OM2 TPS.pptx

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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

INTERMITTENT

PRODUCTION

PROJECTPRODUCTIO

N JOB SHOPPRODUCTION

BATCHPRODUCTION

CONTINUOUSPRODUCTION

MASS & FLOWPRODUCTION PROCESS PRODUCTION



INTERMITTENT PRODUCTION

The goods are manufactured specially to fulfill orders madeby customers rather than for stock. Here, the flow of material

is intermittent. Under intermittent production system, thebasic 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 challengebecause 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.

B h P d i



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 lotmay have a different routing. It is characterised by themanufacture of limited number of products produced atregular 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 productionof item in a batch and change of set up is required for processing the next batch.

4. Manufacturing lead-time and cost are lower ascompared to job order production.

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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 andlonger flows.

2. Production planning and control is complex.

3. Work in process inventory is higher compared tocontinuous 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 thesequence 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.

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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 iscompletely automatic.

5. Person with limited skills can be used on theproduction 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

M P d ti d Fl P d ti



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 arearranged 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 productioncapacities 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

INPUT

ASSEMBLE

D

PRODUCTS

WORKSTATION

A

WORKSTATION

C

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

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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

Process production is characterized by the manufacture of a singleproduct produced

The flexibility of such plants is almost zero as only one type of product canbe 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 onelarge machine where materials are entered at the one end.

Labour required is having semi skilled workmen and skilled techniciansare 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 componentparts. Ex: Crude oil in refinery is broken down into individual fractions likeKerosene. 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 product’s 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 descendingorder 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 becausefirms 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 tocell phones, walkman to iPod & the list goes on

Knowing how to successfully find & develop new products isa 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 firmmust have the cash for product development , understandthe 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 thateach 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.



Scope of

product

development

team

PRODUCT DEVELOPMENT SYSTEM

Scope for design andengineering

teams

Evaluation

Introduction

Test Market

Functional Specifications

Design Review

Product Specifications

Customer Requirements

Ability

Ideas

Figure 5.3



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.

Documents

OM2 TPS.pptx