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TYPES OF PRODUCTION SYSTEMS

Example of Continuous Production System

Petroleum Cement Production


Backward Integration at Reliance Retailing
Naroda Textiles
Fabric Wool, Silk
Complex

Texturised Yarn Spun Yarn

PG Complex PSF PFY LAB

Polyester chips Polyester resin PTA PX N-Parafins

Polyethylene Poly Propylene PVC


MEG
VCM
EO Oxygen
Hazira EDC
Complex Caustic Unit

Fuel Gas Ethylene C4s Propylene Toluene Xylene Benzene Salt


Polymers
Cracker & Chemicals

ATF
LPG Naptha Gasoline Diesel Sulphur Fuel Oil Bitumen
Jamnagar Kerosene
Complex
Refining & Marketing Refining

Bombay
Oil & Gas Exploration & Production Oil & Gas
High
Process Design for Mass Production
Systems
Pre manufacturing Activities
Product A Product B Product C

Machining Machining Machining

Fabrication Fabrication Fabrication

Assembly Assembly Assembly

Testing Testing Testing

Dedicated & Decentralised Manufacturing Support


Product A Machine
1
Machine
2
Machine
3
... Machine
m
Complexity of Operations Management
Some indicators

More stages
in Production

Jumbled Flow

Intermittent Flow

Continuous Flow
Process Design for Intermittent Flow in
Discrete Manufacturing

Pre-manufacturing activities

Gear Shafts Other


Components rotating parts
Housings
Prismatic
Sheet
Components
Metal parts

Assembly & Test Assembly & Test Assembly & Test


Product A Product B Product C

Dedicated Manufacturing Support for the products


Paper Manufacturing
An example of process industry- continous flow

Logs and chips Crushing of Processing of


of wood stored logs and chips the wood

Preparatory

Drying the Refining the Cleaning &


wood pulp Wood pulp Bleaching
Pulp making

Stretching Cutting
Paper rolling Final packing

Paper making
Factors Influencing Process Choices
• Volume: Average quantity of the products produced in a manufacturing
system
– Low volume: Turnkey project management firms such as L&T and BHEL
– High volume: Consumer non-durable and FMCG sector firms, Automobile,
Chemical Processing
– Mid-volume: Consumer durables, white goods and several industrial
products
• Variety: Number of alternative products and variants of each product that
is offered by a manufacturing system
– Variety of product offerings is likely to introduce variety at various processes
in the system; alternative production resources, materials, and skill of
workers
• Flow: Flow indicates the nature and intensity of activities involved in
conversion of components and material from raw material stage to
finished goods stage
Production and Operations Management
Intermittent Vs Continuous Production

• 1)Same product is not • 1)Same product is


produced continuously produced continuously
• 2)Items produced as per • 2)Items produced for
customer order stock
• 3)Production process • 3)Process not flexible
flexible
• 4)Units of production-low • 4)Units of production-high
• 5)Planning and control • 5)P&C process is Simple
process complicated
• 6)Cost of production(per • 6)Cost of production(per
unit) may be high unit) may be low
Production and Operations Management
Intermittent Vs Continuous Production

• 7)Functional type of • 7)Divisional type of


organisation organisation
• 8)Requires staff of high • 8)Requires moderate to
technical skill and ability low skills
• 9)Product and process not • 9)Standardised process
standardised and product
• 10)More detailed and too • 10) Simple/repetitive
many instructions required instructions
during execution
P
Product/P
roduct/Process
rocess Few High
MMatrix
atrix Low Multiple Major Volume,
Volume Products, Products, High
One of a Low Higher Standard-
Kind Volume Volume ization
I. Commercial Flexibility (High)
Job Printer Unit Cost (High)
Shop French Restaurant

II. Heavy
Batch Equipment
Coffee Shop
III.
Automobile
Assembly
Assembly
Line Burger King
IV.
Sugar
Continuous Refinery Flexibility (Low)
Flow Unit Cost (Low)