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