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Production System

The document outlines the differences between products and services, emphasizing their tangible versus intangible nature, and discusses various production systems including intermittent and continuous production. It details types of production such as job, batch, project, mass, and process production, highlighting their characteristics, advantages, and limitations. The document serves as a comprehensive guide to understanding production systems and their operational dynamics.

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5 views25 pages

Production System

The document outlines the differences between products and services, emphasizing their tangible versus intangible nature, and discusses various production systems including intermittent and continuous production. It details types of production such as job, batch, project, mass, and process production, highlighting their characteristics, advantages, and limitations. The document serves as a comprehensive guide to understanding production systems and their operational dynamics.

Uploaded by

vanshikasehrawat1085
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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PRODUCTION SYSTEM

Unit 1a
Product vs Service
Product Service
Tangible, durable products. Intangible, perishable products.
Output can be inventoried. Output can’t be inventoried.
Consumption/use takes more time. Immediate consumption.
Low costumer’s involvement. High costumer’s involvement
Long response time. Short response time.
Available at regional, national and international
Local market.
market.
Require large facilities. Require small facilities.
Capital intensive. Labour intensive
Quality easily measured. Quality not easily measured.

Demand variable on weekly, monthly, Demand variable on hourly, daily,


seasonally. weekly basis
Production
• Production can be explained as an act of either manufacturing
or mining or growing of goods (commodities) generally in bulk
for trade.

• Production is a method employed for making or providing


essential goods and services for consumers.

• It is a process that puts intangible inputs like ideas, creativity,


research, knowledge, wisdom, etc. in use or action. It is a way
that transforms (convert) tangible inputs like raw materials,
semi-finished goods and unassembled goods into finished
goods or commodities.
Production System
• The methods, procedure or arrangement which includes
all functions required to accumulate (gather) the inputs,
process or reprocess the inputs, and deliver the
marketable output (goods).

Conversion
INPUT Process
OUTPUT
Type of Production System
1. Variety
2. Uniformity
3. Volume per output type
Production
System

Intermittent Continuous

Job Mass

Batch Process

Project
Intermittent Production
• Intermittent means something that starts (initiates) and stops
(halts) at irregular (unfixed) intervals (time gaps).
• The flow of production is not continuous. It is intermittent.

• Wide varieties of products are produced.

• The volume of production is small.

• General purpose machines are used. These machines can be


used to produce different types of products.
• The sequence of operation goes on changing as per the design
of the product.
• The quantity, size, shape, design, etc. of the product depends
on the customer's orders.
Continuous Production
• Continuous means something that operates constantly
without any irregularities or frequent halts.
• The flow of production is continuous. It is not intermittent.

• The products are standardized.

• The products are produced on predetermined quality


standards.
• The products are produced in anticipation (An
expectation) of demand.
• Standardized routing sheets and schedules are prepared
Difference b/w Intermittent and
Continuous Production
• Based on Machinery
Continuous Intermittent
Specific Machinery Generalized Machinery

Permanent machine setup Frequent change in machinery

Duplication of machines Less machine required

• Based on Labour and Material Handling


Continuous Intermittent
Unskilled as well as small team of
Highly skilled labour force
specialized labour
Mechanized material handling Not Feasible to employ

Material Handling cost is lesser Material Handling cost is higher

Inventory cost is high Need minimum inventory


Difference b/w Intermittent and
Continuous Production
• Based on Output
Continuous Intermittent
Few standard products in large Wide range of products in small
quantities quantities
Output on the basis of anticipation Output is according to order
of demand received

• Based on Maintenance and Control


Continuous Intermittent
Absence of maintenance may
No danger of stoppage of whole line
interrupt whole process
Controlling is simpler Controlling is complex
Job Production (Intermittent)
• A job production comprises of general-purpose machines
arranged into different departments. Each job demands
unique technological requirements, demands processing
on machines in a certain sequence.
• 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 centre and order priorities.
Job Production (Intermittent)
Advantages
• 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.
Job Production (Intermittent)
Limitations
• 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


Batch Production (Intermittent)
• Batch Production as a form of manufacturing in which the
job pass through the functional departments in lots or
batches and each lot may have a different routing.
• Shorter production runs.

• Plant and machinery are flexible.

• Plant and machinery set up is used for the production of item in a


batch and change of set up is required for processing the next
batch.

• Manufacturing lead-time and cost are lower as compared to job


order production.
Batch Production (Intermittent)
Advantages
• 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.
Batch Production (Intermittent)
Limitations
• 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.
Project Production (Intermittent)
• Here, in project production flows, company accepts a single, complex
order or contract. The order must be completed within a given period of
time and at an estimated cost.
• The requirement of resources is not same (it varies). Generally, the
resource requirement at the beginning is low. Then in mid of production,
the requirement increases. Finally, it slows down when the project is near
its completion phase.
• Many agencies are involved in the project. Each agency performs
specialized jobs. Here, coordination between agencies is important
because all jobs are interrelated.
• Delays take place in completion of projects due to its complexity and
massiveness.
• As routing and scheduling changes with fresh orders, proper inspection is
required at each stage of production.
Project Production (Intermittent)
Advantages
• The first and foremost advantage is the fact that a particular project is
handled by separate project manager
• Identification of the areas which are revenue leaking and helps the
company in saving lot of capital.
• It helps the company in developing managerial qualities in talented
people by assigning them first small projects
• Managing projects from start to finish can help control project costs
and help a project manager retain control over his budget, identifying
problems or issues before they turn into roadblocks.
• the right people with the most appropriate skill sets are assigned to
tasks within the project, allowing the company to use its human
resources judiciously and effectively.
Project Production (Intermittent)
Limitations
• The biggest disadvantage of project management is that
sometimes it leads to overlapping of authority and responsibility
• if management selects incompetent staff then project will be a
failure leading to losses for the company.
• the company is working on 10 projects simultaneously then it
will require 10 project managers to handle those projects
• Overhead. Project Management presents 3 types of overhead:
cost overhead, communication overhead, and time overhead.
• Methodology obsession

• Lacklustre Creativity.
Mass Production (Continuous)
Manufacture of discrete parts or assemblies using a continuous
process are called Mass Production. This production system is justified
by very large volume of production.
• Standardization of product and process sequence.
• Dedicated special purpose machines having higher production capacities and
output rates.
• 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.
Mass Production (Continuous)
Advantages
• 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.
Mass Production (Continuous)
Limitations
• 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.
Process Production (Continuous)
Production facilities are arranged as per the sequence
of production operations from the first operations to the
finished product. The items are made to flow through
the sequence of operations through material handling
devices such as conveyors, transfer devices, etc.
• 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.
Process Production (Continuous)
Advantages
• 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.
Process Production (Continuous)
Limitations
• Flexibility
to accommodate and process number of
products does not exist.
• Very high investment for setting flow lines.
• Product differentiation is limited.
Production System
Project

JOB
Batch
Variety

Intermittent Continuous

Mass

Process

Volume

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