Unit - 2

Plant capacity also referred to as production capacity refers to the volume or number of units that

can be manufactured during a given period. Several factors have a bearing on the capacity decision.

 Technological requirement: For many industrial projects, particularly in process type

industries, there is certain minimum economic size determined by the technological factor.

 Input constraints: In a developing country like India, there may be constraints on the

availability of certain inputs. Power supply may be limited; basic raw materials may be

scarce; foreign exchange available for imports may be inadequate. Constraints of these kinds

should be borne in mind while choosing the plant capacity.

 Investment cost: When serious input constrains does not obtain the relationship between

capacity and investment cost is an important consideration. Typically, the investment cost

per unit of capacity decreases as the plant capacity increases.

 Market conditions: The anticipated market for the product or service has an important

bearing on plant capacity. If the market for the product is likely to be very strong, a plant of

higher capacity is preferable. If the market is likely to be uncertain, it might be

advantageous to start with a smaller capacity. If the market, starting from a small base, is

expected to grow rapidly, the initial capacity may be higher than the initial level of demand-

further additions to capacity may be affected with the growth of market.

 Resources of the firm: The resources, managerial and financial, available to a firm define a

limit on its capacity decision. Obviously, a firm cannot choose a scale of operations beyond

its financial resources and managerial capacity.

 Government policy: The capacity level may be influenced by the policy of the government.
Scheduling

Scheduling is one of the most important elements in production planning. Scheduling calls for

through understanding of all aspects of the production process and is an outcome of the integration

of the efforts of planners in the planning group and the people in the shop-floor. Scheduling

integrates the people, machine, materials, customer demands, and quality requirements in finalizing

the priorities. Scheduling makes it possible by determining starting and completion data each of the

operations.

OBJECTIVES OF SCHEDULING

 Maximize throughput

 Be predictable:

 Minimize overhead Balance resource use

 Achieve a balance between response and utilization

 Avoid indefinite postponement Enforce Priorities

 Give preference to process holding

 Degrade gracefully under heavy loads

ELEMENTS OF SCHEDULING

 The processors

 The tasks

 The processing timings

 The precedence relations

OBJECTIVES OF SCHEDULING

 Keeping the inventories

 Setting up the due dates for the availability of items

 Maintaining the customer service

 Setting proper schedules

Production Scheduling is the allocation of raw materials, resources, and processes to produce

products for customers. The purpose of production scheduling is to make your manufacturing

process flow with maximum efficiency, by balancing your production needs with your available

resources in the most cost-effective manner.

Four Stages of Production Scheduling

The four stages of production scheduling are:

1. Production Planning

Production planning is the process in manufacturing that ensures you have sufficient raw materials,

labor and resources in order to produce finished products to schedule. It is a crucial step in

production management and scheduling.

Complete production planning involves the accurate tracking of:

 Raw materials;

 Team members;

 Workstations;

 Processes; and

 Supplies.

Knowing measurements and figures is not enough. You need to understand how each part of your

manufacturing process interact and work together optimally.

2. Routing

Routing is the route or path, to be followed during each step of the manufacturing process. The

manufacturing route defines the path from raw materials through to the production of a finished

product. If done correctly you’ll know at what stage your item is at and which machine, tool, or

work center it needs to travel to next.

3. Scheduling
Production scheduling is the management of these processes to make sure they are completed in a

timely and economical fashion.

When an unusually large order comes in, you don’t have to estimate or guess, as you have “the

knowledge” — the recipe for everything your businesses produces — at your disposal.

This recipe is part of your bill of materials (BOM) and is a cornerstone of your Master Production

Schedule (MPS).

4. Execution

Execution related to the process of undertaking your production plan. Having already established

your production planning, routing and scheduling, the execution stage is when you issue supporting

orders or instructions in order to enable production.

The Importance of Scheduling Production Processes

Neglecting your order fulfilment process leads to problems arising sooner or later. Small

inefficiencies may not be noticeable at first. But allow them to continue, then it will grow into a big

one. This leads to bottlenecks in your production process. Bottlenecks are slow spots in your

production line. They can cause significant issues in your production flow

These issues affect your whole business:

 Customers will get frustrated with delayed orders.

 Crew members will get stressed and demoralized while struggling to keep up.

It takes an effective production manager to diagnose and address causes of bottlenecks. This takes

time and resources which could be spent elsewhere. Afterwards, measures need to be in place that

prevents something similar from occurring. Using production planning software helps you break

this process down into manageable pieces. It saves operation managers time when finding ways to

optimize the production flow. It allows you to stay on top of your floor-level management. Some

may think that you can rush over management or sweep strategy under the rug. Make no mistake:

Production scheduling in manufacturing is one of the hardest but most important things to get right.
If any part of your production is off, then delays happen. Manufacturing process optimization

means making sure dead stock and disappointed customers are non-existent.

In general, good production planning involves:

1. Producing goods in the most logical and straightforward way possible;

2. Thinking ahead — anticipating situations like high demand, shortfall, and bottlenecks;

3. Identifying inefficient spots in the production chain; and

4. Finding the optimal way to completing orders on time.

PC in different production systems

Production planning and control is a predetermined process that plans, manages and controls the

allocation of human resource, raw material, and machinery to achieve maximum efficiency.

Production planning is a sequence of steps that empower manufacturers to work smarter and

optimize their production process in the best possible manner. This helps manufacturers work

smarter by efficiently managing internal resources to meet customer demand.

Objectives of Production Planning and Control (PPC)

Having a reliable Production Planning and Control software in your company makes it easy to:

 Ensure cost-efficient production process

 Promote timely delivery of goods

 Minimize production time

 Improve customer satisfaction

 Coordinate with departments about production, to ensure things are on the same page

 Ensure the right man is assigned the right work

Production planning is the core of any manufacturing unit. It includes material forecasting, master

production scheduling, long term planning, demand management and more. The PPC process kicks

off with demand forecasting of a product, and thereafter designing the production plan according to

the demand to move it forward.

the right place, at the right time so that they can achieve the maximum efficiency from their

resources.

Now, let’s straightway talk about the steps involved in Production Planning and Control. As per the

British Standards Institute, there are four stages or essential elements in the process of production

planning and control. These are as follows:

1. Routing

Routing determines the path from which the raw materials flow within the factory. Once, the

sequence is followed, raw materials are transformed into finished goods. Setting up time for every

step is important to measure the overall duration of the production process. Simply saying, routing

in manufacturing states the sequence of work and operations. Routing throws light on the quantity

and quality of materials to be used, resources involved (men, machine, and material), the series of

operations and place of production. Routing manages “How”, “What”, “How much”, & “Where” to

produce in a manufacturing company. It systematizes the process and nurtures optimum utilization

of resources to get the best results.

2. Scheduling

Scheduling is the second step that emphasizes on “When” the operation will be completed. It aims

to make the most of the time given for completion of the operation.

As per Kimball and Kimball, scheduling is defined as –

“The determination of the time that should be required to perform the entire series as routed,

making allowance for all factors concerned.”

Organizations use different types of schedules to manage the time element. These include Master

Schedule, Operation Schedule, Daily Schedule and more.

3. Dispatching

The third step ensures that operations are done successfully and everything is loaded on the

software. Dispatching includes the release of orders, in accordance with the scheduled charts.
Here are the points that encapsulate “Dispatching”

 Issue of materials or fixtures that are important for the production

 Issue of orders or drawings for initiating the work

 Maintain the records from start to end

 Initiate the control procedure

 Cascade the work from one process to another

4. Follow-up

Also known as expediting, follow-up is the final step that finds faults or defects, bottlenecks and

loopholes in the entire production process. In this step, the team measures the actual performance

from start till the end and then compares it with the expected one.

Types of production

This type of production is most commonly observed when you produce one single unit of a product.

A typical example of the same will be tailored outfits which are made just for you or a cake which

is made just like you want it. It is one of the most common types of products used because it is

generally used by small businesses like restaurants, individual products providers or individual

services providers.

Batch type of Production

It is one of the types of production most commonly used in consumer durables, FMCG or other

such industries where there are large variety of products with variable demands. Batch production

takes place in batches. The manufacturer already knows the number of units he needs to a

manufacturer and they are manufactured in one batch.

Mass Production or Flow production

One of the best examples of mass production is the manufacturing process adopted by Ford. Mass

production is also known as flow production or assembly line production. It is one of the most
common types of products used in the automobile industry and is also used in industries where

continuous production is required.

Continuous production or Process production

There is a lot of confusion between mass production and continuous production. It can be

differentiated by a single element. The amount of mechanical work involved. In Mass production,

both machines and humans work in tandem. However, in continuous production, most of the work

is done by machines rather than humans. In continuous production, the production is

continuous,24×7 hours, all days in a year.