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Types of production processes


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Class Notes for PGDM Second Semester students

Types of production processes

  1. 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.Anupam Kumar 1
  2. 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.Anupam Kumar 2
  3. 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.Anupam Kumar 3
  4. 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.Anupam Kumar 4
  5. 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 …Anupam Kumar 5