Production Planning and Process Planning

PRODUCTION PLANNING
AND PROCESS
PLANNING
Unit-3

Stages in Production planning
• Marketing and Marketing analysis.
Depending upon the nature of product,
the aspect of marketing differs. For simple
product, marketing function may not require
direct engineering involvement.
However marketing data help in the preparation
of technical materials or specification which
support the product in its promotion.

• Feasibility Study.
the purpose of feasibility study is to extend
the market analysis with the intent of arriving at
a preferred system configuration that the firm is
willing to offer the product or product – mix in
response to an identified need.

• Various elements of Feasibility-
1. A detailed analysis
2. Identification of alternative configuration.
3. Screening and evaluation of the available
alternatives.
4. Selections of a preferred approach.

• Advanced product planning
The advanced product planning activities
included:
1. Product selection and justification.
2. Product Specification and plans.
3. Product acquisition plan.
4. Product evaluation plan.
5. Product use and logistic support plan.
6. System proposal.

PRODUCT PLANNING
• Product Planning is the ongoing process of
identifying and articulating market
requirements that define a product’s feature
set.
• Product planning serves as the basis for
decisions about price, distribution and
promotion.

EXTENDING ORIGINAL PRODUCT
INFORMATION

Value Analysis
• Value analysis aims at a systematic
identification and elimination of unnecessary
cost resulting in the increased use of
alternatives, less expensive materials, cheaper
design, less costly method of manufacturing,
etc.,
• Value analysis is also knowns as value
engineering (VE), Value assurance (VA) and
Value management.

Value analysis
• Value analysis is one of the major techniques
of cost reduction and cost prevention.
• Value analysis is a discipline approach that
ensure the necessary functions at minimum
cost without comprising on quality, reliability,
Performance and appearance.

Class of economic value are
• Use value- It is measure of properties,
qualities and features which makes the
product accomplish a use.
• Esteem value- It is measure of properties,
features, attractiveness, fancy packaging etc.,
• Cost value- it is the measure of sum of all cost
incurred in producing the product.

Class of economic Value
• Exchange value- It is the measure the
properties, qualities, and features of the
product which makes the product possible of
being traded for another product of for
money.
• Value definition- (Function / Cost)

The value of the product can be increased-
• By reducing the cost.
• By improving function.
• By (i) and (ii) together, or
• By increasing function by increasing the costs
disproportionately low.

Function
• Function makes an item useful. It is the value
of product.
1. Types of values-
• Primary function- Primary function are the
basic function which the product is specially
designed to perform.
• Secondary Function- Secondary Function are
those which if deleted would not prevent the
device from performing its primary function.

Function
• Secondary function are usually related to
convenience. The product can still work and
fulfill its intended objective even if these
functions are deleted, but they may be
necessary to sell the product.
• Tertiary function- Tertiary function are
usually related to esteem appearance.

Value Analysis Vs Value
Engineering
• Value analysis is the application of a set of
techniques to an existing product with view
to improve its value . Thus value analysis is a
remedial value.
• Value engineering is the application of exactly
the same set of techniques to a new product
at the design stage itself. Therefore value
engineering is a preventive process.

VALUE ANALYSIS
• Value, as defined, is the ratio of function
to cost. Value can therefore be increased by
either improving the function or reducing
the cost

LACK OF PRODUCT PLANNING
• Unsatisfied customer
• Durability deteriaration
• Lack of quality
• Loss of brand name., Etc

Uses of value analysis
• It reduces the cost of product and determines
the appropriate cost for the reliable
performance of the product.
• It helps employees to understand their jobs in
a better fashion.
• It creates new ideas and concepts for R&D
Department.
• It motivates the employee to come forward
with new innovative ideas.

Steps in Value Analysis
• Step-1 Identify the product-
First, the product should be identified for
study.
• Step-2 Collect relevant information-
The next step is concerned with collecting
all relevant information regarding the identified
product the point of view of (i) marketing and
application (ii) Engineering (iii) Manufacturing
(iv) Economics.

Steps in value analysis
3. Define the function-
As we know, the function analysis is the
heart of value analysis. Therefore the primary,
secondary and tertiary function of the identified
product/ part should be identified and defined.

• Steps-4 Create different alternative
knowing the function of each parts and its
manufacturing details, the next step is to
generate the ideas and create alternative ways
of alternative ways to achieve the defined
functions.
Brain Storming- Technique can be used to
generate ideas. Here it is important that all
feasible and non- feasible suggestion
(alternative) are only listed and are no
discussed.

• Critically evaluate the alternatives-
The ideas generated in the previous steps
are compared, evaluated, and critically assessed
for their virtues, validity and feasibility as
regards their financial and techniques
requirements.

• Develop the best alternative-
Using the detailed development plans that are
made in the previous steps, the best alternative
plan should be selected.
• Implement the best alternative-
Having the obtained the best alternative, then it
should be converted into a prototype
manufacturing model.

Ten Commandants of Value
Analysis
• Do not use a component or part that does not
contribute to the value of the product.
• Do not use a component or part whose cost is
not proportionate to its usefulness.
• Do not provide any features to the component
or the finished products that are not
absolutely necessary.
• Accept the change if the part of required
quality can be made out of superior or inferior
quality materials where the overall cost is less.

Ten Commandants of Value
Analysis
• If a part of required quality can be made out
of superior or inferior quality materials where
the overall cost is less.
• If a part of required quality can be made by a
method or process costing less, use the
alternative.
• Replace a non-standard part with a standard
part wherever possible. It will cost less.

Principle of value analysis
• Major Principle of underlying successful value
analysis are given below.
1. Principle of functional Utility.
2. Principle of Balanced combination.
3. Principle of direct motivation.
4. Principle of Effective Communication.
5. Principle of Responsibility.
6. Principle of adequate information.

Principle of value analysis
• Principle of objective.
• Principle of allocation.
• Principle of selectivity.
• Principle of simplification.

Process planning
• Process Planning consist of preparing set of
instruction that describe how to manufacture
the product and its parts.
• Process planning is also known as operational
planning, is the systematic determination of
the engineering processes and systems to
manufacture a product competitively and
economically.

Process planning defined
• Process planning can be defined as “ an act of
preparing a detailed processing
documentation for the manufacture of a piece
part or assembly.
• It consist of devised, selecting and specifying
processes, machine tools and other
equipment to transform the raw materials into
finished product as per the specifications
called for the drawings.

Process Planning Vs Product
planning
• Process Planning is concerned with the
engineering technological issue of how to
make the product and its part. It answer the
questions : “ what is the type of equipment
and tooling are required to fabricate the parts
and assembly the part and assemble the
product?

Product Planning
• Production Planning- is concerned with the
logistics issues of making the product. That is
production planning is concerned with the
ordering the materials and obtaining the
resources required to make the product in
sufficient quantities to satisfy demand for it.

Details of process plan
• Information required for process planning: In
order to prepare a process plan, one require
the following Information.
• Assembly and component drawing and bill of
materials : this details give the information
regarding the general description of part to
be manufactured, raw materials
specification, dimensions and tolerance
required, the surface finished and treatment
required

Detailed of a process plan
• Machine and equipment details:
1. The various possible operations that can be
performed .
2. The maximum and minimum dimension that
can be machined on them machines .
3. The accuracy of the dimensions that can be
obtained.
4. Availability of machines, equipment and
tools.

Responsibilities of process
planning Engineering
• The specialists managing the process planning
task are called process engineers or process
planning planners.
1. Interpreting part print analysis, and symbols.
2. Gathering the fundamentals details of
product design such as Type of finish,
production volume, scrap losses.

• Selecting the machining process.
• Selecting proper machining with allied tooling
based on: Quality parts, type of tooling, cost
of tooling.
• Sequence of the operations.
• Deciding on the inspecting equipment in order
to meet the desired quality.
• Determining appropriate production
tolerance.

• Calculating the overall times using work
measurement techniques .

Factors affecting process planning
• Factors affecting the process planning are:
1. Volume of Production.
2. The skill and expertise of manpower.
3. Delivery dates for parts or products .
4. Materials specifications.
5. Accuracy and process capabilities of
machines .
6. Accuracy requirements of parts or products.

Process planning
• Analyze finished part requirements.
• Determine the operation sequences.
• Select the machine.
• Materials selection parameters
Based on Function, Appearance, reliability,
Service life, environment, Compability.
• Calculating the process time.

Process planning
• Document process planning.
• Analyze the Finished part- the component
drawing should be completed analyzed.
• Determine Operating Sequence- The second
step is the process planning is to determine
the sequence of operation required to
transform the features dimensions and
tolerance

Process planning
• Select “ Machine”
Once the appropriate type of manufacturing
process has been determined, the next step in
process planning is to selecting appropriate
machine, equipment and tools.
• Materials Selection parameters –
The selection of a sound, economic materials is
an another important aspect of process
planning.

Process planning
• Calculate Processing time
After appropriate set of machines required is
selected, the next step in process planning is to
calculate the specific operation setup times and
cycle times on each machine.
• Document process planning
The resulting process plan is generally
documented as a job routing or operation sheet.

Process planning
• The operation sheet is also called route sheet,
“ instruction Sheet.

Route Sheet
• Route sheet usually provides the details as
follows-
• Part Identification.
• Description of the processing steps in each
operations.
• Operation sequence and machine.
• Standard setup and cycle times.
• Tooling requirement for each operations.

Route Sheet
• Production control information showing the
planning lead time at each operations.
Reasons for process documentation:
1. To have a record on how a part is processed
in order to plan future part with similar
design and requirement in a consistent
manner.
2. To act as a vehicle for communication.

Communicate process knowledge
• The final step in process planning is to
communicate the manufacturing knowledge
to the shop floor.
• This communication is essential to ensure that
the part will be processed according to the
most economically possible way determined
through process planning.

Communicate process knowledge
• Also the process documentation and
corresponding communication the
manufacturing knowledge to the shop floor.
• This communication is essential to ensure that
the part will be processed according to the
most economically possible way determined
through process planning.

Approaches of Process planning
• The two general approaches of process
planning are:
• Manual Process planning.
• Computer Aided process planning (CAPP)
1. Retrieval CAPP System, and
2. Generative CAPP System.

Manual Process planning
• The task involves examining and interrupting
engineering drawing, making decision on
making processes selection, equipment
selection, equipment selection, operations
sequence and shop practices.
Advantages of Manual process planning-
• Manual process planning is very much suitable
for small scale companies with few process
plans to generate

Manual Process Planning
Advantages-
• This method is highly flexible.
• This method is low investment cost.
Disadvantages-
• Manual process Planning is a very complex
and time consuming job requiring a large
amount of data.
• This method requires the skilled process
planner.

Computer Aided Process planning
(CAPP)
• In order to overcome the drawbacks of
manual process planning, the computer- aided
process planning. (CAPP) is used.
• With the use of computer in the process
planning, one can reduce the routine clerical
work of manufacturing engineering.

Computer Aided process Planning
(CAPP)
• Benefits of CAPP-
Process Rationalization and Standardization:
CAPP Leads to more logical and consistent
process plan than manual process planning.
Productivity Improvement:
As a result of Standard process plan the
productivity is improved.

Computer Aided Process Planning
(CAPP)
• Product cost reduction-
Standard plans tends to result in lower
manufacturing cost and higher product quality.
• Elimination of human error-
• Reduction in time- As a Result of
computerized the work, a job that used to
take several days, is now done in a few
minutes.

Computer Aided Process Planning
(CAPP)
• Improved Legibility: Computer- Prepared
route Sheets are neater and easier to read
than manually prepared route sheet.
• Faster response to engineering changes-
Since the logic is stored in the memory of the
computer, CAPP becomes more responsive to
any changes in the production parameters
than the manual method of process planning.

Quality Determination in Batch
Production
• Batch Production is required when a variety of
products are to be made and the volumes are
not large enough to demand a separate line
for each product.
• Batch Production is necessary-
a) When the demand for product is limited
b) When the rate of production is higher than
the rate of consumption.

Characteristics of Batch Production
• Planning for Batch Production
During the Planning of Batch Production
there are two decision have taken by operation
manager. They are
1. Determination of Batch Size ( i.e., the size of
the production lot), and
2. Determination of Batch scheduling.

Stock Control
• Stock control without Buffer-
Simple Stock control model of Batch
production in which the variations in the level of
the stock (Q) are plotted against time.

Stock Control and Buffer stock
• In Simple stock buffer control-
1. There is not consumption during production
period.
2. Buffer stock also known as safety stock, is not
considered.

Stock control and buffer stock

Determination of Batch Size
• There are two types of cost associated with lot
manufacture are:
• Setup Cost- Batch Production involves a setup
cost, Each time a batch is produced.
• Setup cost is roughly equivalent to the
ordering cost per order.

Determination of Batch size
• Inventory Size- these cost are incurred on the
finished product from the time it is
manufactured until it is finally sold.
• Inventory carrying cost includes:
1. Cost of working capital tied up in average
inventory.
2. Cost of handling and storage the produced
parts.

Inventory carrying cost includes
• Insurance charges and taxes.
• Cost of spoilage and obsolescence, etc

Trade off Between Cost
• A Key Trade off in the determination of the lot
size for an item is between setup cost and
inventory carrying costs.
• In batch production, if the stock level is kept
too low, then setup cost per unit and the
setup time would be high.
• To overcome this problem, larger lot size may
have to be employed.

Factors affecting the selection of
Batch Size
• While determining the batch size the following
factors should be taken into consideration.
1. Setup Cost of Machine and other cost of
preparation for the run.
2. Consumption rate.
3. Production rate.
4. Average Storage costs.
5. Sales price per unit.

Criteria for selection of Batch Size
• The four Main criteria for selection of Batch
size are:
1. Minimum cost per piece.
2. Maximum profit for the batch.
3. Maximum ratio of profit to cost of production
(also known as Maximum returns.
4. Maximum rate return per unit time.

Machine Capacity
• Machine loading is the process of assigning
specific jobs to machine, men or WorkCentre's
based relative priorities and capacities
utilization.
• Machine loading should be carried out in
accordance with routing so that smooth
workflow can be ensured.

Information required for machine
Loading
• The various information required for machine
loading and scheduling which is derived from
the operation/ route sheet include:
• Number and identification of work-order.
• Symbol and/ or identification of part /
product.
• Number of parts in each lot.
• List of operation to be performed .

Information required for machine
Loading
• Sequence in which these operation are
performed.
• Necessary tooling, jigs and fixtures.
• Estimated or processing times of each
operation for the whole order or batch.
• Information about the dates on which the part
should be finshed.

Master Production Program
• The various loading required for machine
loading and sequence are usually presented in
a graphically form known as a master
production program.

Machine loading chart
• Machine load chart also known as machine
loading card is a display of the available
capacity of machine or workstation along
with information whether it is overloaded or
under loaded.

Machine loading chart
• The machine loading chart contains
information about the basic capabilities and
specification of the machine, data about its
performance in the past and details about
commitment already assigned to the machine.
• Machine output Vs cycle time
It is understood that machine the cycle
time.
– Qth= (60/T) Unit/hrs.

Actual Machine Output (Q) Vs
Theoretical Machine Output (Qth)

Methods to reduce the cycle time
• Some commonly used methods to reduce the
cycle time to a minimum are given below.
Method 1: Reduce/ Eliminate Idle time
Idle time refers that one partner is waiting,
for the other to complete his task. The idle time
in the bottleneck activity may be reduced /
eliminated by:
• Changing the sequencing of operation.
• Eliminating delays at the end of the cycles.

Method 2: Reduce the
independent activity time
• Independent activity is performed by one of
the partners without need for service of
another planet. The independent activity time
can be reduced by:
• Increasing the running speed, feeds etc.,
• Selecting a better machine for the job.
• Transferring a part of the operating to another
machine or another operator.

Method 3: Reduce the concurrent
activity time
• Concurrent activity is nothing but the activity
undertaken by several partners. The
concurrent activity time can be reduced by:
• Using better methods and jigs for feeding the
work to the machine for loading and setting.
• Setting the work and carrying out most of the
preparatory task while the machine is running.
• Ejecting automatically the finished work from
the machine.

Balancing (Machine Balancing)
• Balancing refers to the procedures of the
adjusting the times at work conforms as much
as possible to the required cycle time.
• A balanced process is one where the actual
cycle times at every stage are equal. Strictly
speaking, the goal of achieving a completely
balanced process is appropriate only in
processes that are paced, that is where
materials moves on a conveyer or chain at
constant speed past work stations.

Waiting Problem or Starving
Problem
• In the Unpaced production line, we may be
faced with accumulation and/ or waiting
problems in between the stages. This
mismatch is the problem of machine
balancing.
• In other words the problems of machine
balancing is that of equalizing the idle time at
the different stages on the line and matching
or balancing, the output.

Variation of Number of Machine
and line efficiency with respect to
cycle time

Variation of Number of Machine
and line Efficiency with respect to
cycle time
• The number of Machines increases very
rapidly at lower end of the cycle time.
• The line efficiency, also known as time
efficiency, increases as the cycle time
decreases, so that the product should become
more and more economical to produce.

Summary
• The cycle time or the ‘pace’ of the production
is determined by the bottleneck operation
(i.e., the slowest operation) in the production
sequence.
• The total Machine idle time increases with the
effective cycle time. This idle time can
theoretically be removed when the cycle time
is a common factor of the individual operation
times.

Summary
• Usually, the bottleneck machine would be
more expensive and hence the idle time of
them should be kept as minimum as possible
• The effective cycle time should be selected in
relation to the required output. However
Some adjustment can be made by use of
overtime, double shifts, etc.,

Analysis of process capacities in a
multiproduct system
• So far we have discussed with the balancing of
the machine for the production of single
product.
• the balancing for production of multiproducts
using the various Stages in the production
sequence. The Problem of Matching the
capabilities of the various stages in the
production sequence for the multiproduct
system is discussed.

Multiproduct Analysis
• The problem of balancing of one product is
one-dimensional model. In this the condition
for full capacity for full capacity of the
processes are represented by the series of
points on a straight line.
• The problem of balancing the two product is
done by two dimensional model. In this, the
condition for full capacity is represented by
the Straight line.

Multiproduct Analysis
• A three-Product balancing problem can be
analysed by a three-dimensional Model. In
this Case the condition for full capacity being
represented by the planes.
• Illustrate of three product problem-
• Consider a three product system, for which
there are two processes and their maximum
output are given below.

Production Planning and Process Planning

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