session vii a - ppc

8/8/2019 Session VII a - Ppc

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Production Planningand Control


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Objectives

Strategies and Concepts

Relationship among Production Standards,Capacity and Production Planning

Factors that impact Productivity and

measures of Productivity


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Objectives

Impact of Resource Management on

Productivity

HR, Inventory and equipment acquisition

Waste management and environmental

concerns


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Overview

Quick overview of what this topic is all

about

Standardization and flexibility

Time and Money

People and Machines

Function and Systems


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Production Strategies

Flexible Manufacturing

Small Orders

Short Lead Times

Capability to quickly and efficiently produce a

variety of styles.


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Flexible Manufacturing

Adopting new technology

Better development and use of resources.

Focus on the production systems is maximum


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Value added manufacturing (VAM)

It is a quick response strategy

focuses attention on eliminating any

unnecessary operations that is responsible

for delay in production without increasing the

value of the product.



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Value Added Manufacturing (VAM)

E.g. Activities like inspection, bundle marking

and sorting do not add value.

To operate in VAM firms must evaluate

processes and find more efficient ways to

produce a product



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Agility

It is the dynamic ability of the firm to

strategically use change as a vehicle to

grow in new markets with new products and

to develop new competencies.

An agile manufacturing firm precipitates

changes and strategically profits from it.


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Agility

The ability to anticipate customer needs

and through innovation lead the emergence

of new markets.

Enabling customers to perceive that they

are being enriched


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Agility

Develop internal and external cooperation to

bring innovative products to market through

cross functional teams, empowerment,

virtual companies and partnerships with

competitors


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Agility

Develop a flexible organization that thrives

on change and uncertainty.

Rewards innovation and shares

responsibility for success.


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Mass Customization.

integration ofIT, automation and team

based flexible manufacturing

produce a wide variety of products and

services.

The goal is to be agile enough so products

can be made to orderrather than made to

plan.


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Mass Customization.

Product life cycles are short & markets diverse

May involve single ply cutting, modular-type

teamwork production and integrated IT

Reduces the risk associated with trying to

anticipate customer demand months ahead of

POS to the ultimate customer


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Production Planning Rules

PP is an integrative process ofcoordinating

the demand for finished goods with

available resources.

Planners work many months ahead of

planned delivery to ensure that specific

materials are available when needed


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Long Term Production (months or selling

period) is based on forecast merchandise

plan and budgets

Short term production planning (days or

weeks) is based on customers order.


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Long Term Production Planning

PP at the corporate level is usually longer

term.

Involves analyzing ofpotential sourcing

strategies, types of styles in the line, type of

fabric, labor intensity of the line, planned

volume per style, reorder expectations,

expected delivery dates, and the resources

available.


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Also involves the decision to produce in their

own plant orsub-contract it.

This means having appropriate equipment,

trained personnel, available capacity and

established start dates for promised delivery

dates.


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New styles may require a change in processes,

equipment, and a longer conversion time.

In case ofshort runs, styles change frequently,which means extra time must be built into the

production schedule

Allow the operators to make mental and

physical adjustments in handling a new

fabrication or process9/24/2010


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Short Term ProductionPlanning

This generally relates to required production

time for styles on order with available

production time in the plant


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Style specifications and samples supplied by

technical designers describe the process of

operations, materials to be used, special skills and

handling procedures and quality requirements

demanded for production

But in production..


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Assembly methods may be modified to make

the product more producible, identify equipments

to be used and determine production times for

each operation.


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PPC involves

Coordinating plant capacity with style

requirements

Projected Volume

Shipping dates

Planning for effectively using plant capacity

and maintain high productivity.


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Production Capacity

This refers to the potential production

capability of a plant, machine, or work center in a

given period of time.

Capacity is due to the availability of resources

such as machines, time, space, & facilities that

require capital investment by the firm.

measured in units of output i.e number of

garments or garment parts


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Terms Summarized

Maximum Capacity total hours available

under normal conditions in a given period of

time.

Potential Capacity- Maximum capacity

adjusted for efficiency


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Terms Summarized

Committed Capacity Total hours previously

allocated for production during a given time

period

Available Capacity Difference between

potential capacity and committed capacity

for a certain time period


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Terms Summarized

Required Capacity Standard allowed hours

necessary to produce a specific volume in a

certain period of time

Excess capacity Difference between

potential capacity and required capacity


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Terms Summarized

- A key to effective capacity planning is to

make necessary resources decisions in

advance to ensure that the required capacity

and available capacity are compatible.


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Production Standards(PS)

This is the rate stated in SAM orSAH, that

reflects the time required for a normal operator

to complete one operation using a specific

method.

The PS is also an indicator of how many times

the operation can be completed in an hour.

Total ofPS of each operation =time required

to produce a specific style


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Production Standardobjectives

Estimate the time for completion of each

operation

Determine the required capacity for an order

or style

Determine production start dates andcompletion dates for orders


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Plan the daily volume that should be completed

Determine the backup inventory needed to

support the workflow

Determine how many operators and machines

should be performing each operation

Schedule specialized equipment


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Balance work flow between departments and

work centers

Monitor Production delays

Assess the performance of individual operators


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Human Resource Management

Critical and Crucial

People unlike machines are valuable to firm.

Machine capabilities can expand with better

training, motivation, experience and

reinforcement


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Human Resource Management

Job descriptions must be accurate and

complete so that the positions are not

misrepresented.

Developing accurate and appropriate job

descriptions is difficult and time consuming.

Skill Matrix

Compensation rules for payments of salary


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Productivity of DirectLabour

This is often used as a key measurement of a

firms productivity

Two dimensions which affect labor costs of a

product,

clock hours it takes to produce the product and

the productivity of labor


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Productivity of labor can be evaluated as

Units of output per labor hour

Value of finished goods per hour

Units of production per labor rupee


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Labor utilization :

percentage of time operators actually produce

when compared to the total time available


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In case ofPiece Rate System the following

standards are followed

On Standard

Off Standard


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On Standard

means that the operator is producing as per

the production standard for the operation

that he is assigned


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Off Standard

means the operator is compensated usually

with an hourly wage, even when he is NOT

producing a product.

Reduced efficiency Generally due to machine break down,

power failures, etc.


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Training & Development

Orientation Program

Training Programs

Job Skills

Cross Training for multi skill operations

Live training

Vestibule Training simulated


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Inventory Management

Inventory control and Turnover

This is an effort to maintain stock levels and

costs within acceptable limits

Inventory levels must be

high enough to maintain a steady workflow,

keep inventory investment at a minimum and

provide good customer service


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Inventory is a controllable element that has a

major impact on productivity

Inventory management is key to the success of

the firm.

It restricts cash flow and does not add value to

the product


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Inventory turns and productivity can be improved

through

better forecasting,

more accurate production scheduling and

controlling work in progress.


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Waste Management

Production waste is costly and controlling

it is a social responsibility

Cutting generates a lots of waste and

disposing them may be more expensive

Dyeing and washing need a lot of water


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Equipment Management &Plant Modernisation

Replacement of essential worn out equipment

Replacement ofexisting equipmentto

increase productivity and reduce costs

Acquisition ofnew equipmentto expand

production capacity and to improve quality


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Equipment Management &Plant Modernisation

Acquisition ofnew equipmentto produce new

product line

Acquisition ofnew equipmentto improve

safety and environmental factors


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Apparel Technology Centers

Clemson Apparel Research (CAR) South

Carolina

Textiles Clothing Technology Corporation

[TC]2 - North Carolina

ComputerIntegrated Manufacturing (CIM)

University of Southwestern Louisiana

session vii a - ppc

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