2.1.2 Production control
Typically, production control is an engineering activity and it may be construed that logistics is not connected with this. This view is flawed because production is linked on both sides - to purchasing on the reliable inflow of goods as and when required for production and the efficient distribution of the produced goods to the customer. It is obvious, then, that production is controlled by logistics as well as the engineering function. In effect, it is a coordinated effort of supply, production and distribution (see Figure 3.2).
Figure 2 Production control is not just an engineering activity. Logistics plays a key part.
To start with, the manufacturer must forecast what he needs to make to be able to sell all of it. In other words, establish customer demand. Once demand is established, steps can be taken to design production of the quantity required.
- Identify the methods of production.
- Identify source of material for production.
- Identify intervals for production runs.
- Ensure availability of equipment, material and expertise.
The defining of these steps is the setting of control parameters for production. The sourcing and availability of material that will be used is linked to the maintaining of the stockpile and traffic control into the plant. This requires traffic planning and the streams of traffic entering the plant and going out should be adequately separated. The transport service may be provided by the supplier as a component of the cost of purchase of the commodity, or be paid for by the purchasing sector of the manufacture. The mode of transport is an important economic decision.
When the goods are received, there is a receiving function. This incorporates inspection for quality and quantity of the required substance and tallying against the order placed for it. The adage here is that input affects the output. If the quality of the output is important, so should be the quality of the input. There may also be legal implications if the finished product does not comply with production specifications.
The final function of materials management is the disposal of unused, returned or scrap material. Some of this might be sold but there may well be material that cannot be passed on to anybody because of a lack of demand or its nature. This would then have to be suitably disposed of. Such disposal can have cost implications that must be addressed in the same considered manner as procurement.
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