Production Systems - Industrial Management

1. PRODUCTION
SYSTEMS
Industrial Management

2. INTRODUCTION
 Production Planning is a managerial function which is mainly concerned with the following
important issues:
 What production facilities are required?
 How these production facilities should be laid down in the space avail
able for production?
 How they should be used to produce the desired products at the desir
ed rate of production.
Broadly speaking, production planning is concerned with two main aspects:
 routing or planning work tasks
 layout or spatial relationship between the resources.
Production planning is dynamic in nature and always remains in fluid state as plans may
have to be changed according to the changes in circumstances.

3.  Production control is a mechanism to monitor the execution of the plans.
 It has several important functions:
1. Making sure that production operations are started at planned plac
es and planned times.
2. Observing progress of the operations and recording it properly.
3. Analyzing the recorded data with the plans and measuring the devi
ations.
4. Taking immediate corrective actions to minimize the negative impa
ct of deviations from the plans.
5. Feeding back the recorded information to the planning section in o
rder to improve future plans.

4. Types of production system

5. Intermittent production system
Intermitted means something that starts (initiates) and stops (halts) at irregular (unfixed) intervals (time ga
ps).
• In the intermittent production system, goods are produced based on customer's orders. These goods a
re produced on a small scale. The flow ofproduction is intermittent (irregular). In other words, the flow
of production is not continuous. In this system, large varieties of products are produced. These produc
ts are of different sizes. The design of these products goes on changing. It keeps changing according t
o the design and size of the product. Therefore, this system is very flexible.
Following chart highlights the concept of an intermittent production system.

6. • Following are examples on the intermittent production system. Please refer above chart while rea
ding examples given below.
• The work of a goldsmith is purely based on the frequency of his customer's orders. The goldsmith
makes goods (ornaments) on a small-scale basis as per his customer's requirements. Here, orna
ments are not done on a continuous basis.
• Similarly, the work of a tailor is also based on the number of orders he gets from his customers. T
he clothes are stitched for every customer independently by the tailor as per one's measurement
and size. Goods (stitched clothes) are made on a limited scale and is proportional to the number
of orders received from customers. Here, stitching is not done on a continuous basis.
• The features of an intermittent production system are depicted below.

8. The types of intermittent production system include:
1 Project production flows
2 Jobbing production flows
3 Batch production flows
4

9. Project production flows
• Here, in project production flows, company accepts a single, complex order or contract. The order mus
t be completed within a given period of time and at an estimated cost.
• Examples of project production flows mainly include, construction of airports, dams, roads, buildings, s
hipbuilding, etc.

10. The characteristics or features of jobbing production fl
ows are as follows:-
• The requirement of resources is not same (it varie
s). Generally, the resource requirement at the beg
inning is low. Then in mid of production, the requir
ement increases. Finally, it slows down when the
project is near its completion phase.
• Many agencies are involved in the project. Each a
gency performs specialized jobs. Here, coordinati
on between agencies is important because all job
s are interrelated.
• Delays take place in completion of projects due to
its complexity and massiveness.
• As routing and scheduling changes with fresh ord
ers, proper inspection is required at each stage of
production.

11. Jobbing production flows
• Here, in jobbing production flows, company accepts a contract to produce either one or few un
its of a product strictly as per specifications given by the customer. The product is produced wi
thin a given period and at a fixed cost. This cost is fixed at the time of signing the contract.
• Examples of such jobbing production flows include, services given by repair shops, tailoring s
hops, manufacturer of special machine tools, etc.

12. The characteristics or features of batch production flo
ws are as follows:-
• The products are made and kept in stock until their
demand arises in the market.
• General purpose machines and handling equipme
nts, which can do many different jobs quickly are i
nstalled. This is because large varieties of items ar
e to be produced.
• There is a possibility of large work-in-progress due
to many reasons.
• There is a need for detailed production planning a
nd control.

13. Batch production flows
• In batch production flows, the production schedule is decided according to specific orders or a
re based on the demand forecasts. Here, the production of items takes place in lots or batche
s. A product is divided into different jobs. All jobs of one batch of production must be complete
d before starting the next batch of production.
• Examples of batch production flows include, manufacturing of drugs and pharmaceuticals, me
dium and heavy machineries, etc.

14. The characteristics or features of batch production flo
ws are as follows:-
• The products are made and kept in stock until their
demand arises in the market.
• General purpose machines and handling equipme
nts, which can do many different jobs quickly are i
nstalled. This is because large varieties of items ar
e to be produced.
• There is a possibility of large work-in-progress due
to many reasons.
• There is a need for detailed production planning a
nd control.

15. Continuous Production System
• Continuous means something that operates constantly without any irregularities or frequent halts.
• In the continuous production system, goods are produced constantly as per demand forecast. Goods ar
e produced on a large scale for stocking and selling. They are not produced on customer's orders. Here
, the inputs and outputs are standardized along with the production process and sequence.
• Following chart highlights the concept of a continuous production system.

16. • Following are examples on the continuous production system. Please refer above chart while reading
examples given below.
• The production system of a food industry is purely based on the demand forecast. Here, a large-scale
production of food takes place. It is also a continuous production.
• Similarly, the production and processing system of a fuel industry is also purely based on, demand for
ecast. Crude oil and other raw sources are processed continuously on a large scale to yield usable for
m of fuel and compensate global energy demand.
• The features of a continuous production system are depicted below.

18. The types of continuous production system include:
1 Mass production flows
2 Process production flows
3
4

19. Mass production flows
• Here, company produces different types of products on a large-scale and stock them in warehouses u
ntil they are demanded in the market.
• The goods are produced either with the help of a single operation or uses a series of operations.
• E.g. of mass production is the production of toothpastes, soaps, pens, etc.

20. The characteristics or features of mass production fl
ows are as follows:
• There is a continuous flow of production. However,
this depends on the demand in the market.
• Here, there is limited work-in-progress.
• Supervision is easy because only few instructions
are necessary.
• The material handling is done mostly by machines,
i.e. conveyors and automatic transfer machines.
• The flow of materials is continuous. There is little o
r no queuing at any stage of production.

21. Process production flows
• Here, a single product is produced and stocked in warehouses until it is demanded in the market. The
flexibility of these plants is almost zero because only one product can be produced.
• Examples of these plants include, steel, cement, paper, sugar, etc.

22. The characteristics or features of process production fl
ows are as follows:
• There is a highly mechanized system for handling
materials. Conveyors and automatic transfer mach
ines are used to move the materials from one stag
e to another.
• Low-skilled labour and skilled technicians are requi
red.
• There is very less work-in-progress because mater
ial flow is continuous.
• The production planning and scheduling can be de
cided well in advance.
• The full production system is designed to produce
only one specific type of item.

23. Thank you