CHAPTER 1

SAMPLE ACTIVITIES/ASSESSMENTS

1. Briefly explain the production system and its characteristics.

- This is a part of the organization process in producing products, this system are any
methods that is being utilized by a business or industry in creating goods and service
from various resources. Basically, this helps transform input into output. This will also
ensure that the quality of the finished goods are being achieved and maintained.
-
The production system has the following characteristics:
 Production is an organized activity, so every production system has an objective – it
should is important for it to be organized and to lessen the production cost and time in
manufacturing a product.
 The system transforms the various inputs to useful outputs – every production system
have different techniques and process that they are using in creating products from
raw materials.
 It does not operate in isolation from the other organization system – since the
organization has certain objectives and goals want to achieve, the production systems
should be aligned with the other organization system and departments.
 There exists a feedback about the activities, which is essential to control and improve
system performance – feedback is very important to be heard and be monitored since
it will help for the improvement of the operation of an organization.

2. What is job shop production? What are its characteristics, advantages, and
limitations?

- it simply explains as a type of manufacturing process in which a shop is making small

batches of personalized or custom-made product orders based on the preference of the
customer. This will make the product unique, and the customer will be engaged in the
process and will feel that they are important to the business, and it will surely meet their
expectation.

Characteristics
The Job-shop production system is followed when there is:
 High variety of products and low volume.
 Use of general purpose machines and facilities.
  Highly skilled operators who can take up each job as a challenge because of
uniqueness.
 Large inventory of materials, tools, parts.
 Detailed planning is essential for sequencing the requirements of each product,
capacities for each work center and order priorities.
Advantages
Following are the advantages of job shop production:
 Because of general purpose machines and facilities variety of products can be
produced.
 Operators will become more skilled and competent, as each job gives them learning
opportunities.
 Full potential of operators can be utilized.
 Opportunity exists for creative methods and innovative ideas.
Limitations
Following are the limitations of job shop production:
 Higher cost due to frequent set up changes.
 Higher level of inventory at all levels and hence higher inventory cost.
 Production planning is complicated.
 Larger space requirements.

3. What is batch production? What are its characteristics, advantages, and limitations?
- it is a method of manufacturing where similar products are being produced together in
batches that will go through a certain stage/department, before moving forward to the
next stage.

Characteristics
Batch production system is used under the following circumstances:
 When there is shorter production runs.
 When plant and machinery are flexible.
 When plant and machinery set up is used for the production of item in a batch and
change of setup is required for processing the next batch.
 When manufacturing lead time and cost are lower as compared to job order
production
Advantages
Following are the advantages of batch production:
 Better utilization of plant and machinery.
 Promotes functional specialization.
 Cost per unit is lower as compared to job order production.
 Lower investment in plant and machinery.
 Flexibility to accommodate and process number of products.
 Job satisfaction exists for operators.
 Limitations
Following are the limitations of batch production:
 Material handling is complex because of irregular and longer flows.
 Production planning and control is complex.
 Work in process inventory is higher compared to continuous production.
 Higher set up costs due to frequent changes in set up.

4. What is batch production? What are its characteristics, advantages, and limitations?
- it is a method of manufacturing where similar products are being produced together in
batches that will go through a certain stage/department, before moving forward to the
next stage.

Characteristics
Batch production system is used under the following circumstances:
 When there is shorter production runs.
 When plant and machinery are flexible.
 When plant and machinery set up is used for the production of item in a batch and
change of setup is required for processing the next batch.
 When manufacturing lead time and cost are lower as compared to job order
production.
Advantages
Following are the advantages of batch production:
 Better utilization of plant and machinery.
 Promotes functional specialization.
 Cost per unit is lower as compared to job order production.
 Lower investment in plant and machinery.
 Flexibility to accommodate and process number of products.
 Job satisfaction exists for operators.

Limitations
Following are the limitations of batch production:
 Material handling is complex because of irregular and longer flows.
 Production planning and control is complex.
 Work in process inventory is higher compared to continuous production.
 Higher set up costs due to frequent changes in set up.

5. What is mass production? What are its characteristics, advantages, and limitations?
- It is a method of manufacturing large quantities of standardized products often in
simultaneous batches, or identical products/goods at once with the use of assembly lines
 or automation technology. This will allow companies to meet consumer demand at lower
cost of production.

Characteristics
Mass production is used under the following circumstances:
 Standardization of product and process sequence.
 Dedicatedspecialpurposemachineshavinghigherproductioncapacitiesandoutputrates.
 Large volume of products.
 Shorter cycle time of production.
 Lower in process inventory.
 Perfectly balanced production lines.
 Flow of materials, components and parts is continuous and without any back tracking.
 Production planning and control is easy.
 Material handling can be completely automatic.
Advantages
Following are the advantages of mass production:
 Higher rate of production with reduced cycle time.
 Higher capacity utilization due to line balancing.
 Less skilled operators are required.
 Low process inventory.
 Manufacturing cost per unit is low.
Limitations
Following are the limitations of mass production:
 Breakdown of one machine will stop an entire production line.
 Line layout needs major change with the changes in the product design.
 High investment in production facilities.
 The cycle time is determined by the slowest operation.

6. What is continuous production? What are its characteristics, advantages, and

limitations?
- is the manufacturing of high-volume products that don’t require customization. The
products produced using this are goods that are consumed on a continual basis. It
eliminates steps, reduces processing time, and generally manufactures products faster and
more efficiently and product quality and consistency are not an issue.
-
Characteristics
Continuous production is used under the following circumstances:
 Dedicated plant and equipment with zero flexibility.
 Material handling is fully automated.
  Process follows a predetermined sequence of operations.
 Component materials cannot be readily identified with final product.
 Planning and scheduling is a routine action.
Advantages
Following are the advantages of continuous production:
 Standardization of product and process sequence.
 Higher rate of production with reduced cycle time.
 Higher capacity utilization due to line balancing.
 Manpower is not required for material handling as it is completely automatic.
 Person with limited skills can be used on the production line.
 Unit cost is lower due to high volume of production.
Limitations
Following are the limitations of continuous production:
 Flexibility to accommodate and process number of products does not exist.
 Very high investment for setting flow lines.
 Product differentiation is limited.
 Production management is a process of planning, organizing, directing and
controlling the activities of the production function. It combines and transforms
various resources used in the production subsystem of the organization into value
added product in a controlled manner as per the policies of the organization.

7. Explain in brief the objectives of production management.

One of the objectives of production management is to produce goods and services of the
right quality based on customer needs as suited to specific requirements needed on a certain
product. It should also focus on having the right quantity or number of products that an
organization is manufacturing which should be based on the demand of the customers. Right
timing or timeliness of delivery is also important in the effectiveness of the production, so they
need to properly utilize the resources aligned to the objectives. Lastly, they are also making sure
that the right manufacturing costs are also established before a product is manufactured. This
will lessen the production cost since the errors will also be minimized.

8. Explain in brief the objectives of operations management.

Operations management aims to boost productivity within an organization, maximize

efficiency, generate profits while minimizing expenses, and guarantee the production and
delivery of high-quality goods or services that satisfy customers' expectations.
Utilizing organizational resources to produce goods or services that meet consumer
expectations by delivering the "right thing at the appropriate price, place, and time" is one of the
main objectives of operations management also they need to maximize the organization's usage
of resources in order to fulfill customer demands.
9. Distinguish between manufacturing operations and service operations.

Service-providing operations enable simultaneous production and consumption of

services, in contrast to manufacturing operations, which concentrate on making things and
storing them in a warehouse before delivering them to clients.
There are a lot of differences between manufacturing operations (MO) and service
operations (SO). MO produces tangible outputs while service operation SO produces intangible
outputs. The output from the MO can be consumed over a longer period of time while on SO it is
consumed immediately. MO covers a large area as they produce goods for local, national, and
international levels while SO covers a small area as they generally provide services for local
people. Lastly, MO which included the production of goods and services generally technology
based while SO is mainly knowledge and skill-based but sometimes technology is also required
to produce services.

10. Explain the key issues to be considered for managing global operations.

Managing global operations would focus on the following key issues:

 To acquire and properly utilize the following concepts and those related to global
operations, supply chain, logistics, etc.- it can enable you to assess new business opportunities,
make informed decisions, and adopt a holistic view of global competition from a strategic
standpoint.
 To associate global historical events with key drivers in global operations from different
Perspectives – understanding what is happening all over the world can help you make better
decisions for your business operations and will also help you to know the upcoming production
cost that you will need to allocate that will be based on the demand of the customers
 To develop criteria for conceptualization and evaluation of different global operations. –
it
allows you to sell more products, attract more customers and enlarge your market share in
different countries.
 To associate success and failure cases of global operations to political, social, economical
and technological environments. - It allows a company to form an impression of the factors that
might impact a new business or industry
 To envision trends in global operations – envisioning trends and analyzing it may
forecast
where your existing business operations and practices will lead you and understand how your
company has done. If it's done well, it will provide you with suggestions for how to improve
things and steer your company on the right path.
 To develop an understanding of the world vision regardless of their country of
origin, residence or studies in a respectful way of perspectives of people from different races,
studies, preferences, religion, politic affiliation, place of origin, etc. – Accepting
diversification can be a great way to maintain business stability it help expand into new markets
and industries and achieve greater profitability. This can be attained by diversifying new
products and services in new markets, targeting new customers and increasing profitability.

______________________________________________________________________________