Production Planning And Control System Commerce Essay Example

controlling the activities involved in transforming raw materials into finished products. The goal is to ensure cost-effectiveness throughout this process.

The Industrial Revolution began in England in the mid-1700s and brought about significant changes in the industrial sectors. James Watt invented the steam engine in 1764, which replaced human labor in mills. Adam Smith's influential book, The Wealth of Nations (1776), promoted specialization in manufacturing and emphasized its economic benefits for industries. Consequently, late eighteenth-century mills incorporated steam-powered machines and introduced innovative approaches to production organization and management.

Following the concept of division of labors, the industrial revolution rapidly expanded from England to other regions in Europe and America. The inventions of 'interchangeable parts' and 'cost accounting' by American Eli Whitney further propelled progress. The early 1800s saw significant advancements with the introduction of electricity and gasoline engines, greatly accelerating the industrial revolution. After the civil war, production capacity experienced a substantial increase, leading to capital growth and fostering a massive production boom in the newly developed United States.

Scientific Management revolutionized the market with the introduction of concepts such as 'scientific direction', 'work survey', and 'time survey', which were promoted by Frederick Taylor. Taylor questioned the effectiveness of the 'shop system' in terms of worker productivity, strength, and learning ability. The shop system, credited with introducing the concept of incentive wages, utilized specifications for materials, work methods, and routing systems to streamline operations. In the 1920s, Ford Motor Company embraced key aspects of scientific management, including 'interchangeable parts', 'low manufacturing cost', 'mass production', and 'standardized designs of the merchandise'.

The scientific approach was made famous by Henry Ford, who implemented it in his factories. These efforts aided him

in increasing production efficiency. Operational Research System- During World War II, significant resources were devoted to this field. Military operational research teams were established to handle the complexities of deployment.

P. M. Blacker is recognized as one of the main contributors in the area of applying operational research during the Second World War. The operational system emphasized the positive aspects that helped the operational director manage the complexities of production. The publication of the Hawthorne studies in the 1930s exposed that human factors greatly influence the production process. The study reported that the worker's environment, sociological and psychological conditions affect production. It was the behavioralists who discussed these factors, prompting industrialists to alter their approach to managing factory workers.

The concept of the workers responding positively to the attention given to them became known as the Hawthorne effect. This change in thinking and the introduction of this new philosophy had a significant impact on the production planning and control system of the factories. Studies demonstrated that with the increased use of machines, work became monotonous for the workers, which affected productivity levels. To address this issue, workers were given a larger role in the planning process for overall production, allowing them to become more engaged in their work. The Computer Revolution began in the 1930s.

The field of communication technology experienced a rapid and significant expansion. Accessing information became effortless for everyone due to advancements in software engineering. People became aware of the use of electronic mails through these advancements. As a result, more and more businesses started embracing E- Business.

The Material Requirement Planning (MRP) system is highly valuable in business management. Today, meeting customer needs and delivering

superior products is crucial for maintaining a company's reputation due to fierce market competition. Technological advancements, global market competition, and cost challenges have also impacted operational management. Every industry or company requires production management for multiple reasons: achieving objectives, meeting customer demands on time, building market reputation, and supporting other functional areas like finance, HR, and marketing.

To drive sales, the selling section should prioritize offering high-quality products. This will benefit the fiscal section by generating more funds through increased product sales. Consequently, it will facilitate easier acquisition of loans for business expansion.

Efficient use of resources and effective handling of human resources in the industry are crucial for proper management of production. Production management also plays a key role in analyzing market trends and customer preferences to develop and introduce new products. Maintaining quality, price, and quantity helps companies compete effectively. Additionally, production management minimizes inputs and maximizes resource utilization for cost-effective production. This facilitates business growth and increases profits. The research conducted by the production department improves consumers' quality of life by meeting their needs and demands, providing access to innovative products. Furthermore, cost-effective production management techniques boost the economy.

This leads to the proper economic growth of the state.

The system consists of various religious orders that collaborate as a unit. All processes

are interdependent and function as a whole to achieve predetermined objectives.

Massive systems are frequently comprised of multiple sub-systems. In a broader context, a production system serves as the structure that facilitates all forms of production activities within an organization. The manufacturing process entails converting inputs into outputs. An effectively designed production system guarantees the synchronization of various procedures that take place during production.

There is no universal regulation dictating a single, fixed standard for all types of production systems. It varies from one company to another. These methods include all functions needed to gather inputs, process or recycle them, and create marketable end products. Ray Wild defines a production or operation system as "a combination of resources organized to provide goods and services."

The production system consists of three main components: inputs, the conversion process, and end products. Inputs include machines, manpower, capital, raw materials, drawings, and paper plants. The conversion process involves mechanical, manual, and chemical procedures and processes. These operations are responsible for transforming all the inputs into the desired end products.

This phase of production system also includes supporting operations such as acquiring raw materials, storage, production planning, product design, etc. The outputs consist of the final products that the company will deliver to customers, such as services and finished goods. It is a process that is used to produce products without any interruption in a continuous manner. This type of production system does not have any disruption. Continuous production is often called a continuous flow process or continuous process.

The term 'continuous manufacturing' refers to the constant movement and simultaneous exposure of natural materials used in production to chemicals, heat, or cold. This process operates

24/7 with occasional maintenance shutdowns occurring quarterly, semi-annually, or annually. Instead of being based on specific customer orders, large quantities of goods are produced continuously. Consequently, this production system requires a significant machinery investment.

This type of production system can be found in various industries such as oil refineries and power stations. It can be categorized into two types: mass production flows and process production flows.

• Mass production flows involve manufacturing the same type of product to meet market demand. This requires careful planning for materials, processes, machine maintenance, and operator supervision.
• Process production flows, on the other hand, focus on producing specific products designed for a particular purpose. If the demand for these products decreases or ceases, the machinery may be used to produce similar products with minor modifications.

In contrast, intermittent production systems produce goods based on customer orders and are typically used for smaller-scale production. The production flow is not continuous, and various types of products of different sizes are manufactured in this system.

The system is highly flexible. It is found in car factories, electric goods factories. There are different types of intermittent production systems:

• Project Production Flows- In this type, a company takes on a single complex contract or order. There is a deadline for completing the project, and it must be done within an estimated cost. Examples of project production flows include constructing a high rise building, building a dam, or an airport. Resource requirements are high at the beginning of the project but decrease as it nears completion.
• Job Production Flows- Items are manufactured based on customer

specifications. The cost is determined when the project is signed. Highly skilled labor is required in job production flows. Examples include service-oriented stores and repair shops.

It depends on consumer demand estimation or specific client orders. The manufacturing process is divided into consecutive batches, with each batch completed before starting the next. Detailed production planning is necessary in batch production flows.

Factors Influencing Production Procedure:

• Supplies - The production process depends on the supply of raw materials. If there are issues with transportation or bad weather, the target cannot be achieved within the promised time. However, with a smooth supply of materials, production will proceed as normal and follow the production schedule easily.
• Power Supply - Continuous power supply is necessary for running any plant. Even temporary disruptions can have a significant impact on the production process.
• Machineries and Equipment - If any machinery or equipment used in the production process suddenly shuts down, the production rate will decrease. Continuous operation of equipment is essential to improve machine efficiency.
• Man Power - The laborers directly involved in the manufacturing process can influence production in various ways.

The negative impact of vacations and leaves taken by key employees on manufacturing is demonstrated in the text. The production process of a company is influenced by the capacity of the plant, with production increasing as the size of the company grows, assuming all other factors remain constant.

Flexibility in the production process is crucial as it allows for adjustments to be made during production.

The planning process for a product involves strategic processes aimed at developing

and creating a new product for customer sale. The design aspect of a product holds great importance and sensitivity within an organization. Multiple factors ultimately shape the reputation and image of the company in the market, which determine whether selling a product succeeds or fails.

When creating a product, various elements need consideration such as consumer preferences, cost analysis, and manufacturing processes. The main objective of any manufacturing company is to generate products, with production being the core function of the business. It serves as the driving force for all other functions.

After finalizing the product design, the industrialist must then proceed to strategize and oversee the production process. This step holds great significance for the project's economic aspect. Particularly for small-scale industries, PPC plays a vital role. The importance of managing and controlling the manufacturing process might be questioned.

Production planning and production control are essential for a successful industry operation. Production planning involves determining the stages of the production process and evaluating the efficiency of each stage to maximize profits. It also helps in estimating the resources required for production, including materials, money, and labor. On the other hand, production control is responsible for checking and minimizing any damage or mistakes that may occur during the implementation of planned determinations. Without production control, the industry can face challenges similar to a school without a headmaster. Therefore, both production planning and production control are crucial for ensuring smooth operations and achieving scheduled targets.

The routing phase determines the machines and executives needed for operations and work. Its main purpose is to arrange the production process in a cost-effective manner and ensure adherence to a specific sequential arrangement. Additionally,

the routing phase also includes discussions on the quality and cost assessment of the product to be produced.

Scheduling agencies play a crucial role in determining the estimated duration for each production activity, as well as for all the operations combined. The specific requirements vary significantly across different occupations. Time is the primary factor that is addressed during this phase of production planning. It is in this stage that the previously planned schedule is put into action. Loading, therefore, determines which individual or team will be assigned the responsibility to carry out the given work.

It assists in evaluating the workload and forecasting the completion time of future tasks. It is crucial to ensure the smooth running of production processes and meet specified deadlines. Effective operation of the production control department relies on collaboration among the financial manager, personnel manager, production manager, and procurement manager in small-scale industries. The initiation of a production process necessitates an authorization, which is obtained during this stage. The dispatching phase of production control oversees the movement of materials to different workstations, tracks costs incurred in each operation, and conducts activity audits.

This measure is significant because it transforms the production program into action. Follow-up, also known as coverage, is the phase of production control where the mistakes of the production program or agenda construction of operations are recorded. The main objective of the follow-up phase is to ensure that all individual programs and plans are being adhered to. It determines if there are any deviations from the production program or not. If there are any deviations, prompt action is taken to identify the error and complete the production within the scheduled time.

The

focus of this phase is to examine the quality of the finished goods, as it has a significant impact on the company's image, reputation, and market standing. Corrective actions involve rectifying any mistakes that may have occurred during routing, programming, loading programming, or any other production planning or control phase. Decisions related to adding more labor, transferring personnel to different work stations, and employee training are also made during this phase.

Decision:

From the above discussion, it is clear that efficient planning and control are essential for a business to achieve profitability. For small-scale industries, production planning and control are particularly crucial as they often face the challenge of producing goods at a low cost. Production planning not only helps companies determine the most effective production process but also highlights the risk factors they may encounter during manufacturing.