1. Production Planning & Control(PPC) andMaterial Management Abu Bashar

2. Introduction Planned production is an important feature of the small industry. Planning and control involve generally the organization and planning of manufacturing process. The ultimate objective is the organization of the supply and movement of materials and labour, machines utilization and related activities, in order to bring about the desired manufacturing results in terms of quality, quantity, time and place.

3. Objective of PPC Optimum Utilization of Capacity Inventory control Economy in production time Ensure quality To sum up we may say that PPC is of immense value to the entrepreneur in capacity utilization and inventory control. More importantly it improves his response time and quality. As such effective PPC contributes to time, quality and cost parameters of entrepreneurial success.

4. Process of PPC

5. Planning 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.

6. Routing Under this, the operations, their path and sequence are established. To perform these operations the proper class of machines and personnel required are also worked out. The main aim of routing is to determine the best and cheapest sequence of operations and to ensure that this sequence is strictly followed. Routing procedure involves following different activities. An analysis of the article to determine what to make and what to buy. To determine the quality and type of material Determining the manufacturing operations and their sequence. A determination of lot sizes Determination of scrap factors

7. Scheduling It means working out of time that should be required to perform each operation and also the time necessary to perform the entire series as routed, making allowances for all factors concerned. It mainly concerns with time element and priorities of a job. The pattern of scheduling differs from one job to another Production schedule: The main aim is to schedule that amount of work which can easily be handled by plant and equipment without interference. Its not independent decision as it takes into account following factors. (1) Physical plant facilities of the type required to process the material being scheduled. (2) Personnel who possess the desired skills and experience

8. Loading The next step is the execution of the schedule plan as per the route chalked out it 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.

9. Production control Production control is the process of planning production in advance of operations, establishing the exact route of each individual item part or assembly, setting, starting and finishing for each important item, assembly or the finishing production and releasing the necessary orders as well as initiating the necessary follow-up to have the smooth function of the enterprise.

10. Dispatching Dispatching involves issue of production orders for starting the operations. Necessary authority and conformation is given for: Movement of materials to different workstations. Movement of tools and fixtures necessary for each operation. Beginning of work on each operation. Recording of time and cost involved in each operation. Movement of work from one operation to another in accordance with the route sheet. Inspecting or supervision of work

11. 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 detects in routing and scheduling, misunderstanding of orders and instruction, under loading or overloading of work etc. All problems or deviations are investigated and remedial measurer are undertaken to ensure the completion of work by the planned date.

12. Inspection This is mainly to ensure the quality of goods. It can be required as effective agency of production control.

13. Corrective measures 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.

14. Material Management We can define Materials Management as the function responsible for the coordination of planning, sourcing, purchasing, moving, storing and controlling materials in an optimum manner so as to provide a pre-decided service to the customer at a minimum cost. Planning and controlling the flow of materials Objectives: Maximize the use of the firms resources Provide the required level of customer service

15. SCOPE OF MATERIALSMANAGEMENT Materials Management strives to ensure that the material cost component of the total product cost be the least. In order to achieve this, the control is exercised in the following fields. 1. Materials Planning. 2. Purchasing. 3. Store Keeping. 4. Inventory Control. 5. Receiving, Inspection and Dispatching. 6. Value Analysis, Standardization and Variety Reduction. 7. Materials Handling & Traffic.

16. The function of material planning department is to plan for the future procurement of all the required materials as per the production schedule. At the time of material planning, the budget allocated for the materials will also be critically reviewed, for better control.

17. Objectives However, within the broader management objectives of any industry or business, Materials Managements contribution towards objectives may be divided into two categories: 1) Primary and 2) Secondary The former contributes directly to the Materials Management function and the latter, helps other departments to achieve their objectives.

18. Objective of material managementPrimaryRight price SecondaryHigh turnover ForecastingLow procurement & storage cost Inter-departmental harmonyContinuity of supply Product improvementConsistency in quality StandardizationGood supplier relations Make or buy decisionDevelopment of personnel New materials & productsGood information system

19. Four basic needs of Material management1. To have adequate materials on hand when needed2. To pay the lowest possible prices, consistent with quality and value requirement for purchases materials3. To minimize the inventory investment4. To operate efficiently

20. Basic principles of materialmanagement1. Effective management & supervision It depends on managerial functions of Planning Organizing Staffing Directing Controlling Reporting Budgeting 2. Sound purchasing methods 3.Skillful & hard poised negotiations 4.Effective purchase system 5.Should be simple 6.Must not increase other costs 7.Simple inventory control programme

21. Functional areas of material management 1. Purchasing 2. Central service supply 3. Central stores 4. The print shops 5. The pharmacy 6. Dietary

22. Purchasing After material planning, purchasing is to be done. Purchasing department buys material based on the purchase requisitions from user departments and stores departments and annual production plan. There are four basic purchasing activities. a) Selecting suppliers, negotiating and issuing purchase orders. b) Expediting delivery from suppliers. c) Acting as liaison between suppliers and other company departments. d) Looking for new products, materials, and suppliers that can contribute to company objectives.

23. Points to remember whilepurchasing Proper specification Invite quotations from reputed firms Comparison of offers based on basic price, freight & insurance, taxes and levies Quantity & payment discounts Payment terms Delivery period, guarantee Vendor reputation (reliability, technical capabilities, Convenience, Availability, after-sales service, sales assistance) Short listing for better negotiation terms Seek order acknowledgement

24. Purchase ManagementParameters Purchasing items with right price. Purchasing with right quality. At right time. Purchasing from right source(Vendor). Purchasing items in right quantity.

25. Purchase ManagementPurchase systems Pre-purchase system Requirement Programs. Selection of Suppliers. Obtain quotation & later evaluating. Making Requisition.

26. Purchase ManagementPurchase systems Ordering Systems Once the rates are fixed. The order is placed with selected vendors.

27. Purchase ManagementPurchase systems Post Purchase System Includes follow up procedures. Receipt. Checking invoices.

28. Stores Management Receives raw material, tools, equipments & other necessary materials & accounts them. Preservation of items in good condition for later use. Minimization of obsolescence and damage through handling. Disposal & efficient handling.

29. Stores Management Maintenance of stores record. Proper location & stocks of Material. Reconciling the material with book figures. Maintains a proper account on issue of items on demand from shop floor / production division. Information reports to support purchase activities to take place at right time.

30. Stores ManagementSystem Receipt System Maintains proper document about item which are received at the store. Details on pending orders arranged in chronological order of dates. Accordingly schedule the labour force unload items when they are received at stores.

31. Stores ManagementSystem Stocking System Necessary measures are taken to check quality, quantity & weight of the items before accepted in the store.

32. Stores ManagementSystem Issue System For maintaining accounts of issues made to internal division or external divisions. Helps timely reordering to replenish stock. In issuing to external divisions (sub contract), controls are formal and adequate enough to take care of payments and claims.

33. Storage Store must be of adequate space Materials must be stored in an appropriate place in a correct way Group wise & alphabetical arrangement helps in identification & retrieval First-in, first-out principle to be followed Monitor expiry date Follow two bin or double shelf system, to avoid Stock outs Reserve bin should contain stock that will cover lead time and a small safety stock

34. Thank you VeryMuch