Nature of Production
The manufacturing firms are classified are intermittent, continuous or composite production firms, depending on the length of processing time without set up changes.
Production control procedure is comparatively simpler in the continuous flow process operation than in intermittent, multi-operation production.
In case of continuous flow process operation, for example, found in petrochemical, soap and synthetic fibre industries, routing is standardized, quality control is highly developed and planning for raw materials , finished goods inventory levels and markets is extremely important. The production control function in such industries, is generally embodied in the process equipment itself. In case of intermittent, multi operation production, found in case of manufacture of hand tools, toys, automobile spares etc, a great variety of material is used in many ways and for many purposes. The products consist of a large number of parts and sub-assemblies. The production control procedures become complex and sophisticated in order to ensure proper sequence of operation and performing these operations at the right time and the right place.
A large number of manufacturing plants include both intermittent and continuous processes and are classified as composite or combination operations .Such a plant may have sub assembly departments making parts in a continuous operation, while the final assembly department works on an intermittent basis.(as in the furniture and custom packaging industries)
Complexity of Operations
Generally, the complexity of production planning and control function increases with the increases in the variety of operations .Factors affecting the complexity of production control procedures are :
1.Number of ultimate parts in the end product.
2.Number of different operations on each part.
3.Extent to which processes are dependent on the completion of previous operations.
4.Variations in production rates of machines used in the process.
5.Number of discrete parts and sub-assemblies.
6.Degree to which customer’s orders with specific delivery dates occur.
7.Receipt of many small lot orders.
Magnitude of Operations
The size of operation (i.e time taken to complete an operation) and the distance traveled by the parts from operation to operation are important in establishing proper production control procedures. Generally, the need is greater for centralized production control organizations and for formal procedures as the size of the operation increases and the dependent operations are more physically separated.