Once the entrepreneur has taken the decisions regarding the product design and production processes and system, his next task is to take steps for production planning and control, as this function is essentially required for efficient and economical production. One of the major problems of small scale enterprises is that of low productivity small scale industries can utilise natural resources, which are otherwise lying. Small scale sector can play an important role, similar to the one played by small scale industries in other developed countries.
Benefits to small Entrepreneur
Production planning and control can facilitate the small entrepreneur in the following ways
(1) Optimum Utilisation of Capacity:
With the help of Production Planning and Control [PPC] the entrepreneur can schedule his tasks and production runs and thereby ensure that his productive capacity does not remain idle and there is no undue queuing up of tasks via proper allocation of tasks to the production facilities. No order goes unattended and no machine remains idle.
(2) Inventory control:
Proper PPC will help the entrepreneur to resort to just- in- time systems and thereby reduce the overall inventory. It will enable him to ensure that the right supplies are available at the right time.
(3) Economy in production time:
PPC will help the entrepreneur to reduce the cycle time and increase the turnover via proper scheduling.
(4) Ensure quality:
A good PPC will provide for adherence to the quality standards so that quality of output is ensured. To sum up we may say that PPC is of immense value to the entrepreneur in capacity utilization and inventory control. More importantly it improves his response time and quality. As such effective PPC contributes to time, quality and cost parameters of entrepreneurial success.
Steps in Production Planning And Control
Production
Planning and Control (PPC) is a process that comprises the performance
of some critical; functions on either side, viz., planning as well as control.
Production
planning: Production planning may be defined as the technique of foreseeing
every step in a long series of separate operations, each step to be taken at the
right time and in the right place and each operation to be performed in maximum
efficiency. It helps entrepreneur to work out the quantity of material
manpower,
machine and money requires for producing predetermined level of output in
given period of time.
Routing:
Under this, the operations, their path and sequence are established. To perform
these operations the proper class of machines and personnel required are also
worked out. The main aim of routing is to determine the best and cheapest Production
Planning and control sequence
of operations and to ensure that this sequence is strictly followed. In small
enterprises, this job is usually done by entrepreneur himself in a rather adhoc
manner. Routing procedure involves following different activities.
(1) An
analysis of the article to determine what to make and what to buy.
(2) To
determine the quality and type of material
(3)
Determining the manufacturing operations and their sequence.
(4) A
determination of lot sizes
(5)
Determination of scrap factors
(6) An
analysis of cost of the article
(7)
Organization of production control forms.
Scheduling:
It means working out of time that should be required to perform each operation
and also the time necessary to perform the entire series as routed, making
allowances for all factors concerned. It mainly concerns with time element
and priorities of a job. The pattern of scheduling differs from one job to another
which is explained as below:
Production
schedule: The main aim is to schedule that amount of work which can easily
be handled by plant and equipment without interference. Its not independent
decision as it takes into account following factors.
(1)
Physical plant facilities of the type required to process the material being scheduled.
(2)
Personnel who possess the desired skills and experience to operate the equipment
and perform the type of work involved.
(3)
Necessary materials and purchased parts.
Master
Schedule: Scheduling usually starts with preparation of master schedule which is
weekly or monthly break-down of the production requirement for each product
for a definite time period, by having this as a running record of total production
requirements the entrepreneur is in better position to shift the production
from one product to another as per the changed production requirements.
This forms a base for all subsequent scheduling acclivities. A master
schedule is followed by operator schedule which fixes total time required to do a
piece of work with a given machine or which shows the time required to do each
detailed operation of a given job with a given machine or process.
Manufacturing
schedule: It is prepared on the basis of type of manufacturing process
involved. It is very useful where single or few products are manufactured repeatedly
at regular intervals. Thus it would show the required quality of each product
and sequence in which the same to be operated
Scheduling
of Job order manufacturing: Scheduling acquires greater importance
in job order manufacturing. This will enable the speedy execution of job at
each center point.
As far as
small scale industry is concerned scheduling is of utmost importance as it brings
out efficiency in the operations and s reduces cost price. The small entrepreneur
should maintain four types of schedules to have a close scrutiny of all stages
namely an enquiry schedule, a production schedule, a shop schedule and an arrears
schedule out of above four, a shop schedule is the most important most suited to
the needs of small scale industry as it enables a foreman to see at a glance.
1. The
total load on any section
2. The
operational sequence
3. The
stage, which any job has reached.
Loading:
The next step is the execution of the schedule plan as per the route chalked
out it includes the assignment of the work to the operators at their machines
or work places. So loading determines who will do the work as routing determines
where and scheduling determines when it shall be done. Gantt Charts are most
commonly used in small industries in order to determine the existing load and
also to foresee how fast a job can be done. The usefulness of their technique
lies in the fact that they compare what has been done and what ought to have been
done.
Most of a
small scale enterprise fail due to non-adherence to delivery schedules therefore
they can be successful if they have ability to meet delivery order in time which no
doubt depends upon production of quality goods in right time. It makes all the
more important for entrepreneur to judge ahead of time what should be done,
where and when thus to leave nothing to chance once the work has begun.
Production
control: Production control is the process of planning production in advance of
operations, establishing the extract route of each individual item part or
assembly, setting, starting and finishing for each important item, assembly or the
finishing production and releasing the necessary orders as well as initiating
the necessary
follow-up to have the smooth function of the enterprise. The production control is
of complicated nature in small industries. The production planning and control
department can function at its best in small scale unit only when the work manager,
the purchase manager, the personnel manager and the financial controller
assist in planning production activities. The production controller directly
reports to the works manager but in small scale unit, all the three functions
namely material control, planning and control are often performed by the
entrepreneur himself production control starts with dispatching and ends up
with
corrective actions.
Dispatching:
Dispatching involves issue of production orders for starting the operations.
Necessary authority and conformation is given for:
1.
Movement of materials to different workstations.
2.
Movement of tools and fixtures necessary for each operation.
3.
Beginning of work on each operation.
4.
Recording of time and cost involved in each operation.
5.
Movement of work from one operation to another in accordance with the
route
sheet.
6.
Inspecting or supervision of work
Dispatching
is an important step as it translates production plans into production.
Follow up:
Every production programme involves determination of the progress of work,
removing bottlenecks in the flow of work and ensuring that the productive
operations are taking place in accordance with the plans. It spots delays or
deviations from the production plans. It helps to reveal detects in routing and
scheduling, misunderstanding of orders and instruction, under loading or overloading
of work etc. All problems or deviations are investigated and remedial measurer
are undertaken to ensure the completion of work by the planned date.
Inspection:
This is mainly to ensure the quality of goods. It can be required as effective
agency of production control.
Corrective
measures: Corrective action may involve any of those activities of adjusting
the route, rescheduling of work changing the workloads, repairs and maintenance
of machinery or equipment, control over inventories of the cause of deviation
is the poor performance of the employees. Certain personnel decisions
like
training, transfer, demotion etc. may have to be taken. Alternate methods may
