Class Notes for PGDM Second Semester students

1. Types of Production Processes
What is a Production System?
• Production System are those activities of an
organization where
Types of Production Processes – resources flowing within a defined system
– are combined and transformed
Presented By: – in a controlled manner
Anupam Kumar – to add value
Reader – in accordance to the policies communicated by
SMS Varanasi the management.
Characteristics of a Production System Types of Production Systems
• Production is an organized activity, so every • The types of production processes / systems are
production system has an objective. classified on the basis of
• The system transforms various inputs to useful – Product / Output Variety and
outputs. – Product / Operations / Output Volume
• It does not operate in isolation from other • They are broadly classified as:
organizational systems. – Continuous Production Process
• Process / Flow Production
• There exists a feedback about the activities, • Mass Production
which is essential to control and improve – Intermittent Production Process
system performance. • Batch Production
• Job Shop Production
Types of Production Processes Types of Production Process
• Production processes or manufacturing • There is yet another type of production process
operations may broadly be divided into two • The third type of production process is one where
categories. – The company produces standard modules and
– Made to stock production process – assembles these modules
• These firms make items that are completed and placed in – according to the specifications of a customer order
stock before customer order is received.
• This type of production process is Assemble-to-Order
– Made to order production process production process. E.g.
• These complete the end item only after receiving a customer
order. – PVC window assemblers,
• This is because manufacturer cannot anticipate what each – modular kitchen board assemblers, etc.
customer wants.
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2. Types of Production Processes
Types of Production Processes Types of Production Processes
• Another way to define the type of production Project
process is based on the extent to which a factory has Job-shop
Production
the flexibility to produce a variety of products. Process
• This can be categorized as follows Intermitted Batch
– Continuous Production System Production Production
Variety Continuous
System Process
• Flow Production System Production
• Mass Production System Mass System
Production
– Intermitted Production System Process
• Batch Production System
• Job-shop Production System Flow Production
• Project Production System Process
Volume
Continuous Manufacturing System Repetitive Manufacturing
• These are also referred to as Repetitive
Manufacturing Systems. • WIP is low because the items move
• These are mass production facilities that quickly in the plant.
produce high volumes of the same products. • Examples are television, radio, and
• They are usually make-to-stock producers. telephone producers.
• The manufacturing happens in Automated, • Product(s) follow the same path:
special-purpose equipments.
Continuous flow (flow shop) Continuous flow (flow shop)
• Continuous flow operations are sometimes
• Some products flow also called process type operations
continuously through – (as opposed to discrete operations).
a linear process. • Examples are
• These types of – Chemical plant,
operations are called
– Oil and Gas,
continuous flow (flow
shop) operations. – Petroleum refineries,
• Usually the products – Sugar mills, etc.
are not discrete.
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3. Types of Production Processes
Process Production / Flow Production Mass Production Process
• When is it used: • When is it used: • Advantage:
• Advantages:
– Dedicated plant and – Standardization of product – Higher rate of production
– Standardization of product with reduced cycle time.
equipment with zero and process sequence and process sequence
flexibility – Dedicated special purpose – Higher capacity utilization
– Higher rate of production due to line balancing
– Material handling is fully with reduced cycle time. machines having high
automated. production capacities and – Less skilled operators are
– Highest capacity utilization output rates required.
– Process follows a due to line balancing
predetermined sequence of – Large volume of products – Low process inventory
operations – Manpower is not required for
material handling. – Shorter cycle time – Manufacturing cost per unit is
– Component material cannot – Lower in process inventory low.
be readily identified with final – Persons with limited skills can
product be used for production – Balanced production lines • Limitations
process. – Material and parts flow is – Break-down of one machine
– Planning and scheduling is a continuous without back- may stop entire production
routine action – Unit cost is low due to high
volume of production . tracking line.
– Product differentiation is – Production planning and – Line layout needs major
limited. control is easy changes with changes in
– Involves high initial – Material handling can be product design.
investments. completely automatic – Higher investment in
production facilities.
Intermitted Production Process Job Shop Production Process
• In this type of production process
– The volume of each product is low. Job 1
Job 2
– Generally produces make-to-order, custom products
in accordance with design supplied by the customer.
– Each job may be unique and may require a special set
of production steps.
– Further, each job may require a particular routing. Job 4
Job 3
– There are no standard routings.
– Products may follow different paths.
– Needs general-purpose production equipment
Job Shop Production Process Job Shop Production Process
• Job shop production process are used in • When is it used: • Advantages:
– High variety of products with – A large variety of products
– woodworking shops, low volume can be produced with the
– Use of general purpose general purpose machines
– metal fabrication shops, etc. machines and facilities – Operators become more
– Highly Skilled Operators who skilled and competent with
• May require an inventory of a few type of the take up each job as a each job
raw materials. challenge – Full potential of operators can
– Large inventory of materials, be utilized
• BUT, here the largest percentage of the tools and parts – Opportunity exists for
– Detailed planning is essential creative methods and
inventory is Work in Process (WIP). for sequencing of each innovative ideas.
product Capacities for each • Limitations:
• Work in Process is the inventory that work centers and order
priority – Production planning is
accumulates in between process stages. complicated
– Larger space requirement.
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4. Types of Production Processes
Batch Manufacturing Batch Manufacturing
• Many manufacturing operations fall between • The batch manufacturing company makes a
job shops and repetitive manufacturing. batch of one product, then may switch over
These are called batch manufacturing. (set up) the equipment and make a batch of
– Batch means a single production run another item.
– Batch size means the quantity produced in a single
production run. • Production equipment should be more flexible
– It may be less than 100 units OR up to a few 1000 than repetitive manufacturing and it is
units. generally less flexible than job shops.
Batch Manufacturing Batch Production Process
• When is it used: • Advantages:
– There is a shorter production – Lower manufacturing lead
• Here, products having run time and cost as compared to
– Plant and machinery are job order production process.
same or similar flexible – Better utilization of plant and
processes may be – Every batch of production machinery
requires changes in the plant – Promotes functional
grouped into a and machinery set-up. specialization
product family. • Limitations: – Lower investment in plant
– Material handling is complex and machinery
• Examples are small – Production planning & control – Flexibility to accommodate
is complex and process number of
hand tools (e.g., drill, products
– High set-up cost due to – Job Satisfaction to operators.
screw driver), and frequent changes in set ups.
hand mixers. – WIP inventory is higher than
continuous production
process.
Project type Project type
• A project is a highly flexible and low volume type • Some types of service operations may also be
operation.
called as Projects.
• Usually the item to be produced stays in a fixed place
and all the resources come to it. • These involve a team of people over a period
• At the end of production, resources leave the place. of time and then the people leave the project.
• Examples are • Example:
– ship construction,
– Developing a software package may be a project
– bridge construction,
type of service operation.
– buildings and
– large machines.
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5. Types of Production Processes
Basis for Comparison of
Types of Production Process
Production Processes
• Job Shop Production Process • Manufacturing Cost • Flexibility of Production
– These are characterized by manufacturing of one or few quantity of
products designed and produced as per the specification of the • Capital Investment • Types of Products
customer within prefixed time and cost
• Batch Production Process – Plant Produced
– It is a form of manufacturing in which the job passes through the – Inventory • Material Handling
functional departments in lots or batches and each lot may have a
different routing. • Size of Plant Equipment usage
• Mass Production Process
– Manufacture of “discrete parts” or assemblies using a continuous • Technical Requirements • Security of Job
process is called mass production. – To workers
• Flow / Process Production System
• Organizational Structure
– The production process in which the items are made to flow through – To employees.
the sequence of operations by various devices right from the first
operation to the finished product stage is called a flow or process
production system.
To Objectives of Operations
Management …
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