PPC Assignment
PPC Assignment
Q.1 What do you understand by TQM? Discuss the role of TQM in developing
quality, vision, mission and policy statement for an organization.
Ans. Total quality management (TQM) is the continual process of detecting and
reducing or eliminating errors in manufacturing, streamlining supply chain
management, improving the customer experience, and ensuring that employees
are up to speed with training. Total quality management aims to hold all parties
involved in the production process accountable for the overall quality of the
final product or service.
TQM was developed by William Deming, a management consultant whose
work had a great impact on Japanese manufacturing. While TQM shares much
in common with the Six Sigma improvement process, it is not the same as Six
Sigma. TQM focuses on ensuring that internal guidelines and process standards
reduce errors, while Six Sigma looks to reduce defects.
Total quality management (TQM) is a structured approach to overall
organizational management. The focus of the process is to improve the quality
of an organization's outputs, including goods and services, through continual
improvement of internal practices. The standards set as part of the TQM
approach can reflect both internal priorities and any industry standards currently
in place.
TQM is considered a customer-focused process and aims for continual
improvement of business operations. It strives to ensure all associated
employees work toward the common goals of improving product or service
quality, as well as improving the procedures that are in place for production.
Quality statements are part of strategic planning process and once developed,
are occasionally reviewed and updated.
There are three types of quality statements:
1. Vision statement2. Mission statement3. Quality policy statement
Q.2 Discuss the various quality systems and certifications. Also discuss the
methods and implementation procedures for each certification.
Ans. A quality management system (QMS) is a set of policies, processes and
procedures required for planning and execution
(production/development/service) in the core business area of an organization
(i.e., areas that can impact the organization’s ability to meet customer
requirements). ISO 9001 is an example of a Quality Management System.
A QMS integrates the various internal processes within the organization and
intends to provide a process approach for project execution. A process based
QMS enables the organizations to identify, measure, control and improve the
various core business processes that will ultimately lead to improved business
performance.
A complete ISO 9001 Quality Management System must address all
the requirements of ISO 9001, including the ISO 9001 documentation
requirements.
The ISO 9000 family of quality management systems (QMS) is a set of
standards that helps organizations ensure they meet customers and other
stakeholder needs within statutory and regulatory requirements related to a
product or service. ISO 9000 deals with the fundamentals of quality
management systems, including the seven quality management principles that
underlie the family of standards. ISO 9001 deals with the requirements that
organizations wishing to meet the standard must fulfil.
Third-party certification bodies provide independent confirmation that
organizations meet the requirements of ISO 9001.
The ISO 9000 series are based on seven quality management principles (QMP)
- Principle 2 – Leadership
Leaders establish unity of purpose and direction of the organization. They
should create and maintain the internal environment in which people can
become fully involved in achieving the organization's objectives.
- Principle 5 – Improvement
Improvement of the organization's overall performance should be a
permanent objective of the organization.
Certification:
The International Organization for Standardization (ISO) does not certify
organisations itself. Numerous certification bodies exist, which audit
organisations and upon success, issue ISO 9001 compliance certificates.
Although commonly referred to as "ISO 9000" certification, the actual standard
to which an organization's quality management system can be certified is ISO
9001:2015 (ISO 9001:2008 expired around September 2018). Many countries
have formed accreditation bodies to authorize ("accredit") the certification
bodies. Both the accreditation bodies and the certification bodies charge fees for
their services. The various accreditation bodies have mutual agreements with
each other to ensure that certificates issued by one of the accredited certification
bodies (CB) are accepted worldwide.
An organization applying for ISO 9001 certification is audited based on an
extensive sample of its sites, functions, products, services, and processes. The
auditor presents a list of problems (defined as "nonconformities",
"observations", or "opportunities for improvement") to management. If there are
no major nonconformities, the certification body issues a certificate. Where
major nonconformities are identified, the organization presents an improvement
plan to the certification body (e.g., corrective action reports showing how the
problems will be resolved); once the certification body is satisfied that the
organization has carried out sufficient corrective action, it issues a certificate.
An ISO 9001 certificate is not a once-and-for-all award but must be renewed, in
accordance with ISO 17021, at regular intervals recommended by the
certification body, usually once every three years.
Quality Certifications for individuals are available through several organizations
around the world, such as the American Society for Quality (ASQ).
Certifications are granted to show that individuals have demonstrated and
maintain knowledge in an aspect of quality management, such as: Certified
Quality Engineer (CQE), Certified Quality Inspector (CQI), and many more.
- ISO 9001: The most commonly used set of requirements for designing a
QMS. QMS certification against ISO 9001 is recognized worldwide.
- AS9100: This is a standard that is based on ISO 9001 and has additions
designed for use in the Aerospace Industry. A QMS can be certified by a
third party to comply with this standard.
- ISO 13485: This is a standard published by the ISO organization for use
by companies that want to design a QMS for medical devices, and the
requirements for regulatory purposes surrounding them.
- Lean: The core idea is to maximize value by eliminating waste. The main
idea is that anything that adds cost to a product, but not value, is waste
and should be controlled or eliminated. This supports a QMS, but cannot
be used to design or certify a QMS.
- MBNQA: The Malcolm Baldridge National Quality Award recognizes
US organizations for performance excellence. The award has a set of
requirements against which a company could design and assess a QMS,
but apart from the award there is no ongoing certification against these
requirements.
- Six Sigma: This is a set of tools and techniques used for process
improvement. It is used in many organizations to support the QMS by
helping to improve processes, but Six Sigma does not define a QMS, and
the QMS cannot be certified to Six Sigma.
- TQM: Total Quality Management consists of practices designed to
improve the process performance of a company. The techniques help
improve efficiency, problem solving and standardization of processes.
These techniques are used to aid in quality management, but do not
provide a framework for a Quality Management System, and cannot be
certified to.
- ISO/TS 16949: This document includes requirements for the application
of ISO 9001 for automotive production and service part organizations. A
QMS designed using these requirements can also be certified against
them.
Q.3 Explain the term “Production Planning and Control.” Discuss the
advantages and limitations of PPC.
Ans. 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 subsequent production control follow
adaption of product design and finalization of a production process.
Production planning and control address a fundamental problem of low
productivity, inventory management and resource utilization.
Production planning is required for scheduling, dispatch, inspection, quality
management, inventory management, supply management and equipment
management. Production control ensures that production team can achieve
required production target, optimum utilization of resources, quality
management and cost savings.
Planning and control are an essential ingredient for success of an operation unit.
The benefits of production planning and control are as follows:
It ensures that optimum utilization of production capacity is achieved, by
proper scheduling of the machine items which reduces the idle time as
well as over use.
It ensures that inventory level are maintained at optimum levels at all
time, i.e. there is no over-stocking or under-stocking.
It also ensures that production time is kept at optimum level and thereby
increasing the turnover time.
Since it overlooks all aspects of production, quality of final product is
always maintained.
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.
Production planning takes care of two basic strategies’ product planning and
process planning. Production planning is done at three different time dependent
levels i.e. long-range planning dealing with facility planning, capital
investment, location planning, etc.; medium-range planning deals with demand
forecast and capacity planning and lastly short term planning dealing with day
to day operations.
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. Therefore, objectives of production control
are as follows:
Regulate inventory management
Organize the production schedules
Optimum utilization of resources and production process
Production planning and control are essential for customer delight and overall
success of an organization.
Advantages of Routing:
I. Effective utilization of available resources.
II. Reduction in production costs.
III. Quality improvement occurs,
IV. Productivity of the system improves and
V. Provides a basis for loading & scheduling.
Dr. Armand Feigenbaum
Developed Total Quality Control (TQC) philosophy
Quote: “Quality is everybody’s job, but because it is everybody’s job, it
can become nobody’s job without the proper leadership and
organization.”
Steps to quality:
Quality leadership
Modern quality technology
Organizational commitment
Dr. Walter Shewhart
• Shewhart’s control charts are widely used to monitor processes. Problems
are framed in terms of special cause (assignable cause) and common
cause (chance-cause).
• The Shewhart Cycle – PDCA Problem Solving Process:
• Plan – what changes are desirable? What data is needed?
• Do – carry out the change or test decided upon
• Check – observe the effects of the change or the test
• Act – what we learned from the change should lead to improvement or
activity
• Referred to as the “Father of Statistical Quality Control”
By using many variables as inputs the MPS will generate a set of outputs used
for decision making. Inputs may include forecast demand, production
costs, inventory money, customer needs, inventory progress, supply, lot size,
production lead time, and capacity. Inputs may be automatically generated by
an ERP system that links a sales department with a production department. For
instance, when the sales department records a sale, the forecast demand may be
automatically shifted to meet the new demand. Inputs may also be inputted
manually from forecasts that have also been calculated manually. Outputs may
include amounts to be produced, staffing levels, quantity available to promise,
and projected available balance. Outputs may be used to create a Material
Requirements Planning (MRP) schedule.
A master production schedule may be necessary for organizations to
synchronize their operations and become more efficient. An effective MPS
ultimately will:
• Give production, planning, purchasing, and management the information
to plan and control manufacturing
• Tie overall business planning and forecasting to detail operations
• Enable marketing to make legitimate delivery commitments to
warehouses and customers
• Increase the efficiency and accuracy of a company's manufacturing
• Rough cut capacity planning
The MPS should reflect the business plan as closely as possible. This requires a
constant update by all departments of the company. If the Marketing department
plans a sales promotion, the increase in demand must be reflected in the MPS
and the forecast. If the sales team discourages the sale of a product line in favor
of another new created line, the MPS and the forecast will be adjusted.
The MPS helps the Marketing and Sales departments when they embark on a
promotional campaign. Thanks to this resource, it’s possible to discuss and
confirm the actual plan with the Planning department.
The fact of achieving a high level of collaboration between the different
departments of the company is, in itself, a great benefit. The MPS sets the basis
for creating the Material Requirements Plan (MRP). The MRP operates at a
higher level of detail, both in time and in item breakdown.
Remember that the MRP breaks down each item into its components or parts.
Purchasing and Production departments may find possible to meet additional
demand for products. They will be able to find enough quantities of the
components and sub-assemblies needed for the product manufacturing.
Qualitative Methods:
The Delphi Method:
This is an improvement over the executive opinion method. This method tries to
determine the forecasts on the likely time period of occurrence of certain future
events and the probability of their occurrence. In this method, a group of experts
and a Delphi coordinator will be selected.
The experts give their written opinions/forecasts individually to the coordinator.
The coordinator processes, compiles, and refers them back to the panel
members for revision, if any. This to-and-fro process continues for several
rounds (usually three).
Generally, this process will stop when a consensus has been obtained or when
explanations for deviant opinions have been given. Now, the coordinator will
carry out statistical analysis of the responses deriving average answers,
variability, prediction intervals, etc. Only the coordinator will know all the
members of the team and only he/she will have access to all the responses.
The process aims at gradual reduction of the variability in forecasts. The Delphi
forecasts will be primarily median forecasts. This is the original sales
forecasting method and is still the most widely used, regardless of company
size. More sophisticated methods, such as the time series projections and
regression analysis gain new converts every day as forecasters learn how to use
them, aided by data processing facilities.
Quantitative Methods:
Test Marketing:
Test marketing is one of the popular methods for measuring consumer
acceptance of new products. The results from a test market are extrapolated to
make predictions about future sales. Companies select a limited number of cities
with populations which are representative of the target customers in terms of
demographic factors that include age, income, lifestyle and shopping behaviour.
A product is made available at the retail outlets and the features are highlighted
either through in-store promotion or through a small advertising campaign.
Then the performance of the product is tracked through consumer research and
modifications if any are made before taking it for a national launch.
This is a method of simulating future sales in a limited market to test the level
of acceptance of the product in the representative market and then execute a
national campaign. In another approach companies select two markets. One
market is called a ‘test market’ where the product is marketed without any
promotional campaign.
A similar market is selected and is termed as ‘control market’ where the product
is sold with a promotional campaign. The difference in sales between both the
markets is a measure of the effectiveness of the sales promotion campaign. Any
inconsistency with the sales variation in both the markets is an indicator of the
gap between the customer’s perception and the performance of the product
features.
By a complex test marketing procedure, one can measure the effectiveness of
the core product in inviting trial, making people loyal, effectiveness of the
promotional campaign, and in-store promotions. Proper experimental design
and mathematical analyses are important to correctly evaluate test market data.
One example of test marketing occurred in testing the Ganga soap in India. Two
markets were selected for test marketing. The north Indian market was taken as
a test market, whereas the southern market down the Godavari River was used
as the control market. The product was promoted in this market, whereas the
product was only displayed in the test market.
The sales responses were used to extrapolate the data to find out the national
level of sales, and forecasting was done for three years to augment the national
launch. Companies often change product features and promotional themes as a
result of the data obtained in a test-market situation. This is because the test
marketing statistics many a time are found to be discouraging.
Q.1 a) Discuss the core concept of TQM in operations with its benefits.
b) Explain the various dimensions of product & service quality.
Ans. a) Total quality management (TQM) is the continual process of detecting
and reducing or eliminating errors in manufacturing, streamlining supply chain
management, improving the customer experience, and ensuring that employees
are up to speed with training. Total quality management aims to hold all parties
involved in the production process accountable for the overall quality of the
final product or service.
TQM was developed by William Deming, a management consultant whose
work had a great impact on Japanese manufacturing. While TQM shares much
in common with the Six Sigma improvement process, it is not the same as Six
Sigma. TQM focuses on ensuring that internal guidelines and process standards
reduce errors, while Six Sigma looks to reduce defects.
Total quality management (TQM) is a structured approach to overall
organizational management. The focus of the process is to improve the quality
of an organization's outputs, including goods and services, through continual
improvement of internal practices. The standards set as part of the TQM
approach can reflect both internal priorities and any industry standards currently
in place.
TQM is considered a customer-focused process and aims for continual
improvement of business operations. It strives to ensure all associated
employees work toward the common goals of improving product or service
quality, as well as improving the procedures that are in place for production.
Q.2 Discuss the tools and techniques of TQM provided by any two Quality
Gurus of your choice.
Ans. TQM Tools:
• Pareto Principle
• Scatter Plots
• Control Charts
• Flow Charts
• Cause and Effect , Fishbone, Ishikawa Diagram
• Histogram or Bar Graph
• Check Lists
• Check Sheets
Pareto Principle
The Pareto principle suggests that most effects come from relatively few causes.
In quantitative terms: 80% of the problems come from 20% of the causes
(machines, raw materials, operators etc.); 80% of the wealth is owned by 20%
of the people etc. Therefore effort aimed at the right 20% can solve 80% of the
problems. Double (back to back) Pareto charts can be used to compare 'before
and after' situations. General use, to decide where to apply initial effort for
maximum effect.
Scatter Plots
A scatter plot is effectively a line graph with no line - i.e. the point intersections
between the two data sets are plotted but no attempt is made to physically draw
a line. The Y axis is conventionally used for the characteristic whose behaviour
we would like to predict. Use, to define the area of relationship between two
variables.
Control Charts
Control charts are a method of Statistical Process Control, SPC. (Control system
for production processes). They enable the control of distribution of variation
rather than attempting to control each individual variation. Upper and lower
control and tolerance limits are calculated for a process and sampled measures
are regularly plotted about a central line between the two sets of limits. The
plotted line corresponds to the stability/trend of the process. Action can be taken
based on trend rather than on individual variation. This prevents over-
correction/compensation for random variation, which would lead to many
rejects.
Flow Charts
Pictures, symbols or text coupled with lines, arrows on lines show direction of
flow. Enables modelling of processes; problems/opportunities and decision
points etc. Develops a common understanding of a process by those involved.
No particular standardisation of symbology, so communication to a different
audience may require considerable time and explanation.
Cause and Effect , Fishbone, Ishikawa Diagram
The cause-and-effect diagram is a method for analysing process dispersion. The
diagram's purpose is to relate causes and effects. Three basic types: Dispersion
analysis, Process classification and cause enumeration. Effect = problem to be
resolved, opportunity to be grasped, result to be achieved. Excellent for
capturing team brainstorming output and for filling in from the 'wide picture'.
Helps organise and relate factors, providing a sequential view. Deals with time
direction but not quantity. Can become very complex. Can be difficult to
identify or demonstrate interrelationships.
Histogram or Bar Graph
A Histogram is a graphic summary of variation in a set of data. It enables us to
see patterns that are difficult to see in a simple table of numbers. Can be
analysed to draw conclusions about the data set.
A histogram is a graph in which the continuous variable is clustered into
categories and the value of each cluster is plotted to give a series of bars as
above. The above example reveals the skewed distribution of a set of product
measurements that remain nevertheless within specified limits. Without using
some form of graphic this kind of problem can be difficult to analyse, recognise
or identify.
Check Sheets
A Check Sheet is a data recording form that has been designed to readily
interpret results from the form itself. It needs to be designed for the specific data
it is to gather. Used for the collection of quantitative or qualitative repetitive
data. Adaptable to different data gathering situations. Minimal interpretation of
results required. Easy and quick to use. No control for various forms of bias -
exclusion, interaction, perception, operational, non-response, estimation.
Check Lists
A Checklist contains items that are important or relevant to a specific issue or
situation. Checklists are used under operational conditions to ensure that all
important steps or actions have been taken. Their primary purpose is for guiding
operations, not for collecting data. Generally used to check that all aspects of a
situation have been taken into account before action or decision making.
Simple, effective.
TQM Techniques:
Six Sigma
Six Sigma drew inspiration from the quality improvement methodologies of
preceding decades, including quality control, TQM, and Zero Defects. It focuses
on improving the quality of process outputs by identifying and removing the
causes of defects while minimizing the variability in manufacturing and
business processes Like TQM, the Six Sigma philosophy asserts that achieving
sustained quality improvement requires commitment from the entire
organization, particularly top-level management.
Just-in-Time ( JIT )
The Just-in-Time (JIT) method is a production strategy for improving business
return on investment by reducing in-process inventory and associated carrying
costs. JIT focuses on continuous improvement to maximize an organization’s
return on investment, quality, and efficiency. The JIT inventory system focuses
on having “the right material, at the right time, at the right place, and in the
exact amount” and defines inventory as a cost factor.
JIT programs often include a focus on Total Quality Control. For example,
when a process or parts quality problem surfaces on Toyota’s production line,
the entire production line is slowed or even stopped while the problem is dealt
with. JIT must be organization-wide and consistent.
Pareto Analysis
Pareto analysis is a statistical technique used to select a limited number of tasks
that produce significant overall effect. It uses the Pareto principle: most
problems have a few key causes. Pareto analysis also concludes that 80% of the
result can be generated by focusing on 20% of the key work.
Five Whys
The Five Whys is a question-asking technique used to explore the cause-and-
effect relationships underlying a particular problem. The primary goal of the
technique is to determine the root cause of a defect or problem, which points
toward a process that is not working well or does not exist. The technique was
originally developed by Sakichi Toyoda and was used by Toyota Motor
Corporation as it evolved its manufacturing methodologies. It is now used
within Kaizen (continuous improvement), lean manufacturing, and Six Sigma.
Q.3 What do you mean by Route Sheets? Explain the use of Route Sheets by
taking a suitable case example.
Ans. In order to track a specific set of steps or a sequence in the manufacturing
process, a route sheet is used to note a number of things. Route sheets identify
and number a work order, and generally include a symbol or another
concrete way to identify a part. The number of pieces in each production lot is
estimated and recorded, as is the total number of pieces to be produced. The
procedures and sequence of each operation on a given part is noted. All of the
machines and necessary equipment to perform the operation are listed on a route
sheet. Finally, you would find that a prediction of set-up and production time
for each piece would be included.
Route sheets can be applied in different ways. They may be used as planning
tools, and for quality control purposes. When used as planning tools, a routing
sheet may be used by different departments as they set up the step by step
production of an item. Different supervisors and managers are able to monitor
progress, production time, equipment use, and operator history throughout the
production process using the routing sheet.
Therefore, a route sheet can be used during planning, production, monitoring,
and quality control for an item or items during the manufacturing process.
Routing may be defined as the "selection of proper follow which each part of
the product will follow, while being transferred from raw material to finished
products. Path of the products will also give sequence of operations to be
adopted while manufacturing." In other words, routing means determination of
most advantageous path to be followed from department to department and
machine to machine till raw materials get its final shape. Routing determines the
best and cheapest sequence of operations and to see that this sequence is rigidly
followed. Routing is an important function of PPC because it has a direct
bearing on the "time" as well as "cost" of the operation. Defective routing may
involve back tracking and long routes. This will unnecessarily prolong the
processing time. moreover, it will increase the cost of material handling.
Routing is affected by plant layout. In fact, routing and affected by plant layout
are closely related. In product layout the routing is short and simple while under
the process layout it tends to be long and complex.
Routing Procedure:
1. Analysis of the product: the finished product is analysed and broken into
number of components required for the product.
2. Make and buy decision: It means to decide whether all components are to
be manufactured in the plant or some are to be purchased from outside.
make and buy decision depends upon.
• The work load in the plant already existing
• Availability of equipment
• Availability of labour
• Economy consideration
3. Raw materials requirements A part list and bill of materials is prepared
showing name of part, quantity materials specification, amount of
materials required etc.
4. Sequence of operations which the raw materials are to undergo are listed.
5. Machines to be used, their capacity is also listed.
6. Time required for each operation and subassemblies are listed.
7. The low size is also recorded.
The data thus obtained is utilized for preparing master route sheets and
operation charts. the master route sheets give the information regarding the time
when different activities are to be initiated and finished, to obtain the product
and required time.
The next step is to prepare the route sheet for the individual item or component.
Route sheet
The operation sheet and the route sheet differs only slightly. An operation sheet
shows everything about the operation i.e. operation descriptions, their sequence,
type of machinery, tools, jigs & fixture required, setup & operation time etc.
whereas, the route sheet also details the section (or department) and the
particular machine on which the work is to be done. the operation sheet will
remain the same if the order is repeated but the route sheet may have to be
revised if certain machines are already engaged to order. except thin small
difference, both sheets contain practically the same information and thus
generally combined into one sheet known as operation and route sheet.
Name – Gear
Material – m.s.
Quantity – 100 Nos.
Departmen Machin Operatio Description Tool Jigs/Fixtur Time
t e n e Setup Operatio
n
Smithy Power 1 Forging - - 4 Hrs 30 min.
Hamme 2 Punching - - 1 Hr 25 min.
r PH/15 Hole
Heat Furnace 3 Normalizin - - 4 Hrs 4 Hrs
Treatment F/H/4 g
Machine Center 4 Face 2 end. Lathe Chuck 15 min. 1 Hr
Shop Lathe Turn onter Tool
CL-5 & inner
face
Milling 5 Cut teeth Side & Dividing 40 min. 5 Hrs.
m/c face Head
Mm/15 cutter
Slotter 6 Make the Slottin - 10 min. 30 min.
SL/7 key way g tool
Advantages of Routing:
1. Efficient use of available resources.
2. Reduction in manufacturing cost.
3. Improvement in quantity and quality of the o/p.
4. Provides the basis for scheduling and loading.
CONSTRAINTS OF PPC:
The PPC department has to work with the following constraints and limitations:
• PPC is a time taking activity, particularly for the complex product mix as
well as for the products having a large number of components and parts
because of difficulty in carrying out routing, scheduling and loading
functions.
• PPC generally works on certain given conditions and assumptions as well
as depends on uncertain demand forecast. So, working becomes
inaccurate many a time.
• Production capacity, quality of materials, availability of materials and
power, skill level of manpower managing PPC are the main constraints
for effective functions of PPC.
• Plans, checks and controls provided by PPC are generally resisted by the
workers and even supervisors of all other departments.
• Business environment makes very difficult situations for the working of
PPC, particularly when changes in technology, customers demand and
taste, government policy, etc. are very frequent and of dynamic nature.
The above constraints are to be overcome for effective PPC and optimizing the
objective functions of operations, i.e. minimizing costs and maximizing profits.
Q.5 What do you understand by Production Planning and Control? Discuss the
duties of Production Controller in detail.
Ans. 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 subsequent production control follow
adaption of product design and finalization of a production process.
Production planning and control address a fundamental problem of low
productivity, inventory management and resource utilization.
Production planning is required for scheduling, dispatch, inspection, quality
management, inventory management, supply management and equipment
management. Production control ensures that production team can achieve
required production target, optimum utilization of resources, quality
management and cost savings.
Planning and control are an essential ingredient for success of an operation unit.
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.
Production planning takes care of two basic strategies’ product planning and
process planning. Production planning is done at three different time dependent
levels i.e. long-range planning dealing with facility planning, capital
investment, location planning, etc.; medium-range planning deals with demand
forecast and capacity planning and lastly short term planning dealing with day
to day operations.
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. Therefore, objectives of production control
are as follows:
Regulate inventory management
Organize the production schedules
Optimum utilization of resources and production process
The advantages of robust production control are as follows:
Ensure a smooth flow of all production processes
Ensure production cost savings thereby improving the bottom line
Control wastage of resources
It maintains standard of quality through the production life cycle.
Production planning and control are essential for customer delight and overall
success of an organization.
Q.1 What are the dimensions of Quality? Explain them in case of hospitals.
Ans. Garvin proposes eight critical dimensions or categories of quality that can
serve as a framework for strategic analysis: Performance, features, reliability,
conformance, durability, serviceability, aesthetics, and perceived quality.
1. Performance:
Performance refers to a product's primary operating characteristics. For
an automobile, performance would include traits like acceleration,
handling, cruising speed, and comfort. Because this dimension of quality
involves measurable attributes, brands can usually be ranked objectively
on individual aspects of performance. Overall performance rankings,
however, are more difficult to develop, especially when they involve
benefits that not every customer needs.
2. Features:
Features are usually the secondary aspects of performance, the "bells and
whistles" of products and services, those characteristics that supplement
their basic functioning. The line separating primary performance
characteristics from secondary features is often difficult to draw. What is
crucial is that features involve objective and measurable attributes;
objective individual needs, not prejudices, affect their translation into
quality differences.
3. Reliability:
This dimension reflects the probability of a product malfunctioning or
failing within a specified time period. Among the most common
measures of reliability are the mean time to first failure, the mean time
between failures, and the failure rate per unit time. Because these
measures require a product to be in use for a specified period, they are
more relevant to durable goods than to products or services that are
consumed instantly.
4. Conformance:
Conformance is the degree to which a product's design and operating
characteristics meet established standards. The two most common
measures of failure in conformance are defect rates in the factory and,
once a product is in the hands of the customer, the incidence of service
calls. These measures neglect other deviations from standard, like
misspelled labels or shoddy construction, that do not lead to service or
repair.
5. Durability:
A measure of product life, durability has both economic and technical
dimensions. Technically, durability can be defined as the amount of use
one gets from a product before it deteriorates. Alternatively, it may be
defined as the amount of use one gets from a product before it breaks
down and replacement is preferable to continued repair.
6. Serviceability:
Serviceability is the speed, courtesy, competence, and ease of repair.
Consumers are concerned not only about a product breaking down but
also about the time before service is restored, the timeliness with which
service appointments are kept, the nature of dealings with service
personnel, and the frequency with which service calls or repairs fail to
correct outstanding problems. In those cases where problems are not
immediately resolved and complaints are filed, a company's complaints
handling procedures are also likely to affect customers' ultimate
evaluation of product and service quality.
7. Aesthetics:
Aesthetics is a subjective dimension of quality. How a product looks,
feels, sounds, tastes, or smells is a matter of personal judgement and a
reflection of individual preference. On this dimension of quality it may be
difficult to please everyone.
8. Perceived Quality:
Consumers do not always have complete information about a product's or
service's attributes; indirect measures may be their only basis for
comparing brands. A product's durability for example can seldom be
observed directly; it must usually be inferred from various tangible and
intangible aspects of the product. In such circumstances, images,
advertising, and brand names - inferences about quality rather than the
reality itself - can be critical.
Q.2 What are the factors which influence Production Planning and Control?
Discuss the suitable example of any manufacturing industry.
Ans. Factors influencing PPC: The factors that affect the application of
production planning and control to manufacturing are given as follows:
• Type of Product:
It is the complexity of the product that is important, not what the product
is, except as this may in turn relate to the market being served. Production
control procedures are much more complex and involve many more
records in the manufacture of large steam turbine generator sets or
locomotives to customer orders then in the production of large quantities
of a standard product involving only a few component parts, such as
electric blankets, steam irons, or similar small appliances.
8. Type of Manufacturing:
This is probably the most influential factor in the control situation. For a
large continuous manufacturing plant producing a standard product, we
have already indicated that the routing was included in the planning of the
plant layout. Production planning and control in operations has got great
scope and significance due to interactive role and interdependency with
practically all the sections of the production department. Production
planning and control gets the inputs from the design and development
department for both product and process and PPC gives not only the
whole planning to manufacturing and assembly section, but also monitors
and controls at each and every step of work process. PPC has to interact
with all other departments such as Sales and Distribution, Procurement
and Inventory, Repair and Maintenance, Quality Control and Industrial
Engineering and Work Study in both directions, which shows the
interdependency of PPC with other sections of the production department.
9. Procurement And Inventory Management:
Planning for procurement of raw materials, components and spare parts in
the right quantities and specifications at the right time, from the right
source and at the right price. Purchasing, storage, inventory control,
standardization, variety reduction, value analysis and inspection are the
other activities associated with materials.
10.Manufacturing And Assembly:
Production planning and control involve generally the organization and
planning of manufacturing process. Especially, it consists of the planning
of routing, scheduling, dispatching inspection, and coordination, control
of materials, methods machines, tools and operating times. The ultimate
objective is the organization of the supply and movement of materials and
labour, machine utilization and related activities, in order to bring about
the desired manufacturing results in terms of quality, quantity, time and
place.
11.Market Forecast:
The market forecast is value to production planning and control is that it
will indicate future trends in demand for manufactured product. Work
shift policies, plans for an increase or decrease in manufacturing activity,
or possible plant expansions may often be based upon the market
forecasts and in turn affect the planning of the production planning and
control group.
12.Engineering Specifications:
Blueprints and bills of materials are used by production planning and
control when they become a component part of the packaged instructions
issued to the shop through the control office. One good planning
procedure is to accumulate all necessary data for a shop order in a single
package- the standard process sheet, the blueprint, the bill of material (if
an assembly operation is involved), the route sheet, and possibly the
schedule for the production of the order.
13.Quality Control:
A good PPC will provide for adherence to the quality standards so that
quality of output is ensured. 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 business success.
Q.5 Discuss the concept of Six Sigma. Throw light on latest development in Six
Sigma.
Ans. Six Sigma is a disciplined, statistical-based, data-driven approach and
continuous improvement methodology for eliminating defects in a product,
process or service. It was developed by Motorola and Bill Smith in the early
1980’s based on quality management fundamentals, then became a popular
management approach at General Electric (GE) with Jack Welch in the early
1990’s. The approach was based on the methods taught by W. Edwards
Deming, Walter Shewhart and Ronald Fisher among many others. Hundreds of
companies around the world have adopted Six Sigma as a way of doing
business.
Sigma represents the population standard deviation, which is a measure of
the variation in a data set collected about the process. If a defect is defined by
specification limits separating good from bad outcomes of a process, then a six
sigma process has a process mean (average) that is six standard deviations from
the nearest specification limit. This provides enough buffer between the process
natural variation and the specification limits.
For example, if a product must have a thickness between 10.32 and 10.38 inches
to meet customer requirements, then the process mean should be around 10.35,
with a standard deviation less than 0.005 (10.38 would be 6 standard deviations
away from 10.35), assuming a normal distribution.
Six Sigma can also be thought of as a measure of process performance, with Six
Sigma being the goal, based on the defects per million. Once the current
performance of the process is measured, the goal is to continually improve the
sigma level striving towards 6 sigma. Even if the improvements do not reach 6
sigma, the improvements made from 3 sigma to 4 sigma to 5 sigma will still
reduce costs and increase customer satisfaction.
Six Sigma at many organizations simply means a measure of quality that strives
for near perfection. It can be called “Six Sigma,” or it may have a generic or
customized name for the organization like “Operational Excellence,” “Zero
Defects,” or “Customer Perfection.”