operation on the basis of route sheets and schedule charts.

• Dispatching Procedure :-
  • Centralized Dispatching – Under this, orders are directly issued to workmen and machines. It helps in exercising effective control.

• • Decentralized Dispatching – Under this procedure all work orders are issued to the foreman or dispatch clerk of the department or section. It suffers from difficulties in achieving coordination among different departments.

 

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 defects in routing and scheduling, misunderstanding of orders and instruction, under loading or overloading of work etc.

• All problems or deviations are investigated and remedial measures 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.

• Inspection is undertaken both of products and inputs. It is carried on at various levels of production process so that predetermined standards of quality are achieved. Inspection ensures the maintenance of predetermined quality of products.

 

CORRECTIVE ACTION:

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.

 

 

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