Chapter 4 PRODUCTION

4.1 INTRODUCTION OF PRODUCTION

It May be defined as the manufacture of goods to fulfill the needs of human beings.
OR
Production is conversion of inputs (materials, labour and finance) into outputs (goods).
It is the processing of inputs into outputs (finished products).

All production starts with natural materials from earth, air or sea. Production is concerned with the
gradual change in the shape of materials. This is done by the application of work elements and thus
final form of material take place.

4.2 IMPORTANT TYPES OF PRODUCTION

1. MASS PRODUCTION:

Mass production is a method to produce on large scale. Usually, mass production is a continuous type
of production. High degree of planning, specialization of equipment and labour are important features
of this type.
The greater volume of production usually results in reduced labour cost per unit. It is sometimes
assumed that during mass production, quality will suffer. This is not so but generally uniform quality
is produced. Another important feature of this type of production is higher profits due to higher
production, if the market situation is favorable.
Some examples are soap, blade, ghee, electronics etc.

ADVANTAGES:
1. Mass production gives higher production and uniformed quality.
2. Wastages are low.
3. Cost per unit is low due to higher production.
4. Only few skilled workers needed, hence low labour cost.

DISADVANTAGES:
1. During of period of less demand, factory can be stopped.
2. Machines/equipment cannot be used for other purposes.
3. Workers’ skill would be in only one specific field.

1
4. Cannot fulfill particular taste.

2. JOB PRODUCTION:

This is the oldest method of production on small scale.

The production is made usually against customer’s demand/order and not for stock. This type has a lot
of flexibility of operation; hence general purpose machines are used.
Generally as the factories are very small in which this production is carried out.
In this type of production, labour tends to be versatile and high skilled. In case of single specialized
product, job production is used. In case of quantity manufacture, it is often not used.
Manufacture of dies, jigs and fixtures are the examples.

ADVANTAGES:
1. The only method that can meet individual requirements.
2. Control is very simple.
3. Capital investment is low.
4. Less demand of one product does not lead the factory closure.

DISADVANTAGES:
1. No scope of commercial economy.
2. High material cost.
3. High skilled labour is required, hence higher labour cost.
4. Requires close consultation with client.

3. BATCH PRODUCTION:

This technique is generally adjusted in medium size factories. It is a stage between mass production
and job production.
Batch production is bigger in scale than job production but smaller than mass production. It requires
more machines than job production and less than mass production.
The work is divided into parts or operators. Each operation is completed throughout the batch before
next operation is undertaken. This is the most common type of production in engineering industries.

2
Typical examples are automobiles, electronics,
transformers etc.

ADVANTAGES:
1. While comparing with mass production, requires
less capital.
2. If demand of one product decreases, another
product can be made.
3. Cost savings can be achieved by buying material in
bulk.
4. Allows a firm to handle unexpected orders.

DISADVANTAGES:
1. Takes time to switch production of one batch to another.
2. Requires high stocks of raw materials hence higher investment.
3. Tasks may become boring (repetition)

4. FLOW PRODUCTION:

Flow production is a production method in which product moves continuously

through several workstations such as cutting, turning, drilling, painting and packing.
During which the work on the product continuously increases. As the work of each
operation is completed, the unit is passed to the next operation. The time for each
operation must be of equal length.

ADVANTAGES:
1. Cost per unit of production is reduced through efficient material flow.
2. Suitable for manufacture of large quantities.
3. Less need training and skill.
4. Capital investment is high, so factory can work constantly.

DISADVANTAGES:
1. Very long set up time is required.
2. Higher quality machinery is needed.
3. Any fault in the line results in complete stoppage.
4. Goods are mass produced, thus less differentiation for the customer.

3
QUESTIONS
1. Define production.
2. List the four types of production.
3. What are the advantages and disadvantages of job production?
4. What is the difference between mass and flow production?