Production Systems
ME2112E: Production Management
• At the most abstract level all productions systems are
“transformation processes”
• The common resources are labour, capital (for machinery
and equipment, materials, etc.), and space (land,
buildings, etc.)
• Economists call these resources the “factors of
production”
• Production managers refer to them as the “five M’s”:
men, machines, methods, materials, and money.
Production Systems
Production Systems
• As a process, it is characterized by flows:
– physical flow of materials, work in process, and
finished goods;
– the flow of information and the inevitable paperwork
that carry and accompany the physical flow.
• Physical flows are subject to the constraints of the
capacity, which limits the system’s ability to meet output
expectations.
Production Systems
• Quality as a limiting factor
– The quality of a product, measured against some
objective standard, includes appearance,
performance characteristics, durability,
serviceability, and other physical characteristics;
timeliness of delivery; cost; appropriateness of
documentation and supporting materials; and so
on.
Characteristics of Production System
01
02
05
Value
Addition
Control
03
04
Coordi
nation
Transfor
mation
Organized
Activity
Production
Systems
CONTROL
review and maintenance of the
system are required for its
healthy functioning and
productivity
COORDINATION
every part of the system is well
coordinated. The absence of
coordination may lead to
system failure and losses
ORGANIZED ACTIVITY
all the activities or processes
within the system are defined
and run for a specific purpose
TRANSFORMATION
system’s main work is
converting Inputs into Outputs
VALUE ADDITION
manufacturers add value to the
inputs. Consequently, the
output generated serves the
needs of the consumers
Types of Production Systems
• Depends upon the type and volume of output.
• It differs across industries and target consumer markets.
• The major determinants in the selection are:
– Volume: the average quantity of goods for production.
– Variety: the product variants, alternatives and range.
– Flow: the nature and intensity of the process.
Types of Production Systems
Production
Systems
Intermittent
Production
Job-shop
Production
Batch
Production
Continuous
Production
Mass
production
Process/Flow
Production
Intermittent Production
• Production flow is intermittent or irregular or production
process begins and stops at irregular intervals.
• Production is carried out based on the customer orders,
i.e. Make-to-order.
• Consequently, the producer can customize their products
as per the orders received.
• Each time, the jobs and route are changed depending on
the order received.
• Producer should install general-purpose production
machines.
Features of Intermittent Production
• Order-based production of goods.
• Production on a smaller scale.
• Flexibility in production.
• Production of a greater variety of products.
Job-shop Production
• or Unit Production facilitates the manufacturing of
customized products.
• Production of one or a few products.
• Completely based on the user specifications and within a
stipulated period and cost.
• Each task has a different set of technical requirements
because of personalization.
• Thus, the jobs and demand are unpredictable.
• Example: Hairdresser, Aircraft, Gold Jewellery and Tailor.
Job-shop Production
Job-shop Production
Advantages
• A wide variety of products can be
offered to customers.
• The workers are more skilled in
comparison to other systems.
• Ease in management due to
limited resources and workers.
• Flexibility in process and creative
methods to generate unique
output.
Disadvantages
• The cost of production is high due
to small-scale production.
• The higher lead time of the
system.
• Under-utilization of equipment.
• Requirement of highly skilled
labours.
Batch production
• More than a unit production but less than mass production.
• Production happens in lots and batches at regular intervals.
• The batch contains a limited number of similar products
manufactured simultaneously.
• The product is disintegrated in the form of Jobs.
• The whole batch passes through these jobs one at a time.
• Production of the next batch begins post-completion of the
ongoing batch.
• Example: Medicines, Shoes and Bags
Batch production
Batch production
Advantages
• Usage general-purpose
machines.
• Risk can be substituted among
Batches.
• Better resource utilization.
• Per-unit cost is lesser in
comparison to unit
production.
Disadvantages
• It requires specific fixtures.
• High cost in sourcing
materials.
• High work-in-progress
inventory.
• More lead time due to
changes in set-up.
Continuous Production
• Production occurs continuously with a consistent supply
of materials or the products are constantly in motion.
• There are no frequent halts.
• Production is carried out on a large scale.
• Companies maintain the inventory as per demand
forecasts.
• Identical goods are produced due to product
standardization and bulk production.
Features of Continuous Production
• Complete utilization of equipment and raw materials.
• Production at large scale.
• Per-unit cost is less due to bulk production.
• Less lead time as the set-up is required only at the
beginning.
• Highly automated and capital-intensive system.
Mass Production
• For production in very large quantities.
• It involves the manufacturing of discrete parts,
popularly known as Assemblies.
• Companies adopt a Make-to-stock business strategy.
• The flow is constant and continuous.
• Facility arrangement is in line or per product layout.
• Example: Soaps, Pens and Toothpaste
Mass Production
Mass Production
Advantages
• The cycle time is
comparatively less.
• Automation of material
handling.
• Low work in progress.
• The cost of production is
low.
Disadvantages
• Fault at one place may stop
the entire production.
• Line layout needs changes
with the change in product
design.
• High capital investments.
Flow Production
• The flow of production is uniform and standardized.
• All the processes are arranged sequentially, and all
the products pass through them.
• This system is rigid.
• Companies stock the products and use them to fulfil
the quick demand of the market.
• Examples: Chemical Plants, TV and Engines.
Flow Production
Flow Production
Advantages
• Less amount of wastage.
• Semi-skilled can also be
employed.
• Higher profit margins.
• The process flow is constant.
Disadvantages
• Less flexible to increase or
decrease the number of
processes.
• Restrictions on product
differentiation.
• Incapable of fulfilling
individual demand.
PUSH AND PULL PRODUCTION SYSTEMS
Push Vs Pull
Push
• Produce all that can be
produced
• Works on anticipated
consumption
• High inventories
• More waste
• Poor communication
• No risk of shortages
Pull
• Produce only what is needed
• Works on actual consumption
• Low inventories
• Lesser waste
• Better communication
• Faces risk of shortages
Push Vs Pull
Pull System Examples
• Kanban: Uses visual signals like cards or bins to indicate
the need for materials or components.
• Just-in-Time (JIT): Involves producing only what is
needed when it is needed. Reduces inventory and
increases efficiency.
• Production Leveling: Involves balancing the production
of multiple products, thus ensures that all products are
produced at the same rate. Reduces inventory and
improves efficiency.
Reference
• J. Li, S.M. Meerkov (2008) Production Systems
Engineering, Springer US
• https://theinvestorsbook.com/production-system-in-
operations-management.html
Syllabus
• Introduction: Historical development of operations and
supply chain management; operations strategy and
competitiveness; measuring process performance,
characteristics of modern production systems; push and
pull production systems.
• Facilities planning: Objectives of facility planning; facility
design: flow, space and activity relationship, flow
patterns, layout planning, systematic layout planning;
types of layout: process layout, product layout, group
technology layout.

ProductionManagement-03 Production Systems (1).pdf

  • 1.
  • 2.
    • At themost abstract level all productions systems are “transformation processes” • The common resources are labour, capital (for machinery and equipment, materials, etc.), and space (land, buildings, etc.) • Economists call these resources the “factors of production” • Production managers refer to them as the “five M’s”: men, machines, methods, materials, and money. Production Systems
  • 3.
    Production Systems • Asa process, it is characterized by flows: – physical flow of materials, work in process, and finished goods; – the flow of information and the inevitable paperwork that carry and accompany the physical flow. • Physical flows are subject to the constraints of the capacity, which limits the system’s ability to meet output expectations.
  • 4.
    Production Systems • Qualityas a limiting factor – The quality of a product, measured against some objective standard, includes appearance, performance characteristics, durability, serviceability, and other physical characteristics; timeliness of delivery; cost; appropriateness of documentation and supporting materials; and so on.
  • 5.
    Characteristics of ProductionSystem 01 02 05 Value Addition Control 03 04 Coordi nation Transfor mation Organized Activity Production Systems CONTROL review and maintenance of the system are required for its healthy functioning and productivity COORDINATION every part of the system is well coordinated. The absence of coordination may lead to system failure and losses ORGANIZED ACTIVITY all the activities or processes within the system are defined and run for a specific purpose TRANSFORMATION system’s main work is converting Inputs into Outputs VALUE ADDITION manufacturers add value to the inputs. Consequently, the output generated serves the needs of the consumers
  • 6.
    Types of ProductionSystems • Depends upon the type and volume of output. • It differs across industries and target consumer markets. • The major determinants in the selection are: – Volume: the average quantity of goods for production. – Variety: the product variants, alternatives and range. – Flow: the nature and intensity of the process.
  • 7.
    Types of ProductionSystems Production Systems Intermittent Production Job-shop Production Batch Production Continuous Production Mass production Process/Flow Production
  • 8.
    Intermittent Production • Productionflow is intermittent or irregular or production process begins and stops at irregular intervals. • Production is carried out based on the customer orders, i.e. Make-to-order. • Consequently, the producer can customize their products as per the orders received. • Each time, the jobs and route are changed depending on the order received. • Producer should install general-purpose production machines.
  • 9.
    Features of IntermittentProduction • Order-based production of goods. • Production on a smaller scale. • Flexibility in production. • Production of a greater variety of products.
  • 10.
    Job-shop Production • orUnit Production facilitates the manufacturing of customized products. • Production of one or a few products. • Completely based on the user specifications and within a stipulated period and cost. • Each task has a different set of technical requirements because of personalization. • Thus, the jobs and demand are unpredictable. • Example: Hairdresser, Aircraft, Gold Jewellery and Tailor.
  • 11.
  • 12.
    Job-shop Production Advantages • Awide variety of products can be offered to customers. • The workers are more skilled in comparison to other systems. • Ease in management due to limited resources and workers. • Flexibility in process and creative methods to generate unique output. Disadvantages • The cost of production is high due to small-scale production. • The higher lead time of the system. • Under-utilization of equipment. • Requirement of highly skilled labours.
  • 13.
    Batch production • Morethan a unit production but less than mass production. • Production happens in lots and batches at regular intervals. • The batch contains a limited number of similar products manufactured simultaneously. • The product is disintegrated in the form of Jobs. • The whole batch passes through these jobs one at a time. • Production of the next batch begins post-completion of the ongoing batch. • Example: Medicines, Shoes and Bags
  • 14.
  • 15.
    Batch production Advantages • Usagegeneral-purpose machines. • Risk can be substituted among Batches. • Better resource utilization. • Per-unit cost is lesser in comparison to unit production. Disadvantages • It requires specific fixtures. • High cost in sourcing materials. • High work-in-progress inventory. • More lead time due to changes in set-up.
  • 16.
    Continuous Production • Productionoccurs continuously with a consistent supply of materials or the products are constantly in motion. • There are no frequent halts. • Production is carried out on a large scale. • Companies maintain the inventory as per demand forecasts. • Identical goods are produced due to product standardization and bulk production.
  • 17.
    Features of ContinuousProduction • Complete utilization of equipment and raw materials. • Production at large scale. • Per-unit cost is less due to bulk production. • Less lead time as the set-up is required only at the beginning. • Highly automated and capital-intensive system.
  • 18.
    Mass Production • Forproduction in very large quantities. • It involves the manufacturing of discrete parts, popularly known as Assemblies. • Companies adopt a Make-to-stock business strategy. • The flow is constant and continuous. • Facility arrangement is in line or per product layout. • Example: Soaps, Pens and Toothpaste
  • 19.
  • 20.
    Mass Production Advantages • Thecycle time is comparatively less. • Automation of material handling. • Low work in progress. • The cost of production is low. Disadvantages • Fault at one place may stop the entire production. • Line layout needs changes with the change in product design. • High capital investments.
  • 21.
    Flow Production • Theflow of production is uniform and standardized. • All the processes are arranged sequentially, and all the products pass through them. • This system is rigid. • Companies stock the products and use them to fulfil the quick demand of the market. • Examples: Chemical Plants, TV and Engines.
  • 22.
  • 23.
    Flow Production Advantages • Lessamount of wastage. • Semi-skilled can also be employed. • Higher profit margins. • The process flow is constant. Disadvantages • Less flexible to increase or decrease the number of processes. • Restrictions on product differentiation. • Incapable of fulfilling individual demand.
  • 24.
    PUSH AND PULLPRODUCTION SYSTEMS
  • 25.
    Push Vs Pull Push •Produce all that can be produced • Works on anticipated consumption • High inventories • More waste • Poor communication • No risk of shortages Pull • Produce only what is needed • Works on actual consumption • Low inventories • Lesser waste • Better communication • Faces risk of shortages
  • 26.
  • 27.
    Pull System Examples •Kanban: Uses visual signals like cards or bins to indicate the need for materials or components. • Just-in-Time (JIT): Involves producing only what is needed when it is needed. Reduces inventory and increases efficiency. • Production Leveling: Involves balancing the production of multiple products, thus ensures that all products are produced at the same rate. Reduces inventory and improves efficiency.
  • 28.
    Reference • J. Li,S.M. Meerkov (2008) Production Systems Engineering, Springer US • https://theinvestorsbook.com/production-system-in- operations-management.html
  • 29.
    Syllabus • Introduction: Historicaldevelopment of operations and supply chain management; operations strategy and competitiveness; measuring process performance, characteristics of modern production systems; push and pull production systems. • Facilities planning: Objectives of facility planning; facility design: flow, space and activity relationship, flow patterns, layout planning, systematic layout planning; types of layout: process layout, product layout, group technology layout.