Production Planning And Control System Commerce Essay

end ingathering Planning And Control transcription Commerce EssayBusinesses foot be of different types. Some industries focus on providing the customers with different types of assistances. Some others concentrate on selling of crops. Majority of ventures be in the business of manufacturing whateverthing or the other. To sugar with, you would need some basic tippy materials to which you would add some value to make something else. Simply trust, this is yield.Therefore, we contribute say that labor is a business bring in which a raw material is converted into faultless or semi-finished products, in the process adding value to the of utility of products. This turnout purpose is measured by calculating the difference amidst the value of what goes into the proceeds and the value of what is let ond in the end. The things which go into the qualification of things ar called the inputs and what is produced in the end is called the outputs. Say for example, if you want t o industriousness dresses you leave behind need cloth, labor, and machines at the primary aim. These argon all inputs. The end product, that is the dress, is the output.What is meant by performance? merchandise can be described as a process of manufacturing or producing goods for trading purpose. It is a method that intentions the intangible inputs interchangeable creativity, ideas, knowledge, research and perception in action. With the swear out of these intangible inputs, the tangible inputs like the raw materials be converted into finished products and made ready to be sold in the market.Production FunctionIn mathematics, a function determines the relation between a set of inputs and the set of outputs. Similarly payoff function is that kind of a function through which assumed specification is made by the perseverance or a steadfast somewhat the output in relation to all the input which went into the project. Production function serves to cater to the customer needful ly and bespeaks in a cost effective way. Therefore preparedness and carrying out the return function in an efficient way is of prime importance to obtain this objective.Production wayManaging allthing has to include proper final causening at the initial level. The same thing is applicable in case of production attention. You start with homework about how the production procedure go forth take place. Then you organize it according to your needs or requirements only after which you can execute the plan, direct and get the hang the production activities. Hence, we can say that production management is the managing process which deals with the conversion of raw materials to the finished products that too in an economical way. Production management is steer by 6 Ms- a) money, b) men, c) materials, d) machines, e) methods and f) markets. If the same idea is applied to the management of services then the subsequent management activities are termed as operation management.Definit ions of Production Management here(predicate) are some common and widely accepted definitions of production managementProduction management deals with decision-making related to production processes so that the resulting goods or service is produced according to specification, in amount and by the schedule demand and at minimum cost. Elwood Spencer BuffaProduction management,also calledoperations management, deals with planning and control of industrial processes to watch that they move smoothly at the require level.In manufacturing operations, production management includes responsibility for product and process design, planning and control issues involving capacity and fiber, and organization and watchfulness of the workforce.-Encyclopdia BritannicaHence, we can easily say that, production management is the conversion of production inputs into outputs which when distributed in the market will cater to meet the demands of consumers.History of Production and accomplishment Man agementIndustrial Revolution For over two and half centuries, production and operation management has been regarded as one of the important factors responsible for the economic ontogeny and development of any country. With the outbreak of the industrial revolution in England in the mid 1700s a havoc diversity was observed in the industrial sectors. The changes began to be observed when the stream engine was invented by James Watt in 1764. It more often than not replaced the man power in the factories. In the year 1776 Adam smith published his revolutionary book, The Wealth of Nations, where he talked about the specialization of labors in manufacturing and the economic benefits it avails to an industry. Therefore, the factories of the late 18th century experienced not only the expend of the power by the newly invented machines but also new means of planning and controlling a factory production. About the same time the concept of division of labors came into being. Rapidly the i ndustrial revolution spread from England to the other parts of Europe and also to America. Further development was observed as an American named Eli Whitney came up with the concepts of interchangeable parts and cost accounting. Early 1800s saw the advent of electric automobileity and gasoline engines which enhanced the industrial revolution to a great extent. During the post courtly war period an increased rate of production capacity was recorded which on the other hand led to growth of the capital. A massive production explosion followed in the newly developed U.S. market.Scientific Management- The concepts of scientific management, work study and time study was introduced by Frederick Taylor. He talked of the shop constitution as well which brought the skill, strength and learning ability of the workers into question. The shop system was the get-go to initiate the idea of the incentive pay. Specification of materials, methods of work and routing systems were used to organize t he shop. It was the crossing Motor Company who embodied the major facets like interchangeable parts, low manufacturing cost, mass production, and standardized designs of the product of scientific management in 1920s. The scientific management was popularized by Henry Ford, who used it in his firms. These approaches helped him in maximizing the production at the plant.Operational Research System- During the Second conception War enormous resources were installed. forces operational research squads were formed to deal with the complications of the deployment. P.M. Blacker is regarded as one of the main contributors in the field of operational research application in the Second World War. The operational system brought to the fore front the positive aspects of the system which helped the operational manager to control the complexities of production.Service Revolution- The existenceation of the Hawthorne studies in the 1930s revealed that human factors are influencing the production process to a great extent. The study report said that the ambiences, sociological and psychological conditions of the worker are affecting the production. It was the behavioralists who talked about these factors which made the industrialists change the way of treating the factory workers. The idea of the labors responding positively to the attention thus paid to them came to be acknowledged as the Hawthorne effect. The change in the thought process and the intromission of this new philosophy had a tremendous impress on the production planning and control system of the factories. Studies showed that the due to the increased use of machineries work became unglamorous to the workers which affected the rate of production. In decree to resolve this problem the workers were conferred a greater role in the planning procedure of the whole production so that they can find interest in their work.Computer Revolution- It was the 1930s which witnessed the advent of the computer age. There wa s an explosive growth in the communication technology.Gathering discipline became actually easy as everyone had an effortless access to it. Advancement in the software technology made the people aware about the usage of e-mails. to a greater extent and more plants took initiation in starting E- Business. A special computerized system known as the Material Requirement Planning was developed which proved to be very useful in managing the business.Where we stand now?Today the whole production or operational management wholly stands on the demands and needs of the customers and providing them with quality products. This is because the competition level in the market is very high and in order to build and maintain the image and reputation of a society, customer joy is the absolutely necessary. Other factors which are influencing the operational management these days are the advancement of the technologies, competition in the world wide market, cost challenges etc. wherefore Producti on and Operation Management is required?Any firm or industry needs production management.To achieve all its objectives- Every firm or industry possesses certain objectives behind the projects they undertake. Production management enables the firm to fulfill all its objectives in time and at the same time fulfill the demands of the customer.To suck up reputation as well as to build up a good image in the market- One of the main objectives of production management is to run into the consumers. Production management helps in achieving this goal.Aids other operating(a) fields- Production management aids the functional field of the industry or firm. Other functional sphere includes finance, personnel and marketing. It will be easier for the marketing department to sell good quality goods which in dramatic play helps the financial department to gain more finances due to the increase of the sale of the products. This will also enable the company to acquire loans for expanding the firm. Proper management of the production will also help the personnel sector to handle the human resources properly and increase the efficiency of the resource.Aids in promoting new products- Production management controls the research and development role of the firm. It enables to study the market and needs of the customer depending on which they can introduce newly manufactured goods in the market.Helps in coping up with the competition level in the market- Same products may be produced by other companies as well. Production management helps the firm to cope up with the competition level in the market by belongings the quality, price, quantity of the products as per needs of the consumers.Produce the goods in a cost effective way- Cost of production can be checked and reduced to a great extent through proper management of production. It tries to minimize the input keeping the output to the optimum level.Maximize the use of resources- Production management assists in maximization of the use of resources like machines, human resources etc.Helps the firm to grow- Production management helps the company to expand itself which in turn enables the firm to yield greater profit.Production management is important to the consumers because-Improves the standard of living of the people The research work that the production department carries out reveals the demands and needs of the consumers which the industries cater to fulfill. This increases as well as improves the standard of lining of the people as they get to use good and new products.Enhances the economy- Production management helps to produce goods in a cost effective way. This leads to the proper economic growth of the country.Decreases the problem of unemployment- Unemployment is a major problem of our country. The activities of the production department of any firm open up many job prospects for the people.Quality of the products increases- As mentioned earlier production management controls the research and development sector of a firm. These researches help to take into account the customers with the better quality of the product.Provides the customers with low cost products- Production management facilitate the customers with low cost products so that the majority of the population can avail that product for use.What is a system?System as we understand comprises of various sects which works together as a unit. All the processes are interdependent and function as a whole. The system operates with a distinct intention to fulfill the predetermined objectives. Massive systems are often a compilation of various sub-systems.Production SystemIn a broader sense production system is the framework which supports all kinds of production activities that may take place within an organization. The process of manufacturing involves the conversion of inputs into outputs. A suitable de signing of production system makes sure the coordination of the different procedures which undergoes in the product ion. There is no hard and fast rule that only a oneness pattern of production system is to be followed universally and have to be applied to all kinds of productions. It differs from one project to another.DefinitionThe methods which include all functions required to collect the inputs, process or reprocess the inputs and produce the saleable outputs.Ray Wild defines production or operation system as a var. of resources combined for the provision of goods and services.Production system has three main components namely- inputs, conversion process and outputs. Inputs comprise of machines, man-power, capital, raw materials, drawings, paper works. Conversion process includes all kinds of processes and procedures which can be mechanical or manual or chemical. These operations are responsible for converting all the inputs into the desired outputs. This stage of production system also has some supporting operations like obtaining of raw materials, storing, production planning, product de signing etc. Outputs comprise of the end products which the firm will provide it to the customers like services, finished goods etc.Production management.pngA Systematic Diagram of Production SystemTypes of Production SystemIn general in that location are two types of production system. They are-Continuous Production- It is a process which is used to produce products without any hindrance in a continuous way. This type of production system is void of any interruption. Continuous production is often referred to as continuous flow process or continuous process. It is so named because the raw materials which go into making of the product are continuously moving and at the same time are exposed to chemicals or heat or cold as required in the making of the product. By continuous we mean running twenty four hours a day, seven days a week, with rare shutdown of the working force which can be quarterly, semi-annually or annually. Goods are manufactured on a massive scale in a continuous pr oduction. They are not produced depending on the customers orders. This system of production requires huge investment in machineries. This type of production system is found in oil refineries, power stations etc.Characteristics of Continuous ProductionProduction is continuous.Large scale production of goods takes place.Does not depend on the customers orders.Standardized products are produced.Quality of the goods is predetermined.Types of Continuous Production SystemMass production flows-Here same kind of product is manufactured to fulfill the demand of the market. This system needs good planning for material, process, maintenance of machines and instruction to operators.Process production flows- The bank note between mass and process production is the kind of product a firm produces. Mass production manufactures the same products and is produced in a large scale. If the demand ceases, the machineries are used for manufacturing products of similar nature after slight modification. In process production, the plant and equipment is designed for a specific product. Hence if the demand fall for the product or ceases, the firm cannot be used for manufacturing other products.Intermittent Production SystemUnlike continuous production system intermittent production system as the name suggests is such a system where goods are produced on the basis on customers orders. Usually the goods are produced in a lessened scale. The production flow is not constant. Various types of products of various sizes are produced in this type of system. The system is very plastic. Ex- Production found in automobile plants, electric goods plants.Characteristics of Intermittent Production SystemProduction is not continuous. Halts are made frequently.Various kinds of goods are produced.Machines used for general purpose is used.Production depends on the order of the clients.The level of production is usually small.Types of intermittent production systemProject Production Flows- Here a fir m accepts a single complex shorten or order. The project has a deadline within which the contract has to be finished that too within an approximate calculated cost. Project production flows include projects like building a high rise, constructing a dam or an airport. Resource requirements are high at the beginning of the project but ultimately ceases as the project nears its end.Job Production Flows- Items are manufactured only on the basis of specifications made by the customers. The cost is determined at the time of signing the project. Highly skilled labors are required in job production flows. Ex- Services the tailoring shops, repairing stores provide.Batch Production Flows- The production schedule is decided out front commencing on the project. It depends on the estimate of consumers demands or upon the specific customers orders. The manufacturing process of the product is divided into a number of batches sequentially. Each batch is to be completed first to start with the nex t. A detailed production planning is required in batch production flows. Ex. Manufacturing of drugs.Factors Influencing Production ProcessSupplies The production or manufacturing process largely depends on the supplies of raw materials. If the supply of materials is hampered due to problems like transportation or bad weather, the fixed target cannot be achieved within the promised time. On the contrary if there is a smooth supply of materials then the flow of production will be normal and the production schedule can be easily followed. government agency Supply- For running any plant, supply of incessant power is required. Even if the power supply is gets disrupted temporarily can have a great impact on the production process.Machineries and Equipments- A sudden shut down of any of the machineries of the equipments used in the production of product can lead to minimization of the production rate. Continual operations of the equipments are necessary in order to improve the efficienc y of the machines.Man Power- The labors directly associated with the manufacturing process can influence the production in many ways. For example, sick leaves and vacations taken by key workers have a negative impact on manufacturing.Capacity of the plant is also influences the production procedure of a firm. The larger the firm, the larger will be the production, all the other factors remaining constant.Flexibility- The production process should be elastic in order to lodge to the changes that take place during the production process.Product DesignDesigning a product by a firm includes a strategic procedure of planning to create a new product to be sold to the customers. The product design is one of the most crucial and sensitive aspect for an organization. Success or failure of the sale of the product depends on a number of factors which ultimately decides the reputation and image of the company in the market. So during the designing period of the product there are a number of th ings which need to be paid heeded to. Everything is analyzed while designing a product proper(ip) from what the general public likes to the cost and the process which undergoes in making the product.Production Planning and Control (PPC)The main aim of any manufacturing plant is to produce the products. Therefore the production is the force of the entire business operations. It is the driving force to which all the other functions of the plant depend. Once the industrialist has taken the decision about the product design, the next step he takes is planning the production and chalk out the controlling process. This is very much important for the economical aspect of the project. PPC is absolutely necessary for the small scale industries. A question may arise that why controlling of the manufacturing process is required. Well production planning without production control is like a school without the Headmaster. Planed decisions when put to action can go wrong, but checking the damag e due to the mishap is production control.Objectives of Production Planning and Controla) To determine the ability of all producing sectorsb) To plan the manufacturing activities in a systematic order depending on the sales demand of the marketc) To endorse the fullest utilization of the firmd) To train labors for effective performancee) To construe means of finding out the manufacturing needs and requirements so that the materials needed for the production can be attained at right time in the right quality as well as quantityf) To maintain coordination between the various sectors of the production process.Stages of Production Planning and ControlThe following tree will show you what the stages of PPC arePPC.pngProduction Planning and Control ProcessProduction PlanningIt is a practice of foreseeing the stages of production process before commencing on a distinct project and also to judge the efficiency level of all those stages through which the maximum profit of the industry can b e brought about at the scheduled time. It enables the entrepreneur to estimate the quantity of raw materials, money and labors to be needed for the production.RoutingIt helps in determining the course and progression of the production activities of a plant. The machines which will be required for the operations and the executives to be engaged for the work are determined in the routing stage. The main intention of routing is arrange the production procedure in a cost effective manner. It also makes sure that the decided sequential arrangement is followed firmly. The discussion about the quality and estimation of the cost of the product to be produced is also done in the routing stage.SchedulingScheduling means determining the approximate time to be taken by each production action mechanism and also all the operations taken together. It highly differs from one job to the other. Time is the main factor which is worked upon at this stage of production planning.LoadingHere the schedule planned in the previous step is put into practice. Loading therefore decides who will be given the responsibility to do the work at hand. It helps in judging the existing work load and also to predict how early the remaining work can be finished.Production ControlAs mentioned earlier every production process must be controlled to keep the process running smoothly and fulfill the production of the products within the specified time. The production control department can perform effectively only when the financial manager, personnel manager, work manager and purchase manager works together in case of small scale industry.DispatchingTo start a production process an authorization is required which is done in this stage. From the movement of materials to the different work stations, keeping a track of the cost occurred in each operation of the production, inspection of the activities are all looked after in the dispatching stage of the production control. This step is very significant b ecause it converts the production plan into action.Follow UpFollow up, also regarded as reporting, is that stage of production control where the follies of the production plan or in the schedule structure of the operations are recorded. The main objective behind the follow up stage is to make sure all the decided plans and programs are been followed. It finds out whether there is any deviation from the production plan or not. And if there is any, immediate action is taken to resolve the fault and finish the production within the scheduled time.InspectionThis stage is concerned about checking the quality of the finished goods because it is the most vital factor as the image, the name and the reputation of the company in the market depends on itCorrective MeasuresCorrective measures involve all those activities which are done to rectify the faults which may have occurred in the routing, computer programming, loading scheduling or in any of the stages of the production planning or con trol system. Decisions regarding the inclusion of more labors, transfer of personnel to other work stations, training of the employees are also taken in the corrective stage.ConclusionFrom the above discussion one thing can be easily understood that without efficient planning and control no business company can fulfill its objective of earning a profit. Production planning and control becomes very much crucial for the small scale industries because they frequently face the challenge of producing goods at a very low cost. Production planning not only aids the companies to determine the at ease production procedure they need to follow but also reveals the risk factors which they are likely to face during the manufacturing process.