Unit II

Types of Production Systems

Production is a conversion system that accepts inputs & gives output after adding
value to inputs. It converts the raw material or spare parts into a finished or
complete product which ready to sell in the market.

Designing a process deals with many choices & is a kind of strategic decision because
many different choices involved are the selection & allocation of human & material
resources equipment & machinery etc.

Hence, a manufacturing system or process can be defined as, the combination of

operations & different activities to create goods & services.”.

A manufacturing system must meet the objectives like the Specification of the final
product & should be cost-effective.

2.1 Factors affecting the choice of a Production system

Following are the various factors that determine the choice of the Production system

1. Effects of volume & variety

This is one of the major factors/considerations that may affect the choice of the
selection process. It is depending upon the manufacturer’s choice of
producing goods of high variety or low & they should be made ready to deliver
or wait for a sale. Those who wish to produce products with high variety need
to use or employ high skilled labor general purpose machine & this kindof goods
are goods of ready to deliver category & vice versa

2. Flexibility:

It implies the ability of a company to satisfy varied customer requirements. It

has an interrelated connection with product variety. In an organization whose
focus is on providing a variety of products, the manufacturing system shows
greater flexibility & vice versa.

3. Lead time

It is more appropriately called delivery lad time expected by customers. It

refers to how soon a product is ready to be delivered & its ability to meet
customer
 demand/ requirement without losing on sales. Based upon this factor the
manufacturing system which allows stocking the product will be best suitable.

4. Efficiency

Efficiency measures the speed & cost of the transformation process.

Here it is always referring to the utilization of machines & manpower. There will
be the greatest efficiency when the product is produced on large scale basis i.e.
when mass production is carried out.

5. Cost associated

It is one of the major factors. It talks about investment in the manufacturing

system i.e. cost of installing plant & machinery, th e cost of raw material, cost
ofmaintenance, etc.

6. Ability to meet change

It greatly affects the decision because the change in fashion, taste,

requirement, and technology refers to making necessary changes in the
production system. This is also referred as to the firm’s ability to meet with
ongoing change & successful change management.

2.2 Classification of Manufacturing System

Intermittent Production
• Job production
• Batch Production
• Project Production
Continuous Production
• Mass/Flow/Line Production
• Process Production
2.2.1 Intermittent Production System

Intermittent means something that starts and stops at irregular intervals (time
intervals). In other words, the production flows are not continuous. Goods are
 produced according to customer orders. The quantity, size, shape, design, etc.
The product depends on customer orders.

Job Production

The job production system is an intermittent process as it is executed only

when the customer order. Job production produces a single product at a time
as per customer specifications. Every product may be different in terms of
type, cost, material, or any other specifications. For example, repair shops
provide the service, tailoring shops make altered clothing. A software
company that makes the software as per the requirements given by the
customer.

Characteristics

1. Production of few no. of goods.

The customer gives product specifications and the required quantity to

produce. Thus few varieties and a limited quantity of products are
produced.

2. Goods are produced on ready to deliver the basis

Delivery is the process of transporting goods from a source location to a

predefined destination. Products are produced so that on-time delivery is
madepossible.

3. General purpose machines are used.

As the goods are produced in many varieties according to customer

specifications, different types of skills, methods, and equipment need to be
used. The use of Heavy machinery cannot be economic as it produces a
single variety with a large number of goods in job production. Process
layout is recommended for this kind of operation (layout by function).
Plant and equipment are designed or procured and arranged to obtain
maximum flexibility. General purpose machines and handling equipment
are capable of performing a variety of operations with minimum set-tip
times.

In the job production process or function plays an important role in

producing a variety of products as per customer’s specifications due to
which functional layout is required to implement.

4. High-skilled labor required

To produce goods in many varieties as per demand, it is essential to

have skills that are used to apply to the production of varieties of
 products. The workmen being highly skilled are expected to work
independently and display a great deal of initiative and judgment. They are
required to set up their machines and prepare their special tools or
production aids to further the manufacture of a part or assembly.

Advantages

1. High variety of goods produced

2. Less overall investment in machines & equipment i.e. fixed cost. 3.

Able to handle a wide variety of

productsDisadvantages

1. Complex Scheduling

2. High cost per unit of product produced.

3. High variable cost involved

4. Longer production runs because of the discontinuous flow of material.

5. Large work-in-progress inventory.

e.g. General repair shop, a tailoring shop, a software company,

etc.Batch production

It is a kind of system where a limited no. of products are produced at regular

intervals & stocked in warehouses that wait for sales. Here product variety is
also maintained. In batch production, the machines which perform similar
operations are grouped and located in one place. Products manufactured in
the batch production systems are similar in terms of type, cost, effort, material,
and specifications. Machines in batch production are grouped on a functional
basis.

Characteristics

1. Short production run

Short production runs and frequent changes of setup also characterize batch
production. The equipment and the assembly setup are used for a limited
number of parts or assemblies and are then changed to make a different
product. The production is generally made to stock. In project production,
each project has a definite beginning and a definite end
2. Supervisor to process knowledge of the specific process

The supervisors have considerable knowledge of a specific process. A

supervisor in the grinding section, for example, may not expert in turning
and drilling work but is expected to possess knowledge of different types of
grinding operations. Similarly, a supervisor in the gear shop is expected to
have sound knowledge of working with different types of gear-cutting
machines.

3. Limited supervision or span of control

The amount of supervision required in batch production is lower than that

of jobbing production. The ratio of direct workmen to supervisors is more
or less a function of batch size. The smaller the batch, the lower the ratio
ofdirect workers to supervisors, and vice-versa. This is because smaller lots
require each supervisor to spend a great deal of his time allocating new
work, giving instructions, following up on the shop floor for proper
movement of materials, identifying delays and interruptions, and
arranging, in consultation with planning, the workload in his section to
keep his men busy. In the project, the production layout is fixed. Where
the output of a project is a product, such products are generally
characterized by immobility during transformation. Operations on such
products are carried out in a fixed position assembly type of layout, which
can be observed in the production of ships, locomotives, aircraft,
construction of roads/ buildings, etc.

4. General-purpose machines are used

Plant and equipment are procured and arranged to obtain maximum

flexibility. General-purpose machines and handling equipment capable of
performing a variety of operations with minimum setup times are installed
to produce a variety of products.

5. Process type of layout is suitable.

The machines are arranged to give process layout by function. Similar

machines capable of doing similar types of operations are grouped and kept
in one place. Presses, for example, are put together and kept in one place;
gear-cutting machines are located in the fourth place, and so on. Each
group of machines is usually designated as a work center or a section or a
shop.
 6. Flexibility in schedule

Disruptions due to machine breakdowns or absenteeism do not seriously

affect production as the job can be shifted to another machine or another
operator. In project production, the cost of overruns is high. Often delays
take place in the completion of the projects. Such delays are generally very
expensive due to escalation in the cost of factors of production and incident
of penalties.

7. Large work in progress

Work in progress is largely due to varying work content of different

components, imbalance in manufacturing times, and formation of queues
between the machines.

Advantages

1. Moderate level of investment

2. Provide greater flexibility at the time of production

3. Provide a variety of goods

Disadvantages

1. More work in progress inventory

2. Lower no. of goods produced.

3. Relatively lower completion in scheduling

4. More cost per unit of goods produced.

e.g. Paint manufacturing, pharma products, chemical manufacturing, etc.

Project Production

A different set of activities required to complete the project must be

performed in a particular order within the given period & estimated
expenditure. Herethe output/product produced is immovable in nature, hence
all the necessary materials, equipment, machines manpower, etc are made
available at the place where it is to be undertaken. It is also characterized by a
high degree
 of job customization equipment flexibility & labor skills can range from low to
high depending on the type of project.

Characteristics (Features)

1. highly customized services

project completed with certain specifications and these are provided with
very accuracy because many projects are used for a longer duration. For
example,aproject of construction of a dam.

2. definite beginning and end

Each project is completed within a fixed period. The day the project work
starts and the day before that the project will be completed is fixed.

3. involvement of different agencies

In many large projects, it is essential to complete many tasks or work from

the agency or small, specialized companies.

For example

To complete telecommunication projects of converting 3G to 4G

upgradation.

To complete larger projects like the construction of a dam requires

engineering services to provide designs that can be taken from concerned
agencies.

In the areas of shipbuilding. airplanes and so on where have a lot of variety

coming in and every time a new batch is made or a new set of products are
made, the product specification change, and the variety increases.

4. fixed position layout is used because products here are generally

characterized by immobility during transformation.

Where the output of a project is a product, such products are generally

characterized by immovability during transformation. Operations on such
products are carried out in a “fixed position assembly type of layout”
which can be observed in the production of ships, locomotives, aircraft,
construction ofroads/ buildings, etc.
 5. Complex scheduling & is subject to change.

Because of a large number of activities, involvement of different agencies,

and strict precedence requirements, scheduling and control assume great
importance and it is very complex. Thus it can be done by using various
advanced techniques like PERT and CPM.

Advantages

1. There is greater equipment & manpower flexibility

2. Manpower of processing different levels of skills are utilized

3. General purpose machines used which will help to redeploy them at another
project of similar nature at the time when one project is near to its
end/closer.

4. Suitable for non-routine time & cost-bound work.

Disadvantages

1. High-cost overruns i.e. if the project is delayed or went beyond the period
results in high penalties.

2. Very difficult to plan & control resources

3. There is a complex cost estimation

4. Very high cost per unit

Examples: Construction of the building, bridge, dam, ship, aircraft, Carrying

out spaceresearch activity, etc.

2.2.2 Continuous Production System

Continuous means something that operates constantly without irregularities or

frequent stops. Goods are constantly produced according to the demand forecast. The
goods are produced on a large scale for storage and sale. They are not produced at the
customer’s request. Here, the inputs and outputs are standardized together with the
production process and the sequence.
Mass & Flow Production

It is a kind of manufacturing process where more no. of standardized product with

low variety of is produced. Here the goods produced are stocked in the warehouse
that is waiting for sales. The goods under mass production are manufactured either
at a single operation or a series of operations on one machine arranged as per the
sequence of operations.

The goods under flow production are manufactured by a series of operations on

different machines, arranged as per the sequence of operation. It is also referred as to
the lineprocess. As it includes production line & assembly line.

Characteristics (Features)

1. Continuous flow of material: The flow of materials is continuous and there is little

or no queuing at any stage of processing.

2. Mechanized materials handling: Materials handling is comparatively less firstly

because materials move through a short distance between stages and secondly the
materials handling activity is mostly mechanized by conveyors and transfer
machines.
3. Low-skilled labor: Relatively low-skilled labor is employed

4. Special purpose machines and product type layout: Special purpose machines are

used and the plant assembly stages are laid out based on product layout, the
layout-by sequence.
5. Lesser flexibility in production schedules: Interruptions due to breakdowns and

absenteeism seriously affect production as stoppage of one machine usually

disturbs the working of other machines. use of heavy machinery and interlinkage of
every operation causes difficulty in upgradation or less flexibility.
6. Limited work-in-progress: Work-in-progress is comparatively less since the

manufacturing line is balanced.

7. Easy supervision: Supervision is relatively easier as only a few instructions are

necessary and that too at the start of the job.

Advantages

1. Large no. of goods is produced i.e. providing economies of scale.

2. Low per unit cost of the product

3. Less or easy supervision

4. Low work-in-progress inventory

5. Shorter manufacturing cycle time.

Disadvantages

1. Less Variety

2. Low flexibility, results in a costlier deal

3. High fixed cost, an initial investment

Mass Production - Plastic goods, hardware

Flow production- assembly shops, TV, automobiles refrigerators, etc.

Process Production

Also known as a continuous process. In this kind of production system single

product with zero variety is manufactured & stocked in a warehouse waiting for a
sale. The flexibility of such plants is almost zero. This kind of system is used when a
very highly standardized product is desired in high volumes. This process is often
capital extensive as highly specialized machines with built-in control are installed.

Characteristics

1. Highly mechanized material handling

2. Special purpose machines with built-in controls

3. Low-skilled-led labor required

4. Negligible work in progress

5. If stoppage at any stage occurs, then the whole production system will stop
Advantages

1. large no. of goods produced

2. single product with a large volume is produced

3. very low cost per unit of product

4. negligible work-in-progress inventory

Disadvantages

1. zero variety

2. zero flexibility 3. high investment

Examples: sugar, electricity, cement, steel, etc.

2.3 Difference between Intermittent and Continuous Manufacturing

Intermittent Continuous

It is a kind of manufacturing It is a kind of manufacturing system

system where manufacturing is where manufacturing is carried out
carried out in lots. continuously

Process layout is most suited The product layout i s designed as a

separateline for each product

General purpose machines used Special purpose machines with build-in

with highly skilled labor control are installed

Investment in t h e fixed asset The initial investment is high but there

is lowbut the variable cost is high willbe a lower variable cost incurred

A small no. of products with high Large no. of products with no/less
variety is produced variety is produced.

Goods are produced as per Her goods produced are of daily

customer specifications and are purpose continuous demand in market
ready to deliver when & produced with the purpose of
manufactured stocking
The chances of waiting, rushing, The chances of waiting, rushing,
andbacktracking are more orbacktracking are less

Larger work in progress Less work in progress inventory

oninventory
The functions of production The functions of production planning
planning control like routing, control like routing, scheduling,
scheduling, dispatching, and dispatching, and follow-up will be very
follow-up will be very complex easy as a single product is produced.

It provides greater flexibility in Here there will be zero flexibility in the

the case of product design & case of machine setup & design
machine setup because here because a more standardized product
each order is considered as a of a single type is produced.
single project as per the
customer
specification
Here there will be t h e high The cost per product produced will be
cost-per-product ratio at itsminimum.