session 2

TYPES OF PRODUCTIONS
SYSTEM


Topics covered under session 2



§ Types of Production System

§ Production as a organization system
§ Decision Making in Production


Production can be better understood viewing:



1. Production as a system
2. Production as an organizational function
3. Decision making in production.
1.
2. Production as a system
i. Production system: A system, whose function is to
convert a set of inputs (materials, men, money,
utilities and information) into a set of desired
outputs.
ii.
iii. Conversion sub-system: A sub-system of the larger
production system where, inputs are converted
into outputs.
iv.
v. Control sub-system: A sub-system of the larger
production system where, a portion of the output is
monitored for feedback signals to provide
corrective action.
 a

Inputs Conversion Subsystem Outputs

Environment Physical ( Manufacturing ,

Legal/Political, Mining )
Social, Technological
& Economic Locational Services
( Transportation )

Market Exchange Services

( Retailing , Wholesaling )
Competition
Product information Storage Services Goods
Customer Desires ( Warehousing ) Or
Services
Other Private Services
Primary ( Insurance , Finance ,
Resources Utilities , Real Estate ,
Materials & Supplies Health , Business
Personnel Service & Personal
Capital Assets Service )
Capital (Money)
Utilities Government

Control
Sub-System


 2. Production as a an organization function



 Production system is its conversion sub-system,

wherein men, materials and machines are used to
convert inputs into products and services.


 3. Decision Making in Production:

§ Operations managers plan, organize, staff, direct and
control all the activities in the process of conversion.
§ Operation managers are expected to take decisions and
implement.


 Decisions made by operation managers falls into three

categories:
§ Strategic decisions – products, processes
§ Operating decisions – planning productions to meet
demand
§ Control decisions – quality, overhead cost, maintenance.
 

 Decision-making in Production
Types of Decisions Area of Involvement Nature of Activities



Production Processes
ns (Planning
 products and Facilities
Developing
) long range production plans
 
Production Technology Selecting and managing production technology.
 
Planning the arrangement of facilities.
Facility Layout 
 Planning for the optimal distribution of scar

Allocating Resources to
Answering
Strategicquestions
Alternatives
about long range producti
 
Long Range Capacity Planning
 and Facility Location
 

 Decision-making in Production

Types of Decisions Area of Involvement Nature of Activities



Production Planning Systems
Aggregate Planning and master production scheduling
ns (PlanningInventory
productionSystems
to Meet Demand)
Planning and controlling finished goods inventories.
Resource Requirements Planning Systems
  Planning materials and capacity requirements.

ShopShort
Floorrange
Planning and Control
decisions about what to produce and when to p


Managing all facts of materials system.
Materials Management

 
 

 Decision-making in Production

Types of Decisions Area of Involvement Nature of Activities

 

(Planning Productivity
and controllingand Employees
operations )
Planning for the effective and efficient use of h
 

 Planning and controlling the quality of products
Total Quality Control


 Planning
control and controlling projects.
Project Planning and Techniques
 Planning for Managing all facts of materials syst
Maintenance Management and Reliability