PRODUCTION SYSTEM

PRESENTED BYABINASH ROY Abinash behera

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WHAT IS PRODUCTION SYSTEM ? A production system can be defined as a transformation system in which a saleable or service is created by working up on a set of inputs. inputs are usually men, machine, money, material etc.
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CLASSIFICATION OF PRODUCTION SYSTEM

Production system mainly four categories;1.Jobshop production 2.Batch production 3.Mass production 4.Continuous production
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JOB SHOP PRODUCTION

Job shop production are characterized by one or few quality of products design and produced as per the specification of customers with in prefixed time and cost.

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CHARACTERSTICS OF JOB SHOP

High variety of product and low volume. Use of general purpose machine and facilities. Highly skilled operators who can take up each job as a challenge because of uniqueness. Large inventory of materials, tools, parts. Details planning is essential for each product.
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ADVANTEGES OF JOB SHOP

Because of general purpose machines and facilities variety of products can be produced. Operations will become more skilled and competent . Full potential of operations can be utilized. Opportunity exist for creative method.

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Limitation of job shop

Higher cost. Production planning is complicated. Larger space of requirement. Higher level of inventory.
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BATCH SHOP PRODUCTION

Batch shop production system is defined by APICS. Batch shop production system is the manufacture of limited number of products produced at regular intervals stocked awaiting sales.

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CHARACTERISTICS OF BATCH SHOP

When there is shorter production runs. When plants and machinery are flexible. When the manufacturing lead time and cost are lower as compare to job order production.
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ADVANTEGES OF BATCH SHOP

Better utilization of plant and machinery. Promotes functional specialization. Cost per unit is lower as compared to job order production. Lower investment in plant and machinery. Flexibility to accommodate and process numbers of production. Job satisfaction exist.
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LIMETATIONS OF BATCH SHOP

Material handlings complex because of irregular and longer flows. Production planning and control is complex. Work in progress inventory is higher compared to continuous production. Higher set of cost.
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MASS PRODUCTION
Manufacturing of discrete parts or assemblies using a continuous. process are called mass production. The production is a very large volume.

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Characteristics of mass production

Standardization of product and process sequence. Machines having higher productivity. Large volume of products. Shorter cycle time of production. Lower in process inventory. Perfectly balanced production lines. Flow of materials, components and parts is continuous . Production, planning and controlling is easy.
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ADVANTAGES OF MASS PRODUCTION

HIGHER RATE OF PRODUCTION. HIGHER CAPACITY IS UTILIZATION DUE TO LINE BALANCE. LESS SKILL IS NEEDED. LOW PROCESS INVENTORY. MANUFACTURING COST IS LOW.
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CONTINUOUS PRODUCT
PRODUCT FACILITIES AS PER THE SEQUENCE OF PRODUCT OPERATION FROM FIRST OPERATION TO FINISH GOODS

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CHARECTERSTICKS OF CONTINUOUS PRODUCT

Dedicated plant and equipment with zero flexibility. material handling is full automatic. Process follows a predetermined sequence of operations. Planning and scheduling is a routine system.
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ADVANTAGES
Standardization of product and process sequence. Higher rate of production with reduced time. Higher capacity utilization due to line balance. Manpower is not required. Person with limited skill can be use. unit cost is low due to the higher rate of production
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LIMITATION
Flexibility to accommodate and process number of product does not exist. Very high investment. Product difference is limited.

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Competitive Priorities
Cost Quality Flexibility Speed

ABINASH ROYCopyright 2006 John Wiley & Sons, Inc.

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Nine competitive priorities of operation management

Cost -Low cost operation Quality -Top quality
-Constistent quality

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 Flexibility
-customization
-variety -volume flexibility

Time
-delivery speed -on time delivery -development speed
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Competitive Priorities: Cost

Lincoln Electric
reduced costs by $10 million a year for 10 years skilled machine operators save the company millions that would have been spent on automated equipment

Southwest Airlines
one type of airplane facilitates crew changes, record-keeping, maintenance, and inventory costs direct flights mean no baggage transfers $30 million annual savings in travel agent commissions by requiring customers to contact the airline directly

Copyright 2006 John Wiley & Sons, Inc.

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Competitive Priorities: Quality

Ritz-Carlton - one customer at a time
Every employee is empowered to satisfy a guests wish Teams at all levels set objectives and devise quality action plans Each hotel has a quality leader Quality reports tracks
guest room preventive maintenance cycles percentage of check-ins with no waiting time spent to achieve industry-best clean room appearance

Guest Preference Reports are recorded in a database

Copyright 2006 John Wiley & Sons, Inc.

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Competitive Priorities: Flexibility

Andersen Windows
number of products offered grew from 28,000 to 86,000 number of errors are down to 1 per 200 truckloads

Custom Foot Shoe Store:

customers feet are scanned electronically to capture measurements custom shoes are mailed to the customers home in weeks prices are comparable to off-the-shelf shoes

National Bicycle Industrial Company

offers 11,231,862 variations delivers within two weeks at costs only 10% above standard models
Copyright 2006 John Wiley & Sons, Inc.

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Competitive Priorities: Speed

Citicorp L.L. Bean
advertises a 15-minute mortgage approval ships orders the day they are received

Wal-Mart

Hewlett-Packard General Electric

replenishes its stock twice a week

produces electronic testing equipment in five days reduces time to manufacture circuit-breaker boxes into three days and dishwashers into 18 hours ships custom-built computers in two days needs less than 30 minutes to build to order pagers
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Dell

Motorola

Copyright 2006 John Wiley & Sons, Inc.

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