Manufacturing Planning &

Scheduling
N.K.Agarwal
 PPC

• PPC concerned with decision making regarding

– What to produce?
– How to produce?
– Where to produce?
– When to produce?
– Who will produce?
– How much to produce?
Production Planning & Control(PPC)
• PPC is the organisation and planning of
manufacturing process
• PPC
– Co-ordinates supply and movement of materials and labour
– Ensures economic and balanced utilisation of machines and
equipments, and
– Other activities related with production
• To achieve the desired manufacturing results
Production Planning & Control(PPC)
• Production Planning involves
– Formulation
– Co-ordination, and
– Determination of activities
• In a manufacturing system
• Production Control involves
– Process of maintaining a balance between various activities
involved in production planning providing
• Most effective and efficient utilisation of resources
 Production Planning

• The function of the management that decides

– The resources the firm will require for its future
manufacturing operations, and
– Allocating these resources to produce the desired output in
required amount at least cost
 Production Planning-Procedures

• Production planning prepares

– Procurement plans for materials and personnel,
– Establishes work procedures and control,
– Prepares and issues work authorisation,establishes finished
goods inventory control, and
– Maintains alternative plans of action
 Production Planning-Procedures

• Categories of production planning procedures

– Routing
– Scheduling, and
– Loading
 Production Planning-Routing

• Routing means determination of path or route over

which each piece is to travel in being transformed
from raw material into finished product
• Routing generally involves the following
– Whether to make/buy
– Form and shape of the material
– Division of work to be done into operations
 Production Planning-Routing
– Choice of machines/ work centers on which each operation
should be done and its duration
– Sequence in which operations are to be performed
– Division of operations into work elements
– Choice of special tooling
– Economic lot size of production order quantity
– Estimation of amount of scrap
 Production Planning-Scheduling

• Scheduling is
– Deciding when and where each operation in a production
process is to be executed, and
– Establishment of time table at which to begin and/or
complete each event or operation involved in a procedure
 Master Schedule

• Developed by reviewing market forecasts, customer

orders, inventory levels, facility loading & capacity
information regularly
• Plan for future production of end items over short
range planning horizon
• An important link between production and marketing
 Functions of MPS

• Translating aggregate plans into specific end items

• Evaluating alternative master schedules
• Generating material requirement
• Generating capacity requirement
• Facilitating information processing
• Maintaining valid priorities
• Utilising capacity effectively
 MASTER PRODUCTION SCHEDULE- FLOW CHART

FORECAST & CUSTOMER

DOMESTIC & ORDERS
INTERNATIONAL END PRODUCTS &
AGGREGATE PLAN SERVICE PARTS /
SPARE PARTS
TENTATIVE MPS

TRIAL FIT ON REVISE MASTER

MRP SYSTEM CRP SYSTEM SCHEDULE
REVISE MASTER
SCHEDULE
ARE ARE CAPACITY
MATERIALS CAPACITIES REQUIREMENT
NO NO
ADEQUATE ? ADEQUATE ? PLAN (CRP)
YES YES
FIRM MPS

TO MRP & CRP SYSTEM

 MPS Environment
• Make – to – stock
– Production by the company in batches
– Carries finished goods inventory for most of the end items
– Mostly consumer products
– Orders from warehouses mostly
– Lot sizes of orders based on economics

Efforts to prepare MPS are relatively less

 MPS Environment
• Make – to – order
– Companies do not carry finished goods inventory
– Builds customer orders as needed
– Customers expected to wait for the design & manufacturing
lead time
• Example: Buildings, Jewellary making,Ship building
– Lot size and number of products depends upon customer
orders
– Many product designs, products and orders to be included

Efforts required to prepare MPS are more

 MPS Environment
• Assemble –to – order
– Typical with very large number of possible end items made from
combination of basic components and sub-assemblies
– Customer delivery times often less than total lead times
– Flexibility maintained in manufacturing
• Basic components and sub-assemblies produced
• Final assemblies taken up only against customer order
– Example: Automobile manufacturing, Fork lifts with
different specifications
– End items not scheduled
– Schedule units stated in planning bills of materials
– Common parts and options form the MPS planning bill
 Production Planning-Loading

• Objectives
– To plan new work orders on the basis of spare capacity
available
– To balance the work load in a plant
– To maintain delivery promises
– To check the feasibility of production programmes
 PPC-Production Control

• Production Control is the procedure

– To regulate an orderly flow of materials, and
– Co-ordinate various production activities
• To accomplish the objective of producing the desired
item
– In the right quantity of desired quality at the required
time by the best and the cheapest method
» To attain highest efficiency in production
 PPC-Production Control
– Proper co-ordination of the operation of various sections/
departments responsible for production
– To ensure timely supply of raw material at the desired place
and of prescribed quality and quantity to avoid delays in
production
– To perform inspection of semi finished and finished goods
and use of quality control techniques to ensure
manufactured goods meeting required specifications
– Also responsible for product design and development
 Production Control- Levels

• Three levels in production control

– Programming
• Planning the output of product for the factory as a whole
– Ordering
• Planning the output of components from suppliers and
production departments
– Dispatching
• Considers each processing department in turn and plans
the output from the machines, tools and other work
centers so as to complete the order by due date
 Production Control- Ordering

• Ordering is
– Process of placing orders, also known as work orders, to
the suppliers and the processing departments for the
materials and other parts needed to manufacture the
product, and
– To arrange the ordering quantity and delivery schedule in
such a way
• That all items are delivered in time to meet the
production programme
 Production Control- Dispatching

• The decision of assigning various jobs to different

machines is known as Dispatching
• Functions
– To check the immediate availability of materials
– Ensuring availability of all production and inspection aids for
use
– Obtain appropriate drawings and specifications
– Collate jobs, operation layouts, routine etc. with the design
Production Control- Dispatching
– Processing information or inspection schedule
– Assign work to definite machine, work place and men
– Issue necessary materials and tools etc. to the required
point for use
– Issue production note indicating the start and finish time of
the work
– Inform progress regarding start of work
– Instruction to start the work
– Maintain all production records
 Production Control- Follow - up

• Follow-up/expediting or progressing is checking

production activities so that production may be
carried out as per plan
– Involves measurement of output against plan, analysis of
performance for short-falls and following up the line
management to apply corrective action
• The chaser is responsible for observing that any
detail which is overlooked or not properly executed is
set right
 Scheduling of Process – Focused
Production Systems

• Scheduling becomes complex due to

– Delivery dates have to be promised for work orders against
customers’ orders
– Production lots tend to become small & many require
machine change over
– Possibility of assigning / reassigning workers & machines to
various work orders
– Schedules to be specific and detailed machine wise to bring
orderliness
 Scheduling of
Product - Focused System
• Relatively fewer standard product designs
• Production usually on produce – to – stock & sell basis
• Finished goods inventories are maintained
• Production rates of individual products exceed their
demand
– Much less pre production planning concerning route sheets, job
instructions, process plans and product designs
– Schedules based on economic production runs for products without
firm delivery commitments
– Major scheduling concerns are
• Timing of production line change over
• Length of production runs
 PPC - Importance

• Reduces cost of production by minimising wastage of

material and economic utilisation of resources
• Leads to lower investment by means of efficient and
balanced utilisation of resources
• Promotes employee morale by avoiding all sorts of
bottlenecks
• Enhances customer satisfaction and confidence
 MPS and Shop Floor Planning &
Control
• MPS and shop floor planning & control results in
– Low inventory levels,
– Minimise the manufacturing cycle time,
– Full utilization of production services, and
– Helps in the development of positive customer relations
• By meeting the promised delivery dates
 References
• Production Operations Management :
Aswathappa / Bhat
• Modern Production / Operations Management:
Buffa / Sarin
• Operations Management :
Donald Waters
• Manufacturing Planning & Control Systems :
Vollman / Bery / Whybark
Thank You
 PPC - Objectives
• Determining the nature and magnitude of various
input factors to manufacture the desired output
• To co-ordinate labour, machines and equipment in
the most effective and economic manner
• Establishing targets and checking these against
performance
• Ensuring smooth flow of materials by eliminating
bottlenecks in production
• Utilisation of under employed resources
• To manufacture the desired output of right quality and
quantity at right time
 Production Planning-Objectives
• Systematic co-ordination and regulation of various
activities
• To maintain proper balance of the activities for
efficient production
• Determination of raw materials, machines, equipment
etc. and other inputs for desired output
• Anticipation of business changes and reacting to
them in proper manner
• To have optimum usage or resources with optimum
cost and time
• To provide alternative production strategies in case of
emergencies
 Production Planning-Routing

• Various types of proformas to record details of

production process at different stages also to be
designed
• In manufacturing plants, routing of an order carried
out using Route Sheets
 Route Sheet

Manufacturing Drawing no. Date of

Order no. completion

Description of Remarks
the item

No. of pieces on Spoilage Total items to

order/Economic allowance be produced
lot size

Material description Quality of material allotted.

Purchase Order no. Stores requisition no.
Time/ Piece Due date.
Tool Description
Setup time/lot operation no.
Time allowance
 PPC-Production Control

• Objectives of Production control

– Provision of raw materials , equipment, machines and labour
– To organise production in conformity with the demand
forecast
– Ensure utilisation of resources in the best possible manner
such that the cost of production is minimised and delivery
date is maintained
– Determination of economic production runs with a view to
reduce the setup costs
 Production Control- Techniques
• Programming: Objectives
– Reliable delivery to customers
– Even loading of the plant
– Even loading of the labour in total man -hours per week
– Efficient use of capital
• Lack of production programming in any
manufacturing system results in late delivery to
customers
 SCHEDULING SERVICES
• ECONOMIC ACTIVITIES IN WHICH PRIMARY OUTPUT IS
NEITHER A PRODUCT NOR A CONSTRUCTION
• VALUE IS ADDED TO THIS OUTPUT THAT CANNOT BE
INVENTORIED LIKE CONVENIENCE, COMFORT, SECURITY,
AND THE OUTPUT IS CONSUMED AS PRODUCED
– TRANSPORTATION
– UTILITIES
– COMMUNICATIONS
– FINANCE, BANKING, INSURANCE, POST & TELEGRAPH
 SERVICE OPERATIONS

• SERVICE SYSTEMS
– DO NOT HOLD INVENTORIES
– DEMAND ON THEM HIGHLY VARIABLE
– OPERATIONS LABOUR INTENSIVE
– PRIMARILY PERFORMED THROUGH PERSONNEL
• AS SUCH, PERSONNEL SCHEDULING BECOMES COMPLEX
 SERVICE OPERATIONS
• ALSO KNOWN AS NON-MANUFACTURING OPERATIONS, CAN
BE CLASSIFIED AS
– STANDARD SERVICES
– CUSTOMER SERVICES
• CLASSIFICATION ACCORDING TO THE DEGREE OF
STANDARDISATION OF THE OUTPUTS AND THE PROCESS
PERFORMED BY THE SERVICE SYSTEM
 SERVICE OPERATIONS
• STANDARD SERVICES
– SYSTEMS MORE LIKE PRODUCT-FOCUSSED MANUFACTURING
• SERVICES STANDARD FOR MOST CUSTOMERS
• PROCESS ONCE BEGUN CARRIED THROUGH TO
COMPLETION WITHOUT MUCH DELAY
• SIGNIFICANT DIFFERENCE WITH PRODUCT-FOCUSSED
MANUFACTURING BEING THAT SERVICES PRODUCED
ACCORDING TO CUSTOMER ORDER RATHER THAN FOR
FINISHED GOODS INVENTORY
– TRNASPORT COMPANIES, FAST FOOD
RESTAURANTS, POSTAL SERVICES, AIRLINES
• SOPHISTICATED SCHEDULING SUCH AS ON-LINE
COMPUTER BASED SCHEDULING SYSTEMS USED
 SERVICE OPERATIONS
• CUSTOMER SERVICES
– SYSTEMS LIKE JOB SHOPS AND HENCE SCHEDULING MUCH
LIKE JOB SHOPS
• SMALL SERVICES LIKE A DOCTOR’S CLINIC, SMALL
RETAILERS, LOCAL TRANSPORT COMPANIES
– NO FORMAL SCHEDULING SYSTEMS EMPLOYED
– SIMPLE SCHEDULING SYSTEMS SUCH AS APPOINTMENT
SCHEDULES, TOKEN SYSTEM, FIRST-COME-FIRST-SERVICE ETC
USED TO ASSIGN PRIORITIES TO CUSTOMERS
– PART TIME WORKERS AND STAND-BY EQUIPMENT FREQUENTLY
USED DURING HIGH DEMAND PERIOD
– HOSPITALS USE MORE SOPHISTICATED SCHEDULING SYSTEM
• INCLUDING A MOST CRITICAL NEED CRITERIA ;FIRST-COME-
FIRST-SERVED
 SCHEDULING PERSONNEL IN
SERVICES
• USE OF WAITING LINES(BASED ON FIRST-COME-FIRST-SERVED
PRIORITY) AS A BUFFER FOR DIFFERENCE BETWEEN CUSTOMER
DEMAND AND SYSTEM CAPACITY
– ENABLES SCHEDULING PERSONNEL TO MAINTAIN UNIFORM SYSTEM
CAPACITY FROM TIME TO TIME
• USE OF APPOINTMENT SCHEDULES TO LEVEL OUT THE DEMAND
FOR SERVICES
– ENABLES SCHEDULING PERSONNEL SO THAT THE SYSTEM CAPACITY
IS ALMOST UNIFORM
• APPOINTMENT SCHEDULES IN MEDICAL, LEGAL SERVICES
• EMERGENCY CUSTOMERS ACCORDED PRIORITY AND REMAINING
SERVICED BY APPOINTMENT
 SCHEDULING PERSONNEL IN
SERVICES
• PERSONNEL SCHEDULES DEVELOPED TO ALLOW SYSTEM
CAPACITIES WHICH MATCH THE CUSTOMER DEMAND
– SYSTEM CAPACITY VARIED BY VARYING NUMBER OF PERSONNEL TO
WORK DURING EACH HOUR OF THE DAY
– PART TIME PERSONNEL MAY BE EMPLOYED DURING PERIODS OF
PEAK DEMAND
• FOR EMERGENCY SERVICES LIKE FIRE OR POLICE, SCHEDULING
DONE FOR 24 HOUR FULL CREW COVERAGE
– DURING PEAK DEMAND PERIODS, OFF-DUTY PERSONNEL CALLED IN
AND COMPENSATED WITH OVERTIME PAYMENT OR TIME-OFFS