Industrial Engineering : Production Planning and Control

By Shivendra Pratap|Updated : June 14th, 2021

Planning the production in advance comes under production, planning, and control. Setting the exact route of each item and fixing the starting and finishing date for each item is the key operation. Giving the production orders to different shops and observing the progress of products according to order.

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

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Related departments with PPC

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Aggregate Planning(AP)

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

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  • 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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