The document discusses production systems and elements of production. It compares Henry Ford's mass production system used in automobile manufacturing to Toyota's lean production system. Mass production aims to produce large quantities of outputs at low unit costs using specialized machinery and assembly lines. Lean production was developed by Toyota to optimize resource utilization, reduce waste, and meet customer demand flexibly with small-scale production. The key differences between the two systems are that mass production requires mass consumption while lean production aims for lean consumption and minimal waste.

1. PRODUCTION
Presented By
A. Wadut Al Mamun

2. Tangible
Intangible
PRODUCT

3. ELEMENTS OF PRODUCTION
• (1) Land (including all natural resources)
• (2) Labor (including all human resources)
• (3) Capital (including all man-made resources)
• (4) Enterprise (which brings all the previous resources
together for production).

4. MARKET ENVIRONMENT
MICRO
ENVIRONMENT
• Major internal factors in an
organisation that affect its
performance is known as
micro-environment.
• Example: Competitor,
customer, supplier and
general public.
MACRO
ENVIRONMENT
• Major external factors in an
organisation that affect its
performance is known as
macro-environment.
• Example: Political,
economical, demographic
and social conditions.

5. 1.PRACTICES
A standard set of process or rule or procedure or method used in a
particular field or profession
2. SYSTEMATIC
Any process marked by methodical plan or procedure
and repeatability
3.PROCESS
 A sequence of procedure that consumes resources to convert input
into out put.
 These O/P serve as I/P for the next stage until required goal is
achieved

6. PROCEDURE
 A fixed step by step action is known as procedure

7. 1. STAGE
A subsection of a project that are performed together and scheduled
output is expected.
2.RESOURCE
A economic or productive factor that requires to accomplish an activity.
3.OUTPUT
An amount of work, energy or goods, produced by a machine or man or
company in a given time

8. INVESTMENT
FIXED INCOME
BONDS
FIXED DEPOSITS
PREFERENCE SHARES
 VARIABLE INCOME
OWNER’S EQUITY
PROPERTY OWNERSHIP

9. GOAL
• An observable and
measurable end
result having one or
more objectives to be
achieved within a more or
less fixed timeframe.
END RESULT
• A final outcome of
a process. The end result of
an investment basically amo
unts to how
much money was made or
lost as a direct result of
deciding on that
particular course of action.

10. SERVICES
• Services are mostly intangible.
• Eg: consultancy, education, insurance, expertise, medical treatment,
or transportation
COMPETITOR
Any person or entity which is a rival against another
Competition also requires companies to become more efficient
in order to reduce costs

11. SIMPLE PRODUCTION CHART

12. Production System
• Mass Production approach by Ford
Automobile
Makes Outputs available in Large Quantities at
Lower Unit Costs than Individually- Crafted Items
• Lean Production system by Toyota
Automobile
Make output with a continuous and zero defect
process by utilizing optimal resources in time

13. Henry Ford’s Mass Production System
 In 1910 Henry Ford laid the foundation of first highly organized
assembly line system of automobile manufacturing.
 He organized all the elements of a manufacturing system-- people,
machines, tooling, and products-- and arranged them in a continuous
system called conveyer system for manufacturing the Model-T
automobile.
 Ford was so incredibly successful he quickly became one of the
world's richest men and put the world on wheels.
 Ford Motor Company produced “A-Bomber an Hour” during WWII
for USAF using the same concept.

14. Mass Production
MODEL “T” – Machine that Changed the
World
 Initially, took 14 hours to Assemble Model T
- Mass Production reduced Time to 1 Hour
and 33 Minutes
 Model T’s Price dropped from $1,000 in
1908 to $360 in 1916
 1914: Ford produced 308,162 cars, more than all
299 other auto manufacturers combined
 1927: Automobile Produced every 24 seconds

15. Toyota lean production
 1956 – Taiichi Ohno went to US to study Ford’s
Manufacturing Facilities
 Found Mass Production Principles not Applicable:
 Scale of Japanese Markets
 Desire for Product Variety
 Unable to Afford Resources and Inventories
Toyoda

16. Toyota Lean Production system
• Japanese economy was in shambles and Toyota could not
afford Mass Production of vehicles due to smaller market
size.
• Toyota begin to design a whole new concept of Production
System which is now also known as Just-in-Time system.
• Taichii Ohno and Shigeo Shingo, are known as the brain
behind Toyota Production System or Lean Production
System or Just-in-Time System approach

17. Mass Production Vs Lean Production
*Mass production is producing goods in
large quantities at low cost per unit.
*This system is also known as Push System
or Just-in-Case System.
*Mass production requires mass
consumption.
*With precision equipment, large numbers
of identical parts could be produced at low
cost and with a small work force.
• Lean Production producing goods
as per requirement
• This system is also known as Pull
system or Just In Time
• Lean Production required lean
consumption zero waste
• Meet the demand with optimal
utilization of recourses and zero
waste

18. RAMKUMAR WADUT