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TYPES OF
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PRODUCTION
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SYSTEMS
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(OPERATIONAL MANAGEMENT)

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 MBA 2ND
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SINGLA

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PRODUCTION-

It is a process that puts intangible inputs like ideas, research, creativity, knowledge etc. in action.

It’s a way that transforms tangible inputs like raw material, semi - finished goods and un-

assembled goods into finished goods or commodities.

PRODUCTION SYSTEMS:-

The method, procedure or arrangement which includes all functions required accumulating the

inputs, process or reprocessing the inputs and delivering the marketable output. it consists of three

main components:

 INPUTS –

This includes raw material, machines, man hours, components or parts, drawing, instructions and

other paper work.

 CONVERSION PROCESS-

This includes operations (actual production process).operations may be manual, mechanical or

chemical. Operations convert inputs into output. it also includes supporting activities which help

the process of conversion the supporting activities include production planning, and control and

purchase of raw materials, receipt, storage or issue of materials, work in progress, testing of

products , quality control, warehousing of finished goods etc.

 OUTPUT-
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This includes finished goods (parts, finished products or services)

EXAMPLES OF PRODUCTION SYSTEM:

 Tangible goods-

consider an example of sugar manufacturing industry where sugarcane is first used as a n input,

then the juice of sugarcane is processed by a conversion process, finally to get an output known as

refined sugar (used for mass consumption)

 Intangible goods

consider an example of service industry that of software development firm or company. Here

initially written codes are used as inputs. These codes are then integrated in some database and

are then provided with user friendly interface trough a conversion process. Finally an output is

made available in form of an executable application program.

 TYPES OF PRODUCTION SYSTEM-

It is classified under 4 broad headings:

1. Job production system

2. Batch production system

3. Mass production system

4. Process or flow production system

 JOB PRODUCTION SYSTEM:

A manufacturing process in which workers create a single, personalized product for a single

customer is known as job production. The job production approach is used to generate a product

from start to finish, depending on the needs of the customer. This method of production is not

employed to produce large quantities of commodities.

IMPORTANCE

In the industrial industry, job production is a crucial topic. It is motivated by a customer's

specific needs or wants. The team of workers creates the product or commodities individually

for the consumer based on the requirement. Job manufacturing focuses on low volume

production while providing a greater diversity of finished products.

Characteristics Of job production

The following characteristics characterize commodities or products made using this method:

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.

5. Detailed planning is essential for sequencing the requirements of each product, capacities

for each work centre and order priorities.

Advantages

1. The end product will be of higher quality.

2. Customizations are possible based on the specific needs of the customer.

3. Increased client satisfaction as a result of a high-quality product.

4. Companies can charge more for job output since trained individuals have more

competence.
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Disadvantages

1. Higher cost of production.

2. Requires special planning every time a new customer comes.

3. Very slow volumes of production.

Example

Customization

A car manufacturer offers hundreds of customization packages through partners. Some of the

customizations have less than 10 orders a month. The customization partners perform the work

on a scheduled basis after the base model is mass produced.

 Batch production system:

It is described as the production of a product in small or big batches or lots at regular intervals

by a series of processes, each of which is done on the entire batch before proceeding to the next.

Characteristics:

1. Suitable for a medium-sized lot of the same kind.

2. Product variety is moderate.

3. General-purpose production equipment is available; however it is not ideal for higher

production volumes.

4. Jigs and Fixtures are used to speed up manufacturing by reducing setup time.

5. Labor skill is high, but not as high as in job shop production.

6. Machines and equipment are placed in the order in which they will be used.

7. One group performs a certain operation on a batch, after which it is handed to another

group for further processing.

Merits:

1. Products can be mass-produced in large quantities, lowering total unit costs.

2. Companies that concentrate on a small number of items have better quality control and

product knowledge.
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3. Because workers are only focused on one activity or a set of tasks, labour costs are

decreased.

4. Machine costs are lowered since a single machine can handle multiple product

combinations.

5. Repeat orders are easier to come by, resulting in a smoother, more consistent production

flow over time.

6. The amount of money invested is little.

7. It combines the characteristics of both flow and job production.

Demerits

1. As there is a lot of work in progress, a lot of space is needed.

2. As product designs change frequently, no consistent sequence of activities can be

applied.

3. Machine setups and tooling configurations must be updated on a regular basis.

4. The amount of idle time between operations is greater. and the creation of jobs

5. When the volume of output increases, resulting in some repetitiveness, or when market

demand is not consistent throughout the year, batch manufacturing is used.

Example:

Manufacturing clothes also use batch production. Consider a t-shirt manufacturing company. In

its first batch, it makes 100 blue t-shirts, followed by 100 green & 100 red t-shirts in the

subsequent batches. All these t-shirts are made using the same machinery, just by tweaking the

colors & machinery.

 Mass production:

The term "mass production" refers to the large-scale production of standardized parts or

components. The primary element of mass production is the standardization of resources,

machines, products, and procedures. The pieces produced in mass production are assembled in

an assembly line to create various products. In general, there is a high level of mechanization

and automation.
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Characteristics:

1. Suitable for the production of a large number of identical parts in a short period of time.

2. Ideally suited to high-demand items.

3. The production lot size is really large.

4. The rate of production is constant.

5. The rate of production is constant.

6. There is a lack of product variety.

7. It's possible that specialized tools and equipment will be required.

Example:

One of the best examples of mass production is the manufacturing process adopted by Ford.

Mass production is also known as flow production or assembly line production. It is one of the

most common types of products used in the automobile industry and is also used in industries

where continuous production is required.

An Assembly line or mass production plant typically focuses on specialization. There are

multiple workstations installed and the assembly line goes through all the workstations turn by

turn. The work is done in a specialized manner and each workstation is responsible for one

single type of work. As a result, these workstations are very efficient and production due to

which the whole assembly line becomes productive and efficient.

Products which are manufactured using mass production are very standardized products. High

sophistication is used in the manufacturing of these products. If 1000 products are manufactured

using mass production, each one of them should be exactly the same. There should be no

deviation in the product manufactured..

 CONTINUOUS PRODUCTION SYSTEM

Lean production is a management style that focuses on reducing waste while maintaining

quality. This method can be used in all elements of a company, from design through production

and distribution.

Lean manufacturing strives to reduce costs by increasing efficiency and responsiveness to

market demands.

Characteristics:

1. Increasing manufacturing flow and planning for quick changeovers

2. Everyone, from management to labour, is committed to continuous improvement. Your

progress will come to a halt unless you keep improving.

3. Workers should be respected or empowered

4. Customer demand-driven production or customer requirements-driven production

5. Creating a design that allows for quick transitions

6. Developing a trustworthy supplier relationship

7. JIT (just-in-time) waste removal from diverse regions; do it right from the start.

8. Inventory management

Example

One of the Lean manufacturing strategy used to reduce waste and keep

organisations profitable is just-in-time manufacturing. It's a manufacturing

approach aimed at helping firms increase their return on investment (ROI) by

lowering in-process inventory and associated costs.

Raw materials are obtained and completed products are produced just in time to

fulfil consumer demand in a Just-in-Time system. This prevents Lean

manufacturers from overproducing or stockpiling surplus inventory, both of which

are wasteful practises.