UNIT - 4

PRODUCTION SYSTEM
 Production System
 Production operations are the process that turns an
organization’s inputs or resources into goods and services
through defined, controlled, and repeatable procedures.
 A production system is the organized heartbeat of a company,
bringing together all the elements to create products. This
system is a well-thought-out plan where resources, like materials
and equipment, are carefully combined to create something
valuable.
 A production management system includes planning,
coordination, and control of all aspects of the production process,
right from the processing of raw materials to testing the
finished products.
 To ensure production runs smoothly, by digitally collaborating
with other departments within the company.
 This includes collaborating with departments such as purchases,
inventory, material planning, and sales, to ensure that the
production process is aligned with the company's overall
 Design of production System
Forecast product demand
 Estimate how much of each product you’ll need to produce over a designated
period. Historical data can help with forecasting, but you’ll also need to pay
attention to other factors that can affect demand, such as market trends and
the economic situation for your customer base. Demand planning software can
help companies make more informed decisions about the right amount of
product needed to meet demand.

Map out production steps and options

 This step determines the processes, steps and resources needed to produce the
required output. At this stage, the company may also examine different options
for achieving its production goals, such as outsourcing some stages. The
production mapping identifies which steps are interdependent and which can
be performed simultaneously. Let’s say the job is to produce 1,000 children’s
bicycles. Manufacturing the bicycle frames consists of a series of steps that
must happen in sequence — cutting metal tubes, welding and painting — while
other activities like assembling wheels can occur in parallel. Do you have all the
right equipment? What happens if a machine breaks down? Are your suppliers
able to meet your demand?
 Design of production System
Choose a plan and schedule production.
Select a production plan after comparing the cost, time required
and risks for each option. Sharing the selected plan with all
necessary stakeholders typically helps assure a smoother
production process since all the stakeholders are aware of what’s
needed. Create a detailed production schedule that lays out in
detail how the company will execute the plan, including the
resources and timing for each step.

Monitor and control.

Once production has begun, you’ll need to track performance and
continually compare it against the targets described in the
production plan. Careful monitoring helps the company to detect
any issues as soon as they pop up, so they can be quickly
addressed.
 Design of production System
Adjust accordingly.
It’s almost inevitable that production will be affected
by events that you can’t plan for or predict. Those
events can include changes to client specifications,
supply chain lags, equipment failures and worker
illness. You may also see ways to improve the
production plan after seeing it in action for a while.
So it’s vital to keep production plans flexible
enough to allow for adjustment when needed.
Football coaches often make adjustments to their
game strategy at halftime — and the same holds
true for production planning.
 Examples of the production process
 To set up this production process, the company requires a place or
land to set up the whole production unit.
 Secondly, in the production of biscuits, the organization will need the
machines to mix all the necessary ingredients. It will also need an
oven to bake the biscuits. In addition, it will need machinery for
making the biscuits' packaging and labelling, which will all
become capital investment for the company.
 The company will also need labour to mix all the ingredients together,
separate them into batches of production and different flavours, set
the output levels of the machines and temperature of the ovens, decide
on the labeling function, and oversee the overall production system.
 Another important function and need of the production process
is technology to ensure the labels are correct, the names of the
product are rightly mentioned, the temperature is set correctly, and all
other necessary technical aspects that do not require human
intervention.
 If all of the above factors of production are in place, the production
process of biscuits runs smoothly and can match the requirement of
Types of production System
 Types of production System
1. Job Shop Production
Overview
Job shop production systems are highly flexible and are
best suited for customized or low-volume products. In a
job shop, machines and resources are organized by
function, allowing for diverse product manufacturing.
Characteristics
High customization.
Low volume, high variety.
Highly skilled labor.
Varied processing routes.
Irregular workloads.
Example: Hairdresser, Aircraft, Gold Jewellery and
 Types of production System
 2. Batch Production
 Overview
 Batch production involves producing a limited number of identical
products in batches or groups. It strikes a balance between customization
and efficiency, making it suitable for moderate production volumes.
 Characteristics
 Moderate customization.
 Moderate volume, moderate variety.
 Setup times between batches.
 Standardized processes.
 Improved efficiency compared to job shops.
Example
We can understand this with the example of T-shirt production. The T-shirt
manufacturing company may opt for batch manufacturing, as they would
want to manufacture in different sizes from small, medium and large, and
also in different colours, say red, blue, green, and yellow. Hence, the team
may be divided for every batch on the basis of production of the
respective size and colour.
 Types of production System
3. Mass Production
Overview
 Mass production is characterized by producing a large number of identical
products using an assembly line or continuous flow process. It is highly
efficient but less flexible.
Characteristics
 Low customization.
 High volume, low variety.
 Continuous flow production.
 Specialized machinery.
 Economies of scale.
Example
If one company is producing only white bread on a huge level, all employees
will focus on the white bread packets only. In this process, most
employees will be working towards white bread making: preparing the
dough, baking, etc. Others will be working on packing the produced
loaves of white bread at the same time, to generate the loaves of white
bread quickly and efficiently at once.
 Types of production System
4. Flow Production
Overview
All the processes are arranged sequentially, and all
the products pass through them. This production
system is rigid. Companies stock the products and
use them to fulfill the quick demand of the
market.
Characteristics
Less amount of wastage.
Semi-skilled can also be employed.
Higher profit margins.
The process flow is constant.
 Types of production System
Service Production
This method of production involves rendering services
via an automated process, such as technical support for
customers.
One example in current business in terms of service
production is delivery services. Consumers now have
the benefit of ordering goods and services from the
comfort of their own homes and receiving them directly
at their doorstep due to the sheer amount and scope of
delivery services available.
 Types of production System
Customized Production
Customized production is a process in which goods
and services are produced on the basis of the
customer's needs. This can be divided into 2
categories:
Craft Production
This category of customised production involves a
personal touch based on the specific customer's
demand. One of the classic examples of this is
designer clothes. Say one dress is specifically
designed for a celebrity for a particular award
show, on-demand, with a choice of colour and
pattern, and customised to the event's theme.
 Types of production System
Customized Production
Mass-customised Production
Mass-customised production is similar to craft production.
However, the customised selection is produced in mass quantity.
The customisation may be on the basis of shape, colour, pattern,
product material, etc.
For example, Coca-Cola may have custom 500ml bottles in glass
produced in larger quantities according to need.

Generally, production processes may share similar factors of

production with land, labor, capital, and technology. The process
may change relative to demand. The stages of production remain
more or less the same from planning to routing, scheduling to
dispatching, and finally, follow-up. The types of production,
however, may change as per demand for the product and/or the
requirements of the organization, in terms of sizes, colour,
 Types of production System
Type of production Examples
•Automobile industry
Mass production
•Electronics industry
•Baking
Batch production
•Craft brewing industry
•Shipbuilding industry
Job production •Custom furniture
production
•Consulting industry
Service production
•Law industry
•Automobile industry
(customisation)
Customised production
•Garment industry (tailored
clothes)
 Example of Production System
Nestle
It is a multinational food and beverages
corporation having headquarters in Switzerland.
Some of its bestselling products are – Nescafe,
Kitkat and Maggi.
It uses Batch Production as its type of
production system.

Ford Motor
It is an America-based multinational automobile
manufacturer. Ford’s SUV is one of its best-selling
cars, making it America’s best SUV brand.
It uses Moving Assembly Line as its production
 Difference between Intermittent and
Continuous Production
CONTINUOUS
INTERMITTENT
BASIS PRODUCTION
PRODUCTION SYSTEM
SYSTEM
Flexibility More Flexible Less Flexible

Lead Time The lead time is more as it Here, lead time is less;
requires a frequent change once set, it doesn't
in set-up require changes

Wastage More amount of waste is Less amount of waste

generated is generated

Product Variety of products in less Identical product in

quantity large quantity

Cost per unit of The price is high due to the Cost is low due to
Product customization standardization and
bulk production
 Characteristics of Production System
1. Objective
 The central aim of a production system is to fulfill specific goals that
contribute to its overall success. These objectives include optimizing efficiency,
reducing costs, upholding stringent quality standards, and meeting customers'
demands.
 Maximizing efficiency involves streamlining the production process to ensure the
best use of resources, time, and effort. It helps in achieving higher output with
minimal waste.
 Reducing costs is essential. The various production systems aim for efficient
resource use, cost-effective practices, and intelligent material handling to improve
economic viability.

2. Feedback
 Feedback in production systems is a friendly guide that ensures everything stays
on track. This tool helps the system adjust as needed, like a GPS recalculating
your route.
 This constant monitoring and tweaking ensures the production process runs
smoothly and maintains top-notch quality.
 Collecting feedback ensures that the final products meet the high standards
set by the system. It is like having a reliable co-pilot, guaranteeing each product
 Characteristics of Production System
3. Quality Management
 Quality management is the backbone of production systems, ensuring that
products or services meet the highest standards. It is not just a feature
but a fundamental principle, acting as the guardian of customer satisfaction.
 This management type is the safety net that guarantees what you receive is
precisely what you anticipate, or even better.

4. Input Output Transformation

 Input-output transformation is the engine that powers production
systems, turning raw materials, labor, and energy into finished goods or
services.
 Imagine this process as the heart of the production, where raw materials,
fueled by labor and energy, undergo a remarkable metamorphosis.
 This transformation is not limited to manufacturing physical goods. It is just as
influential in the service industry, where it shapes customer requests into
fulfilled needs at regular intervals.
 Different production systems use various layouts; one common
approach is the line layout. This organized setup improves efficiency,
ensuring things move smoothly from raw materials to the final product or
 Characteristics of Production System
5. Process
The production process serves as the blueprint for bringing
valuable creations to life. This process involves a series of
steps and actions that transform raw materials into the final
product.
Now, let's explore the various approaches to production.
Job production involves creating a unique item tailored to a
specific customer.
Batch production is a system where you make several items
simultaneously, creating a bunch in each go.
Mass production is an assembly line that consistently produces
many identical items.
Continuous production is when the process runs non-stop.
So, whether creating custom pieces or producing a bunch in one
shot, the production process is the key to turning raw
materials into the finished product. It is the systematic
Production , planning and control PPC
Production , planning and control PPC
BENEFITS OF PRODUCTION PLANNING AND
CONTROL
The benefits of production planning and control
include:
Improved organization for regular and timely
delivery
Better supplier communication for raw materials
procurement
Reduced investment in inventory
Reduced production cost by increasing efficiency
Smooth flow of all production processes
Reduced waste of resources

Production , planning and control PPC
OBJECTIVES OF PRODUCTION PLANNING AND
CONTROL
The objectives of production planning and control can
vary from one business to another, but some general
objectives include the following:
Regulation of inventory management
Optimum utilization of production process and resources
Organization of the production schedules, typically with
the help of dynamic production scheduling software
To make sure the right quality and quantity of
equipment, raw materials and more are available during
production times
To ensure capacity utilization is aligned with forecast
demand
 Steps of PPC
Step 1: Demand Forecasting
Forecasting in production planning and control is the first and
most important step. Analyze historical data, market trends, and
customer demand patterns to forecast future demand for products.
This serves as a basis for production planning.

Step 2: Master Planning

The creation of a production plan is assisted by key information
from numerous sources, including data from sales. This consists of
data such as order quantity, promised delivery date, and data from
the engineering department, such as any relevant technical
specifications. The planning stage ensures a simplified production
process and answers the following questions:
What shall be produced?
When shall it be produced?

 Steps of PPC
Step 3: Material Requirements
Planning (MRP)
MRP Software helps you calculate the materials needed
for production based on master planning. Consider
factors such as lead times, inventory levels, and
production constraints to generate
material requirements planning and procurement
recommendations.
Step 4: Capacity Planning
Assess the production capacity and availability of
resources such as labor, machines, and equipment.
Ensure that production schedules can be met with the
available resources and identify any capacity
 Steps of PPC
Step 5: Routing
 Routing in production planning and control involves the precise path
the raw materials take to be converted into finished products. The
entire process is thoroughly planned and designed, and the most
systematic and reliable order is chosen and approved. Therefore,
routing maximizes the utilization of the resources at hand, including
personnel, machinery, and materials. Full machine capacity, a quick
and cost-effective route, and the availability of alternative routes are
the things to be considered during the routing process.

Step 6: Scheduling
 Scheduling in production planning and control is the process of
determining how long it will take for the completion of a route. The
'when' of the operation is highlighted by scheduling and it seeks to
optimize the time allotted for the operation's completion. In short,
specifying the sequence and duration of the production activities
using master schedules, daily schedules, and operational schedules
are important factors in scheduling.
 Steps of PPC
Step 7: Loading
 Scheduling and routing plans are put into action at this time. The
amount of work assigned to all personnel or machines is examined
during loading. The load at each routing point as well as the beginning
and end of an operation are examined for resource support and
assistance. Data about the amount of time needed to complete a task,
the overall workload capacity, and the availability of people and
equipment are needed for loading. At this point, the production plan is
nearly finished and ready for implementation.

Step 8: Dispatching
 Dispatching is the process of starting production activities by issuing
orders and instructions in line with the previously scheduled time and
sequence, as outlined in route sheets and schedule charts. Dispatching
in production planning and control specifically refers to:
 Purchasing the necessary tools and other equipment before the workers
actually need them.
 Giving workers the necessary work orders, guidelines, and blueprints to
 Steps of PPC
Step 9: Follow Up
If a process isn't followed up for updates after completion, it's
impossible to determine how effective it is. This function
analyzes the manufacturing process, maintains note of any
inefficiencies, and looks for ways to further enhance the
workflow. The cycle then continues once this process is finished,
bringing production closer to its optimum efficiency. So, at this
point, check for any obvious or potential bottlenecks that might
affect the smooth flow of production at any stage. In short,
expediting and following up ensures that the task is completed
according to schedule and that delivery deadlines are met.

Step 10: Quality Control

Implement quality control measures to maintain product quality
and compliance with standards. Conduct inspections, tests, and
audits throughout the production process to identify and resolve
 Steps of PPC
Step 11: Performance Monitoring
and Improvement
Measure key performance indicators (KPIs) such as
production output, cycle times, and resource
utilization. Analyze data to identify areas for
improvement and implement process enhancements
or corrective actions.
Step 12: Feedback and Continuous
Improvement
Gather feedback from production activities, customer
feedback, and other relevant sources. Use this
information to refine and optimize the production