1. INTRODUCTION TO PRODUCTION PLANNING AND CONTROL

2. OBJECTIVES AND BENEFITS
Minimize costs / maximize profits
Maximize customer service
Minimize inventory investment
Minimize changes in production rates
Minimize changes in work-force levels
Maximize the utilization of plant and equipment

5. FUNCTIONS OF PRODUCTION CONTROL
Production function encompasses the activities of procurement, allocation and utilization of resources.
The main objective of production function is to produce the goods and services demanded by the customers in the most efficient and economical way.
Therefore efficient management of the production function is of utmost importance in order to achieve this objective.

6. TYPES OF PRODUCTION Continuous production Job or unit production
Intermittent production

7. CONTINUOUS PRODUCTION
It refers to the production of standardized products with a standard set of process and operation sequence in anticipation of demand.
It is also known as mass flow production or assembly line production.
This system ensures less work in process inventory and high product quality but involves large investment in machinery and equipment.

8. JOB OR UNIT PRODUCTION
It involves production as per customer‘s specification each batch or order consists of a small lot of identical products and is different from other batches.
The system requires comparatively smaller investment in machines and equipment.
It is flexible and can be adapted to changes in product design and order size without much inconvenience.

9. INTERMITTENT PRODUCTION
Under this system the goods are produced partly for inventory and partly for customer's orders.
E.g. components are made for inventory but they are combined differently for different customers. .
Automobile plants, printing presses, electrical goods plant

11. PRODUCT DESIGN
Product design is a strategic decision as the image and profit earning capacity of a small firm depends largely on product design.
Once the product to be produced is decided by the entrepreneur the next step is to prepare its design
Product design consists of form and function. The form designing includes decisions regarding its shape, size, color and appearance of the product.
The functional design involves the working conditions of the product.

12. PRODUCT DEVELOPMENT
(a) Standardization (b) Reliability (c) Maintainability (d) Servicing (e) Reproducibility (f) Sustainability (g) Product simplification (h) Quality Commensuration with cost (i) Product value (j) Consumer quality (k) Needs and tastes of consumers.

13. MARKETING ASPECT
Sales and Marketing is a key function whose participation is often hard to enlist.
Sales and Marketing are critical functions in this process, since they provide the starting point of the planning and scheduling process ‑‑ the forecasts and customer order demands
They are also vital from the viewpoint of providing the proper customer perspective whenever changes need to be made to plans and schedules based on mismatches of resources to customer demands.
Only with a proper level of participation in Planning and Scheduling, can Sales and Marketing optimally leverage its performance and create a trusting and consensus‑based working relationship with Manufacturing, Purchasing, Planning, Engineering and all other functions in the company.

14. FUNCTIONAL AND OPERATIONAL ASPECT

15. DURABILITY AND DEPENDABILITY
Dependability for a system gathers the following attributes or non- functional requirements: Availability: readiness for correct service Reliability: continuity of correct service Maintainability: to undergo modifications and repairs Durability aspects concerns about the way the production is going to serve the purpose with out any hurdles for a prolonged period of time scale

16. aesthetic and non aesthetic effect
AESTHETIC ASPECT
Difference between
aesthetic and non aesthetic effect

17. PROFIT CONSIDERATION
Taking the time to calculate the profit margin for a product line or even for a company as a whole is essential to determining if a company is growing, maintaining its current market share, or is losing customers and is in danger of not making a profit.
Many companies choose to look at profit margin ratios on a regular basis, just to make sure that sales are headed in the right direction, and that expenses are being contained in order to maximize the returns from those sales.

18. STANDARDIZATION
Sizes for screws, nuts bolts and other threaded fasteners were first standardized based on work of by Joseph Whitworth..
Pipe sizes
Shoe size standardization
The screw base size and thread dimensions of electric lamp bulbs was standardized by Thomas Edison.
Electrical voltage and frequency
Electrical wiring and device standards

19. SIMPLIFICATION AND SPECIALIZATION
The production system should be as simple as possible to make it easy for understanding as well as easy for execution
Specialization of production infers the special production system for specific products or services.

20. BREAK EVEN ANALYSIS
The break-even chart is a graphical representation of costs at various levels of activity shown on the same chart as the variation of income (or sales, revenue) with the same variation in activity. The point at which neither profit nor loss is made is known as the "break-even point" 

21. ECONOMICS OF NEW DESIGN

22. Product and Service Design
Major factors in design strategy
Cost
Quality
Time-to-market
Customer satisfaction
Competitive advantage
Product and service design – or redesign – should be
closely tied to an organization’s strategy

23. Product or Service Design Activities
Translate customer wants and needs into product and service requirements
Refine existing products and services
Develop new products and services
Formulate quality goals
Formulate cost targets
Construct and test prototypes
Document specifications

24. Reasons for Product or Service Design
Economic
Social and demographic
Political, liability, or legal
Competitive
Cost or availability
Technological

25. Objectives of Product and Service Design
Main focus
Customer satisfaction
Understand what the customer wants
Secondary focus
Function of product/service
Cost/profit
Quality
Appearance
Ease of production/assembly
Ease of maintenance/service

26. Designing For Operations
Taking into account the capabilities of the organization in designing goods and services.
Failure to take this into account can:
Reduce productivity
Reduce quality
Increase costs

27. Designers Adhere to Guidelines
Produce designs that are consistant with the goals of the company
Give customers the value they expect
Make health and safety a primary concern
Consider potential harm to the environment

28. Other Issues in Product and Service Design
Product/service life cycles
How much standardization
Mass customization
Product/service reliability
Robust design
Degree of newness
Cultural differences

29. Life Cycles of Products or Services
Time
Introduction
Growth
Maturity
Saturation
Decline
Demand

30. Standardization Standardization
Extent to which there is an absence of variety in a product, service or process
Standardized products are immediately available to customers

31. Advantages of Standardization
Fewer parts to deal with in inventory & manufacturing
Design costs are generally lower
Reduced training costs and time
More routine purchasing, handling, and inspection procedures
Quality is more consistent

32. Advantages of Standardization (Cont’d)
Orders fillable from inventory
Opportunities for long production runs and automation
Need for fewer parts justifies increased expenditures on perfecting designs and improving quality control procedures.

33. Disadvantages of Standardization
Designs may be frozen with too many imperfections remaining.
High cost of design changes increases resistance to improvements.
Decreased variety results in less consumer appeal.

34. Modular Design
Modular design is a form of standardization in which component parts are subdivided into modules that are easily replaced or interchanged. It allows:
easier diagnosis and remedy of failures
easier repair and replacement
simplification of manufacturing and assembly

35. Reliability
Reliability: The ability of a product, part, or system to perform its intended function under a prescribed set of conditions
Failure: Situation in which a product, part, or system does not perform as intended
Normal operating conditions: The set of conditions under which an item’s reliability is specified

36. Improving Reliability
Component design
Production/assembly techniques
Testing
Redundancy/backup
Preventive maintenance procedures
User education
System design

37. Product Design Product Life Cycles Robust Design
Concurrent Engineering
Computer-Aided Design
Modular Design

38. Robust Design
Robust Design: Design that results in products or services that can function over a broad range of conditions

39. Degree of Newness Modification of an existing product/service
Expansion of an existing product/service
Clone of a competitor’s product/service
New product/service

40. Global Product Design Virtual teams
Uses combined efforts of a team of designers working in different countries
Provides a range of comparative advantages over traditional teams such as:
Engaging the best human resources around the world
Possibly operating on a 24-hr basis
Global customer needs assessment
Global design can increase marketability

41. Phases in Product Development Process
Idea generation
Feasibility analysis
Product specifications
Process specifications
Prototype development
Design review
Market test
Product introduction
Follow-up evaluation

42. Idea Generation Supply chain based Competitor based Research based
Ideas
Competitor based
Research based

43. Reverse Engineering Reverse engineering is the
dismantling and inspecting of a competitor’s product to discover product improvements.

44. Research & Development (R&D)
Organized efforts to increase scientific knowledge or product innovation & may involve:
Basic Research advances knowledge about a subject without near-term expectations of commercial applications.
Applied Research achieves commercial applications.
Development converts results of applied research into commercial applications.

45. Manufacturability
Manufacturability is the ease of fabrication and/or assembly which is important for:
Cost
Productivity
Quality

46. Remanufacturing
Remanufacturing: Refurbishing used products by replacing worn-out or defective components.
Remanufactured products can be sold for 50% of the cost of a new producer
Remanufacturing can use unskilled labor
Some governments require manufacturers to take back used products
Design for Disassembly (DFD): Designing products so that they can be easily taken apart.

47. Component Commonality
Multiple products or product families that have a high degree of similarity can share components
Automakers using internal parts
Engines and transmissions
Water pumps
Etc.
Other benefits
Reduced training for assemble and installation
Reduced repair time and costs

48. Service Design Service is an act Service delivery system
Facilities
Processes
Skills
Many services are bundled with products

49. Service Design Service design involves The physical resources needed
The goods that are purchased or consumed by the customer
Explicit services
Implicit services

50. Service Design Service Service delivery system Product bundle
Something that is done to or for a customer
Service delivery system
The facilities, processes, and skills needed to provide a service
Product bundle
The combination of goods and services provided to a customer
Service package
The physical resources needed to perform the service

51. Differences Between Product and Service Design
Tangible – intangible
Services created and delivered at the same time
Services cannot be inventoried
Services highly visible to customers
Services have low barrier to entry
Location important to service
Range of service systems
Demand variability

52. Service Systems
Service systems range from those with little or no customer contact to very high degree of customer contact such as:
Insulated technical core (software development)
Production line (automatic car wash)
Personalized service (hair cut, medical service)
Consumer participation (diet program)
Self service (supermarket)

53. Phases in Service Design
Conceptualize
Identify service package components
Determine performance specifications
Translate performance specifications into design specifications
Translate design specifications into delivery specifications

54. Operations Strategy Increase emphasis on component commonality
Package products and services
Use multiple-use platforms
Consider tactics for mass customization
Look for continual improvement
Shorten time to market

55. Shorten Time to Market Use standardized components Use technology
Use concurrent engineering