CHAPTER 4
PRODUCTION PLANNING & CONTROL BY: PROF. MANASI JOSHI
Production planning
Determination, acquisition and arrangement of all
facilities necessary for future production of items Or pre-determination of manufacturing requirements for the production of goods of right quality, in the right quantities and at the right time. A Pre-production activity
Production control
Review the work progress, make corrections
wherever required thereby ensure that programmed production takes place Concerned with the implementation of production schedules It consists of following steps:
Initiating production Dispatching items Progressing Reporting back to production planning
Objectives
Optimum utilization of plant capacity
Steady flow of production
Estimate of resources Ensure optimum resources
Minimizing wastes
Improvement in labour productivity Adhering to delivery schedules
Better work environment
Facilitate quality improvement
Functions
Regular functions:
Optional functions
Order preparation Materials control Process planning/ routing Tools control Scheduling Dispatching Progressing Expediting
Cost estimation Work measurement Sub-contract Capacity planning Demand forecasting
Project planning and control
To estimate and evaluate the project completion time
and control the resources to see that project is completed within the stipulated time and at minimum cost Project consists of large number of inter-related activities whose scheduling is difficult
Critical Path Analysis (CPA)
An important aid to planning, scheduling and
coordinating the activities of large scale products It is a synthesis of 2 techniques:
Programmed Evaluation and Review Technique (PERT) Critical Path Method (CPM)
DIFFRENCE BETWEEN PERT/CPM
PERT CPM
Network is event based Activity times are not
Network is activity
related to costs Provides allowance for uncertainties
based Activity times are related are to costs Does not provide allowance for uncertainty
NETWORK DIAGRAM
Activity
Event: Merge events Burst Events Combination of merge and burst events
Preceding activities Succeeding activities Concurrent activities Dummy activities
Optimistic time (to or a)
Pessimistic time (tp or b)
Most likely time(tm) Expected time = (a + 4m + b)/6
Numbering the events
Critical Path
Path with longest duration
Determines the duration of project
A project can have more than one critical path Advantages: Helps in finding critical activities that must be carefully monitored and controlled Helps in shorten the duration of project Determines preferences for allocation of resources
Earliest event time (TE): earliest possible occurrence time of the event
Earliest start time = earliest event time of tail event Earliest finish time = earliest start time + activity duration
Latest event times (TL): Latest occurrence time of the event
Latest finish time = latest event time of head event Latest start time = latest start time + activity duration
Float
Slack: difference between latest event and earliest event.
It is the time by which occurrence of an event can be delayed Total float: time by which activity can be delayed or extended without affecting the project duration.
Float: it is the extra time available for an activity.
Latest time of succeeding event-earliest time of preceding eventactivity duration Total float- head event slack/earliest time of succeeding event-earliest time of preceding event-duration of activity Total float- tail event slack/ earliest time of succeeding event-latest time of preceding event-duration of the activity
Free float: it is the time by which an activity can be delayed without affecting start of succeeding activity
Independent float: time by which activity can be delayed without affecting the preceding or succeeding activity
NETWORK CRASHING
Process of cutting down the total project time
Objectives of Network Crashing: To complete the project in least possible time To prevent lateness penalties and overrun costs To reduce idle time of the facilities in non-critical paths To release facilities more quickly for transfer to other profitable activities Enhance reputation of firm
Project direct costs: these are the costs that can be
identified with an activity
Dependent upon the amount of resources involved in the execution of activity Increases with decrease in the duration of the project
Project indirect costs: costs related to entire duration
of the project.
Increase/ decrease with increase/ decrease with project completion time
Project total cost is different for different project
completion times
Normal Time (tn): expected duration of activity Crash time (tc): irreducible minimum time required to
complete the activity Normal cost (Cn): lowest possible direct cost required to complete an activity within its normal time Crash cost (Cc): lowest possible direct cost required to complete an activity within its crash time Activity cost slope: additional cost incurred to reduce the duration of an activity by one unit of time C/ t = (Crash cost Normal Cost)/ (Normal time Crash time)
Steps involved in Project Crashing
Calculate cost slope of each of activities of the Project Identify Critical Path and find expected duration of the
Project and associated project cost Select the activity on critical path with least slope Reduce the activity time of selected activity until either
Crash time is reached Or The previous non-critical path becomes non-critical
Repeat steps 2-4 until there is one critical path on which
none of the activities can be further crashed Prepare a project-time-cost matrix to select optimal duration of the project