Production and operation management

Prepare byHitesh Sarvaiya Hitesh Sheladiya Dipesh Siddhapura Submitted To- Prof.Dr. Hitesh Parmar 24 34 35

Topic Production planning and control of Aluminum company

Understanding Production and Operations Management

Production

Production is a scientific process which involves transformation of raw material (input) into desired product or service (output) by adding economic value. The processes and methods used to transform tangible inputs (raw materials, semi-finished goods, subassemblies) and intangible inputs (ideas, information, knowledge) into goods or services. Resources are used in this process to create an output that is suitable for use or has exchange value. An effective planning and control on production parameters to achieve or create value for customers is called production management.

Cont
Operations Management
As to deliver value for customers in products and services, it is essential for the company to do the following:
1. 2. 3.

Identify the customer needs and convert that into a specific product or service (numbers of products required for specific period of time) Based on product requirement do back-ward working to identify raw material requirements Engage internal and external vendors to create supply chain for raw material and finished goods between vendor production facility customers.

What is Production Planning and Control

For efficient, effective and economical operation in a manufacturing unit of

an organization, it is essential to integrate the production planning and control system. Production planning and control are combination of production planning and control and can be more clearly understood from following two concepts.

Production Planning
Production planning is one part of production planning and control dealing

with basic concepts of what to produce, when to produce, how much to produce, etc. It involves taking a long-term view at overall production planning. Therefore, objectives of production planning are as follows:

To ensure right quantity and quality of raw material, equipment, etc. are available during times of production. To ensure capacity utilization is in tune with forecast demand at all the time.

A well thought production planning ensures that overall production process

is streamlined providing following benefits:

Organization can deliver a product in a timely and regular manner. Suppliers are informed will in advance for the requirement of raw materials. It reduces investment in inventory. It reduces overall production cost by driving in efficiency.

Production Control
Production control looks to utilize different type of control techniques to

achieve optimum performance out of the production system as to achieve overall production planning targets. Production control cannot be same across all the organization. Production control is dependent upon the following factors:

Nature of production ( job oriented, service oriented, etc.) Nature of operation Size of operation

Production planning and control are essential for customer delight and

overall success of an organization. There are three areas of influence on the production planning and control.

Internationalization The role of the customer Information technology

Introduction of Aluminium industry

Aluminium is extracted from the principal ore, bauxite. Significant bauxite

deposits are found throughout Australia, the Caribbean, Africa, China and South America. Open cut techniques are commonly used to mine the bauxite.
Approximately two tonnes of bauxite are required to yield one tonne of

alumina

Aluminium production process

Figure: Aluminium production process

Aluminium industry
Aluminium is the third most abundant element in the earths crust and the

most abundant metallic element. It never occurs as a free element in nature. Aluminium is a material with a wide range of applications, e.g. Transport vehicles, construction, packaging industry, electronic production, household appliances, etc.
The top five producers China, Rusia, Canada, The united States and

Australia acoounts for more than 59% of the world output. Production is found where energy is cheap because making aluminium uses large quantities of electricity.
China alone produces more than 26 % of the world total.

Aluminium Production and Consumption in India

India has the credit of being the fifth largest producer of aluminium in the

world. The country has a capacity to produce more than 2.7 million tons of aluminium per year, accounting making up about 5% of the total aluminium production on the globe. India boasts of a massive quantity of Bauxite reserve of about 3 billion tones. India enjoys the eighth position among the leading producers of primary aluminium in the world. Aluminium industry is one of the leading segments of the Indian economy and is expected to play a significant role in its future growth. Indian aluminium industry is forging ahead with rapid expansion in both Primary metal and downstream sectors. With the Indian economy projected to be amongst the top five in the world by 2020, the overall consumption of aluminium in India is projected to be about 5 million tons by 2015, and 10 million tons by 2020.

The Major Players in the Indian Aluminium Production Sector

Aluminium production industry in India is mainly dominated by about five

firms that account for the majority of the countrys metal production including Hindustan Aluminium Company (HINDALCO), National Aluminium Company (NALCO), Bharat Aluminium Company (BALCO), MALCO and INDAL. HINDALCO: Hindalco is the largest firm in the Indian aluminium industry holding more than 39% of market share. This is a flagship unit of the Aditya Birla Group with its aluminium plant at located at Renukoot in Uttar Pradesh. The firm manufactures a number of aluminium products making up a market share of 42% in the primary aluminium segment, 20% in extrusions and 63% in rolled products, while 31% of the products are in the wheels and 44% in foils segments.

Steps of production planning and control

Production Planning and Control (PPC) is a process that comprises the performance of some critical; functions on either side, viz., planning as well as control.

Here we have explained production planning and control procedure which is as follows.
Production 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.

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.

Cont
Routing procedure involves following different activities.
1. 2. 3. 4.

5.
6. 7.

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 An analysis of cost of the article Organization of production control forms

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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 which is explained as below:
1. 2. 3. 4.

Production schedule Master Schedule Manufacturing schedule Scheduling of Job order manufacturing

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Loading:
loading determines who will do the work as routing determines where

and scheduling determines when it shall be done. Gantt Charts are most commonly used in small industries in order to determine the existing load and also to foresee how fast a job can be done. It makes all the more important for entrepreneur to judge ahead of time what should be done, where and when thus to leave nothing to chance once the work has begun.

Production control:
Production control is the process of planning production in advance of

operations, establishing the extract 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.

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Dispatching:
Dispatching involves issue of production orders for starting the

operations. Necessary authority and conformation is given for:

1. 2.

3.
4. 5. 6.

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

Dispatching is an important step as it translates production plans into

production.

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Follow up:
Every production program 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.

Inspection:
This is mainly to ensure the quality of goods. It can be required as

effective agency of production control.

Cont...
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.

Bibliography
http://www.ehow.com/about_5142109_production-planning-

control-definition.html#ixzz2PsBsznRm http://www.businessdictionary.com/definition/production.html# ixzz2PsCSQv6k

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