Production Planning and Control

(TKI 2409):
1 An Introduction
Andi Sudiarso, et al.
Mechanical & Industrial Engineering

Faculty of Engineering
Gadjah Mada University

Objectives

To give knowledge in relation to production from

planning to controlling.
(Curriculum JTMI 2011)

Outcomes

Students are able to make/create a plan and to control

production.
(Curriculum JTMI 2011)

Materials

Introduction to operations management

Forecasting
Demand control
Strategic capacity planning
Principles of production planning
Functions of production control
Types of production systems
Aggregate Production Planning (APP)
Master Production Schedule (MPS)
Materials Requirement Planning (MRP)
Scheduling and Sequencing
(Curriculum JTMI 2011)

References

Fogarty, D.W., Blackstone, J.H., Hoffmann, T.R., Production

and Inventory Management, South Western Publishing Co.
Chapman, S.N., 2006, The Fundamentals of Production
Planning and Control, Prentice Hall, New York
Cheaitou, A., 2010, Production Planning and Inventory
Control, Lambert Academic Publishing, Saarbrucken
Heizer, J., Render, B., Production and Operations
Management, Prentice-Hall, Inc.

Markings

Quizzes and assignments (10%)

Midterm exam (40%)

Total: 50%

Scopes of PPC (1)

FORECASTING
Capacity
planning

Inventory
Management

MRP

CONTROLLING

PLANNING
APP

Production
Scheduling
and Sequencing

Scopes of PPC (2)

Forecast of demand
Aggregate production
plan
Master production
schedule
Materials requirement
planning
Scheduling

Inventory Control

Planning and Control (1)

Supply of
products and
services

The operations
resources

PLANNING
AND CONTROL
Activities
that
reconcile
supply and
demand

Demand for
products and
services

The operations
customers

Planning and Control (2)

Planning
Formalization of what is intended to happen in the
future no guarantee that will actually happen
Long term, more aggregates

Control
Process in coping with changes in variables related to
planning and operation
Short term, more details

Planning

Days/weeks/
months
Hours/
day

Time horizon

Months/
years

Planning and Control (3)

Long-term planning and control:

Medium-term planning and control:

Control

Short-term planning and control:

Planning and Control (4)

When to do
things

Loading

Monitoring

Scheduling

In what
order to do
things

How much
to do?

and control

Sequencing

Are activities
going to plan?

Loading
Loading is the amount of work that is allocated
to a work center.
Maximum time available
Normal time available

Not worked

Planned time available

Planned running time

changeover

Available time
Actual running time

downtime

Scheduling (1)
Detailed time table showing at what time or
date jobs should be started and when they
must be ended.
Forward Scheduling
B
Today

Backward Scheduling

B
Due Date

Today

E
Due Date

Scheduling (2)
Forward scheduling: begins the schedule as
soon as the requirements are known
jobs performed to customer order
schedule can be accomplished even if due date is missed
often causes buildup of WIP

Backward scheduling: begins with the due

date of the final operation; schedules jobs in
reverse order

used in many manufacturing environments, catering,

scheduling surgery

Scheduling (3)
Forward scheduling

High labor utilization

Flexible

Backward scheduling

Lower material costs

Less exposed to risk in
case of schedule change
by customer
Tends to focus on
customer due dates

Sequencing
When work arrives, decision must be taken on the order which the
work will be taken (sequencing). Determining priorities based on
these prioritization:
1. Physical constraint
2. Customer priority
3. Due date (DD)
4. Last in first out (LIFO)
5. First in first out (FIFO)
6. Longest operation time first (LOT)
7. Shortest operation time first (SOT)
8. Judging sequencing rules

Applies to scheduling
dispatching rules

Monitoring and Control

Each part of the operation has to be monitored to ensure
that planned activities are indeed happening. Any
deviation from the plan can be rectified, and probably
replanning.

INPUT

OPERATION

action

PLANS

Compare/
Re-plan

OUTPUT

monitor

Push and Pull Control

Push system: material is moved on

to the next stage as soon as it has
been processed

Pull system: material is moved only

when the next stage wants it

Operations Management

e-Lisa (1)

Register at elisa1.ugm.ac.id

e-Lisa (2)

Register at komunitas PPC2TI-UG_ASA