Types of Production Systems

PRODUCTION

❑ A production process consists of activities that are

required in transforming an input set (human resources,
raw materials, energy, money,information, etc.) to
valuable outputs with the help of processors.

❑ Production is a conversion function by which goods and

services are produced. A typical production system
comprises of three main components: Inputs,
Transformation process and Output.
Production system

A production system converts inputs into outputs with

the help of processors
A generalised production system can be represented as:-

INPUT PROCESSOR OUTPUT

(goods/services)
❖ Inputs are men, materials, machines, instructions, drawings, and paper work
and instructions.

❖ The Transformation Process involves operations, mechanical or chemical, to

Change/convert inputs into outputs. It also includes activities that assist
conversion, Typical examples are —

✔ Planning and control of factors of production.

✔ Procurement of materials.
✔ Receipt, storage and issue of materials.
✔ Material handling (to move materials to the point of use.)
✔ Inspection of ill-process and parts.
✔ Assembly and testing of products.
✔ Storage of finished goods.
✔ Instructions, authorizations, inspections, information storage/retrieval
etc. 

❖ Output is goods and services (e.g. products, parts, paper work, served
customers etc.
Types of production systems
❑ Classification on the basis of output:
Three bases considered-
1. Variety
2. Uniformity
3. Volume per output type

❑ Two types –
✔ Continuous
✔ Intermittent
Types of production systems

Continuous Intermittent
Process Production

1. Mass Production 1. Job Production

2. Flow production
2. Project Production

3. Batch Production
Types of production systems
LOW HIGH
VARIETY
CONTINUOUS INTERMITTENT

FLOW MASS BATCH JOB PROJECTS

PRODUCTION PRODUCTION PRODUC-T ORDER
ION

HIGH UNIFORMITY LOW

HIGH Value Per Output Type LOW

DIFFERENCE BETWEEN CONTINUOUS AND
INTERMITTENT SYSTEMS

❖ ON THE BASIS OF MACHINERY

CONTINUOUS (RMG) INTERMITTENT (TAILOR)

✔ Specific Machinery ✔ Generalised Machinery

✔ Permanent Machine Setup ✔ Frequent Changes In Machine Setup

✔ Duplication Of Machines ✔ Less Machines Required

❖ ON THE BASIS OF MATERIAL HANDLING AND
LABOUR USE

CONTINUOUS INTERMITTENT

✔ Unskilled as well as small team of ✔ Highly skilled labour force

specialised labour force

✔ Mechanized material handling ✔ Not feasible to employ mechanized

handling

✔ Material handling cost is less ✔ Material handling cost is higher

✔ Investment in inventory is higher ✔ Need for inventory is minimised

 ❖ ON THE BASIS OF OUTPUT PRODUCED-

CONTINUOUS INTERMITTENT

✔ Few standard products in large ✔ Wide range of products in small

quantities (Style Variation Less) quantities (More Style variation)

✔ Output on the basis of anticipation of ✔ Output according to order received

demand
❖ ON THE BASIS OF MAINTENANCE AND CONTROL
EMPLOYED

CONTINUOUS INTERMITTENT

✔ Absence of maintenance may interrupt✔ No danger of stoppage of whole line

whole process

✔ Controlling is simpler ✔ Controlling is complex

Effect of volume on
manufacturing process selection
TYPES OF CONTINUOUS PRODUCTION
SYSTEM

❑ FLOW TYPE
▪ Output cannot be segregated into different units
▪ High degree of uniformity
▪ Output cannot be measured directly
▪ Example-Power plant
❑ MASS PRODUCTION

Straight line flow of materials

Output of one stage normally becomes input for another
Output visible in form of identical units
Standardised output produced in large quantities

PROBLEMS
✔ Balancing of production lines
✔ Machine maintenance
✔ Raw materials supply
Example – Sugar production, Garment Production
Types of intermittent production
systems

❑ BATCH PRODUCTION SYSTEM

▪ Variety of products are made in small quantities
▪ Various products compete for share of machines
▪ Outputs are aggregated in form of batches
▪ Batches may comprise of similar or dissimilar outputs
PROBLEMS
✔ Machine-job allocation problem
✔ Determination of economic batch quantity
✔ Scheduling and sequencing of operations
Example – electrical goods
❑ JOB-ORDER PRODUCTION SYSTEM
▪ Does not has its own standard product but accepts
whatever customer orders come in
▪ Output identifiable in terms of specific job order
▪ Material flow is very complex

PROBLEMS
Determination of the sequence of processing
Example – Tailor shop
❑ PROJECT PRODUCTION SYSTEM
▪ Project is a temporary endeavour having a defined
beginning and end ;undertaken to meet unique goals and
objectives
▪ Project is non repetitive
▪ This type of production system uses resources on
different projects
▪ Product remains fixed and manpower and facilities put
work on it
▪ PERT/CPM can be used for planning and control in this
case
Example- Ship production
METHODS OF PRODUCTION

● Business must decide on the most suitable method of

production. The objective is to minimise the cost per
unit, i.e. productive efficiency.

● Which method?

Job batch flow

JOB PRODUCTION
● Production of a single product at a time

● Small number of units required

● Entire job is completed
eg. birthday cake, dental treatment
● Found both in the manufacturing and service industries
● Because number of units produced is small, production process is
highly labour intensive

● Workforce usually skilled craftsmen

● Many small businesses start this way.

JOB PRODUCTION
ADVANTAGES DISADVANTAGES

● Can produce unique “one-offs”, ● Labour costs high

specification can constantly be
modified ● May be expensive to buy all the
tools and equipment necessary
● Workers more likely to be
motivated, tasks require high ● Lead times can be lengthy
degree of skill and expertise.
Work more demanding and ● Selling costs may be high
interesting
● Once demand for a firm’s
● Organisation is simple, product rises, job production
may become costly. Firms may
communication, co-ordination,
prefer to use a method more
supervision and inspection can suited to producing large
be carried out. quantities.
BATCH PRODUCTION
● Used when demand for a product is regular
rather than a ‘one-off’. An example might be
a bakery producing bread.

● Production is broken down into a number of

operations

● A particular operation is carried out on each

batch before moving to the next stage.

● A great number of products are produced

using this method, particularly in the
manufacturing of components and in food
processing.
BATCH PRODUCTION
ADVANTAGES DISADVANTAGES

● Flexibility - each batch can be ● Careful planning and

changed to suit customer co-operation required or
requirements
machines may lie idle
● Employees can concentrate on
one operation rather than whole ● Workforce may be less
task motivated due to repetition

● Stocks of partly finished goods ● If batches are small then unit

can be stored and completed costs are high
when demanded by individual
customers
● A lot of money could be tied up
in work-in-progress
FLOW PRODUCTION

Production is organised so that different operations can be carried

out one after the other, in a continuous sequence.

The main features are as follows:

● Large quantities are produced

● A standardised product is made i.e all the same
● Semi-skilled workforce
● Large amounts of robotics, machinery and equipment (capital
intensive)
● Large stocks of raw materials and component parts are required
FLOW PRODUCTION
ADVANTAGES DISADVANTAGES

● Unit costs are reduced ● Set up costs are high

● The process can be highly ● Product is standardised

automated, many operations
carried out by robots and other ● Worker motivation can be low
types of machinery
● Breakdowns can prove costly
● Quality systems can be built
into production ● Supply may exceed demand
Some businesses may use a combination of the job,
batch and flow,

E.g. a brewery may make batches of special ale but it

is then sent to a bottling plant where continuous flow
is used.
Plant Layout

❖ Plant layout refers to the arrangement of machinery,

equipment and other industrial facilities for achieving
quickest and smooth production.
 Objectives of a good Layout

⚫ Provide enough production ⚫ Provide for volume and product

capacity. facility.
⚫ Reduces handling costs. ⚫ Provide ease for supervision.
⚫ Reduces congestion. ⚫ Facilitate co-ordination
⚫ Reduces hazards to personnel. communication.
⚫ Utilizes labour efficiently. ⚫ Provide safety and health.
⚫ Increase employee morale. ⚫ Allow ease of maintenance.
⚫ Reduce accidents. ⚫ Allow high machine/equipment
⚫ Utilizes available space efficiently utilization.
and effectively. ⚫ Improve productivity.
Principles of Layout
The Principle of Minimum Travel

Principle of Sequence
Principle of Usage
Principle of Compactness
Principle of Safety and Satisfaction

Principle of Flexibility

Principle of Minimum Investment

Types of layout

❑ Process layout or functional or job shop layout.

❑ Product layout or line processing layout.

❑ Fixed position layout or static layout.

❑ Cellular manufacturing layout or Group Technology layout

or Combination layout or Hybrid layout.
Process layout or functional or job
shop layout.

❖ The distance between departments should be as short as

possible.
❖ Machines should be grouped in accordance with the
principle of sequence of operation.
❖ Convenience for inspection.
❖ Convenience for supervision.
Process layout or functional or job
shop layout.
Inward good Planers Packing
stores Automatics Grinders and
Milling Shipping
Raw
machines
Material Central Heat
holding treatment
inspection
stores shop
Area
Drilling
shop Electro Assembly Finished
Training Shop plating shop goods
Painting storage
(Lathes)
shop
Process layout or functional or job
shop layout (Shirt Production)
Inward good Packing
stores Automatics Button Hole and
Flap Section Section Shipping
Raw
Material Central Assembly
holding
inspection
stores
Area
Cuff Section
Placket Iron Section Finished
Collar Section Section goods
Automatics storage
Advantages of Process layout

❖ Reduced investment of machine.

❖ Greater flexibility.
❖ Better and efficient supervision.
❖ Scope for expansion as the capacity can be easily increased.
❖ Better utilization of men and machine.
❖ Easier to handle breakdown of equipment.
❖ Full utilization of equipments.
❖ Investment of equipment would be comparatively lower.
❖ Greater incentive to individual worker.
Disadvantages of Process Layout.

❖ Difficulty in the movement of material.

❖ Requires more space.
❖ Difficult in production control.
❖ More production time as work in progress has to travel from place
to place.
❖ Accumulation of work in progress at different places.
Product layout or line processing layout
or Straight Line

❖ All the machine tool and equipment must be placed at the point
demanded by the sequences of operations.
❖ There should be no points where one line crosses another line.
❖ Materials may be fed where they are required for assembly but not
necessarily all at one point.
❖ All the operations, including assembly, testing and packing should
be included in the line.
 Line Layout or Product Layout
Receiving Raw Fabrication line for part C Packing
Materials Fabrication for part B and

goods
Finished
stores shipping

Raw Material Finishing

Fabrication line for goods
Part A store

WC- 1 WC-2 WC-3 TEST

Assembly line for the product

Product Layout (advantages)

❖ Reduction in material handling cost due to mechanization.

❖ Avoid production bottleneck.
❖ Economy in manufacturing time.
❖ Better production control.
❖ Require less floor area per unit of production.
❖ Work-in-progress is reduced and so on investment.
❖ Early detection of mistakes.
❖ Greater incentive to a group of workers to raise their level of
performance.
Product Layout (disadvantages)

❖ Product layout is known for its inflexibility.

❖ This is an expensive layout
❖ Difficulty in supervision.
❖ Expansion is also difficult.
❖ Breakdown can disrupt the whole system.
Fixed Position Layout or Static Layout

❖ Movement of men and machine to the product.

❖ Product remain stationary.
❖ Material or major components remain in a fixed location.
❖ Cost of moving the machine and men is lesser than the cost of moving
the product.
Fixed Position Layout or Static Layout

Raw Material
Machine & Finished Product
Equipment Aircraft (Aircraft)
Assembly
Labor
Fixed Position Layout (Advantages)
❖ Men and machine can be used for a wide variety of operations
producing different products.
❖ The investment on layout is very small.
❖ The worker identifies himself with the product and takes pride
in it when the work is complete.
❖ The high cost of, and difficulty in transporting a bulky product
are avoided.
 Combined layout Group technology layout or
Hybrid layout for Gear Manufacturing

Product Layout

Raw
Forging Gear Cutting Heat Gear Grinding
Mat. Press Machine Treatment Machine

Finished
Output
Forging Gear cutting Heat Gear Grinding
Press Machine Treatment Machine

Process
layout Gear cutting
Machine
Steps in Layout Planning and Design
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