(KMBN OM02) Unit 1: Introduction of Operation Planning & Control

Meaning

Operation planning and control refers to managing and organizing the activities that help a business produce goods or services efficiently. It ensures everything runs smoothly, from planning what to produce to controlling the production process.

In simple terms:

Operation planning is like making a detailed to-do list for a business to decide what, when, and how things will be made.

Operation control is checking whether things are being made according to the plan, making sure everything stays on track, and fixing any issues that come up.

Example: Imagine a bakery that makes cakes:

Operation planning: The bakery plans how many cakes to bake, which ingredients to order, and how many bakers to schedule for the week.

Operation control: The bakery checks whether the cakes are being made on time, in the right quantities, and ensures the quality is good. If they see that cakes are delayed, they fix the issue by speeding up production or adding more bakers.

This process helps businesses like the bakery avoid wasting time and resources while ensuring customer satisfaction.

Objective of Production Planning & Control

The objective of Production Planning and Control (PPC) is to make sure that a business produces goods or services efficiently, with minimal waste, and meets customer demand on time. It helps in planning, organizing, and controlling the production process to ensure everything runs smoothly.

The objective of Production Planning and Control (PPC) is to ensure efficient production by:

• Produce the right amount: Make sure the company produces exactly what is needed—no more, no less.
• Use resources wisely: Ensure machines, materials, and workers are used effectively without wasting time or resources.
• Meet deadlines: Deliver the product to customers on time, ensuring they are satisfied.
• Control costs: Keep production costs as low as possible by avoiding mistakes, delays, or waste.
• Ensure quality: Make sure the products are made according to quality standards.

In Short

• Producing the right amount.
• Using resources wisely (machines, materials, workers).
• Meeting deadlines for timely delivery.
• Controlling costs by reducing waste.
• Ensuring product quality.

Example: Let’s say a clothing factory makes 1,000 shirts every week

• Right amount: PPC will plan to produce 1,000 shirts, ensuring they don’t make too few (which could lead to a shortage) or too many (which would cause excess inventory).
• Use resources wisely: PPC schedules workers, machines, and materials so that everything is used efficiently without idle time or overworking.
• Meet deadlines: PPC ensures the factory meets the deadline to deliver the shirts to a retailer at the end of the week.
• Control costs: By organizing production well, PPC helps reduce wasted fabric, energy, and worker hours, keeping costs low.
• Ensure quality: PPC makes sure the shirts are made with the right measurements and fabric quality, avoiding defects.

In short, Production Planning and Control helps businesses stay efficient, cut down on waste, and satisfy customers with on-time, quality products.

Function of Operation Planning & Control

The functions of Operations Planning & Control involve several key activities that help a business manage its production smoothly and efficiently. Here’s what they do, explained simply:

1. Planning: Deciding in advance what to produce, how much to produce, and when to produce it. Example: A factory decides to make 500 toys next week and schedules the necessary materials and workers. 
2. Routing: Determining the best way to produce the product—what steps to follow and which machines to use. Example: In a bakery, routing decides whether cakes will be baked in one oven or multiple ovens, and in what order ingredients will be mixed.
3. Scheduling: Setting specific times for when each production step will happen. Example: The bakery schedules when to bake the cakes, when to decorate them, and when to pack them for delivery. 
4. Dispatching: Giving orders to start the production process. Example: The bakery manager tells the staff to start baking the cakes according to the schedule. 
5. Follow-up/Expediting: Monitoring the progress and ensuring everything stays on track. If there’s a delay or problem, it helps fix it quickly. Example: If the bakery faces a shortage of ingredients, follow-up ensures they restock fast to avoid production delays. 
6. Inspection: Checking the quality of products during and after production to make sure they meet standards. Example: After the cakes are baked, someone inspects them to ensure they taste good and look as expected. 
7. Corrective action: Fixing any issues that occur in the production process to avoid delays or defects. Example: If cakes are overbaked, the bakery adjusts the baking time to prevent it from happening again.

These functions help businesses stay organized, avoid mistakes, and deliver quality products on time.

Roles & Responsibilities of PPC manager

A Production Planning and Control (PPC) manager is responsible for making sure that a company’s production runs smoothly, efficiently, and meets deadlines. Their job is to plan, organize, and monitor the production process. Here’s what they do in simple terms:

Roles and Responsibilities

Planning production: They decide how much product to make, what materials are needed, and when production should start to meet customer demand.Example: If a factory needs to make 1,000 shirts, the PPC manager plans how many workers and how much fabric is required.

1. Scheduling work: They create a schedule so that the production process happens in an organized way, ensuring everything is done on time.Example: The PPC manager sets up a timeline, scheduling when to cut the fabric, when to sew, and when to pack the shirts.
2. Managing resources:They ensure that all the necessary resources, like workers, machines, and materials, are available and used efficiently.Example: The PPC manager ensures that there’s enough fabric in stock and all machines are ready for production.
3. Monitoring production:They track how the production is going, checking if things are running on time and whether there are any problems.Example: If the factory is falling behind schedule, the PPC manager looks into the issue and finds a way to fix it.
4. Quality control:They make sure the products being made are of good quality and meet the company’s standards.Example: The PPC manager checks that all the shirts are stitched correctly and there are no defects before they’re sent to customers.
5. Solving problems:If there are any delays, shortages, or breakdowns, the PPC manager steps in to solve the problem quickly.Example: If a machine breaks down, the PPC manager arranges for it to be fixed or finds another machine to keep production going.
6. Coordinating with other departments:They work closely with other teams like sales, procurement, and shipping to make sure everything is aligned for timely delivery.Example: The PPC manager communicates with the sales team to understand how many shirts are needed and by when, and coordinates with shipping to deliver them on time.

In short, a PPC manager makes sure that the right products are made in the right quantity, at the right time, using the right resources, while keeping everything on track and within budget.

In short 

A PPC manager ensures efficient and timely production by:

• Planning production: Deciding what, how much, and when to produce.
• Scheduling work: Creating timelines for production tasks.
• Managing resources: Ensuring materials, machines, and workers are available.
• Monitoring production: Tracking progress and solving delays.
• Quality control: Ensuring products meet quality standards.
• Problem-solving: Fixing issues like machine breakdowns or delays.
• Coordinating: Working with other departments like sales and shipping.

In short, they oversee smooth production and ensure timely quality output.

Forecasting 

Forecasting is a method businesses use to predict future events, like sales or demand for products, by analyzing past data and trends. There are two main types of forecasting techniques: Qualitative and Quantitative. 

1. Qualitative Forecasting

This technique is based on expert opinions, intuition, and experience. It’s used when there’s little or no historical data available, such as when launching a new product. Example: A company launching a new smartphone may ask experts in the tech industry for their opinions on how many units they think will sell. They may also survey potential customers to get an idea of the demand.

• Common methods 

• Market research: Asking potential customers directly through surveys or focus groups. 
• Expert opinion: Consulting industry experts or experienced professionals to make predictions. 
• Delphi method: Asking a group of experts to give their opinions anonymously, then refining those predictions through rounds of questioning. 

2. Quantitative Forecasting 

This technique uses historical data and mathematical models to make predictions. It’s used when a business has a lot of data on past events, like previous sales figures. Example: If a bakery has been selling 500 cakes a month for the past year, they can use this data to forecast how many cakes they will sell next month by looking at trends and seasonal patterns. 

• Common methods 

• Time series analysis: Using past data over time to identify trends and predict future outcomes (e.g., sales of ice cream increasing every summer).
• Regression analysis: Examining the relationship between two variables, like how advertising spending affects product sales.
• Moving averages: Taking the average of past sales over a certain period to smooth out fluctuations and predict future sales.

Summary

• Qualitative forecasting: Relies on expert judgment when there is little data (e.g., launching a new product).
• Quantitative forecasting: Uses historical data and mathematical models when there’s plenty of past information (e.g., predicting future sales based on past performance).

Both techniques help businesses prepare for the future and make informed decisions.

Unit 2: Process of Production Planning and Control