PRODUCTION CONTROL

PRODUCTIVITY

It is a measure of how much inputs are required to produce a given level of output. It is the ratio of output to input. According to Peter Ducker, “Productivity means a balance between all the factors of production that will give the maximum output with the minimum efforts”.

Productivity = Measures of output
Measures of input

Pt = Qt . Where – Pt = Total Productivity
L+C+R+M Qt = Total output
L = Labour
C = Capital
R = Raw Material
M = Machine

Benefits of Productivity

1. Increase in production.
2. Decrease in per unit cost.
3. Better utilization of resources.
4. Avoid wastage.

Method/Tools for Increasing Productivity

1. Better planning and training of employees.
2. Use of time and motion study methods to increases the workers performance.
3. Better transportation and material handling system.
4. Improvement in the technology of production process.
5. Stnadardisation, simplification and specialization techniques for production.
6. Efficient utilization of resources.
7. Use of scientific inventory control techniques such as ABC analysis, VED (V=Vital, E=essential, D=desirable) etc.

Some Measures of Productivity

1. Labour Productivity = Total output ÷ Labour
2. Capital Productivity = Total output ÷ capital
3. Profit Productivity = Profit ÷ Investment
4. Aggregate Productivity = Qt .
L+C+R+M


PROCESS CHART

It includes different symbols which are used far the different operations carried out by an organization. We have following symbols to represent the different operation of production system:

1 = Operation to be done


2 = Inspection


3 ======> = work In process


4. = storage



5. = Delay




6. = Operations/inspections are to be carried out simultaneously.




PRODUCTION PLANNING

Production planning is that function of prod management which decides about the resources which the firm will repair for its future manufacturing ops and of allocating these resources to produce the desired output in required amount at least possible cost.

Production planning sets the framework within which detailed schedule and inventory control schemes must operation.
Objectives of Production Planning :

1. Systematic co-ordination and regulation of various activities keeping in view the capacity of resources and the objective of the organization.
2. To maintain proper balance between all the activities for the effective production.
3. Determination of raw material, machines etc. and other inputs required for desire output.
4. To face changes in business very well.
5. To have optimum use of resources.
6. To provide alternative strategies in case of emergencies.









1. Routing: It means determination of path upon which each piece is to travel and is being transformed from raw material into finished products. In other words routing prescribes the sequence of operation required to transform inputs into desired products. Routing of a prod order contain a complete description of item to be manufactured detail of each operation involved in the prod process, the setup time and standard time required to complete the work. It also prescribes the amount of material, types of equipment, machines and the no. of skilled and unskilled workers required to perform a particular operations.

Advantage:

1. Help in setting the proper sequence of different activities.
2. Efficient use of resources.
3. Increase in productivity.
4. Avoid idle time.

2. Scheduling: Scheduling is the process of describing when and where each operation of the production process is to be performed. In other words scheduling involves designing he time payable of manufacturing activities indicating the time required for the production of units at each stage.

Objective of Scheduling : The fundamental objective of scheduling is to orange the work of production unit in such a way that given below:-

1. Items are delivered on due date during production process.
2. The production cost is minimized by reducing cost of wages.
3. To plan the sequence of work so that delivery date is met.
Scheduling Devices:

1. GANTT Chart.
2. Critical Pass Method (CPM) & PERT.
3. The round approach
3. Loading: This can be defined as the study of relationship between load and capacity at the place, where work is done loading provides the complete and correct information about the number of machines available and their operating characteristics such as speed, capacity etc. This type of information can be used to know the under and over workload conditions.

Objective of Loading:

1. To plan new work orders on the basis of spare capacity available.
2. To balance the workload in a plant.
3. To maintenance the delivery promises.
4. To check the feasibility of production programs.

Loading Devices:

1. Loading step by step: Some times a company production order may require of finite number of operations may vary too much from time to time. In such cases overload are scheduled to accounts for intersection among various operations by identifying the ops which possesses maximum delay on the order.

2. Machine loading: using the information from schedules, weakly or periodic load in hours is determined for each machine and is then recorded on machine load chart. This chart also gives the information about time for which the machine will be busy.

3. Load chart: It shows the work assigned to various departments, machines and components of an organization. During the peak period load info from load chart can b e used to determine.
(a) Priorities of future orders.
(b) Provision of over time or multi shifts operations.

Characteristics of Good Production Planning:

1. It should have a well defined objective.
2. It should be simple and easy to apply in practice and feasible enough to adjust in changing environment.
3. It should be based on some decision making principles.
4. Reliable and up to date info should be available for planning the production process.

PRODUCTION CONTROL

Production control ensures the desired output of specified quality at a prescribed time in the most economical way to meet an approved sales programme. It is that functions of management which plan s, direct and control the materials supply and processing activities of an company. It ensures the optimum utilization of man, machine and money.

Function/Techniques of Production Control:

1. Programming: Production programming regulates the supply of finished products in desired amount at the due date in accordance with production plan. Programming ensures most efficient use of labour equipment and capital. In production programming thee main decisions are taken:

(a) Nature of the product to be manufactured.
(b) Amount of quantity to be produced.

2. Ordering : It breakdowns the requirement for product to be completed at specific date into orders for materials and processed parts and attempt to do so in such a way that they are available when need.

3. Dispatching It is the routing and setting production activities in motion through the release of an order and instruction in accordance with previously planned times and sequence embodied with route sheets and schedule charts.

4. Progressive Follow-up: It is the checking of production activities systematically so that production may be carried out according to the plan. Under this actual performance is compared with standard performance and if any deviations are found corrective measures are taken.

5. Inventory Control: Inventory include all the raw material, spare parts, finished, goods, intermittent material kept in store. Inventory control as concerned with the deciding minimum and maximum level of inventory and providing protection in the inventory against pilferage, obsolescence and from other risks.

PRODUCTION PROCESS (OR) MANUFACTURING SYSTEM


Production process converts a set of inputs into a specified set of outputs. The input includes labour raw material, machine, equipments and financial resources. It mainly depends upon the nature of goods and services to be produced. A typical production system is given below:





A manufacturing system can further divided in to two categories:













INTERMITTENT

In this system goods are manufactured specially to fulfill the orders made by the customers rather than for specific stock. Here the flow of material is intermittent. Such systems are flexible enough to handle a vide variety of products. And jobs are not repetitive e.g. add company, printing presses, machines shops, hospitals etc. This system can be classified into three categories.

1. Job System. 2. Batch Production. 3. Project Production.

1. Job System: Job system involves production of one or more products whose volume is generally low by one operator or group of operators. The job once done is not repeated frequently e.g. Add Agency, Printing press etc. Some main features of the job System are given below:-

(a) Infrastructure: The cost of infrastructure a generally low but may be expensive in some exceptional cases. Machines and equipments involve in the production system are procured with multiple options and flexibility because jobs are not repetitive.

(b) Cost & Quality: Cost and product in such companies is not vary much competitive in comparison to other production process. Because volume is low and intensive production planning is missing, so cost over runs is quite common. Cost of inventory also becomes higher in such cases. Maintaining a high level of quality is challengeable job for management in job production. Special guidelines are maintained to control the quality of product. The focus is on quality rather than on quantity.
(c) Man Power: We know in job production quality is very important and there is no repetition of jobs in this scenario it becomes necessary to hire experienced and highly skilled manpower for production activities.

(d) Management Role: The management role at planning stage is negligible. Because jobs are not repetitive. The management functions are mostly performed at down level such as selection of staff, supervision, direction and control.

2. Batch Production: This type of process is adopted where the requirement is to produce a limited of products with varying quantities at periodic intervals. The products are produced in lots and in planned quantities, e.g. pharmaceutical, cement industries. The some important features are given below:-

(a) Infrastructure: The cost of infrastructure is high but lesser than man & process production system. Machines are installed in such a way that they can handle flexible customer orders. Machines that perform similar functions with different setting options are placed together in a group.

(b) Cost & Quality: Cost of product in such companies is quite competitive, keeping in mind the quantity of products and comparatively smaller variety of products. This type of system is capable to produce good quality products. However there is a possibility of inconsistency of quality from one batch to the other.

(c) Man Power: A combination skilled and unskilled labour is required. Skilled manpower is required to operate machinery, plant maintenance & unskilled manpower for material handling, packaging, inventory control etc.

(d) Management Role: Management plays a vital role in such companies in terms of deriving the best possible combination of operational sequences of all the products to be produced during the specific period.

3. Project Production: It can be defined as a set of activities performed to produce a single product. The product base is immovable and the different agencies with different skills are employed to complete the production easy for e.g. Road & Dam Construction Company etc. The some important features are given below:-

(a) Infrastructure: The infrastructure is mix between basic and expensive machines. Since he nature of the jobs is such that the product to be produced is immovable, the machinery should be such that it can easily transported to the site of production.

(b) Cost & Quality: Companies work with pre-determined budgets assigned as cost of production. But it is different to cope with budgeted cost. The duration of projects is also prefixed but in most of the cases the duration runs into years. The quality of product depend upon many variable factors such as material handling, inspection, manpower etc.

(c) Man Power: Manpower to be used in project production is a mix of skilled and unskilled workers. All operations are performed by skilled manpower while material handling and associated activities are performed by unskilled manpower.

(d) Management Role: In project production the Management perform the function of planning with the company-ordination of difference agencies because project involve the number of complex activities.

CONTINUOUS

In this system items are produced for stock and not for specific order. Here the inputs are standardized and a standard set of processes and sequence of activities are adopted. Proper routing and scheduling is made for the whole production process. This system is further divided into two parts:-

1. Mass & flow production. 2. Process production.

1. Mass & flow Production: Under this system items are produced in large quantities for stock. Uniform and uninterrupted flow of material is maintained through predetermined sequence of operation required to produce the product. The system can produce only one type of product at one time e.g. textile, sugar industries, automobiles etc. The some important features are given below:-

(a) Infrastructure: The system is is very much capital intensive. The production involves a combination of special and general purpose machinery with various adjustment options.



(b) Cost & Quality: This type of production process is cost effective. We produce in large quantities to achieve the economies of scales. To maintain quality under this system is quite difficult for this we need a proper supervision and control on production activities.

(c) Man Power: A combination skilled and unskilled labour is required. All operations are performed by skilled manpower & unskilled manpower for material handling, packaging, inventory control etc.

(d) Management Role: Management plays a vital role in such companies in terms of deriving the best possible combination of operational sequences of all the products to be produced during the specific period. Management plan all the activities of production in advance so that predetermined objectives can be achieved. The criteria to plant production are:-

(i) Time taken to reproduce a product.
(ii) Capacity of machine and equipment.
(iii) When the product is required.
(iv) Avoidable resources etc.

2. Process Production: Process production is defined as a system of production where similar product is produced continuously in large quantities, year after year. This type of production system is suitable where the requirement is to produce some product in large quantities such as steel, cement, sugar etc. The some important features are given below:-

(a) Infrastructure: The industry where this type of process is adopted is generally more capital intensive with special purpose machinery and high degree of automation is deployed.

(b) Cost & Quality: Cost of production in such companies is almost constant provided input cost does not vary and plant runs on the full capacity. Depreciation and maintenance are high in such cases. Quality level of the output is also almost similar. To improve the quality of products the management needs to update the technology alternation in the sequence of operations.

(c) Man Power: This system of production process requires some specialists for that type of operation on which they are deployed. Most of the labour are unskilled and performed monotonous task that are assigned to them. Manpower requirement is constant and can change only in the event of change in infrastructure.

(d) Management Role: Initially the role of management is very crucial in selecting machine, equipments and production process, but after that there is a limited role for a management to plays, as far as the process selection is concerned. Moreover the management plays an active role initiatively, maintenance of machinery and controlling other production activities.