PRODUCTION SYSTEM

• The production system of an organization is that part which produces product

of an organization
• It is that activity whereby resources, flowing within a defined system, are
combined and transformed in a controlled manner to add value in accordance
with the policies communicated by management
The production system have the following characteristic
• Production is an organized activity so every production system has an objective
• The system transform the various input to useful output
• It does not operate in isolation from the other organization system
• There exist feedback about the activities which is essential to control and
improve system performance
 CLASSIFICATION OF
PRODUCTION SYSTEMS
Production systems can be classified as Job-shop,
Batch, Mass and Continuous production systems.
 Job-Shop Production
• Job-shop production are characterized by manufacturing one or few quantity
of products designed and produced as per the specification of customers
within prefixed time and cost.
• The distinguishing feature of this is low volume and high variety of products.
• Job-shop Production is characterized by:
1. High variety of products and low volume.
2. Use of general purpose machines and facilities.
3. Highly skilled operators who can take up each job as a challenge because of
uniqueness.
4. Large inventory of materials, tools, parts.
Advantages
Following are the advantages of Job-shop Production:
1. Because of general purpose machines and facilities variety of
products can be produced.
2. Operators will become more skilled and competent, as each job gives
them learning opportunities.
3. Full potential of operators can be utilized.
4. Opportunity exists for Creative methods and innovative ideas.
Limitations
Following are the limitations of Job-shop Production:
1. Higher cost due to frequent set up changes.
2. Higher level of inventory at all levels and hence higher inventory
cost.
3. Production planning is complicated.
4. Larger space requirements.
 Batch Production
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.
It is characterized by the manufacture of limited number of products
produced at regular intervals and stocked awaiting sales.
• Batch Production is characterized by
1. Shorter production runs.
2. Plant and machinery are flexible.
3. 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.
4. Manufacturing lead-time and cost are lower as compared to job order
production.
Advantages
Following are the advantages of Batch Production:
1. Better utilization of plant and machinery.
2. Promotes functional specialization.
3. Cost per unit is lower as compared to job order production.
4. Lower investment in plant and machinery.
5. Flexibility to accommodate and process number of products.
6. Job satisfaction exists for operators.
Limitations
Following are the limitations of Batch Production:
1. Material handling is complex because of irregular and longer flows.
2. Production planning and control is complex.
3. Work in process inventory is higher compared to continuous
production.
4. Higher set up costs due to frequent changes in set up.
 Mass Production
• 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. The machines are arranged in a
line or product layout. Product and process standardization exists and all outputs follow the same
path.
• Mass Production is characterized by
1. Standardization of product and process sequence.
2. Dedicated special purpose machines having higher production capacities and output rates.
3. Large volume of products.
4. Shorter cycle time of production.
5. Lower in process inventory.
6. Perfectly balanced production lines.
7. Flow of materials, components and parts is continuous and without any back tracking.
8. Production planning and control is easy.
9. Material handling can be completely automatic.
Advantages
• Following are the advantages of Mass Production:
1. Higher rate of production with reduced cycle time.
2. Higher capacity utilization due to line balancing.
3. Less skilled operators are required.
4. Low process inventory.
5. Manufacturing cost per unit is low.
Limitations
Following are the limitations of Mass Production:
1. Breakdown of one machine will stop an entire production line.
2. Line layout needs major change with the changes in the product
design.
3. High investment in production facilities.
 Continuous Production
• 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.
Continuous Production is characterized by
1. Dedicated plant and equipment with zero flexibility.
2. Material handling is fully automated.
3. Process follows a predetermined sequence of operations.
4. Planning and scheduling is a routine action.
Advantages
Following are the advantages of Continuous Production:
1. Standardization of product and process sequence.
2. Higher rate of production with reduced cycle time.
3. Higher capacity utilization due to line balancing.
4. Manpower is not required for material handling as it is completely
automatic.
5. Person with limited skills can be used on the production line.
6. Unit cost is lower due to high volume of production.
Limitations
Following are the limitations of Continuous Production:
1. Flexibility to accommodate and process number of products does not
exist.
2. Very high investment for setting flow lines.
3. Product differentiation is limited.
 Transformation process model
• A transformation process is an activity or group of activities that takes
one or more inputs, transforms and adds value to them, and provide
output for customer or client.
• Where the inputs are raw material, it is relatively easy to identify the
transformation involved, as when milk is transformed into cheese and
butter.
• Where the inputs are information of people, the nature of the
transmission may be less obvious. For example hospital transform ill
patient (the input) into healthy patients (the output)
 Types of inputs

• Material
• Information for example consultancy firms and accountancy forms
• customers example Hospital

Transformation process is any activity or group of activities that takes

one or more inputs, transform and add values to them and provide
output for customers
 Transformation process includes

• Changes in the physical characteristic of material or customer

• changes in the location of material, information or customer
• Changes in the ownership of material or information
• storage or accommodation of material, information or customers
• Changes in the purpose or form of information
• changes in the physiological or psychological state of the customer
 Types of transformation
• Manufacture: the physical creation of product for example car
• Transport: the movement of material or customer for example taxi
service
• Supply: change in ownership of goods, example in retailing
• Service: the treatment of customers or storage of material for
example Hospital wards, warehouses
 Nature of outputs
• Tangibility
• Transportability
• storability
• Quality
 Systems perspective of operation
management
• A system is divided into series of parts or subsystem and any system is
a part of a larger system
• The system boundary define what is inside the system and what is
outside of system
• A system environment is everything outside the system boundary and
may have an impact on the behavior of the system
• A systems input are the physical object of information that enter it
from the environment and its outputs are the same which leave it for
the environment