 Designing jobs (determining the most

economical way to perform work)

 Setting performance standards and
benchmarks for quality, quantity and
cost
 Designing and installing facilities
 Development of time standards, costing
and performance standards
 Selection of processes and assembling
methods
 Selection and design of tools and
equipment
 Design of facilities including plant location,
layout of building, machines and
equipment, raw material handling system
and finished goods storage facilities
 Design and improvement of planning
and control systems for production,
inventory, quality and plant
maintenance and distribution system
 Cost control systems
 Development and installation of job
evaluation systems
 Installation of wage incentive schemes
 Design and installation of value
engineering and analysis system
 Operation research
 Mathematical and statistical analysis
 Performance evaluation
 Organization and methods
 Supplier selection and evaluation
 Production planning and control
 Inventory control
 Job evaluation
 Facilitates planning and material handling
 System analysis
 Linear programming
 Simulation
 Network analysis
 Queuing models
 Assignment
 Sequencing and transportation models
 Games theory and dynamic programing
 Group technology
 Statistical techniques
 Quality control
 Decision making theory
 Replacement models
 Assembly line balancing
 Production planning is a managerial
function which is mainly concerned with
the following important issues:

› What production facilities are required?

› How these production facilities should be
laid out in the space available for
production?
› How they should be used to produce the
desired products at the desired rate of
production?
 Production planning is dynamic in nature
and always remains in fluid state as plans
may have to be changed according to
the changes in circumstances.

 Production planning is usually done at

the following three horizon levels:
› Long term (capacity planning)
› Medium term (aggregate planning)
› Short term (operation planning)
 Long term (capacity planning)
› Up to 5 years ahead or more
› Strategic/business issues
› Reflected in process choice
 Medium term (aggregate planning)
› Up to 2 years ahead
› How can demand be met from existing
facilities and resource inputs?
 Short term (operational planning)
› Monitoring and correction of day-to-day
activities versus plan
 It should be based on accurate data
 It must be flexible
 It must satisfy a set of pre-defined
objectives (economy, quality etc.)
 It must be simple and straight forward
 It should have a reporting system, so that
right information reaches at right place
and at right time
 It should not have any week link
 Production control is a mechanism to
monitor the execution of the plans. It has
several important functions:

 Making sure that production operations are

started at planned places and planned
times.
 Observing progress of the operations and
recording it properly.
 Analyzing the recorded data with the plans
and measuring the deviations.
 Taking immediate corrective actions to
minimize the negative impact of
deviations from the plans.
 Feeding back the recorded information
to the planning section in order to
improve future plans.
 Inputs Transformation Outputs
process
• Resources (value addition) • Products &
• Objectives Services

A closed loop system with control function

 Control involves the monitoring and
correction (where necessary) of
operations to ensure that plans and
objectives are being met.
 Many different forms of production
control:
› Quality control
› Stock control
› Order processing/ chasing against schedules
› Cost control (budgeting)
› People and labour productivity
 Say you are the owner of a furniture
manufacturer company. Do a presentation on
your company’s production planning and
control based on the following criteria:
› Product of your company
› Your resources and your target buyers
› Facilities of your organization
› Production rate/schedule of your company
› Number of workers in your company
› Quality control
› Short, medium and long term planning

 Minimum slide: 10 slides