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Planning And Control Of Batch Production

Planning & Control of Batch Production Online Tutoring / Homework Help
Batch production is done when a product is made in different varieties and the volume is less. This system works well for smaller facilities. The product is produced in smaller quantities but in different variants. The facility layout is designed keeping in mind the volume, flow and variety of the product. In batch production there is continuous demand for the product.


In this type of production, a process layout is required. Similar machines are grouped into various departments. All processes follow their own routes.

Advantages of batch production:
  • The number of machines required is lesser because they are utilized for multiple lines of the same product.

  • Specialized supervision is possible in such a system.

  • This system is not very capital intensive. Less investment is required in machines.

  • It provides for greater flexibility with respect to labour and equipment.

Disadvantages of batch production:
  • Material handling is costlier because the flow is longer.

  • Production planning and control is much more elaborate.

  • Work in process requires larger capital and space.

  • More skilled workers are required to produce different lines of the same product.


The lot size or batch size is decided based on the economic factor. It means that the best size of the batch is decided to keep the total cost to a minimum while keeping up with the demand. The production is such that all the variants of the product are sold simultaneously. The inventory of finished goods does not rise to its maximum point but builds up slowly as goods are produced faster than they are sold. Batch size depends on the following cost factors:
  • Set up cost: It consists of engineering cost of setting up of the equipment, paperwork cost of processing order and the cost of order placed for the raw materials.

  • Carrying Cost: These are incurred on the finished product from the time it is manufactured until it is finally sold.

Aggregate production planning:

Demand from consumers is met by keeping up the production levels. The plan for the next few months is scheduled. The work force and the machine allocation time is developed. Such an aggregation creates an overall production plan for all the variants of the product. For eg; ice cream factory. Individual product schedule are obtained by breaking up the overall production plan for flavors like chocolate, vanilla, mango etc.

Material requirement planning:

Keeping in mind the master schedule of the final products per period, the MRP calculates the timing of components, assembly and raw material purchasing. MRP is done with the objective to keep the work in process inventory at its minimum.

Line of balance for control of batch production:

An operation schedule is drawn up after deciding on a delivery schedule. A progress chart is drawn which reviews and analyses the progress of each operation. Areas which are lacking are then identified.

Example of batch production:

We can consider the manufacture of wallpaper as an example. There are many variants available in terms of patterns and textures. They are all produced in batches according to the demand.

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