Production/operation direction ( POM ) involves the maps of planning and controlling, where ; Planning – Includes all those activities that result in developing in a class of action. Organizing – Involves all the activities that result in some construction of undertakings and authorization. Controlling- Activities that assure that public presentation in the administration takes topographic point in conformity with planned public presentation.

In add-on, behavior is a concern of POM, while put to deathing, forming and commanding maps, the directors want to cognize how the behavior of subsidiaries can impact direction planning forming and commanding actions. Troubles encountered in planning, forming and commanding the transmutation procedure which in functions determination devising is facilitated by usage of theoretical accounts.

5.1 What is production planning?

Planing and control are of import constituents of the direction procedure be aftering involve preservation of all import variables to accomplish defined out put ends. Control involves the disciplinary actions taken when the existent out put varies from the desired one by conveying the existent end product in line with the planned end product.

Production planning, in peculiar, would therefore consist of the instruction and finding of production. Imports such as labor ( work force ) , machinery, equipment, stuffs and public-service corporations are used to accomplish the coveted ends. The definition of the ends is besides portion of the production planning procedure.

The planning procedure may be broken down into assorted phases as follows ;

Measure 1. – Specifying aims and puting precedences to achieve this.

Measure 2. – Analyzing the environment external to the system being planned and internal environment of the system being planned.

Measure 3. – Detering dependable marks ( quantified ) as far buttocks possible.

Measure 4. – Gearing the inputs to accomplish this mark

Plans are based on the administration aims and policies should be ;

Explicit – clear

Understood – by receiver

Accepted – by all concerned in its executing

Capable of accepting alteration – Not rigid

Compatible with internal and external -constraints acknowledge restriction

Capable of being monitored -Expressed in numerical footings for quantifiability.

Aspire to action – stimulate action.

The planning procedure is basically an alternate one, and the contriver will often necessitate to go up and down the concatenation before a stable program is achieved

5.2 What is aggregative planning?

The sum program is made within the wide frame- work of the long – scope program. Normally, the planning skyline for such programs scopes from a month to a twelvemonth. The physical works and equipment capacity would be fixed over this planning skyline. Therefore, the gross revenues orders have to be met by schemes like utilizing overtime, engaging excess staff ( impermanent ) or lay off of such individuals, transporting stock list or giving a subcontract. The intermediate planning clip – skyline derives its ‘intermediate ‘ character due to the type of determination that need to be taken, given a certain frame-work of long- term determinations which have been taken.

The first measure for such planning would be to do a gross revenues prognosis of demand for the intermediate scope. And based on this gross revenues prognosis, develop the aggregative production scheme.

Aggregate planning is hence the production planning in the intermediate scope of clip. The demand on installations and available capacity is specified in aggregative measures. The entire demand ( expected ) is measured without respect to the merchandise mix that makes up the figure.

5.2.1 Procedure to be followed in developing a production sum program

Measure 1 – Check whether the entire demands for the prognosis period are within the combined equipment and manpower capacity of the works

-If the forecasted gross revenues demand can non be met by bing works capacity including any extra capacity that can be installed within the intermediate planning periods the gross revenues prognosis may hold to be scaled down to the upper limit, capacity that is available during the aggregative planning period.

Measure 2 – Make alternate production programs ( sum ) and select the most economical.

-There could be production programs which closely follows extremums and vales in the production demand prognosis or steady

production rate bing the norm of these extremums and vales

-There could besides be other programs, which could unite these two programs.

5.3 Schemes and costs in aggregative bar planning.

In seeking to run into demand with the production capacity in the intermediate scope, the undermentioned different schemes are available:

Overtime and under clip

Hiring and layoff ; working simple or multiple displacements

Transporting stock lists to run into the extremum demands

Having backlog of orders

Sub-contracting to other companies

Turning down some gross revenues demands.

Each of these schemes has a cost factor associated with it.

5.3.1 What is production control?

Production control refers to the updating and raising process where ; harmonizing to the demands of execution, the labour assignment, the machine assignments, the occupation precedences, the line velocities, the production paths and so on, may be revised. It is fundamentally a rectification execution procedure of the already drawn up program and agenda.

In order to continually supervise the advancement of execution, many control techniques. Such as gantt charts, line balance, PERT / CPM, and so forth may be used. Basically these are bar – charts with the missive two demoing some sequence relationship.

Conditionss necessary for the being of a control system

There must be a specified set of times at which a pick of action is possible

At each clip there must be a specified set of action from which to take

A theoretical account must be which can foretell the hereafter of the system under every possible pick.

There must be a standard or aim on which the pick of action is based by a comparing of the predicted behavior of the system with the aim.

Features of an effectual control system

1. Planning: A budget has to be prepared which takes unit history the Purpose, abilities, restrictions and degrees of activity of all sections to which the budget applies. It is this budget which forms the control theoretical account and which sets forth the aims.

2. Publication: Once agreed, the budget is distributed to all concerned.

3. Measurement: Measurements of activity have to be obtained by agencies of clip sheets, clock cards, stuff, bit notes or any other appropriate agencies.

4. Comparison: The measurings obtained have to be compared with degrees agreed in the budget. The measurings may hold to be processed to ease the comparing.

Coverage: Statements have to be feedback to the appropriate supervisor refering any derivation from the budget.

Corrective action: Upon reception of a study that the public presentation is non in conformity with the program the appropriate supervisors needs to take disciplinary action.

Requirements for the installing of a control system

For a functional control system the undermentioned demands must be.

Aim must be defined

two ) Choice of action must be present

three ) Information should be suitably precise

four ) Information should be pertinent

V ) The velocity of response of the system should be fast adequate to allow utile action to be taken.

six ) Information should be presented in right units

seven ) Reports should be accurate or of consistent truth.

eight ) The figure of phases in the provender back cringle should be every bit far as possible.

5.3.2 Planing forming and control activities that should be emphasized by POM to better operations/production

The undermentioned activities are kited under the 5 P ‘s of POM and are indispensable to the success of POM.


Value analysis – merchandise redesign

Quality circle and TQM

Product assortment, Narrow merchandise line, standardising


Plant location and resettlement.

Size or cut downing size of maker units.

Choice of installations, Technology, invention and R and D.

Equipment acquisition, installing, care and fix.

Capacity look.


Specifying fabricating / runing scheme.

Changing the manufacturing/ operation administration.

Developing new procedure for old merchandises.

Developing new procedure for new merchandises.

Automatizing Jobs undertakings and activities.

Making bing systems work good.

Integrating CAD ( Computer Aided design ) and CAM ( A computing machine aided fabrication in the manufacturing/ runing procedure ) .

Prosecuting group engineering.

Office Automation.

Developing incorporate information systems.


Production planning, programming, routing and lading

Inventory control system and lead clip declaration

Vendor dealingss and procurance processs

22. Physical distribution and merchandise / service bringing to clients


Worker safety plans.

Worker, supervisor preparation and development.

Motivating direct labor employees.

Changing labour/ direction relationships.

Giving workers broader scope of undertakings to execute and duties.

5.4 Production planning and control and its relationship with other maps

Production planning and control embraces all determinations, policies, programs and actions that have something to make with optimisation and fabrication aims

Basic relationships among the undermentioned maps must be established:

I ) Gross saless prognosis.

two ) Production capacity.

three ) Inventory degrees.

four ) Working capital.

V ) Raw stuff demand.

six ) Production installations.

seven ) Product design and its fabrication sequence.

eight ) Manpower and engineering ( stables ) .

The aim of production planning and control is to strike the most economic balance between all the above factors. The interaction between productions be aftering as control is shown in figure 3.

Fig. 5.1: Interaction between production planning and control and other

Functions of POM

Production planning

Gross saless Forecast,

Market research and merchandise development

Production planning



Production control



T and D D

Inventory control




Time estimation


– Despatching

– Transportation system

– Quality

– Expediting

– Inspector

Stored direction

Quality control


Receiving review



The highest efficiency in production is obtained by fabricating the needed measures of the merchandise of the needed quality, at the needed clip, by the best and cheapest method.

5.5 Production planning

Involves production of programmes to run into demand forecasted, to maximise use of resources and optimizes capacity use.

Programs include timetables that set the dates/times of the transportation of merchandises to, or proviso of services for the client.

Visible look of the production / selling interface.

Efficaciously finding hard currency flow, the premier accountant of organizational viability.

Transportation timetables generate clip tabular arraies for

Buying ( MRP )

Transformation ( production )

Maintenance ( shut down for service )

Cash flow


Transportation system

Production timetables includes statements of which work will be done where, when and what quantities – programming, routing and lading.

5.6 Routing programming and burden

The production planning and control map communicates full inside informations of fabrication instructions through routing, programming and burden paperss.


Routing: – Instruction manuals bespeaking in item the flow of procedures type and capacities of equipment used, physical and chemical features of inputs, norms for inputs or natural stuffs. Intermediates, services single procedure times and rhythms clip of procedures where necessary.

The chief map of routing is to use machine at their fullest capacity.

Routing involves the finding of where each operation in a component portion, assemblies or assembly is performed.

Loading: – Shop burden is delegating different occupations to different installations.

The burden is the work assigned to a machine or operator, and capacity is the resources available to finish the available work during a convenient period of clip.

Both burden and capacity should be measured in the same units.

When burden is equal to capacity, the installation is said to be to the full loaded.

The burden can merely be determined from the agenda, while the agenda can merely be drawn after sing the burden.

Scheduling: Detailed daily planning of operations.

It deals with inquiries such as.

Which work centres will make with the occupation?

When should an operational/ occupation be started? When should it stop?

On which equipment should it be done, and by who?

What is the sequence in which jobs/operations need to be handled in a installation or on equipment?

Scheduling involves:

Delegating different occupations to different installations.

Sequencing the occupations and the operations at a installation or a machine, so as to accomplish the production departments aims ; and

Monitoring the accomplishment and consequently revising the agenda or altering the precedences of occupations / operation, so as to rectify the divergence. This is the ‘control ‘ action.