INTRODUCTION TO PRODUCTION SYSTEMS

Dr. Rajeev Saha Asst. Prof. YMCA UST, Faridabad

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Objectives
You will be able to
Identify components of a typical production system Classify production system based on various criteria Explain generalized model of production system Summarize features of service organizations Explain life cycle approach to production management

Aim of Production Systems

To produce goods and services needed for human consumption in the Right Quantity Right Quality Right Time Right Price

A Typical Production System

INPUT
Manpower Machine Money Materials Management Information Energy
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Transformation

OUTPUT

Product or Service

Transformations in a Production System

Physical as in Manufacturing Locational as in Transportation Exchange as in Retailing Storage as in Warehousing
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Transformations in a Production System

Physiological as in Hospitals Attitudinal as in Welfare Organization Informational as in Reading Gratificational as in Entertainment
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In the Production System

Value Addition at different operations. Use of various tools & techniques. Performance Indicators like Production, Productivity, Efficiency, Effectiveness.

Production System can be classified on the basis of

Size small, medium & large Input Man, machine, material, money, information, energy. Output Goods and services Volume & Variety - Project, Job, Batch, Mass, Continuous

Project Production System

work is carried out at the site of the work All resources such as tool, material, labour etc. are brought at the site of production e.g. construction projects & heavy and large product based projects

Job Production System

Commonly used to meet a particular customer need. Production lot size is generally small. Product variety is high. Production equipments are mostly general purpose and flexible. Highly skilled labour is needed to handle the equipments.
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Batch Production System

Commonly used to meet repeated customer orders. Production lot size is medium and in batches. Product variety is moderate. Production equipments are general purpose but suitable for higher production volume. Less skilled labour required compared to Job production.
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Mass Production System

Particularly suited for high demand items. Production lot size is very high. Product variety is very low. Special purpose tools and equipments may be needed. Skill Level of workers may be moderately low. Entire plant is designed to cater to few special varieties of products. Higher investments may be needed for special purpose machines.
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Continuous Production System

Particularly suited for very high and regular demand items. Production is continuous. Product variety is very low. Special purpose tools and equipments are needed. Skill Level of workers are low. Plant is generally automated and computer controlled. Higher investments are required for system monitoring and controlling.

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Volume Variety Suitability

Fig. Volume Variety Suitability for various production systems

Legends: P: Project Production J: Job Production B: Batch Production M: Mass Production C: Continuous Production
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Preferred Layout

Fig. Effect on some factors and preferred layout for various production systems
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Production System can be categorized as

Make to Stock
e.g. TV, Motors, Nuts & Bolts, Bearings etc.

Make to Order
e.g. Custom Tailored Clothing, Special Purpose M/c etc.

Assemble to Order
e.g. Computer System

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Generalized Model of Production System

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Distinctive Features of Service Organizations

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Distinctive Features of Service Organizations 1) Customer is a participant in service department Input/ Resource Immediate interaction with operation 2) Production and Consumption occur simultaneously Services not inventoried Capacity to provide service must be available when demanded 3) Service capacity is time perishable Synchronous demand/ capacity Forecasting/ capacity adjustment challenging
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Distinctive Features of Service Organizations 4) Site selection dictated by customer location Multiple, local area sites 5)Operations are labour intensive 5) Operations are labour intensive New technology difficult to implement Employees characteristics influence the services 6) Services are intangible Units of output difficult to define/ measure Q.C. system difficult to establish

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Life Cycle Approach to Production Management

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Stage
Birth of system

Decision
Goals? Product / Service? Form & Appearance of product? Technology how should the product be made? Facility Location,

Product Design & Process Selection

Design of system

Physical Layout Determine demand, perceived quality

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Stage
Manning the system

Decision
Assigning jobs to workers How job to be performed, measured? Compensation of worker How to get system into operation? How long it will take to reach desired stage? How to run system- day today, improve the system, deal with problems
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Start up of the system

The system in Steady state

Stage
Revision of the system

Decision
New technology, threats/ opportunities Revision of markets Newer methods of manufacture Newer products Innovation How does a system die? How to salvage resources? Sell out/ merger/ sell m/cs

Termination of system

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What you have gained

Distinguish various components of a typical production system Classify production system Explain generalized model of a production system Explain features of a service organization Explain life cycle approach to production management

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What you have understood

Identify salient features of Toyota Production System (automobile) using online and offline resources. Compare Toyota Production System with any other automobile production system in India.

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Further Readings
Industrial Engineering - Dr. Ravi Shankar Production & operations management Buffa, Edwood Industrial Engineering and production management Martand Telsang

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