Industrial Engineering and

Management
 Module 3
Production Management
Production and Productivity
• Production is defined as the process of producing goods from raw
materials. The raw materials and immaterial inputs are used for
manufacturing a variety of products. The products manufactured
contribute to the utility of the individuals.
• Productivity is defined as the process of producing goods and services
efficiently. Productivity is often measured through the ratio of
aggregate output to the single output. In layman's language,
productivity is defined as the ratio between input and output.
Productivity measures how the factors of production (land, labor,
entrepreneurship, and capital) are utilized.
Production planning and control
• What Is Production Planning?
Production planning is the process of determining the most effective
and efficient way to manufacture goods or deliver services as per
customer expectations.
It involves analyzing various factors such as demand forecasts, available
resources, production capacity, and delivery schedules to create a
comprehensive plan that guides the entire production process.
By implementing effective production planning strategies, organizations
can achieve improved operational efficiency, reduce lead times,
enhance customer satisfaction, and optimize resource allocation.
It plays a crucial role in aligning production activities with business
objectives, ensuring smooth operations, and facilitating effective
decision-making throughout the production process.
• What Is Production Control?
Production control refers to the process of monitoring and managing
the execution of production plans to ensure uninterrupted operations
on the shop floor.
It involves overseeing the actual production activities, tracking
progress, and making necessary adjustments to meet production goals
and objectives.
The primary objective of production control is to maintain the planned
production schedule, optimize material and equipment utilization, and
ensure that production targets are achieved within the specified
timeframes.
By effectively managing production control, organizations can achieve
improved production flows, minimize wastage and disruptions, and
improve on-time delivery performance.
Objectives of Production Planning and Control
• Optimum utilization of resources, such as machinery, raw material, and
labor to fulfill production demands.
• To maintain optimum stock levels.
• To make sure capacity utilization matches anticipated demand.
• Ensure that the appropriate amount and quality of raw materials, tools,
manpower, and equipment are available during production.
• To reduce setup and idle time on machines.
• Coordinate with other production-related departments, such as sales
and order management services to achieve uninterrupted production flow.
• To facilitate cost control and cost reduction.
• To ensure a profitable and reliable production process.
• To reduce labor turnover and improve client satisfaction.
1. Planning
• Planning determines what will be produced, by whom, and how. It formulates the plan
for labor, equipment, work centers, and material requirements needed for production.
• Relevant information from various sources helps to develop a production plan. For
instance, data from sales on order quantities and promised delivery dates. Product
specifications from the engineering department may also be needed. The planning step
helps to keep a streamlined approach to the production process.

2. Routing
• Routing determines the path raw materials flow within the factory. Using the sequence,
raw materials are transformed into finished goods.
• Coordinating every production process and scheduling every step is important to
measure the production process duration. Routing shows the quantity and quality of
materials and resources needed. It also shows the operations used and the place of
production.
• Routing manages the “How”, “What”, “How much”, and “Where” of production. It
systematizes the process and optimizes resources for the best results.
3. Scheduling
• Scheduling emphasizes “when” the operation will be completed. It aims to make
the most of the time given for the completion of the operation.
• As per Kimball and Kimball, the definition of scheduling is “The determination of
the time that should be required to perform the entire series as routed, making
allowance for all factors concerned.”
• Organizations use different types of schedules to manage the time element.
These include Master Schedule, Operation Schedule, Daily Schedule, and more.

4. Loading
• Loading looks into the amount of work loaded against machines or workers. The
total time to perform new work is added to the work already scheduled for the
machine or workstation.
• If a machine or workstation has capacity available, more orders can make up the
underload. If there is a capacity overload, proactive measures can prevent
bottlenecks. Adding a shift, requesting overtime, bringing in operators from
another shop, or using a sub-contractor are possible options.
5. Dispatching
• Dispatching is the release of orders and their instructions. It follows the routing and
scheduling directions. This step ensures all items are in place for the employees to do
their jobs.
• Here are the points that are part of “Dispatching”:
Issue materials or fixtures that are important for production
Issue orders or drawings for initiating the work
Maintain the records from start to finish
Start the control procedure
Cascade the work from one process to another

6. Follow-up
• Also known as expediting, follow-up locates fault or defects, bottlenecks, and loopholes
in the production process. In this step, the team measures the actual performance from
start until the end and then compares it with the expected performance.
• Areas that have problems, must get addressed. Follow-up gets to the root of the issue
and helps resolve it. For instance, if schedules are not met, is it from an unusual
circumstance? Or is it something that needs to get adjusted? The production manager
may need to revise production targets, loads, or schedules to correct the issue.