OPERATIONS MANAGEMENT

TYPES OF PRODUCTION SYSTEMS

Production systems can be classified as project production , Job shop ,Batch , Mass & continuous production systems. Production system may be defined as the means by which we transform resource inputs to create useful goods & services as outputs .

CLASSIFICATIONS OF PRODUCTION SYSTEMS

PROJECT PRODUCTI ON

TYPES OF PRODUCTION

INTERMITTE NT PRODUCTIO N

CONTINUOUS PRODUCTION

PROJECT PRODUCTIO N

JOB SHOP PRODUCTION

BATCH PRODUCTION

MASS & FLOW PRODUCTION

PROCESS PRODUCTION

INTERMITTENT PRODUCTION

The goods are manufactured specially to fulfill orders made by customers rather than for stock. Here, the flow of material is intermittent. Under intermittent production system, the basic product design changes from time to time.
Production system is flexible Design of the product can be change time to time We can adjust production system according to the order Characteristics of Intermittent Production General purpose machines and equipment are used Variety of the product can be produced Production is not continuous Process layout is adopted Volume of production is small Production is as per the customer order

Project Production

Single assignment job is there Complex in nature This system is for specific time period Specific expenditure is there All the operations are carried out in a fixed position layout Examples are: - ships, locomotives air crafts, roads, building, spacecrafts,bridge,Dam etc... Construction of A Dam Characteristics of Project Production Short life cycle Low Volume end of the continuum High customization The sequence of operations is unique to each project Products cannot be produced to stock because needs of next customer unknown Fixed position layout Involvement of different agencies Examples are: - ships, locomotives ,aircrafts, roads, building, spacecrafts.

JOB-SHOP PRODUCTION

Job-shop production are characterised by manufacturing one or a few quantity of products designed and produced as per the specification of customers within prefixed time and cost. The distinguishing feature of this is low volume and high variety of products. A job-shop comprises of general-purpose machines arranged into different departments. Each job demands unique technological requirements, demands processing on machines in a certain sequence. EXAMPLE : foundries, machine shops, cabinet shops, print shops, many restaurants, & the fashion industry Job-shop Production is characterized by 1. High variety of products and low volume. 2. Use of general purpose machines and facilities. 3. Highly skilled operators who can take up each job as a challenge because of uniqueness. 4. Large inventory of materials, tools, parts. 5. Detailed planning is essential for sequencing the requirements of each product, capacities for each work centre and order priorities.

Advantages 1.Because of general purpose machines and facilities variety of products can be produced. 2. Operators will become more skilled and competent, as each job gives them learning opportunities. 3. Full potential of operators can be utilised. 4. Opportunity exists for Creative methods and innovative ideas. Limitations 1. Higher cost due to frequent set up changes. 2. Higher level of inventory at all levels and hence higher inventory cost. 3. Production planning is complicated. 4. Larger space requirements.

Batch Production American Production and Inventory Control Society (APICS) defines Batch Production as a form of manufacturing in which the job pass through the functional departments in lots or batches and each lot may have a different routing. It is characterised by the manufacture of limited number of products produced at regular intervals and stocked awaiting sales. Example :Cola manufacturing Characteristics of Batch Production 1. Shorter production runs. 2. Plant and machinery are flexible. 3. Plant and machinery set up is used for the production of item in a batch and change of set up is required for processing the next batch. 4. Manufacturing lead-time and cost are lower as compared to job order production.

Advantages Following are the advantages of Batch Production: 1. Better utilisation of plant and machinery. 2. Promotes functional specialisation. 3. Cost per unit is lower as compared to job order production. 4. Lower investment in plant and machinery. 5. Flexibility to accommodate and process number of products. 6. Job satisfaction exists for operators. Limitations Following are the limitations of Batch Production: 1. Material handling is complex because of irregular and longer flows. 2. Production planning and control is complex. 3. Work in process inventory is higher compared to continuous production. 4. Higher set up costs due to frequent changes in set up.

Continuous Production

Production facilities are arranged as per the sequence of production operations from the first operations to the finished product. The items are made to flow through the sequence of operations through material handling devices such as conveyors, transfer devices, etc. Example : Sugar mill Continuous Production is characterised by 1. Dedicated plant and equipment with zero flexibility. 2. Material handling is fully automated. 3. Process follows a predetermined sequence of operations. 4. Component materials cannot be readily identified with final product. 5. Planning and scheduling is a routine action.

Advantages Following are the advantages of Continuous Production: 1. Standardisation of product and process sequence. 2. Higher rate of production with reduced cycle time. 3. Higher capacity utilisation due to line balancing. 4. Manpower is not required for material handling as it is completely automatic. 5. Person with limited skills can be used on the production line. 6. Unit cost is lower due to high volume of production. Limitations Following are the limitations of Continuous Production: 1. Flexibility to accommodate and process number of products does not exist. 2. Very high investment for setting flow lines. 3. Product differentiation is limited

Mass Production and Flow Production

Manufacture of discrete parts or assemblies using a continuous process are called Mass Production. This production system is justified by very large volume of production. The machines are arranged in a line or product layout. Product and process standardisation exists and all outputs follow the same path. Assembling : Assembling a car Mass Production is characterised by 1. Standardisation of product and process sequence. 2. Dedicated special purpose machines having higher production capacities and output rates. 3. Large volume of products. 4. Shorter cycle time of production. 5. Lower in process inventory. 6. Perfectly balanced production lines. 7. Flow of materials, components and parts is continuous and without any back tracking. 8. Production planning and control is easy. 9. Material handling can be completely automatic.

THE ASSEMBLY LINE OF MASS PRODUCTION SYSTEM

WORK STATION A

WORK STATION C

INPUT

ASSEMBLE D PRODUCTS

WORK STATION B

The assembly line of operations of material can be manual or through conveyor belts.Mass production system is generally employed in industries where the production is carried on without interruption. The quality of production is superior and uniform due to standardization and mechanization

Advantages Following are the advantages of Mass Production: 1. Higher rate of production with reduced cycle time. 2. Higher capacity utilisation due to line balancing. 3. Less skilled operators are required. 4. Low process inventory. 5. Manufacturing cost per unit is low. Limitations Following are the limitations of Mass Production: 1. Breakdown of one machine will stop an entire production line. 2. Line layout needs major change with the changes in the product design. 3. High investment in production facilities. 4. The cycle time is determined by the slowest

Process Production Process production is characterized by the manufacture of a single product produced The flexibility of such plants is almost zero as only one type of product can be produced in the plant Examples are refineries, petrol, kerosene, and diesel oil.

Characteristics of Process Production Special purpose machines and equipments are used Material handling is highly mechanized In this manufacturing cycle time is almost zero. The whole plant is like one large machine where materials are entered at the one end. Labour required is having semi skilled workmen and skilled technicians are required Supervision in this type of production is high.
Types of Process Production There are two types of Process Production 1. Analytical Process: Here raw material is broken down into its component parts. Ex: Crude oil in refinery is broken down into individual fractions like Kerosene. Petrol, Naphtha etc. 2. Synthetic Process: Mixing of two or more parts of materials to form a finished product like soap

PRODUCT DESIGN

The objective of the product decision is to develop & implement a product strategy that meets the demands of the marketplace with a competitive advantage Products are born , they live & they die. They are cast aside by a changing society .It may be helpful to think of a products life as divided into four phases. Those phases are Introduction , Growth ,Maturity & Decline Regardless of the length of the cycle the task for the operations manager is the same: to design a system that helps introduce new products successfully Product by value analysis : A listing of products in descending order of their individual dollar contribution to the firm as well as the total annual dollar contribution of the product. It helps to take decisions

GENERATING NEW PRODUCTS

Because products die ;products must be replaced because firms generate most of their revenue & profit from new products Product selection , definition , & design take place on a continuing basis Consider recent product changes TV to HDTV,land lines to cell phones, walkman to iPod & the list goes on Knowing how to successfully find & develop new products is a requirement PRODUCT DEVELOPMENT Product development system : An effective product strategy links product decisions with cash flow , market dynamics , product life cycle , & the organization capabilities. A firm must have the cash for product development , understand the changes constantly taking place in the market place , & have the necessary talents & resources available .The product development system may well determine not only

QUALITY FUNCTION DEPLOYMENT ( QFD )

A process for determining customer requirements ( customer wants ) & translating them into the attributes that each functional area can understand & act on. House of quality : A part of the quality function deployment process that utilizes a planning matrix to relate customer wants to how the firm is going to meet those wants PRODUCT DEVELOPMENT STAGES Product concepts are developed from a variety of sources , both external & internal to the firm . Concepts that survive the product idea stage progress through various stages, with nearly constant review , feedback , & evaluation in a highly participate environment to minimize failure.

PRODUCT DEVELOPMENT SYSTEM

Ideas
Ability Customer Requirements
Figure 5.3

Scope of product development team

Functional Specifications

Product Specifications
Design Review Test Market

Scope for design and engineering teams

Introduction Evaluation

PRODUCT DEVELOPMENT TEAMS

Teams charged with responsibility of moving from market requirements for a product to achieving product success. Such teams often include representatives from marketing, manufacturing , purchasing , quality assurance & field service personnel.