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PRODUCTION PLANNING

AND CONTROL

TYPES OF PRODUCTION AND

FORECASTING

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TYPES OF PRODUCTIONSYSTEM

JOB ORDER PRODUCTION

A Small number of pieces produced only once

A Small number of pieces produced intermittently

when the need arisesA Small number of pieces produced periodically at

known intervals of time

Characteristics

Small production runs Flow of materials

Manufacturing cycle time

Layout of plant and equipment

Skill required

Quality of supervision

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TYPES OF PRODUCTIONSYSTEM

BATCH PRODUCTION A batch produced only once

A batch produced repeatedly at irregular intervals when theneed arises

A batch periodically at known intervals to satisfy continuousdemand

Characteristics Short runs

Investment

Planning

Skill of labor

Quality of supervision

Plant Layout

Material Handling

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TYPES OF PRODUCTIONSYSTEM

Characteristics Job Order Batch Continuous

Examples Special Projects,Ship Building

Shoe, Cloth,Chemical, Forging

Automobile, Sugar,Glass

Quantity Very Small Small quantities inlots

Few in largequantities

Equipment General Purpose General Purpose Special Purpose

Skill Highly Skilled Skilled Semi skilled orunskilled

Supervision Much Less Quite Less

MH Equipment Mobile Less Mobile,Conveyors

Conveyors, Overheadrails

In process Inventories High Relatively Low Low

Unit Cost High Less Quite Less

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TYPES OF PRODUCTIONSYSTEM

Characteristics Job Order Batch Continuous

Prior Planning Complex Easy Very Easy

Control Complex Easy Very Easy

Cycle Time Long Relatively Short Very ShortBalance of Load Easier Relatively Difficult Very Difficult

Job Instructions Complex and indetails

Few Only at the outset ofnew job

Investment in

Machine andEquipment

Less Comparatively

More

High

Changes in machinesetup

Every time newset up

New set up whenthe batch changes

Remains Unchanged

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FORECASTING

Definition and Concept

Purpose of Sales Forecasting

Sales Forecasting Techniques

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FORECASTING

Historic Estimate

Sales Force Estimate

Trend Line Technique

Market Survey

Judgmental Techniques

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FORECASTING

Prior Knowledge

Forecasting by past average

Forecasting by last periods sale

Forecasting by moving average

Forecasting by Weighted moving

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