PRODUCTION PROCESS

Alfiler, Krishanicole
Balgemino, Mikko
Cabunyag, Warren
Geron, Edna
Guiang Mark Donnel
Ramos, Adena
Tan, Angel Queen
Group 2
INTRODUCTION

Tan, Angel Queen

 Production Process

■ It is a method concerned with transforming a range of inputs into those outputs that are
required by the market.

■ It involves a series of links that form a production line or chain at which each stage, value is
added to the final product in the course of production.

■ This involves two main sets of resources - the transforming resources, and the transformed
resources.
Production Process
The main resources and stages that are involved to make up the production process:

INPUTS PRODUCTION PROCESS OUTPUTS

• Property • Transformation • Saleable Goods

• Machinery • Knowledge & Services
• Labour Gathering & • Valuable
• Raw Materials Presentation Information
• Consumables
 Production Process

The production process of a manufacturer, in its simplest form, may consist of the following
steps:
1. Fabrication
2. Assembling the raw materials into finished products
3. Quality Control
4. Testing of finished products
5. Packaging the finished products
6. Shipping the finished products to retailers, wholesalers, etc.
 Production Process

Computer-aided manufacturing (CAM) is sometimes employed within the production

process to get the best overall equipment effectiveness and operations efficiency to keep the
cost per unit to a minimum.

■ Overall Equipment Effectiveness (OEE) is used to evaluate how effectively

a manufacturing operation is utilized.
■ Operations Efficiency encompasses several strategies and techniques used to accomplish
the basic goal of delivering quality goods to customers in the most cost-effective and timely
manner
Benefits of using CAM in a Production
Process
■ Improves Machining Capabilities
■ Improves Client Accessibility
■ Helps improve Productivity of CNC Machines
■ Helps Reduce Material Wastage
Types of Production Process

■ Job Production
■ Batch Production
■ Mass Production
■ Mass Customization
■ Craft Production
■ Service Production
JOB PRODUCTION

Geron, Edna
 Job production is associated with bespoke production, where each product is made
individually and to order; customised to the buyer's specification, such as buildings, paintings,
designer clothes, meals and haircuts. Production is a highly skilled process and goods may be
handmade and labour intensive.
Job production covers both small-scale, low technology projects as well as large, complex
projects involving high technology. Products are one-off and often unique, such as portraits or
tailor made suits, but may be produced singly to a repeated design, such as aircraft, luxury
sports cars and yachts.

The management of job production may be difficult, as the processes differ from job to job.
Management of larger products need to place emphasis on cost control and cash flow because
payments for products made to order, such as yachts and buildings, may not be made until
completion and/or delivery. There may also be penalties for late delivery of large products, so
management need to monitor progress.
The job production possesses the following characteristics.

1. A large number of general purpose machines are required.

2. A large number of workers conversant with different jobs will have to be employed.
3. There can be some variations in production.
4. Some flexibility in financing is required because of variations in work load.
5. A large inventory of materials, parts and tools will be required.
6. The machines and equipment setting will have to be adjusted and readjusted to the
manufacturing requirements.
7. The movement of materials through the process is intermittent.
Job production has the following limitations:

1. The economies of large scale production may not be attained because production is done in
short-runs.
2. The demand is irregular for some products.
3. The use of labour and equipment may be an inefficient.
4. The scientific assessment of costs is difficult.
JOB PRODUCTION EXAMPLES
Cake
Technology
Customization
Prototypes
Parts
Bespoke
BATCH PRODUCTION

Ramos, Adena
BATCH PRODUCTION

Is a method of production that creates several items at the same time in a series of
production steps. The items that are created together are known as a batch.
Producing a number of items together in a series of steps.
BATCH PRODUCTION EXAMPLES
■ Baked goods
■ Clothing
■ Computer chips
■ Computer software
■ Die- or mold-making
■ Electrical goods
■ Flat-pack furniture
■ Jet engine production
Advantages of Batch Production
■ It generally has lower capital costs.
■ It has the flexibility to produce a variety of different product variations, or different products.
■ It works well when small production runs are needed, such as individual sandwich shops
baking only the cookies they need.
■ It is ideal for custom or seasonal orders, or trial runs of a new product.
■ It reduces inventory. This can be critical when spoilage or space are issues.
■ It allows a single production system to be used for making different seasonal items.
■ It makes sense when the demand for a product is not sufficient to keep a dedicated
machine or production process operating continuously.
Disadvantages of Batch Production
■ Reconfiguring the production system to produce something different results in
downtime. In lean manufacturing language, these are wasted resources.
■ The production equipment uses a lot of space. When it's idle, this space is not being
utilized to make money.
■ Labor is required to move items from one stage of the batch process to another, in
addition to the labor required for batch manufacturing.
■ High storage costs - If the prototype has an error all the rest of the same products will
have that fault as the machine replicates exactly. This would waste valuable time and
the loss of materials would be costly.
EVALUATION

Overall the advantages definitely outweigh the disadvantages and if the prototype
is properly tested the batch production is very effective and cost effective. Although, having
said that, if the product doesn't sell well, high storage costs will be present and, at some
points, industry will practically stop.
Mass Production

Balgemino, Mikko Gerald

DEFINITION

■ Mass production is the name given to the method of producing goods in large
quantities at low cost per unit.
■The mass production of items is often done by using an assembly line, or another
efficient means of production.
■ But mass production, although allowing lower prices, does not have to mean low-
quality production.
■ The mass production process itself is characterized by
■ 1. mechanization to achieve high volume, 2.elaborate organization of materials
flow through 3.various stages of manufacturing,
■ 4.careful supervision of quality standards, 5.minute division of labour
HISTORY

■ The system of manufacture involving production of many identical parts and their
assembly into finished products came to be called the American System, because
it achieved its fullest maturity in the United States.

■ Although Eli Whitney has been given credit for this development, his ideas had
appeared earlier in Sweden, France, and Britain and were being practiced in arms
factories in the United States.
■ By the third quarter of the 19th century, the American System was employed in
making small arms, clocks, textile machinery, sewing machines, and a host of other
industrial products.

■ The assembly line: Though prototypes of the assembly line can be traced to
antiquity, the true ancestor of this industrial technique was the 19th- century meat-
packing industry in Cincinnati, Ohio, and in Chicago, where overhead trolleys were
employed to convey carcasses from worker to worker
Drawing upon observations of the meat-packing industry, the American automobile
manufacturer Henry Ford designed an assembly line that began operation in 1913.

The result was a remarkable reduction of manufacturing time for magneto flywheels
from 20 minutes to five minutes
Moving Assembly Line
One Day’s Production
EFFECTS ON THE ORGANISATION OF
WORK
1. First, tasks were minutely subdivided and performed by unskilled workers, or at
least semiskilled workers, since much of the skill was built into the machine.
2. Second, manufacturing concerns grew to such size that a large hierarchy of
supervisors and managers became necessary.
3. Third, the increasing complexity of operations required employment of a large
management staff of accountants, engineers, chemists, and, later, social
psychologists, in addition to a large distribution and sales force.
ADVANTAGES

1. The time taken to manufacture a product using mass production is shorter

than when using traditional methods.
2. The probability of human error and variation is also reduced, as tasks are
predominantly carried out by machinery.
3. A reduction in labour costs.
4. An increased rate of production
DISADVANTAGES

1. Mass production is inflexible because it is difficult to alter a design or production

process after a production line is implemented.
2. All products produced on one production line will be identical or very similar, and
introducing variety to satisfy individual tastes is not easy.
3. The starter cost for the machinery can be expensive.
CONCLUSION

Mass production allowed the evolution of consumerism by lowering the unit cost of
many goods used.
MASS CUSTOMIZATION
Abstract
From a collaborative engineering perspective, mass customization can be viewed as
collaborative efforts between customers and manufacturers, who have different sets of
priorities.
 Mass Customization
- An Introduction
 It aims to deliver product and services that best meet customers’ needs with
near mass production efficiency
 The paradigm shift to mass customization is made an imperative for many
companies to survive in an increasingly diversified, fragmented and
competitive market place
 Currently, the focus of research in mass customization is shifting from its
strategic viability to operational feasibility

What?
How?
Why?
 Mass Customization
- An Introduction(cont.)

 Despite its advances in academia and industry, mass customization

continues to be challenged by critics
 One of the arguments against mass customization is that it has limited
noveltyand restricted applicability
 Engineering Collaboration via Negotiation (ECN) paradigm (Lu 2003)
promises great potential to tame many of the challenges that are currently
constraining many mass customizationprograms
Mass Customization Concept
 ‘Future Shock’ by Toffler, 1970 - “future manufacturing enabled by
information technology would be able to provide customized products in a
large scale with little or no extra cost”
 Pine et al.’s Harvard Business Review article, 1993 – the ability to
provide individually designed products and services to every customer
through high process agility, flexibility, and integration
 Hart 1995 et al. - Mass customization is a system that uses information
technology, flexible processes, and organizational structures to deliver a
wide range of products and services that meet specific needs of
individual customers at a cost near that of mass-produced items
 Mass Customization vs.
Mass Production

*Mass Customization as a Collaborative Engineering Effort

 Development of Mass
Customization

The paradigm shift to mass customization is mainly

propelled by three forces :

Market demand - ‘the mass market is dead and

segmentation has progressed to the era of mass
customization’ – Kotler(1989)
 Market competition - Product variety is exploding while product life
cycle isshortening
 Technological revolutions - Flexible manufacturing systems allow
manufacturers to quickly adapt to changes without incurring high
penalty in terms of cost and lead time
Mass Customization Economics
 Huffman (1998) – “there’s a thin line between mass customization and
mass confusion”
 Piller et al. (2004) – “with customers integrated into the value creation
process, companies gain access to more accurate information about
market demand and can postpone some activities” which add to cost
pools
 In general, the key issue in mass customization from an economic
perspective is how to leverage economies of integration to compensate
potential loss of economies of scale
Conflicts in Mass Customization
 Conflicts in name :
 Mass – Aggregation
 Customization – one-of-a-kind
 Conflicts in operability :
Customers’ demands are diverseand
irregular which lead to high component
variety, large numbersof suppliers, and high
administrative complexity
 Collaborative Engineering
As a Tool for Conflict Resolution

 Monplaisir and Salhieh (2002) – “collaborative engineering can be

viewed as a process in which people working in teams according to
engineering methodologies and supported by technical tools can share
resources and knowledge to achieve common goals”

 Lu (2003) proposes Engineering Collaboration via Negotiation (ECN) as a

new paradigm for collaborative engineering. ECN is defined as “a socio-
technical decision making activity where a team of stakeholders with
different expertise and mixed motives engage in interactive and joint
conflict resolutions to co- construct consensual agreements of some
engineering matter”
 Mass Customization
- In Collaborative Engineering Perspective
 Conceptually, mass customization can be taken as a collaborative
engineering activity, where customers and manufacturers with asymmetric
information and different preferences engage in interactive and joint
conflict resolutions to co-create an artefact

 How such collaboration can be carried out effectively and efficiently is an

ideal research topic for collaborative engineering
 Mass Customization
■ - The Generic model*
■ Spring et al. (2000) proposed a generic model of product customization:

*Adapted from Spring et al. 2002

 Mass Customization
- The Generic model* (cont.)

 Problem Solving :
The product customization
concepts and design schemes
are determined and agreed
between customers and
manufacturers

 Design Specification : This

stage determinesthe
firm’s performance on
some of the operational
objectives
 Mass Customization
- The Generic model* (cont.)
 Transfer :
Convert designspecifications
into actual products

A limitation of this3-stage
generic model is that customer –
manufacturer interaction is
confined to
the problem solving stage only
 Application scenarios
 Scenario I : Co-Innovation

 The manufacturer-centric view holds that innovations result from

intentional research while the user-centric (or customer-centric) view
contents that many innovations actually come from users
 Problem solving in mass customization is collaborative in nature and
designated as collaborative innovation (co- innovation)*
 Family Architecture (PFA) - As a framework for co-innovation PFA allows
customers, product engineers, and process engineers can work under a
unified framework with their interdependent relationships explicitly
mappedout
* Songlin Chen, Yue Wang, Mitchell M. Tseng
 Application scenarios (contd.)
 Scenario II : Co-Configuration

 The stage where customers and manufacturers come to agree upon

the specifications of a specific product offering or customization type
 In a typical organization setting, co-configuration often involves
customers and sales engineers (sometimes design engineers)

Besides product configuration systems, personal

recommendation systems (Stolze and Strobel 2004) are
proposed to facilitate customers in product configuration enabled by
techniques like data mining, recommendation system
 Application scenarios (contd.)
 Scenario III : Co-Production

 Co-production corresponds to the transfer stage (Spring et al. 2000)

by including material conversion, material transportation, shop floor
control, procurement, inventory management etc.

 By sharing demand and supply information, supply chain partners

can better utilize production resources in response to volatile market
demand
 Conclusion
 Mass customization defies the contradiction between mass and
customization and aims to deliver products and services that best meet
individual customers’ needs with near mass production efficiency
 It is important that all parties concerned can engage in collaboration with
sufficient trust and only then collaborative engineering can play a
significant role
 The Economist: “Mass Customization a Result of the Third Industrial
Revolution”
CRAFT PRODUCTION

Marc Donnel Guiang

Craft Production

It is the process of manufacturing by hand or with tool but without automation.

The term is associated with the work of skilled artisans that add tangible and intangible
value to a product. In advanced economies, the term implies the work of a skilled
artisan or trade person.
Common Types of Craft Production

■ Job Production
■ Batch Production
■ Production Line
Job Production

The one-by-one production of unique items that may be customized for the customer.
For example, a carpenter who constructs wooden canoes one at a time that each have a
unique design.
Batch Production

Producing a batch of items by taking them through a series of steps together. For
example, an artisan who produces handmade shoes in batches of 8. Each batch is
taken through a series of 11 steps together that result in a finished product.
Production Line

Producing items one by one in a series of steps whereby items are at different stages at
the same time.
Common Examples of Craft Industry
■ Artisinal Foods
■ Baked Goods
■ Craft Beer
■ Fashion
■ Textiles Traditional Clothing
■ Jewelry
■ Decorative arts
■ Traditional Crafts
■ Models and Prototypes
■ Papermaking and Papercraft
■ Printmaking
■ Woodcraft
■ Toys
■ Workers
– Know the whole process
– Skilled
– Self-reliant
■ Social Organization
– Workshop clusters
– Stationary platform
– Horizontal networks
■ Spatial Organization
– Industrial district
– Concentrated activity
■ Skills
– In workers
■ Product
– Customized
– Individual
■ Advantages
– Flexible
– Rewarding work
■ Disadvantages
– Expensive
– Long apprenticeship
SERVICE PRODUCTION

Cabunyag, Warren
Definition:

■ Service Production - process of delivering a service to customers. It is a common

term in many industries that's analogous to product production by an assembly line.
The following are illustrative examples of service production.
Difference between service and
manufacturing industry
1. Tangibility of Output - The key difference between service firms and manufacturers is
the tangibility of their output. The output of a service firm, such as consultancy, training
or maintenance, for example, is intangible. Manufacturers produce physical goods that
customers can see and touch.
Difference between service and
manufacturing industry
2. Production on Demand - Service firms, unlike manufacturers, do not hold inventory;
they create a service when a client requires it. Manufacturers produce goods for stock,
with inventory levels aligned to forecasts of market demand. Some manufacturers
maintain minimum stock levels, relying on the accuracy of demand forecasts and their
production capacity to meet demand on a just-in-time basis. Inventory also represents a
cost for a manufacturing organization.
Difference between service and
manufacturing industry
3. Customer Specific Production - Service firms do not produce a service unless a
customer requires it, although they design and develop the scope and content of
services in advance of any orders. Service firms generally produce a service tailored to
customers’ needs, such as 12 hours of consultancy, plus 14 hours of design and 10
hours of installation. Manufacturers can produce goods without a customer order or
forecast of customer demand. However, producing goods that do not meet market
needs is a poor strategy.
Difference between service and
manufacturing industry
4. Labor Requirements and Automated Processes - A service firm recruits people with
specific knowledge and skills in the service disciplines that it offers. Service delivery is
labor intensive and cannot be easily automated, although knowledge management
systems enable a degree of knowledge capture and sharing. Manufacturers can
automate many of their production processes to reduce their labor requirements,
although some manufacturing organizations are labor intensive, particularly in countries
where labor costs are low.
Difference between service and
manufacturing industry
5.Physical Production Location - Service firms do not require a physical production site.
The people creating and delivering the service can be located anywhere. For example,
global firms such as consultants Deloitte use communication networks to access the
most appropriate service skills and knowledge from offices around the world.
Manufacturers must have a physical location for their production and stock holding
operations. Production does not necessarily take place on the manufacturer's own site;
it can take place at any point in the supply chain.
Financial Service

A bank offers a network of 24/7 bank machines to customers as a service. The

production of the service involves replenishment, customer service, maintenance,
monitoring, delivery of information technology and security.
Information Technology

A software-as-a-service company offers business software to corporate customers using

cloud servers and mobile clients. Service production involves deployment, operation,
maintenance, monitoring, information security, capacity management, facility
management, service level management and customer support.
Hospitality

A catering company offers food services for business events and weddings that often
have hundreds of guests. They view their kitchen as a batch production line with each
meal going through a series of 6-8 steps and a quality control inspection before being
served.
What types of production
processes do manufacturers and
service firms use?

Alfiler, Krishanicole
In general there are three types of production processes used in manufacturing and
service industry:

■ MASS PRODUCTION
■ MASS CUSTOMIZATION
■ CUSTOMIZATION
Mass Production

The emphasis in mass production is on keeping manufacturing costs and

service cost low by producing uniform products using repetitive and standardized
processes.
Examples:
■ Fast food industry uses mass production to provide consistent experiences from one
location to another.
■ Appliance manufacturer produces new designed refrigerator.
Mass Customization

In mass customization, goods are produced using mass-production techniques,

but only up to a point. At that point, the product or service is custom-tailored to the
needs or desires of individual customers.
Examples:
■ A mobile device is mass produced but it includes software that allows users to
customize its interface and functionality.
■ Travel company offers another set of tour package.
Customization

In customization, the firm produces goods or services one at a time according

to the specific needs or wants of individual customers.
Example:
■ A salon shop offers haircut based on customer preferences.
■ A construction company designs and builds a house from customer requirements.