Production system
Introduction
The production system of a company mainly uses facilities, equipments, and operating methods (called production system) to purchase goods that satisfy customers demand. The above requirements of a production system depend on the type of product that the company offers and the strategy that it employs to serve its consumers.
Production system
The production system is the framework with in which production activities of an organization are carried out. At one end of the production system are the inputs and at the other end outputs. Input and output are linked by certain operations or process or activities imparting value to the inputs. The processes, operations or activities may be called production system. The nature of production system may differ from company to company or from plant to plant in the same firm.
Basic production system
Continuous production system ( production to stock or make to stock).
Intermittent production system ( production to order or make to order).
(a) Continuous production system
It involves a continuous or almost continuous physical flow of material. It makes use of special purpose machines (SPMs) and produced standardized items in large qualities.
Characteristics
o Division of labour is done more efficiently.
o Material handling is minimized.
o Small work in progress and less supervision.
Advantages
o Reduced labour cost.
o Reduce material handling.
o Better methods of material control.
o Better return on investment.
Disadvantages
Adjustment to new situations and specifications because difficult, particularly in the present period where stock demand is causing huge losses.
Types of continuous production
1. Mass production
Mass and flow production is a production system designed to produce several standard products in mass quantities. This type of system has a capability to produce large quantities of products there by providing the management with the advantage of economic of scale. Only one type of product or maximum 2 or 3 types of products are manufactured in large quantities and much emphasis is not given to retail consumer orders.
Example: petrochemical industry, cement industry, steel industry, sugar industry, cigarette industry, fertilizer industry etc.
2. Process production
Process production is defined as a system for production where a similar product is produced continuously in large quantities, year after year. This system is used for manufacturing those items whose demand is continuous or high. Here, single raw material can be transformed into different kinds of products at different stages of the production process.
Example: wire drawing, alloy steel manufacturing (ASP, durgapur), rolling mills, crude oil refinery- kerosene, gasoline, etc. can be procured at different stages of production.
Characteristics
o Special purpose machines with built in controls.
o Low skilled labour.
o Negligible work in progress.
o Limited production planning and control functions.
(b) Intermittent production system
In this system, the goods are manufactured specially to fulfill orders by customers rather than producing against stock. Here, the flow of materials is intermittent. Intermittent systems are those where the production facilities are flexible enough to handle a wide variety of products and size (e.g. switchgear industry). Considerable storage between operations is required so that individual operations can be carried out independently for further utilization of men and machines.
Characteristics
o Products are manufactured in small quantities.
o Highly skilled workers are required.
o Large work in progress.
o Flexible to suit production varieties.
Advantages
o Can adjust to new situation and specifications.
o Items can be manufactured according to order and hence fluctuations in demand can easily be taken care of.
Disadvantages
o As production is in small quantities, the cost of production per unit is high.
o Initial heavy investment.
o More inventory and large space required.
Types
1. Job production
Job production is production of a single complete unit by one operator or a group of operators. Here, whole project is considered as one operation and work is completed on each project before passing on to the next. Each product is a class by itself and requires a distinct and separate job for production process. The system requires versatile and highly skilled labour with high capital investment.
Example: bridge building, dam construction, ship building etc.
Characteristics
o Small production runs.
o Highly competent knowledge supervision
o Large work in progress.
o Discontinuous flow of materials.
2. Batch production
Here, items are processed in lots or batches and a new batch is undertaken for production only. When the production on all items of a batch is complete. In fact, batch type production can be considered as an extension of job type system.
Example: chemical industry, production of machine tools and printing press etc.
Characteristics
o Short runs
o Skilled labour in specific trades.
o Large work in progress.
o Flexibility of production schedule.
3. Project production
It can be defined as a set of activities performed to produce a single product. There product here is immobile and different agencies with different skill sets are deployed on that product to complete it.
Example: road lying companies, construction companies, large scale fabrication companies etc.
Characteristics
o Definite beginning and definite end.
o High cost over runs.
o Scheduling and control.
Difference between continuous production and intermittent production
Continuous production Intermittent production
1. There is continuous flow of raw material. The flow of raw material is in batches or lots.
2. It is not against a specific order but against a stock order. It is against a specific order.
3. It is not flexible. It is flexible and can be shifted to other places.
4. Cost of labour is low Cost of labour is very high
5. It includes two method
6. Mass production
7. Process production It includes three methods
Job, batch, project production
Introduction
The production system of a company mainly uses facilities, equipments, and operating methods (called production system) to purchase goods that satisfy customers demand. The above requirements of a production system depend on the type of product that the company offers and the strategy that it employs to serve its consumers.
Production system
The production system is the framework with in which production activities of an organization are carried out. At one end of the production system are the inputs and at the other end outputs. Input and output are linked by certain operations or process or activities imparting value to the inputs. The processes, operations or activities may be called production system. The nature of production system may differ from company to company or from plant to plant in the same firm.
Basic production system
Continuous production system ( production to stock or make to stock).
Intermittent production system ( production to order or make to order).
(a) Continuous production system
It involves a continuous or almost continuous physical flow of material. It makes use of special purpose machines (SPMs) and produced standardized items in large qualities.
Characteristics
o Division of labour is done more efficiently.
o Material handling is minimized.
o Small work in progress and less supervision.
Advantages
o Reduced labour cost.
o Reduce material handling.
o Better methods of material control.
o Better return on investment.
Disadvantages
Adjustment to new situations and specifications because difficult, particularly in the present period where stock demand is causing huge losses.
Types of continuous production
1. Mass production
Mass and flow production is a production system designed to produce several standard products in mass quantities. This type of system has a capability to produce large quantities of products there by providing the management with the advantage of economic of scale. Only one type of product or maximum 2 or 3 types of products are manufactured in large quantities and much emphasis is not given to retail consumer orders.
Example: petrochemical industry, cement industry, steel industry, sugar industry, cigarette industry, fertilizer industry etc.
2. Process production
Process production is defined as a system for production where a similar product is produced continuously in large quantities, year after year. This system is used for manufacturing those items whose demand is continuous or high. Here, single raw material can be transformed into different kinds of products at different stages of the production process.
Example: wire drawing, alloy steel manufacturing (ASP, durgapur), rolling mills, crude oil refinery- kerosene, gasoline, etc. can be procured at different stages of production.
Characteristics
o Special purpose machines with built in controls.
o Low skilled labour.
o Negligible work in progress.
o Limited production planning and control functions.
(b) Intermittent production system
In this system, the goods are manufactured specially to fulfill orders by customers rather than producing against stock. Here, the flow of materials is intermittent. Intermittent systems are those where the production facilities are flexible enough to handle a wide variety of products and size (e.g. switchgear industry). Considerable storage between operations is required so that individual operations can be carried out independently for further utilization of men and machines.
Characteristics
o Products are manufactured in small quantities.
o Highly skilled workers are required.
o Large work in progress.
o Flexible to suit production varieties.
Advantages
o Can adjust to new situation and specifications.
o Items can be manufactured according to order and hence fluctuations in demand can easily be taken care of.
Disadvantages
o As production is in small quantities, the cost of production per unit is high.
o Initial heavy investment.
o More inventory and large space required.
Types
1. Job production
Job production is production of a single complete unit by one operator or a group of operators. Here, whole project is considered as one operation and work is completed on each project before passing on to the next. Each product is a class by itself and requires a distinct and separate job for production process. The system requires versatile and highly skilled labour with high capital investment.
Example: bridge building, dam construction, ship building etc.
Characteristics
o Small production runs.
o Highly competent knowledge supervision
o Large work in progress.
o Discontinuous flow of materials.
2. Batch production
Here, items are processed in lots or batches and a new batch is undertaken for production only. When the production on all items of a batch is complete. In fact, batch type production can be considered as an extension of job type system.
Example: chemical industry, production of machine tools and printing press etc.
Characteristics
o Short runs
o Skilled labour in specific trades.
o Large work in progress.
o Flexibility of production schedule.
3. Project production
It can be defined as a set of activities performed to produce a single product. There product here is immobile and different agencies with different skill sets are deployed on that product to complete it.
Example: road lying companies, construction companies, large scale fabrication companies etc.
Characteristics
o Definite beginning and definite end.
o High cost over runs.
o Scheduling and control.
Difference between continuous production and intermittent production
Continuous production Intermittent production
1. There is continuous flow of raw material. The flow of raw material is in batches or lots.
2. It is not against a specific order but against a stock order. It is against a specific order.
3. It is not flexible. It is flexible and can be shifted to other places.
4. Cost of labour is low Cost of labour is very high
5. It includes two method
6. Mass production
7. Process production It includes three methods
Job, batch, project production
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