Production Planning and Control
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Production Planning and Control

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Questions and Answers

What is the primary objective of a project's capacity determination?

  • To determine the investment capacity of the project (correct)
  • To forecast the demand of the product in the market
  • To optimize the arrangements of the '4 m's' and supporting services
  • To determine the quantity of power, water, land, and raw materials available

    • What is the purpose of a 'bill of materials'?

  • To decide the specifications of machines required for manufacturing
  • To optimize the arrangements of the '4 m's' and supporting services
  • To prepare a detailed drawing of the product
  • To prepare a list of materials required for manufacture (correct)

    • What is the primary aim of production control?

  • To produce the products of right quality, in right quantity at the right time (correct)
  • To minimize the production cost
  • To reduce the production time
  • To increase the production quantity

    • What is the sequence of activities in a time sequence?

    <p>Preplanning, planning, and control</p> Signup and view all the answers

    What is the main goal of 'method study' in operation planning?

    <p>To eliminate wastage of material, labour, machine, and time</p> Signup and view all the answers

    What is the main consideration for deciding the site of a factory?

    <p>All of the above</p> Signup and view all the answers

    What is the primary function of preplanning?

    <p>To decide what shall be made and how it shall be made</p> Signup and view all the answers

    What is budgeting in the context of production planning?

    <p>Forecasting and preplanning for a particular future period</p> Signup and view all the answers

    What is the purpose of project planning?

    <p>To anticipate and consider all relevant provisions in advance</p> Signup and view all the answers

    What is the primary function of the control stage?

    <p>To initiate the plan at the right time</p> Signup and view all the answers

    What is the primary objective of creating a manufacturing organization?

    <p>To make products</p> Signup and view all the answers

    What is the relationship between planning and control in PPC?

    <p>They are interrelated but separate functions</p> Signup and view all the answers

    What is the primary function of PPC?

    <p>To plan and control manufacturing activities</p> Signup and view all the answers

    What is the purpose of setting standards in planning?

    <p>To assess performance during control</p> Signup and view all the answers

    What is the significance of PPC in industrial organizations?

    <p>It intervenes in multiple departments</p> Signup and view all the answers

    What is the primary purpose of capability studies in production control?

    <p>To analyze the capabilities of equipment and workforce</p> Signup and view all the answers

    What is the significance of feedback in production control?

    <p>It provides vital information for future performance</p> Signup and view all the answers

    What is the last step in the control cycle?

    <p>Adjustment</p> Signup and view all the answers

    What is the purpose of evaluation in the control cycle?

    <p>To compare actual performance with plans and objectives</p> Signup and view all the answers

    What is required for successful implementation of production control?

    <p>Flexibility and feedback</p> Signup and view all the answers

    What is the primary criterion used to analyze the feasibility of a project?

    <p>Rate of return on invested capital</p> Signup and view all the answers

    What is the purpose of planning in achieving an objective?

    <p>To provide the supporting arithmetic for an objective</p> Signup and view all the answers

    What is the primary goal of production planning?

    <p>To minimize costs associated with fluctuations in workforce and inventories</p> Signup and view all the answers

    What are the three types of production planning?

    <p>Project planning, lot planning, and progressive planning</p> Signup and view all the answers

    What is the primary difference between production planning and scheduling?

    <p>Planning is future-oriented, while scheduling is current-oriented</p> Signup and view all the answers

    What is the primary purpose of scheduling in production planning?

    <p>To allocate resources for short-term production goals</p> Signup and view all the answers

    What is the primary difference between planning and scheduling?

    <p>Planning is general, while scheduling is detailed</p> Signup and view all the answers

    What is the purpose of decision rules in scheduling?

    <p>To link scheduling with organizational goals</p> Signup and view all the answers

    What is an example of a decision rule in scheduling?

    <p>Schedule the job with the earliest delivery date first</p> Signup and view all the answers

    What is the purpose of coordinating flow rates along production lines?

    <p>To ensure smooth workflow and efficient use of resources</p> Signup and view all the answers

    What is the primary purpose of schedules in production planning?

    <p>To provide warnings of deviations and enable corrective action</p> Signup and view all the answers

    What is the primary objective of inventory control in production planning?

    <p>To ensure the availability of goods and services</p> Signup and view all the answers

    What is the primary factor that determines the place of production planning and control in an organization?

    <p>The type of production</p> Signup and view all the answers

    What is the primary objective of the implementation phase of production planning?

    <p>To supervise and control the production process</p> Signup and view all the answers

    What is the primary goal of production planning?

    <p>To meet sales requirements</p> Signup and view all the answers

    What is the primary purpose of the 'methods' function in PPC?

    <p>To analyze and select the best manufacturing method</p> Signup and view all the answers

    What is the main consideration when determining the lot size in production?

    <p>The economic lot quantity</p> Signup and view all the answers

    What is the purpose of determining the scrap factor in PPC?

    <p>To anticipate normal scrap encountered in manufacturing</p> Signup and view all the answers

    What is the role of the 'routing' function in PPC?

    <p>To determine the sequence of operations</p> Signup and view all the answers

    What is the purpose of the 'estimating' function in PPC?

    <p>To work out the operation time</p> Signup and view all the answers

    Study Notes

    Understanding Production Planning and Control

    Importance of PPC

    • PPC (Production Planning and Control) is essential for the effective operation of a manufacturing organization
    • It involves planning, organizing, and controlling the production process to achieve the organization's objectives

    Functions of PPC

    • Planning: deciding what, how, and when to produce
    • Routing: determining the sequence of operations and the path of material flow
    • Dispatching: releasing orders and schedules to the production floor
    • Controlling: monitoring and correcting the production process to ensure it meets the plan

    Pre-Planning

    • Identifying what to produce and how to produce it
    • Involves forecasting, product design, jig and tool design, machine selection, and estimating

    Planning

    • Deciding where and when to produce
    • Includes sequencing of operations, scheduling, material planning, and machine loading

    Control

    • Ensuring the planned action is carried out
    • Involves measurement of actual results, comparison with planned results, and feeding back information to planning stage

    Project Planning

    Steps in Project Planning

    • Market survey
    • Project capacity
    • Selection of site
    • Plant layout
    • Design and drawing
    • Material requirement
    • Operation planning
    • Machine loading
    • Sub-contract consideration
    • Equipment requirement
    • Organizational layout and staff requirement
    • Material handling
    • Budgeting
    • Cost calculation
    • Procurement of finance
    • Critical report on feasibility

    Planning and Scheduling

    Types of Production Planning

    • Project planning
    • Lot or batch planning
    • Progressive or continuous planning

    Scheduling

    • Providing detailed plans for utilizing facilities to achieve immediate product objectives
    • Starts with the desired end results and provides a blueprint for accomplishing tasks

    Inventory Control

    • Related aspect of production control
    • Involves managing inventory levels to meet production plans and customer delivery requirements

    Production

    Definition

    • The process of creating goods and services

    Production System

    • Combines materials, labor, and capital resources to produce goods or services
    • Involves inputs from other subsystems, such as service inputs and control inputs

    Objectives of Production Planning

    • Determine capacity of manufacturing departments and plan production activities
    • Translate sales orders into production orders
    • Ensure availability of materials and resources
    • Coordinate departmental activities
    • Promote fuller utilization of plants
    • Assist labor in earning more
    • Train staff in effective performance of duties

    Control

    Principles of Control

    • Action, feedback, evaluation, and adjustment

    Steps in Control Cycle

    • Operation

    • Measurement

    • Capability studies

    • Objectives

    • Evaluation

    • Adjustment### Feedback and Flexibility

    • Feedback is information received after the performance of an action that is used as the basis for future performance

    • Feedback is vital for control and improvement

    • Flexibility is necessary for successful plant implementation, which implies the establishment of details, benchmarks, and measures of progress

    • Feedback and flexibility are key to successful implementation and improvement

    Functions of PPC

    • The goal of PPC is to obtain the highest efficiency in production by manufacturing the required quantity of product at the required time by the best and cheapest method
    • The main functions of PPC are:
      • Coordinating all manufacturing activities
      • Ensuring materials are available on time
      • Analyzing and selecting the best method of manufacture
      • Relating methods to available production facilities and determining equipment replacement policy
      • Determining the sequence of operations and the division of products into assemblies and sub-assemblies
      • Designing economy of jigs and fixtures

    Routing

    • Routing specifies the flow of sequence of operations and processes to be followed in producing a particular manufacturing lot
    • Routing determines what work will be done on the product, where, and how it will be done
    • Routing estimates the operations, their path, sequence, and class of machines and personnel required
    • Routing involves determining what to make and what to purchase based on relative cost, technical considerations, purchasing policies, and availability of equipment and personnel

    Estimating, Loading, and Scheduling

    • Estimating involves working out operation times based on production orders and detailed operation sheets
    • Loading involves allocating machines according to their capabilities and performance
    • Scheduling involves determining what, when, and where specific resources will be employed to produce specified output
    • Scheduling can be simple or complex, and decision rules are necessary to tie the scheduling function with overall company goals and objectives
    • Examples of decision rules for scheduling include:
      • Scheduling the longest jobs first
      • Scheduling jobs in the order they are received
      • Scheduling the job with the earliest delivery dates first
      • Scheduling jobs on a random basis
      • Scheduling first those jobs with the greatest idle capacity
      • Scheduling all jobs first which requires operation in a specific department
      • Scheduling customer orders based on priority

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