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04 Productivity and Production Systems

The document discusses productivity and production systems, highlighting definitions, measurement, and improvement strategies. It outlines various types of production systems including job shop, batch, mass, and continuous production, along with factors influencing manufacturing process selection. Additionally, it emphasizes the importance of adapting process design to market changes and technological advancements for maintaining competitive advantage.

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Archie Dsouza
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16 views36 pages

04 Productivity and Production Systems

The document discusses productivity and production systems, highlighting definitions, measurement, and improvement strategies. It outlines various types of production systems including job shop, batch, mass, and continuous production, along with factors influencing manufacturing process selection. Additionally, it emphasizes the importance of adapting process design to market changes and technological advancements for maintaining competitive advantage.

Uploaded by

Archie Dsouza
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Operations Management

<<Unit No 4>>
Productivity and
Production System
Productivity and Production Systems
• Definitions of Productivity
• Productivity Measurement
• Productivity Improvement
• Types of Production System
• Manufacturing Process Selection
• Factors that affect Manufacturing Process
• Product-Process Matrix
• Process Design Selection, MTS, MTO, ATO and ETO
Productivity
• The terms production and productivity
are often used interchangeably. But
there are differences between the
two.
• Production refers to the total output
whereas productivity refers to the
outputs relative to the inputs.
Productivity
Labor productivity = Output
Man hours used

Labor productivity = Actual output


Standard output

Labor productivity = Standard time


Actual time
Types of Production System
Job Shop Production
• Definition
• Job production is the opposite of mass production. Instead of producing a large number of products at a
time, job manufacturers focus on creating only one unique good. As a result, the product is of higher
quality and tailors to the specific need of the customer.
• Features
• Relatively long fabrication time, Unstable work, Low process planning
• Examples
Examples of companies that would use the job shop manufacturing method are: a paint shop, a machine
tool shop, a commercial printing shop, a machining center, and other factories that create customized
products in small batches and offer customization.
Types of Production System
• Batch Production:
• Definition: Batch production involves producing a moderate volume of standardized
products in batches. Products are manufactured in predefined quantities before
transitioning to the next batch.
• Features:
• Economical: It strikes a balance between the flexibility of job shop production and the
efficiency of mass production.
• Setup Time: Setup and changeover times are significant factors influencing
efficiency.
• Quality Control: Quality can be closely monitored within each batch.
• Examples: Bakeries producing batches of bread, pharmaceutical companies
manufacturing medications in batches, and automotive manufacturers producing a
limited run of a specific car model all use batch production.
Types of Production System
• Mass Production:
• Definition: Mass production is characterized by high-volume production of
identical products using assembly lines or automated processes. Products are
standardized to achieve economies of scale.
• Features:
• Efficiency: Mass production is highly efficient, leading to lower production costs
per unit.
• Automation: Automation and specialized machinery play a significant role in
mass production.
• Consistency: Products are highly consistent in quality and specifications.
• Examples: Automobile manufacturing, consumer electronics assembly, and fast-
food chain food preparation are classic examples of mass production.
Types of Production System
• Continuous Production:
• Definition: Continuous production involves non-stop production of items like chemicals,
electricity, or other commodities. The process typically operates 24/7 with minimal
interruption.
• Features:
• Uninterrupted Flow
• Capital-Intensive

Examples: Petrochemical refineries, power plants, and water treatment facilities are
examples of continuous production systems.
Manufacturing Process Selection
• Manufacturing process selection is a critical decision-making process
that involves choosing the most suitable methods and techniques for
producing a specific product.
• This decision impacts product quality, production efficiency, cost-
effectiveness, and the overall success of the manufacturing process
• The selection of a manufacturing process is guided by various factors,
including material properties, production volume, cost considerations,
and product design requirements.
Key aspects of manufacturing process
selection
• Product Design and Specifications

• Material Properties

• Production Volume

• Cost Considerations

• Regulatory Compliance:
Key aspects of manufacturing process
selection
• Process Complexity

• Quality and Precision Requirements

• Environmental and Sustainability Factors

• Lead Time and Production Speed

• Flexibility and Scalability


Factors that affect Manufacturing Process
• Manufacturing processes can be significantly affected by a wide range
of factors, and it's essential to consider these factors when planning
and optimizing production
• Supplies and Raw Materials

• Equipment and Technology

• Factory Overhead
Factors that affect Manufacturing Process
• Special Parts and Components

• Skilled Workforce

• Labor Costs

• Regulatory Compliance
Factors that affect Manufacturing Process
• Environmental Considerations

• Quality Control and Testing

• Supplier Relationships

• Market Demand and Customer Requirements


Factors that affect Manufacturing Process
• Economic Factors

• Technology Advancements

• Global Supply Chain Dynamics

• Unexpected Events (e.g., Pandemics, Natural Disasters)


Factors that affect Manufacturing Process
• Effective management and adaptation to these factors
are essential for maintaining a competitive edge and
ensuring the success of manufacturing processes.
• Companies often employ continuous improvement
strategies, supply chain optimization, and technology
adoption to mitigate risks and capitalize on
opportunities in the ever-evolving manufacturing
landscape.
Product-Process
Matrix
Significance of Product-Process Matrix
Advantages of Product-Process Matrix
Disadvantages of Product-Process Matrix

• Is static with limited product variety.


• Dimensions are too simple.
• Based on current products.
4 Process Stages of the Product Process Matrix
JOB SHOP

• Reactive Nature

• Low Volume Production

• Customization and Variety

• Customer-Centric Approach

• Resource Flexibility

• Skilled Workforce
4 Process Stages of the Product Process Matrix
• Challenges: While job shops offer customization and flexibility, they
also face challenges such as longer lead times (due to
customization), higher production costs (because of low volumes),
and the need for efficient job scheduling to optimize resource
utilization.
• Examples: Job shops can be found across various industries,
including custom metal fabrication shops, specialty machine shops,
and artisanal craft workshops.
• These businesses thrive on their ability to create unique, made-to-
order products that cater to niche markets and specific customer
preferences.
4 Process Stages of the Product Process Matrix
BATCH
• Focus on Productivity Enhancement
• Economies of Scale
• Standard Practice
• Competitive Differentiation
• Multiple Products, Low Volume
• Batch Sizes
4 Process Stages of the Product Process Matrix
• Advantages:
• Batch production allows for flexibility in accommodating different products and customer
demands.
• It balances the benefits of economies of scale with customization possibilities.
• It can lead to reduced lead times and quicker responses to changing customer preferences.
• Challenges:
• Batch production may involve downtime and changeovers between batches, impacting overall
production efficiency.
• Managing inventory levels and ensuring accurate forecasting are essential to prevent
overproduction or underproduction.
• Quality control is critical to maintain consistency across different batches.
4 Process Stages of the Product Process Matrix
4 Process Stages of the Product Process Matrix
ASSEMBLY LINE

• Higher Volume Production

• Limited Product Variety

• Repetitive and Sequential Process

• Efficiency and Standardization


4 Process Stages of the Product Process Matrix
• Division of Labor

• Continuous Flow

• Quality Control

• Automation and Machinery


4 Process Stages of the Product Process Matrix
4 Process Stages of the Product Process Matrix
Continuous Flow • Sustainable Competitive Advantage
• High Product Volume and
• Minimal Variability
Standardization
• Continuous Monitoring and Quality
• Specialized Equipment and
Control
Automation

• Limited Product Range


4 Process Stages of the Product Process Matrix
Process Design Selection
Process Design Selection
Process Design Selection
• It's important to note that process design selection is not a one-
time decision.
• It may require periodic review and adjustment to adapt to changing
market conditions, technological advancements, or customer
preferences.
• Continuous improvement and innovation are key to
maintaining a competitive advantage in process design.
Process Design Selection
Process Design Selection
• Each of these process design strategies has its advantages
and considerations.
• The choice of strategy depends on factors such as customer
demands, product complexity, lead time requirements, and
inventory management goals.
• Organizations may even employ a combination of these
strategies for different product lines or customer segments to
optimize their operations.

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