Category: Production Management

Production management, also known as operations management or manufacturing management, is the process of planning, organizing, directing, and controlling. The production process ensures the efficient and effective creation of goods and services. It involves overseeing the conversion of raw materials, labor, and other inputs into finished products that meet customer demands and quality standards.

Key aspects of production management include:

  1. Planning: Production managers develop production plans that outline the objectives, strategies, and resources needed to achieve production targets. This includes determining production schedules, resource allocation, and capacity planning.
  2. Design and Process Engineering: In collaboration with engineers and designers, production managers develop and improve production processes to enhance efficiency and reduce costs while maintaining product quality.
  3. Inventory Management: Production managers are responsible for maintaining optimal levels of raw materials and finished goods inventory to avoid stockouts or overstock situations.
  4. Quality Control: Ensuring product quality is a critical aspect of production management. Quality control measures stand implemented to identify and rectify defects, minimize waste, and maintain consistent product standards.
  5. Workforce Management: Production managers oversee the workforce, including hiring, training, and motivating employees to ensure a skilled and efficient team.
  6. Scheduling and Sequencing: Production managers create production schedules that optimize resource utilization, minimize downtime, and meet delivery deadlines.
  7. Cost Management: Production managers stand tasked with controlling production costs, including labor, materials, and overhead expenses, to ensure profitability.
  8. Health and Safety: Ensuring a safe working environment for employees is a crucial responsibility of them.
  9. Lean Manufacturing and Continuous Improvement: Adopting lean principles and implementing continuous improvement initiatives are common strategies used in them to eliminate waste, enhance productivity, and streamline processes.
  10. Automation and Technology Integration: Production managers may explore the integration of automation. And advanced technologies to improve production efficiency and quality.

Efficient production management is essential for businesses to maintain a competitive edge, deliver products on time, and meet customer demands. It involves a blend of strategic planning, technical expertise, and effective leadership to optimize resources and ensure smooth production processes. By implementing best practices in them, organizations can achieve higher productivity, reduce costs, and enhance customer satisfaction.

  • What are the major factors affecting Production Process analysis Decisions?

    What are the major factors affecting Production Process analysis Decisions?

    The major factors affecting Production Process analysis Decisions is explaining in the 6 points of; 1) Nature of product/service demand, 2) Degree of Vertical Integration, 3) Product/Service and Volume Flexibility, 4) Degree of Automation, 5) Level of product/service quality, and 6) Degree of Customer Contact. Among the factors affecting production process analysis are the nature of product/service demand, degree of vertical integration, product/service and volume flexibility, degree of automation, level of product/service quality, and degree of customer contact.

    Here are the answers – What are the major factors affecting Production Process analysis Decisions? Discussion.

    What is process analysis? Process Analysis can understand as the rational breakdown of the production process into different phases, that turns input into the output. It refers to the full-fledged analysis of the business process. Which incorporates a series of logically linked routine activities. That uses the resources of the organization, to transform an object, to achieve and maintain the process excellence. The following questions and answer – What are the major factors affecting Production Process analysis Decisions? below are;

    Nature of product/service demand:

    Production systems exist to produce products/services of the kind that customers want, when they want them, and at a cost that allows the firm to be profitable. The place to start in analyzing production systems, therefore, is the demand for products and services. Of particular importance are the patterns of demand.

    Patterns of Product/Service Demand;

    First, production processes must have adequate capacity to produce the volume of the products/services that customers want. Forecasting methods help to estimate customer demand for products/services. These forecasts can then use to estimate the amount of production capacity needed in each future period. Seasonality, growth trends, and other patterns of demand, therefore, are important determinants of the production capacity necessary to satisfy demand.

    Seasonality is an important consideration in planning the appropriate type of production process for a product/service. For example, if a product’s demand exhibits great variation from season to season, the production processes and inventory policies must design to allow the delivery of sufficient quantities of products or services during peak demand seasons, and yet still be able to produce products economically in slack demand seasons.

    Similarly, the growth trends of product/service demand have important implications for analyzing production processes. For example, if a service expects to show strong sales growth over five years, provision must make for designing production processes whose capacity can expand to keep pace with demand.

    Some types of processes can more easily expand than others, and the choice of the type of production process will affect by the forecast growth trends of product/service demand. As with seasonality and growth patterns, random fluctuations and cyclical patterns will also have an impact on production process designs. Also, the overall volume of the demand and the prices that can charge for the products/services will affect the type and characteristics of the production processes.

    Degree of Vertical Integration:

    One of the first issues to resolve when developing production processing designs is determining how much of a product/service the company will produce and how much will buy from suppliers. Vertical integration is the amount of the production and distribution chain, from suppliers of components to the delivery of finished products/ services to customers, that is brought under the ownership of a company.

    There are two types of vertical integration, forward and backward. Forward integration means expanding ownership of the production and distribution chain forward towards the market. Backward integration means expanding ownership of the production and distribution chain backward towards the sources of supply.

    Generally, there are three stages of production: component, subassembly, and final assembly.

    For most manufacturers of finished products-such as Ford, Telco, and Maruti that assemble automobiles-the major issue of vertical integration is whether they should enter into supply contracts with suppliers of subassemblies and components, or backward integrate to produce subassemblies and components themselves. On the other hand, firms that are primarily subassembly suppliers. The major issues of vertical integration are whether they should forward integrate and assemble and market their finished products. In either case, the issue of whether to integrate vertically brings both opportunities and risks.

    The amount of vertical integration that is right for a particular firm in one industry could be inappropriate for another firm in a different industry. For companies that would forward integrate towards the market. The predominant factor in such decisions is the ability of the company to market the products.

    It should be clear from points that the decision whether to make products (backward integrate by bringing production of subassemblies and components in-house) or buy them from suppliers is not simple.

    The points of Contention in a Decision Situation:
    • Cost of making or producing subassemblies or components in-house versus buying them from suppliers.
    • The amount of investment necessary to produce subassemblies or components in- house.
    • The availability of funds to support the necessary expansion of production capacity.
    • Effect on return on assets if the production of subassemblies or components undertakes.
    • The present technological capabilities of the company to produce subassemblies or components.
    • The need to develop technological capabilities to produce subassemblies or components to secure future competitive position.
    • Availability of excellent suppliers who are willing to enter into long-term supply relationships, particularly those who can provide high-quality subassemblies and components at low prices. Who are well enough funded to ensure continuity of an adequate supply? And, who can work with the company to continuously improve product and component designs and manufacturing processes?
    • Amount of market share held by the company.

    Product/Service and Volume Flexibility:

    Flexibility means being able to respond fast to customer’s needs. Flexibility is of two forms, product/ service flexibility, and volume flexibility. Product/service flexibility means the ability of the production system to quickly change from producing one product/ service to producing another. Volume flexibility means the ability to quickly increase or reduce the volume of products/services produced. Both of these forms of the flexibility of production systems are determined in large part when the production processes are designed.

    Product/service flexibility requires when business strategies call for many custom-designed products/services each with rather small volumes or when new products must introduce quickly. In such cases, production processes must ordinarily plan and design to include general-purpose equipment and versatile employees. Who can easily change from one product/service to another? The concept of a flexible workforce involves training and cross-training workers in many types of jobs. Although training costs increase, the payoff is work that is perhaps more interesting for workers and a workforce. That can quickly shift from job to job and other products/services with little loss in productivity.

    Volume flexibility:

    Volume flexibility needs when demand is subject to peaks and valleys. And, when it is impractical to inventory products in anticipation of customer demand. In these cases, production processes must design with production capacities that can be quickly and inexpensively expand and contract. Manufacturing operations are ordinarily capital-intensive, which simply means that the predominant resource used is capital rather than labor.

    Thus in the presence of variable product demand, capital equipment in production processes must design with production capacities that are near the peak levels of demand. This translates into either increased capital investment in buildings and equipment or the use of outside subcontractors and some provision for quickly expanding and contracting the workforce. Over time, layoffs or the recall of workers from layoffs, use of temporary or part-time workers on short notice, and permanent overstaffing are options commonly used to achieve the volume flexibility of employees.

    Degree of Automation:

    A key issue in analyzing production processes is determining how much automation to integrate into the production system. Because automated equipment is very expensive and managing the integration of automation into existing or new operations is difficult, automation projects are not undertaken lightly.

    Historically, the discussion of how much automation to use in factories and services has centered on the cost savings from substituting machine effort for labor. Today, automation affects far more than the costs of production; in fact, for many companies automation is seen as basic to their ability to become or remain competitive.

    Automation can reduce labor and related costs, but in many applications. The huge investment required by automation projects cannot justify labor savings alone. Increasingly, it is the other benefits of automation that motivate companies to invest in automation. The need to quickly produce products/services of high quality. And, the ability to quickly change production to other products/services are the key factors that support many of to day’s automation projects.

    The degree of automation appropriate for the production of a product/service must drive by the operations strategies of the firm. If those strategies call for high quality, product flexibility, and fast production of products/services. Automation can be an important element of operations strategy.

    Level of product/service quality:

    In today’s competitive environment, product quality has become the chief weapon in the battle for world markets of mass-produced products. The choice of the production process is certainly affected by the desired level of product quality. At every step of process design, product quality enters into most of the major decisions.

    For many firms, the issue of how much product quality required is directly related to the degree of automation-integrated into the production process. Automated machines can produce products of incredible uniformity. And with proper management, maintenance, and attention, products of superior quality can produce with automated production processes at low production costs.

    What are the major factors affecting Production Process analysis Decisions
    What are the major factors affecting Production Process analysis Decisions? #Pixabay.

    Degree of Customer Contact:

    For most services and some manufacturers, customers are an active part of the processes of producing and delivering products and services. The extent to which customers become involved in the production systems has important implications for the production processes. There is a wide range of degrees of the interaction of customers with the production system.

    For example, at one extreme are barbershops, hair salons, and medical clinics. Here the customer becomes an active part of the production, and the service is performed on the customer. In these cases, the customer is the central focus of the design of production processes. Every element of the equipment, employee training, and buildings must design with the customer in mind.

    Also, courteous attention and comfortable surroundings must provide to receive, hold, process, and release customers. In such systems, service quality, speed of performing the service, and reduced costs can improve with automated equipment. As long as the fundamental nature of the service does not materially affect.

    At the other extreme of customer involvement, the design of production processes affects little because of interaction with customers. Examples of this type of service are fast-food restaurants or backroom operations at banks. In these operations, services are highly standardized, the production volume of services is high, and cost, price, and speed of delivery tend to be predominant in operations strategies.

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  • PPC under different production systems: Process, Job, Intermittent, and Assembly Production Industry

    PPC under different production systems: Process, Job, Intermittent, and Assembly Production Industry

    PPC (production planning and control) under different production systems: Process, Job, Intermittent, and Assembly Production Industry…No single system of production planning and control is good for all types of industries. The nature of PPC varies from firm to firm depending upon the type of production process. In the manufacturing industry, raw materials are covered into components, semi-finished products, and finished products. But some firms are engaged in the assembling of products. An assembling industry combines several components or parts to make the finished product, e.g. bicycle, typewriter, fan, scooter, etc.

    The application of production planning and control to various types of products has been explained below:

    PPC in Process Production Industry:

    Production planning and control in the process industry are relatively simple. Routing is almost automatic and uniform because standardized techniques and specialized equipment are used in production processes. The product is standardized and goods are produced for stock. Therefore, scheduling is easy and department schedules can be prepared from the master schedule continuingly.

    Dispatching involves repetitive orders issued to ensure a steady flow of materials through the plant. In the process industry, decentralized dispatching can be used so that each foreman can issue orders and instructions to each operator and machine under his charge as per the circumstances of his work-station.

    The sequence of operations being uniform, responsibility for quality control can be delegated to individual production units to ensure that the products manufactured conform to the specifications laid down in advance. Thus, the main task of production planning and control in the process industry is the maintain a continuous and uniform flow of work at the predetermined rate so that there is full utilization of plant capacity and the work is completed in time. Therefore, it is known as “flow control”.

    PPC in Job Production Industry:

    Production planning and control are relatively difficult in the job production industry. Every order is of a different type and it entails a particular sequence of operations. There is not a standardized route plan and a new route has to be prepared for every order. Specific orders are assigned to different workstations according to the capacities available with them.

    Production, schedules are drawn up according to relative urgency of the order. An order received later may have to be supplied earlier. Sometimes, it may not be possible to schedule all operations relating to order simultaneously. Dispatching and follow up are also order-oriented. For every order fresh instructions and follow up measures have to be undertaken. Therefore, production control is job production system may be called “Order control”.

    PPC in Intermittent Production Industry:

    In the case of intermittent production, raw materials are converted into components or parts for stock but they are combined according to the customer’s orders. The products are manufactured usually in large batches. Every batch differs from others but all units within a batch are identical. Several heterogeneous finished products are manufactured within a limited range of options.

    Therefore, production planning and control in intermittent manufacturing is a mixture of those used in the process industry and job order production. There is a standardized component and production schedules are continuous. But the routes and schedules for intermediate operations have to be changed every time. To avoid delays and bottlenecks in the production process, great care needs to be taken in dispatching.

    Before issuing orders and instructions need for new materials and tools, overloading and underloading of particular machines/operators and other problems must be anticipated. As the product is diversified and several orders are being handled simultaneously in different work-centers, follow up is a cumbersome task in intermittent manufacturing. Follow up may be organized either according to product or process. Follow up by-product is suitable for process or continuous production system.

    Extra knowledge:

    It is relatively simple because there is an automatic flow of work from one operation to another and the follow-up mart has simply to report and remove breakdown, delays, shortage of materials and tools that obstruct the smooth flow of production. But in the intermittent production system, follow up by process is used. In every department, the follow-up men check the progress of work passing through that department. The follow-up men do not require knowledge and information about all the departments.

    But they have to be more alert as the flow of work from one operation to another is not automatic. Quality has to be controlled both during the manufacture of components and during their conversion into the finished product. In practice, a combination of flow and order controls known as block control may be used. Flow control is employed to produce standardized components and order control is used for the manufacture of finished products.

    PPC in Assembly Production Industry:

    In an assembly industry, there is a uniform sequence of repetitive operations but the number of components and their proportion to be assembled differ from one product to another. Once the sequence of operations has been decided, the efficiency depends upon the regular and timely supply of the required components.

    The entire production line may be held up and machinery and men may remain idle on account of the non-availability of one single component at the proper time and in the required quantity. It is, therefore, essential to determine first of all the type and quantity of various components required at different stages in the assembling of a product. This will depend upon the nature and volume of a product to be assembled during a particular period.

    Production schedules are drawn up for each product to achieve the targets of production. Assembly work for different products is assigned to various machines and operators according to their capacities and suitability. Instructions are issued in such a manner that the responsibility, for a particular product is fixed on specific employees. Follow up measures need to be taken to ensure that every product is being assembled as per the specifications and schedules laid down in advance.

  • 6 important Steps in Production Planning and Control

    6 important Steps in Production Planning and Control

    Production Planning and Control; The function of production planning and control involves co-ordination and integration of the factors of production for optimum efficiency. Overall sales orders or plans must translate into specific schedules and assigned to occupy all work centers but overload none.

    Here explain the top 6 important Steps in Production Planning and Control; you’ll understand them in simple words.

    The job can be done formally, in which case elaborate charting and filing techniques are used; or it can be done informally with an individual’s thoughts and retention thereof supplanting tangible aids. In any case, the production planning and control function must be performed somehow by someone. The better the job that is done, the better the profit picture will be.

    A successful production planning and control program minimizes the idleness of men and machines, optimizes the number of set-ups required, keeps in-process inventories at a satisfactory level, reduces materials handling and storage costs, and consequently permits quantity and quality production at low unit costs.

    The basic phases or steps of production planning and control show and discuss below:

    Routing:

    Production routing involves the laying den of the path which works will follow and the order in which various operations will be carried out. It consists of the determination of operations through which the product must pass and the arrangement of operations in the sequence that will require a minimum of handling, transportation, storage, and deterioration through exposure.

    It is the job of routing personnel to determine the production routes in the organization. A route for the movement of a manufacturing lot through the factory results from the determination of where each operation on a part, subassembly, or assembly is to perform. Routing may generalize or details, depending upon the quality of the product to manufacture, the production system in use, and other factors.

    Generalized routing may establish either by building or by departments such as machine shop, assembly, or others. Detailed routing indicates the specific work station or a machine to use for each operation. Routing aims to determine an economical sequence of operations. Efficient routing permits the best utilization of physical human resources employed in production.

    Extra knowledge:

    Routing is an essential element of production control because other production control functions are dependent on the routing function. The persons who make out a list of operations must be thoroughly familiar with all the operations and various machines in the plant so that they can establish routes that will ensure maximum utilization of the plant and machinery. Also, the routing procedure depends on considerations of the type of work stations, characteristics of individual machines, needs of personnel, etc.

    Routing in continuous industries does not present any problem because of the product type of layout where the equipment arrange as per the sequence of operations required to perform on the components (from raw material to the finished products). On the other hand, in open job shops, since every time a new job undertakes, the route sheet will have to revise which involves a lot of work and expertise.

    In general, the following routing procedure follows:

    Determining What to Make and What to Buy:

    The product analysis, from the manufacturing point of view, to find out how many parts or components can manufacture in the plant and how many can purchase from outside directly. Also, the decision to make or buy a component depends on the relative cost involved, technical consideration, purchasing policies of the firm, and availability of equipment, and personnel. In general, during slack periods the decision takes to undertake maximum production to keep the men and machines busy. On the other hand, during prosperity, the sub-contracts give for any parts to relieve overburdened facilities.

    Ascertaining the Requirements of Materials:

    After the decision to manufacture takes, the production department decides the exact quantity and quality of materials required for the manufacture of the components or the product. A parts list and a bill of materials prepared to show the name of each part, quantity, material specifications, amount of materials required, etc. The necessary materials, thus, can procure.

    Preparation of Route Sheet:

    The chief paper which gives the details of what is to be done and how it will have to be done calls a route sheet. In other words, a route sheet is a tabular form on which the path that a particular item is to follow through production records. Route sheets prepare in advance of need and filed in the route file. A route sheet is to prepare for every production order showing the individual parts to complete for each finished product before any group can assemble.

    Route sheets will contain the following details in full:

    • The works order No.
    • The number of pieces to make.
    • Symbol and classification of the part.
    • The lot sizes for each unit of production, if put through in lots.
    • List of operations for each part.
    • The definite sequence of operations.
    • Machine to use for each operation.
    • Materials that are necessary for a given operation, and.
    • The standard time for each operation.

    A separate route sheet is necessary for each part or component of a works order. It may note that the number of pieces mentioned on the route sheet doesn’t need to be the same as required under any specified order; because in many cases some allowance has to make for spoilage, and additional pieces may need for stock, or as reserves for repairs, or as spares. While preparing a route sheet, it is essential to bear in mind that the route selected is the shortest and the most economical of all possible alternative routes.

    Determining Lot Sizes:

    When the work orders are received from the customers, it is necessary to determine the lot sizes to keep the route free and ready for smooth operations. This must be done with due reference to the length of operations, space occupied by the material while moving through the shop, and the requirements of the master schedule.

    Determining Scrap Factors:

    A scrap factor is the anticipated normal scrap encountered in the course of the manufacturing process. Also, the routing department should determine the amount of possible scrap and rejection in each order or lot. Usually, a margin of 5% to 10% keeps for such rejections.

    Estimation of the cost of the Product:

    The cost of the component or product analyzes and estimate through the information obtained in steps one to five above. The cost consists of material, wages, and other specific and indirect expenses.

    Preparation of Production Control Forms:

    To collect detailed information relating to production control, the production department prepares various forms such as job cards, inspection cards, move tickets, tool tickets, etc.

    Loading:

    Once the route has been established, the work can load against the selected machine. Loading deals with the amount of work assigned to a machine or a worker. It deals with the record of work-load of different shops. The total time required to perform the operations compute by multiplying the unit operation time given on the standard process sheet by the number of parts to the process.

    The total time then adds to the work already planned for the work station. The process results in a tabulated list or chart showing the planned utilization of machines or work stations in the plant. From the chart, it is easy to assess the spare capacity of the plant. If the loading charts indicate sufficient spare capacity, efforts may direct through the sales department to obtained more orders for the utilization of spare capacity.

    The underload of certain departments may also arise from ineffective planning. In such a case, the remedy lies in proper planning. But if, on the other hand, there is an overload in any workshop, action on any one or more of the following lines may take to relieve the bottleneck;

    • Arranging for overtime work.
    • Introducing an additional shift.
    • Transferring operations to another shop, and.
    • Sub-contracting of the excess load.

    Scheduling:

    The scheduling involves fixing priorities for different items and operations and providing for their release to the plant at the proper time. It establishes the time sequence of operations and indicates the time required for each job and operation. A schedule is a time-table of operations specifying the time and date when each job/operation is to start and complete.

    Scheduling is, thus, the determination of the time that should require to perform each operation; and, also the time necessary to perform the entire series, as routed making allowance for all factors concerned. The objective of scheduling is to ensure that every job starts at the right time and complete before the delivery date. Scheduling and routing are inter-dependent and the two should, therefore, integrate properly.

    It is difficult to prepare a schedule of production without determining the route or sequence of operations. Similarly, an efficient route for an item cannot determine without consulting the production schedule designed for it. To be effective, scheduling should be flexible and due provision should be made for contingencies like delay in the availability of materials, breakdown of machines, absence of key personnel, etc.

    Dispatching:

    The dispatching may define as the set of productive activities in motion through the release of orders and instructions; following previously planned timings as embodied on the operation sheet, route card, and loading schedules.

    Dispatch provides official authorization and information for;

    • Movement of materials to different work stations.
    • Movement of tools and fixtures necessary for each operation.
    • Beginning of work on each operation.
    • Recording of beginning and completion time.
    • Movement of work following a routine schedule, and.
    • Control of the progress of all operations and making necessary adjustments in the release of operations.
    Extra knowledge:

    Dispatching requires co-ordination among all the departments concerned. This obtains through varying degrees of centralized control. Under centralized control, dispatch clerks, centrally located, release all orders including the movement of materials and tools necessary for the operations.

    Under decentralized control, this responsibility handle by each department. In continuous manufacturing, under normal conditions, orders may dispatch to departments a day or more in advance of operations. Each department prepares its instructions and sends a duplicate copy to the central office.

    Since duplicate copies received by the central office considerably in advance of operations; there is sufficient time for the recommendation of changes. If it is found that certain orders are being unduly delayed, a request may make for adjustments. However under abnormal conditions, when a company press by impatient customers; and, the plant load to capacity, emergency changes are more frequent.

    A special rush order may require that operations start immediately and that other orders originally scheduled may be held temporarily. Under these circumstances, it is apparent that centralized control plays an important role in obtaining speed and co-ordination.

    Expediting or Follow Up:

    Expediting or follow up is the last step in production planning and control. It involves the determination of the progress of work, removing bottlenecks in the flow of work; and, ensuring that the production operations are taking place following the plans. Follow up or expediting is that branch of production control procedure that regulates the progress of materials and parts through the production process.

    It spots delays or deviations from the production plans. It helps to reveal defects in routing and scheduling, misunderstanding of orders and instructions underloading or overloading of work, etc. All problems and deviations investigate and remedial measures are undertaken to ensure the completion of work by the planned date. Follow up serves as a catalytic agent to fuse the separate production activities into a unified whole.

    It seeks to ensure that the promise backs up by performance and the work done is up to the pre-determined standards as to the quantity, quality, time, and cost. The responsibility for expediting usually gives to a separate group of persons known as “expeditors”. These people are “liaison men” or “go-betweens” who obtain information on the progress of work and attempt to achieve coordination among the different departments.

    Corrective Action:

    Corrective action needs to make effective the system of production planning and control. By resorting to corrective measures, the production manager maintains full control over the production activities. For instance, routing may be defective and the schedules may be unrealistic and rigid. The production manager should try to rectify the routes and lay down realistic and flexible schedules.

    The workload of machines and workers should also determine scientifically. If schedules are not being met, the causes should fully investigate. It should also ensure that there is optimum utilization of the plant capacity. Sometimes, abnormal situations like strikes and break-down of machinery or power may upset the work schedules. The production manager should try to make up for the delays and adjust the schedules properly.

    Systematic investigation of activities at various stages of production may also lead the production manager to revise the production targets, loads, and schedules. There is also a strong need for performance appraisal of all employees. Many a time, production schedules are not met in time or if they are met, the goods are of substandard quality. If the causes of these are due to the poor performance of the employees, certain personnel decisions like demotion, transfer, and training may be essential.

    6 important Steps in Production Planning and Control
    6 important Steps in Production Planning and Control, #Pixabay.
  • Production Planning Control Objectives Importance Limitations

    Production Planning Control Objectives Importance Limitations

    Production Planning and Control are interrelating and interdependent. Planning is meaningless unless control action takes to ensure the success of the plan. Control also provides information feedback which helps modify the existing plans and in making new plans.

    Production Planning and Control: Objectives, Importance, and Limitations.

    Similarly, control is dependent on planning as the standards of performance are laid down under planning. Therefore, they should consider an integrated function of planning to ensure the most efficient production and regulation of operations to execute the plans successfully.

    They may define as the direction and coordination of the firm’s material and physical facilities towards the attainment of pre-specified production goals in the most efficient available way.

    It is the process of planning production in advance of operations, establishing the exact route of each item, part, or assembly, setting starting and finishing dates for each important item or assembly and finished products, and releasing the necessary orders as well as initiating the required follow up to effectuate the smooth functioning of the enterprise.

    Thus, they involve planning, routing, scheduling, dispatching, and expediting to coordinate the movements of materials, machines, and manpower as to the quantity, quality, time, and place. It is based upon the adage of “first plan your work and then work your plan”.

    Objectives of Production Planning and Control:

    The main objective of production planning and control is to ensure the coordinated flow of work so that the required number of products are manufactured in the required quantity and of the required quality at the required time at optimum efficiency.

    In other words, production planning and control aimed at the following purposes:

    Continuous Flow of Production:

    It tries to achieve a smooth and continuous production by eliminating successfully all sorts of bottlenecks in the process of production through well-planned routing and scheduling requirements relating to production work.

    Planned Requirements of Resources:

    It seeks to ensure the availability of all the inputs i.e. materials, machines, tools, equipment, and manpower in the required quantity, of the required quality, and at the required time so that desired targets of production may achieve.

    Coordinated work Schedules:

    The production activities plan and carries out in a manufacturing organization as per the master schedule. They try to ensure that the schedules to issue to the various departments/ units/supervisors are in coordination with the master schedule.

    Optimum Inventory:

    It aims at minimum investment in inventories consistent with the continuous flow of production.

    Increased Productivity:

    It aims at increased productivity by increasing efficiency and being economical. This achieves by optimizing the use of productive resources and eliminating wastage and spoilage.

    Customer Satisfaction:

    It also aims at satisfying customers’ requirements by producing the items as per the specifications or desires of the customers. It seeks to ensure the delivery of products on time by coordinating the production operations with customers’ orders.

    Production and Employment Stabilization:

    They aim at ensuring production and employment levels that are relatively stable and consistent with the number of sales.

    Evaluation of Performance:

    The process of production planning and control expects to keep a constant check on operations by judging the performance of various individuals and workshops and taking suitable corrective measures if there is any deviation between planned and actual operations.

    Importance of Production Planning and Control:

    The system of production planning and control serves as the nervous system of a plant. It is a coordinating agency to coordinate the activities of engineering, purchasing, production, selling, and stock control departments. An efficient system of production planning and control helps in providing better and more economic goods to customers at a lower investment. It is essential in all plants irrespective of their nature and size.

    The principal advantages or importance of production planning and control summarize below:

    Better Service to Customers:

    They, through proper scheduling and expediting of work, help in providing better services to customers in terms of a better quality of goods at reasonable prices as per promised delivery dates. Delivery in time and proper quality, both help in winning the confidence of customers, improving relations with customers, and promoting profitable repeat orders.

    Fewer Rush Orders:

    In an organization, where there is an effective system, production operations move smoothly as per original planning and matching with the promised delivery dates. Consequently, there will be fewer rush orders in the plant and less overtime than, in the same industry, without adequate.

    Better Control of Inventory:

    A sound system helps in maintaining inventory at proper levels and, thereby, minimizing investment in inventory. It requires a lower inventory of work-in-progress and less finished stock to give efficient service to customers. It also helps in exercising better control over raw-material inventory, which contributes to more effective purchasing.

    More Effective Use of Equipment:

    An efficient system makes for the most effective use of equipment. It provides information to the management regularly about the present position of all orders in process, equipment, and personnel requirements for the next few weeks. The workers can communicate well in advance if any retrenchment, lay-offs, transfer, etc. are likely to come about. Also, unnecessary purchases of equipment and materials can avoid. Thus, it is possible to ensure proper utilization of equipment and other resources.

    Reduced Idle Time:

    They help in reducing idle time i.e. loss of time by workers waiting for materials and other facilities; because it ensures that materials and other facilities are available to the workers in time as per the production schedule. Consequently, fewer man-hours are lost, which has a positive impact on the cost of production.

    Improved Plant Morale:

    An effective system coordinates the activities of all the departments involved in the production activity. It ensures an even flow of work and avoids rush orders. It avoids “speeding up” of workers and maintains healthy working conditions in the plant. Thus, there improve plant morale as a by-product.

    Good Public Image:

    A proper system helps keep systematized operations in an organization. Such an organization is in a position to meet its orders in time to the satisfaction of its customers. Customers’ satisfaction leads to increased sales, increased profits, industrial harmony, and, ultimately, the good public image of the enterprise.

    Lower Capital Requirements:

    Under a sound system, everything relating to the production plan is well in advance of operations. Where, when, and what requires in the form of input knows before the actual production process starts. Inputs make available as per schedule which ensures an even flow of production without any bottlenecks. Facilities use more effectively and inventory levels keep as per schedule neither more nor less. Thus, helps, in minimizing capital investment in equipment and inventories.

    Limitations of Production Planning and Control:

    Undoubtedly, their system is a must for efficient production management; but in, practice, sometimes, it fails to achieve the expected results because of the following limitations.

    The principal disadvantages or limitations of production planning and control summarize below:

    Lack of Sound Basis:

    They are based on certain assumptions or forecasts about the availability of inputs like materials, power, equipment, etc., and customers’ orders. In case these assumptions and forecasts do not go right, their system will become ineffective.

    Rigidity in Plant’s Working:

    They may be responsible for creating rigidity in the working of the plant. Once the production planning has been completed, any subsequent change may resist by the employees.

    Time-consuming Process:

    Production planning is a time-consuming process. Therefore, under emergencies, it may not be possible to go through the process of production planning.

    Costly Device or machine:

    It is not only a time-consuming process but is a costly process also. Its effective implementation requires the services of specialists for performing functions of routing, scheduling, loading, dispatching, and expediting. Small firms cannot afford to employ specialists for the efficient performance of these functions.

    External Limitations:

    Their effectiveness is sometimes limited because of external factors which are beyond the control of the production manager, Sudden break-out of war, government control, natural calamities, change in fashion, change in technology, etc. are factors that harm the implementation of them.

    Production Planning and Control Objectives Importance and Limitations
    Production Planning and Control: Objectives, Importance, and Limitations, #Pixabay.
  • Production Control: Meaning, Levels, Factors, and Objectives

    Production Control: Meaning, Levels, Factors, and Objectives

    Production Control: Meaning, Levels, Factors, and Objectives…All organizations irrespective of size, use production control to some degree. In small organizations, the production control may be performed by one person; but in large complex industries, the production control department is normally well-organized and highly specialized.

    Production control presupposes the existence of production plans, and it involves the use of various control techniques to ensure product performance as per plans. Coordinating men and materials and machines are the task of production control.

    Meaning and Definition of Production Control:

    Production control may define as;

    “The process of planning production in advance of operations; establishing the exact route of each individual item, part of assembly; setting, starting and finishing dates for each important item, assembly, and the finished products, and releasing the necessary orders as well as initiating the required follow-up to effective the smooth functioning of the enterprise.”

    According to Henry Fayol as;

    “Production control is the art and science of ensuring that all which occurs is following the rules established and the instructions issued.”

    Thus, production control regulates the orderly flow of materials in the manufacturing process from the raw material stage to the finished product.

    Production control aims at achieving production targets, optimum use of available resources, increased profits through productivity, better and more economic goods and services, etc. An effective production control system requires reliable information, sound organization structure, a high degree of standardization and trained personnel for its successful operation.

    A sound production control system contributes to the efficient operation of a plant. In terms of manufacturing customer’s orders, production control assures a more positive and accurate completion and delivery date. Delivering an order on time is important to the customer and the development of customer goodwill. Production control also brings the plan and order to chaotic and haphazard manufacturing procedures.

    This not only increases plant efficiency but also makes it a more pleasant place in which to work. Most people recognize that employees prefer to work and do better work under conditions of obvious control and plan. Morale may be considerably improved.

    Effective production control also maintains working inventories at a minimum, making possible a real saving in both labor and material investment. Thus, good production control helps a company operate and produce more efficiently and achieve the lowest possible costs.

    Levels of Production Control:

    Production control starts with some particular goal and formulation of some general strategy for the accomplishment of desired objectives.

    There are three levels of production control namely programming, ordering, and dispatching. They are;

    • Programming plans the output of products for the factory as a whole.
    • Ordering plans the output of components from the suppliers and processing departments.
    • Dispatching considers each processing department in turn and plans the output from the machine, tools and other work centers to complete the orders by the due date.

    Factors that determine production control operations:

    The kinds of production control operations vary from organization to organization.

    The following factors affect the kinds and magnitude of production control methods in an organization:

    Kinds of production:

    In job-oriented manufacturing, products and operations are designed for some particular order which mayor may not be repeated in the future. Here production usually requires more time, whereas in a continuous manufacturing system inventory problems are more complex but control operations are rather simple due to fixed process. In mixed stock and custom manufacturing systems, the problem of control is further complicated due to the simultaneous scheduling of the combined process.

    Kinds of operations/activities:

    In intermittent manufacturing system, the operations are markedly varied in terms of their nature, sequence, and duration. Due to this the control procedure requires continuous modifications and adjustments to suit the requirements of each order.

    The magnitude of operations:

    Centralized control secures the most effective coordination but as an organization grows in size, decentralization of some production control function becomes necessary. The degree to which the performance of an activity should be decentralized depends upon the scope of operations and convenience of their locations.

    Objectives of Production Control:

    The success of an enterprise greatly depends on the performance of its production control department. The major objective of production control is to gain maximum output from minimum input of resources. Production control regulates the orderly flow of material from the raw stage to finish the stage. It highlights the control mechanism based on the flow of material throughout the organization.

    The production control department generally has to perform the following functions:

    • Provision of raw material, equipment, machines, and labor.
    • The resources are used in the best possible manner in such a way that the cost of production is minimized and the delivery date is maintained.
    • To organize production schedules in conformity with the demand forecasts.
    • Determination of economic production runs to reduce setup costs.
    • Proper coordination of the operations of various sections/ departments responsible for production.
    • It is also responsible for product design and development.
    • To ensure regular and timely supply of raw material at the desired place and of prescribed quality and quantity to avoid delays in production.
    • To perform an inspection of semi-finished and finished goods and use quality control techniques to ascertain that the produced items are of required specifications.

    Thus the fundamental objective of production control is to regulate and control the various operations of the production process in such a way that orderly flow of material is ensured at different stages of the production and the items are produced of the right quality in the right quantity at the right time with minimum efforts and cost.

    Extra things:

    Another objective of Production control is proper tooling and plant layout. A sequential arrangement of plant and machinery leads to minimizing delays and less wastage due to the transfer of material from one place to another. It has an objective of routing a work within the factory. Production control also regulates inventory management and organizes production schedules.

    Major functions of production control are to offer assemblies and products of needed quality and quantity at the precise time and harmonize, scrutinize and feedback to manufacturing management, offer maximum uses of resources and accomplish major objective to cut down cost and trustworthy consumer services.

  • Production Planning: Meaning, Definition, Levels, and Objectives

    Production Planning: Meaning, Definition, Levels, and Objectives

    Production Planning: Meaning, Definition, Levels, and Objectives…Production planning is concerned with deciding in advance what is to be produced when to be produced, where to be produced and how to be produced. It involves foreseeing every step in the process of production to avoid all difficulties and inefficiency in the operation of the plant.

    Production planning has been defined as the technique of forecasting or picturing ahead every step in a long series of separate operations, each step to be taken in the right place, of the right degree, and at the right time, and each operation to be done at maximum efficiency.

    In other words, production planning involves looking ahead, anticipating bottlenecks and identifying the steps necessary to ensure the smooth and uninterrupted flow of production. It determines the requirements for materials, machinery, and man-power; establishes the exact sequence of operations for each item and lays down the schedule for its completion.

    Definition of Production Planning:

    Production planning involves how a manufacturing plan is determined, information issued for its execution, data collected and recorded, which will enable the plant to be controlled through all its stages. A few definitions are given here to have a clear understanding of the term “Production Planning”.

    According to Kim bait and Kimball Jr. as;

    “The planning of industrial operations involves four considerations, namely, what work shall be done, how the work shall be done and lastly when the work shall be done.”

    According to Alford and Beatty as;

    “The technique of forecasting or picturing ahead every step in a long series of separate operations, each step to be taken in the right place of the right degree and at the right time and each operation to be done at maximum efficiency.”

    According to Bethel, At Water. Smith as;

    “Production planning is a series of related and co-ordinated activities performed by not one but several different departmental groups, each activity being to systematize in advance the manufacturing efforts in its area.”

    By studying the above mentioned definitions it can be said that production planning is concerned with thinking in advance what is to be produced, how it is to be produced and by what time should it be produced?

    Levels of Production Planning:

    Production planning can be done at three levels namely Factory Planning, Process Planning and Operation Planning which are as follows:

    Factory Planning:

    At this level of planning, the sequence of work tasks is planned in terms of building machines and equipment required for manufacturing the desired goods and services. The relationship of workplaces in terms of departments is also planned at this stage took into consideration the space available for the purpose. This stage deals with plant location and layout.

    Process Planning:

    There are many operations involved in factory planning for transforming the inputs into some desired end product. In process planning these operations are located and the sequence of these operations in the production process is determined, Plans are also made for the layout of work centers in each process.

    Operation Planning:

    It is concerned with planning the details of the methods required to perform each operation viz. selection of work centers, designing of tools required for various operations. Then the sequences of work elements involved in each operation are planned. Specifications about each transfer, work centers, nature of tools required and the time necessary for the completion of each operation are prescribed.

    Objectives of Production Planning:

    The basic objectives of production planning are as under:

    • Based on the sales forecast and its engineering analysis, to estimate the kind of resources like men, materials, machines, methods, etc. in proper quantities and qualities. It also estimates when and where these resources will be required so that the production of the desired goods is made most economically.
    • It also aims to make all necessary arrangement so that the production targets as set in the production budget and master schedules are reached. While attaining these targets, adjustments are made for the fluctuations in the demand.
    • To make adequate arrangement of men, money, materials, machines tools, implements, and equipment relating to production.
    • To decide about the production targets to be achieved by keeping in view the sales forecast.

    H.A. Harding has nicely summed up objectives of production planning. In his words, the objective of production planning is to make sure that customers will be supplied their orders, on their delivery dates and also at the minimum overall cost by planning the sequence of activities.

    For effective planning of production activities:

    The executives concerned must have complete information regarding the following:

    • Engineering data including a complete analysis of the product to be manufactured, the operations, processes and methods through which each component or class of a product must pass the nature of inspection required, and the method of assembly.
    • Machine analysis giving full information regarding speeds of all available machines and their maximum capacity to perform certain operations, and the rate of output per day, week or month, and the maximum plant capacity per day for each process or operation.
    • The various types and classes of tools and equipment required for production.
    • Material analysis giving full information as to the type, quality, and quantity of the raw material to be used in each process or operation. Also, information as to raw materials in stores, how much are on order, and how much is located or reserved for current orders.
    • The characteristics of each job and the degree of skill and personnel if qualifications required for the effective performance of each such job.
    • Information relating to power production and consumption, internal transport and material handling service.
    • Job analysis giving information as to what methods of operation would yield uniformity of output, ease in production and reduction in costs.
    • Information as to the customers’ orders on hand and the delivery for customers, and what for stock purposes.
    Explanation:

    It is the job of the production planning department to arrange for the order in which the work will be run, the routing and scheduling of work, and determine what machines, tools, workplaces materials, and operatives should do the work.

    A balanced production planning would tend to increase operating efficiency by stabilizing productive activities, facilitate selling and customer service, and help reduce production cost by providing a reliable basis for investment in raw materials and tools.

    It would promote fuller utilization of plant, equipment, and labor by controlling all time and efforts essential in manufacturing.

  • Construction, Costs Associated, and Techniques of Plant Layout

    Construction, Costs Associated, and Techniques of Plant Layout

    Construction, Costs Associated, and Techniques of Plant Layout…

    Construction of Plant Building:

    For effective and efficient operation of the plant, the design of the building is one of the main considerations. The building housing the plant should be designed in such a way that it can meet the requirements of the concern’s operations and its layout.

    According to James Lundy,

    “An ideal plant building is one which is built to house the most efficient layout that can be provided for the process involved, yet which is architecturally ultra active and of such a standard shape and design as most flexible in its use and expensive units construction.”

    The layout may be said to be efficient if it is housed in a building that ensures comfort and health of workers engaged in the plant concerning heat, light, humidity, circulation of air, etc. and on the other hand, it protects the plant and equipment and materials from the weather.

    There are several factors which are to be considered in constructing a new building for housing the plant. These are:

    Adaptability:

    The building structure should be adaptable fully to the needs and requirements of the plant. In the beginning, most of the enterprises carry their business in a rented building which is generally not suitable to the needs and special requirements of the industries with the obvious reason that landlord constructs the building to suit average conditions of a manufacturing unit and they cannot be persuaded to make the necessary changes affecting the flexibility. As to the degree of adaptability, it may be needed that buildings are more easily adapted to fit the needs of the continuous process than to those of any other.

    Provision for additions and extensions:

    In designing and constructing a new factory building, care must be taken to provide for additions and extensions which may arise to meet the necessary and peculiar needs in due course of time. There must be every possibility to add new units without disturbing the existing manufacturing system. Kimball and Kimball have rightly suggested that “an ideal building plan is one built on some (unit) system like a sectional bookcase so that additional units can be added at any time without disturbing the manufacturing system and organization”. As a general rule extension can be made most conveniently at right angles to the direction of flow of work.

    The number of stories:

    Another important decision while designing new plant building is to consider the number of stories to be built, Le., whether the building should be single-stories or multi-stories. The choice between single and multi-stories depends obviously on various factors such as the nature of the product, proposed layout, the value of land, the cost of construction. Before deciding the number of stories, the management should bear in mind the comparative advantages and disadvantages of one story and many stories.

    Costs Associated With Plant Layout:

    The costs associated with a decision on plant layout are;

    • Cost of movement of materials from one work area to another.
    • The cost of space.
    • Cost of a production delay, if any, which are indirect costs.
    • Cost of spoilage of materials, if any, when the materials are stacked or stored in conditions which deteriorate the quality of the material.
    • The cost of labor dissatisfaction and health risks.
    • Cost of changes required, if the operational conditions change in the future. This is a long-term cost.

    A good layout should minimize all these costs put together.

    Techniques of Plant Layout:

    In designing or improving the plan of plant layout, certain techniques or tools are developed and are in common use today.

    The techniques or tools are as follows;

    Charts and Diagrams:

    To achieve work simplification, production engineers make use of several charts and diagrams for summarising and analyzing production process and procedures.

    These include;

    • Operation Process chart: It subdivides the process into its separate operations and inspections. When a variety of parts and products are manufactured which follow different parts across several floor areas, an operation process chart may be necessary for the important material items or products. The flow lines on the chart indicate the sequence of all operations in the manufacturing cycle.
    • Flow process chart: This chart is a graphic summary of all the activities taking place on the production floor of an existing plant. By preparing this type of chart, it can be found out as to where operations can be eliminated, rearranged, combined, simplified or sub-divided for greater economy. This chart will also identity inflexible processes which cannot be adapted to the output of redesigned models or related outputs.
    • Process flow diagram: The diagram is both a supplement and substitute of process flow chart. It helps in tracking the movement of material on a floor plan or layout drawing. A diagram may be drawn to scale on the original floor plan to show the movement of work. It is a good technique to show long material hauls and backtracking of present layouts, thereby indicating how the present layout may be improved. The flow of several standard products can be shown by colored lines.

    This diagram can be used to analyze the effectiveness of the arrangement of plant activities, the location of specific machines, and the allocation of space. It shows how a more logical arrangement and economical flow of work can be devised.

    Machine data card:

    This card provides full information necessary for the placement and layout of equipment. The cards are prepared separately for each machine. The information generally given on these cards include facts about the machine such as the capacity of the machine, space occupied, power requirements, handling devices required and dimensions.

    Templates:

    The template is the drawing of a machine or tool cut out from the sheet of paper. The area occupied by a machine is shown by cutting to scale. The plant layout engineer prepares a floor plan based on relevant information made available to him.

    Templates representing machines, tools, conveyors, furnaces, ovens, inspection stations, tanks, storages, bins, trucks etc. are then laid out on the floor plan according to the sequence or groupings indicated on the operation process chart and the overall layout plan prepared by the engineers and helps in trying out at possible alternative arrangements.

    The template technique is important because;

    • It eliminates unnecessary handlings.
    • Minimized backtracking of materials.
    • It makes the mechanical handling possible.
    • They provide a visual picture of the proposed or existing plan of the layout at one place, and.
    • They offer flexibility to meet future changes in production requirements.
    Scale models:

    Though two-dimensional templates are now in extensive use in the field of layout engineering it is not of much use to executives who cannot understand and manipulate them. One important drawback of the template technique is that it leaves the volume, depth, height, and clearances of machines to the imagination of the reader of the drawing.

    These drawbacks of template technique have been removed through the development of miniature scale models of machinery and equipment cast in metal. With scale models, it has now become possible to move tiny figures of men and machines around in miniature factors. The miniature machines and models of material handling equipment are placed in a miniature plant and moved about like pawn on a chessboard.

    Layout drawings:

    Completed layouts are generally represented by drawings of the plant showing walls columns, stairways, machines and other equipment, storage areas and office areas.

    The above techniques and tools are used for the planning of layout for the new plant.

  • What are the Factors influencing Plant Layout? Discussion

    What are the Factors influencing Plant Layout? Discussion

    This article of the Factors influencing Plant Layout (PDF) in Production Management is explaining in their 12 key points – 1) Nature of the product, 2) The volume of Production, 3) Basic managerial policies and decisions, 4) Nature of plant location, 5) Type of industry process, 6) Types of methods of production, 7) Nature of machines, 8) Climate, 9) Nature of Materials, 10) Type of machine and equipment, 11) Human factor and working conditions, and 12) Characteristics of the building.

    Here the questions and answer – What are the Factors influencing Plant Layout? Discussion.

    The following are some important factors which influence the planning of effective plant layout to a significant degree.

    Nature of the product:

    The nature of the product to manufacture will significantly affect the layout of the plant. The stationary layout will be most suitable for heavy products while line layout will be best for the manufacture of light products because small and light products can move from one machine to another very easily and, therefore, more attention can pay to machine locations and handling of materials.

    The volume of Production:

    The volume of production and the standardization of the product also affect the type of layout. If standardized commodities are to manufacture on a large scale, the line type of layout may adopt. If production is made on the order of the customers, the functional layout is better to adopt.

    Basic managerial policies and decisions:

    The type of layout depends very much on the decisions and policies of the management to follow in producing a commodity with regard to size of plant, kind and quality of the product; scope for expansion to provide for, the extent to which the plant is to integrate, amount of stocks to carry at any time, the kind of employee facilities to provide, etc.

    Nature of plant location:

    The size, shape, and topography of the site at which plant is located will naturally affect the type of layout to follow because of the maximum utilization of space available. For example, if a site is near the railway line the arrangement of general layout for receiving and shipping and for the best flow of production in and out the plant may make by the side of the railway line. If space is narrow and the production process is lengthy.

    Type of industry process:

    This is one of the most important factors influencing the choice of the type of plant layout. Generally, the types of layout particularly the arrangement of machines and work centers and the location of workmen varies according to the nature of the industry to which the plant belongs.

    For layout, the industry may classify into two broad categories:

    • Intermittent, and.
    • Continuous.

    Intermittent type of industries is those which manufacture different components or different machines. Such industries may manufacture the parts when required according to the market needs. Examples of such industries are shipbuilding plants. In this type of industry functional layout may be the best.

    The second type of industry in “continuous” industry. In this type of industrial raw materials are fed at one end and the finished goods are received at another end. A continuous industry may either be analytical or synthetically. As the analytical industry breaks up the raw material into several parts during the production process or changes its form, e.g. oil and sugar refineries.

    A synthetic industry, on the other hand, mixes the two or more materials to manufacture one product along with the process of production or assembles several parts to get the finished product. Cement and automobile industries are examples of such industry. Line layout is more suitable in continuous process industries.

    Types of methods of production:

    Layout plans may be different according to the method of production proposed to adopt. Any of the following three methods may adopt for production:

    • Job order production.
    • Batch production, and.
    • Mass Production.

    Under job production goods are produced according to the orders of the customers and therefore, specifications vary from customer to customer and the production cannot standardize. The machines and equipment can arrange in a manner to suit the need of all types of customers. Batch production carries the production of goods in batches or groups at intervals.

    In this type of manufacturing the product standardizes and production makes generally in anticipation of sales. Such cases, functional or process layout may adopt. In the case of mass production of standardized goods, line layout is the most suitable form of plant layout.

    Nature of machines:

    Nature of machines and equipment also affects the layout of the plant. If machines are heavy or create noisy atmosphere, stationary layout may reasonably adopt. Heavy machines are generally fixed on the ground floor. Ample space should provide for complicate machines to avoid accidents.

    Climate:

    Sometimes, temperature, illumination, and air are the deciding factors in deciding the location of machines and their establishments. For example, in the lantern manufacturing industry, the spray painting room is built along the factory wall to ensure the required temperature control and air expulsion and then the process of spray painting may undertake.

    Nature of Materials:

    Design and specifications of materials, physical and chemical properties of materials, quantity, and quality of materials and combination of materials are probably the most important factors to consider in planning a layout. So, materials storage and materials handling should give due consideration.

    For materials storage factors such as rate of consumption of raw materials, space, volume and weight of raw materials, floor load capacity, ceiling height method of storing should give special consideration. This will affect the space and the efficiency of the production process in the plant. It will facilitate economic production goods and prompt materials flow and a soundly conceived materials handling system.

    Type of machine and equipment:

    Machines and equipment may be either a general-purpose or special purpose. Also, certain tools are used. The requirements of each machine and equipment are quite different in terms of their space, speed and material handling process and these factors should give proper consideration while choosing out a particular type of layout.

    It should also consider that each machine and equipment use to its fullest capacity because machines involve a huge investment. For instance, under product layout, certain machines may not use to their full capacity so care should take to make full use of the capacity of the machine and equipment.

    Human factor and working conditions:

    Man is the most important factor of production and therefore special consideration for their safety and comforts should give while planning a layout, specific safety items like the obstruction-free floor, workers not exposed to hazards, exit, etc. should provide for. The layout should also provide for the comforts to the workers such as the provision of restrooms, drinking water, lavatory, and other services, etc. Sufficient space is also to provide for the free movement of workers. For this, provisions of the Factories Act should follow strictly.

    Characteristics of the building:

    The shape of building, covered and open area, number of stories, facilities of elevators; parking area, storing place and so on also influence the layout plan. In most of the cases where the building hires. The layout is to adjust within the space available in the building.

    Although minor modifications may finish suiting the needs of the plant and equipment. But if the new building is to construct, proper care should give to construct it according to the layout plan drawn by experts. The special type of construction needs to accommodate huge or technical or complex or sophisticated machines and equipment.

    What are the Factors influencing Plant Layout Discussion
    What are the Factors influencing Plant Layout? Discussion, #Pixabay.

    It is clear from the above description that several factors are considered while choosing out a plan for plant layout. Because they affect the production and its cost to a great extent.

  • What is Plant layout in Operations Management?

    What is Plant layout in Operations Management?

    Types of Plant Layout – what is plant layout in operations management? It begins with the design of the factory building and goes up to the location and movement of a work table. After discussing the objectives of plant layout, this article explains their types. The types of Plant Layout are the main three; process, product, and stationary layout, but in the modern world two extra types; combination and Fixed position Layout. All the facilities like equipment, raw materials, machinery, tools, futures, workers, etc. give a proper place.

    Here is explain the what is plant layout in operations management. Types: process layout, product layout, stationary layout, combination layout, and Fixed position layout.

    There are three main types of plant layout in operations management: 1) Functional or process layout, 2) product or line layout, and 3) stationary layout. Other types; are 4) Combination and 5) Fixed Position Layout. However, the choice of one or the other type of layout depends upon the machines and techniques used in the production.

    Process Layout:

    It knows as the functional layout and stands characterized by keeping similar machines or similar operations at one location (place). In other words, separate departments establishing for each specialized operation of production, and machines relating to that functions assemble there.

    For example, all lathe machines will be in one place, all milling machines in another, and so on. This type of layout is generally employed for industries to engage in job order production and non-standardized products.

    Advantages of Process Layout:

    The following advantages of Process Layout below are;

    • Wide flexibility exists as regards allotment of work to equipment and workers. The production capacity does not arrange in rigid sequence and fixed-rate capacity with line balancing. Alterations or changes in the sequence of operations can easily make as and when required without upsetting the existing plant layout types plan for operations management.
    • Better quality product, because the supervisors and workers attend to one type of machines and operations.
    • A variety of jobs, coming in different job orders make the work more interesting for workers.
    • Workers in one section do not affect by the nature of operations carried out in another section. e.g. a lathe operator does not affect the rays of welding as the two sections are quite separate.
    • Like product layout, the breakdown of one machine does not interrupt the entire production flow.
    • This type of layout requires lesser financial investment in machines and equipment because general-purpose machines, which are usually of low costs, are used and duplication of the machine avoids. Moreover, general-purpose machines do not depreciate or become obsolete as rapidly as specialized machines. It results in lower investment in machines.
    • Under process layout, better and more efficient supervision is possible because of specialization in operation.

    Disadvantages of Process Layout:

    The following disadvantages of Process Layout below are;

    • Automatic material handling is extremely difficult because fixed material handling equipment like conveyor belts cannot possibly use.
    • Completion of the same product takes more time.
    • Raw material has to travel larger distances for getting processed into finished goods. This increases material handling and associated costs.
    • It is not possible to implement group incentive schemes based on the quantity of the manufacturing of the product.
    • This type of layout requires more floor space than the product layout because a distinct department establishes for each operation.
    • Compared to line layout inventory investments are usually higher in the case of process layout. It increases the need for working capital in the form of inventory.
    • Under process layout, the cost of supervision is high because; 1) the number of employees per supervisor is less resulting in a reduced supervisory span of control, and 2) the work is checked after each operation.

    Product Layout:

    It is also known as line (type) layout. It implies that various operations on a product are performed in a sequence and the machines are placed along the product flow line i.e. machines are arranged in the sequence upon which a given product will operate. This type of product layout prefers continuous production i.e. involving a continuous flow of in-process material towards the finished product stage.

    Advantages of Product Layout:

    The following advantages of the Product Layout below are;

    Automatic material handling, lesser material handling movements, time, and cost.

    • Product completes in lesser time. Since materials are fed at one end of the layout and the finished product collects at the other end, there is no transportation of raw materials backward and forward. It shortens the manufacturing time because it does not require any time-consuming interval transportation until the completion of the process of production. Line balancing may eliminate idle capacity.
    • The smooth and continuous flow of work. This plan ensures a steady flow of production with the economy because bottlenecks or stoppages of work at different points of production is got to eliminate or avoid due to the proper arrangement of machines in sequence.
    • Less in-process Inventory. The semi-finished product or work-in-progress is the minimum and negligible under this type of layout because the process of production is direct and uninterrupted.
    • Effective quality control with reduced inspection points. It does not require frequent changes in machine set-up. Since the production process integrates and is continuous, Defective practices can easily discover and segregate. This makes inspection easy and economical.
    • Maximum use of space due to straight line production flow and reduced need for interim storing.

    Disadvantages of Product Layout:

    The following disadvantages of the Product Layout below are;

    • Since the specific product determines the layout, a product change involves major layout changes and thus the layout flexibility is considerably reduced.
    • The pace or rate of working depends upon the output rate of the slowest machine. This involves excessive idle time for other machines if the production line does not adequately balance.
    • Machines being scattered along the line, more machines of each type have to purchase for helping a few stand by, because if one machine in the line fails, it may lead to a shutdown of the complete production line.
    • It is difficult to increase production beyond the capacities of the production lines.
    • As the entire production is the result of the joint efforts of all operations in the line, it is difficult to implement individual incentive schemes.
    • Since there are no separate departments for various types of work, supervision is also difficult.
    • Under this system, labor cost is high because; 1) absenteeism may create certain problems because every worker is a specialist in his work or he specializes in a particular machine. To avoid the bottleneck, surplus workers who are generalists and can fit on several machines will have to employ; 2) monotony is another problem with the workers. By doing the work repetitive nature along the assembly line, they feel bored; 3) as machines play the dominant role in production under this system, workers have no opportunity to demonstrate their talent; 4) noise, vibrations, temperature, moisture, gas, etc. may cause health hazards. In this way, labor costs are high.

    Their clarification:

    It is now quite clear from the above discussion that both systems have their own merits and demerits. The Advantages of one type of layout are generally the disadvantages of other types. Thus to secure the advantage of both systems a combined layout may design.

    Static Product Layout or Project Layout or stationary Layout:

    The manufacturing operations require the movements of machines, and men materials, in the product layout and process layout generally the machines are fixed installations, and the operators are static in terms of their specified workstations.

    It is only the materials that move from operation to operation for processing. But where the product is large in size and heavy in weight, it tends to be static e.g. shipbuilding. In such a production system, the product remains static and men and machines move to perform the operations on the product.

    Advantages of stationary layout:

    The advantages of this stationary layout are as under:

    • Flexible: This layout is fully flexible and is capable of absorbing any sort of the change in product and process. The project can complete according to the needs of the customers and as per their specifications.
    • Lower labor cost: People are drawn from functional departments. They move back to their respective departments as soon as the work is over. This is economical if several orders are at hand and each one is in a different stage of progress. Besides, one or two workers can assign to a project from start to finish. Thus it reduces the labor cost.
    • Saving in time: The sequence of operations can change if some materials do not arrive or if some people are absent. Since the job assignment is so long, different sets of people operate simultaneously on the same assignment doing different operations.
    • Other benefits: Are; 1) It requires less floor space requirement because machines and equipment are in moving position and there is no need for fixing them. 2) This arrangement is the most suitable way of assembling large and heavy products.

    Disadvantages of stationary layout:

    The disadvantages of this stationary layout are as under:

    • Higher capital investment: Compared to the product or process layout, capital investment is higher in this type of layout. Since several assignments are taken, investment in materials, men, and machines makes at a higher cost.
    • Unsuitability: This type of layout is not suitable for manufacturing or assembling small products in large quantities. It is suitable only in cases where the product is big or the assembling process is complex.
    What is Plant layout in Operations Management? Types of Plant Layout Process Product and Stationary
    What is Plant layout in Operations Management? Types of Plant Layout: Process, Product, and Stationary.

    Combination Layout:

    A combination of process and product layouts combine the advantages of both types of plant layouts. Moreover, these days pure product or process layouts are rare. Most of the manufacturing sections are arranged in a process layout with manufacturing lines occurring here and there (scattered) wherever the conditions permit. A combination layout is possible where an item makes in different types and sizes.

    In such cases machinery arranges in a process layout but the process grouping (a group of the number of similar machines) then arranges in a sequence to manufacture various types and sizes of products. The point to note is that no matter whether the product varies in size and type, the sequence of operations remains the same or similar.

    Extra things:

    A combination layout is also useful when several items producing in the same sequence but none of the items are to produce in bulk and thus no item justifies an individual and independent production line. For example, files, hacksaws, circular metal saws, wood saws, etc. can manufacture on a combination type of layout.

    Nowadays in the pure state, any one form of layout discuss above stands rarely found. Therefore, generally, the layouts used in industries are a compromise of the above-mentioned layouts. Every layout has got certain advantages and limitations. Therefore, industries would to like use any type of layout as such.

    Flexibility is a very important factor, so the layout should be such that it can mold according to the requirements of the industry, without much investment. If the good features of all types of layouts connect, a compromise solution can obtain which will be more economical and flexible.

    Fixed Position Layout:

    These types of plant layout are the least important for today’s manufacturing industries for operations management. In this type of layout, the major component remains in a fixed location, other materials, parts, tools, machinery, manpower, and other supporting equipment are brought to this location.

    In other types of layouts discussed earlier, the product moves past stationary production equipment, whereas in this case the reverse applies; men and equipment are moving to the material, which remains at one place and the product completes at that place where the material lies.

    The major component or body of the product remains in a fixed position because it is too heavy or too big and as such it is economical and convenient to bring the necessary tools and equipment to work along with the manpower. This type of layout uses in the manufacture of boilers, hydraulic and steam turbines and ships, etc.

    Advantages of Fixed Position Layout:

    The advantages of Fixed Position Layout are as under;

    • Material movement reduces.
    • Capital investment minimizes.
    • The task stands usually finished by a gang of operators, hence continuity of operations ensures.
    • It is possible to assign one or more skilled workers to a project from start to finish to ensure continuity of work.
    • It involves the least movement of materials.
    • There is maximum flexibility for all sorts of changes in products and processes.
    • Several quite different projects can take the same layout.
    • Production centers are independent of each other. Hence, effective planning and loading can make. Thus the total production cost will reduce.
    • It offers greater flexibility and allows change in product design, product mix, and production volume.

    Disadvantages of Fixed Position Layout:

    The disadvantages of Fixed Position Layout are as under;

    • Highly skilled manpower requires.
    • It usually involves a low content of work-in-progress.
    • There appears to be low utilization of labor and equipment.
    • It involves high equipment handling costs.
    • The movement of machine equipment to the production center may be time-consuming.
    • Complicated fixtures may require for the positioning of jobs and tools. This may increase the cost of production.
  • Plant Layout: Meaning, Definition, Objectives, and Principles

    Plant Layout: Meaning, Definition, Objectives, and Principles

    Plant layout means the disposition of the various facilities (equipment, materials, manpower, etc.) within the area of the site selected. This article explains the Plant layout – with their concepts – meaning, definition, objectives, and principles. Plant layout begins with the design of the factory building and goes up to the location and movement of work. All the facilities like equipment, raw materials, machinery, tools, fixtures, workers, etc. are given a proper place.

    Here is the article explains – Plant Layout: Meaning, Definition, Objectives, and Principles.

    Plant layout is the plan for arranging the physical facilities and manpower requires to manufacture a product to utilize them effectively. It is a plan for effective utilization of facilities for the manufacture of products – involving a most efficient and economical arrangement of machines, materials, personnel, storage space, and all supporting services, within available floor space.

    Meaning of Plant layout:

    They also know as facilities design. Plant layout constitutes planning of the amount of space required for all kinds of activities in an industry, i.e., equipment, machinery, furniture and fittings, offices, restrooms, warehouses, etc. It is a “Technique of locating different machines and plant services within the factory so that the greatest possible output of high quality at the lowest possible total cost can be available”. Also, The primary objective of plant layout is to minimize the movement of men and materials in the plant.

    Definition of Plant layout:

    More definition of plant layout as follows:

    “Plant layout is a plan of optimum arrangement of facilities including personnel, equipment’s, storage space, material handling equipment and all other supporting services along with the decision of best structure to contain all these facilities.”

    In the words of James Lundy,

    “It identically involves the allocation of space and the arrangement of equipment in such a manner that overall costs are minimized.”

    According to Mo Naughton Waynel,

    “A good layout results in comforts, convenience, appearance, safety, and profits. A poor layout results in congestion, waste, frustration, and inefficiency.”

    It is very complex as it involves concepts relating to such fields as engineering, architecture, economics, and business administration. Since a plant layout, when properly designed, encompasses all production’ and service facilities and provides for the most effective utilization of men, with materials and machines constituting the process, is a master blueprint for coordinating all operations.

    The objective of a Good Plant Layout:

    The principal objective of a proper plant layout is to maximize production at the minimum of the costs. Also, This objective should keep in mind while designing a layout for a new plant as well as while making the necessary changes in the existing layout in response to changes in management policies and processes, and techniques of production. Besides, it must satisfy the needs of all people associated with the production system, i.e. workers, supervisors, and managers.

    If a layout is to fulfill this goal, it should plan with the following clear objectives in mind:

    • There is the proper utilization of cubic space (Le. length, width, and height). Maximum use of volume available should make. For example, conveyors can be run above head height and used as moving work in progress, or tools and equipment can suspend from the ceiling. Also, The principle is particularly true in stores where goods can store at considerable heights without inconvenience.
    • Also, the Waiting time of the semi-finish products minimize.
    • Working conditions are safer, better (well-ventilated rooms, etc.) and improve.
    • Material handling and transportation minimize and efficiently control. For this, one has to consider the movement distances between different work areas – as well as the number of times such movements occur per unit period.
    • The movements made by the workers are minimizing, and.
    • Also, Suitable spaces are allocating to production centres.
    More Objectives:
    • Plant maintenance is simpler.
    • There increases flexibility for changes in product design and future expansion. It must be capable of incorporating, without major changes, new equipment to meet technological requirements or to eliminate waste.
    • A good layout permits materials to move through the plant at the desired speed with the lowest cost.
    • There are increasing productivity and better product quality with reduced capital cost.
    • Boosting up employee morale by providing employee comforts and satisfaction.
    • The workers should so arrange that there is no difficulty in supervision, coordination, and control. There should be no “hiding-places” into which goods can mislay. Goods – raw materials and ready stocks – must be readily observable at all times. Also, They will reduce the pilferage of material and labor.

    It should note here that the above-stated objectives of plant layout are laudable in themselves. It is often difficult to reconcile all of them in a practical situation. And as such, the highest level of skill and judgment are requiring to exercise. For this, the close association between the entrepreneurs and experienced engineers is a must.

    Plant Layout Meaning Definition Objectives and Principles
    Plant Layout: Meaning, Definition, Objectives, and Principles.

    Principles of Plant layout:

    While designing the plant layout – the following principles must keep in view:

    • Movement: Materials and labor should move over minimum distances – saving cost and time of transportation and material handling.
    • Space Utilization: All available cubic space should effectively utilize – both horizontally and vertically.
    • Flexibility: Layout should be flexible enough to be adaptable to changes required by expansion or technological development.
    • Interdependence: Interdependent operations and processes should locate near each other; to minimize product travel.
    • Overall Integration: All the plant facilities and services should fully integrate into a single operating unit – to minimize the cost of production.
    • Safety: There should be an in-built provision in the design of the layout – to provide for the comfort and safety of workers.
    • Smooth Flow: The layout should so design to reduce work bottlenecks and facilitate the uninterrupted flow of work throughout the plant.
    • Economy: The layout should aim at affecting the economy in terms of investment in fixed assets.
    • Supervision: A good layout should facilitate the effective supervision of workers.
    • Satisfaction: A good layout should boost up employee morale – by providing them with maximum work satisfaction.