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Product i o n P lann i ng And Cont ro l



1

1. INTRODUCTION



We will be shouldering the responsibilities of executive of tomorrow so it is to

understand methods, plans, various techniques that are essential to operate the effectively

and efficiently. For this purpose we must have the knowledge of PPC.

This is also true that this subject intervene into many departments of industrial

organization, their relations with these departments are explained in first few topics.

This basic objective of creating the manufacturing organization is to make the

products. Thus the production is the nucleus or the centre of entire business operations. It

must be emphasized, however, that on signal system of forecasting, preplanning, planning

and control is suited to all industrial enterprises, no matter how well it may meet the needs of

this on that special company. PPC functions look after the manufacturing activities.

PPC comprise the planning, routing, dispatching in the manufacturing process so

that the movement of material, performance of machines and operation of labour however

are subdivided and are directed and coordinated as to quantity, quality, time and place.

Planning and control are two basic and interrelated managerial functions. They are so

interrelated that they can be and often are considered as being one function. Planning is the

preparation activity while control is the post-operation function. Both of them are so closely

related that they are treated as Siamese twins. Planning sets the objectives, goals, targets on

the basis of available resources with their given constraints. Control is the integral part of

effective planning. Similarly control involves assessment of the performance, such

assessment can be made effectively only when some standard of are set in advance. Planning

involves setting up to such standard. The controlling is made by comparing the actual

performance with these present standard and deviations are ascertained and analyzed.

Production is an organised activity of converting raw materials into useful products

but before starting that work of actual production, production planning is done in order to

anticipated possible difficulties and decide in advance as to how the production should be

carried out in the best and economical way.

Since mere planning of production is not only sufficient, hence management takes

all possible steps to see that project or plan chalked by the planning department are properly

adhered to and the standards set are attained in order to achieve it, control over production is

exercised. The aim of production control is to produce the products of right quality, in right

quantity at the right time by using the best and least expensive methods.

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Product i o n P lann i ng And Cont ro l



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As ,1
n
n

m
< it is clear that the batches larger than mQ will adversely affect the rate of return.



FEATURES :-

1] Less capital is tied up.

2] The cost function is steep and far more sensitive to batch size

3] Production time is reduced and does not imply to improve the production technique as in

case of long runs. Set uptime increases. Non productive time increases.







COMPARISON OF THE VARIOUS IMPLICATION TO BATCH SIZE

Presuming the results for Qm as 1000 au 5, p1 1st the effect of batch size on

i) Variable cost factor p, equation (18) ii) Production cost per piece, y

iii) Cost per batch iv) Profit

v) Profit/Cost of production vi) Rate of Return

Can be calculated as under and depicted on graph as shown

Effect of Selecting a lot size
q p y Qy yy1 −

Qy
yy1 −


R

0.5 1.25 107.1 53.6 18.8 35.1 70.2

0.73 1.05 101.4 74.1 63.9 86.2 113.4

0.8 1.025 100.7 80.6 75 93.1 116.4

1.0 1 100 100 100 100 100

1.1 1.005 100.1 110.1 108.6 98.6 89.6

1.3 1.034 101 131.3 119 90.6 69.7

1.36

1.6 1.113 103.2 165.1 114.8 69.6 43.5

1.8 1.178 105.1 189.2 99.9 52.8 29.3

2 1.25 107.1 214.2 75 35 17.5









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Product i o n P lann i ng And Cont ro l




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