Industrial Engineering : Production Planning and Control

A systematic view of the various functions of the PPC departments are written as follows:

Related departments with PPC

Aggregate Planning(AP)

Aggregate planning is the planning for an intermediate range of time.

• The aggregate planning concentrates on scheduling production, personnel, and inventory levels during intermediate-term planning the horizon such as 3-12 months.
• Aggregate plans play the role of an interface between strategic decisions (which fixes the operating environment) and short-term scheduling and control decisions regarding the firm’s day-to-day operations.
• Aggregate planning focuses on manipulating several aspects of operations-aggregate production, inventory, and personnel levels to reduce costs over some planning horizon and at the same time satisfying demand and policy requirements.

  Types of Production Systems

  • A transformation system in which a saleable product or service is created by working upon a set of inputs is known as a production system. Generally the inputs are in the form of men, machine, money, materials etc.
  • They are broadly classified into three categories:
    
    • Job shop production
    • Batch production
    • Mass production

  Job Production

  The following are some of the important characteristics of job shop type production system:

  • Machines and methods employed should be general-purpose as product changes are quite frequent.
  • Planning and control system are flexible enough to handle the frequent changes in product requirements.
  • Manpower should be skilled enough to deal with changing work conditions.
  • In the process, inventory will usually be high as accurate plans and schedules do not exist.
  • Product cost is usually high due to high material and labour costs.
  • Machines are grouped on a functional basis (i.e. as lathe section, milling section etc.)
  • Flexibility of this system is very high as management has to manufacture varying product types.

  Batch Production

  The following are some of the important characteristics of a batch type production system:

  • As final product is somewhat standard and manufactured in batches, the economy of scale can be availed to some extent.
  • Grouping of machines is done on a functional basis similar to job shop manufacturing.
  • Semi-automatic, special-purpose automatic machines are usually used to take benefit of the similarity among the products.
  • Labor should have high skills as they might be required to work upon different product batches.
  • Inventory is usually high in this process because of the type of layout and material handling policies adopted.

  Mass Production

  The following are some of the important characteristics of a mass production system:

  • As the same product is manufactured for a sufficiently long time, machines can be laid down in order of processing sequence. For mass production system, product type layout is most appropriate.
  • For part manufacturing, standard methods and machines are used.
  • Most of the equipment is semi-automatic or automatic in nature.
  • Material handling is also automatic (such as conveyors).
  • As most of the facilities are automatic, semi-skilled workers are usually hired.
  • Planning and control of the system are much easier as the product flows along a pre-defined line.
  • Because of the high rate of production, the cost of production is low.
    
    

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