Continuous Production System

Continuous production system involves a continuous or almost

continuous physical flow of materials. It makes use of special
purpose machines and produces standardized items in large
quantities. The examples are petrochemical, cement, steel, sugar
and fertilizer industries, etc.

Continuous Production System – Characteristics, Types, Merits, Demerits, Suitability

In a Continuous Production System, the items are produced for the

stocks and not for specific orders. Before planning manufacturing to
stock, a sales forecast is made to estimate the likely demand of the
product and a master schedule is prepared to adjust the sales
forecast based on past orders and level of inventory. Here, the inputs
are standardized and a standard set of processes and sequence of
processes can be adopted. Due to this, routing and scheduling for
the whole processes can be standardized.
After setting out a master production schedule, a detailed planning
is carried out. Basic production information and bill of materials are
recorded. Information for the machine load charts, equipment,
personnel and material needs are tabulated. In continuous
production, each production-run manufactures in lot sizes and the
production process is carried out in a definite sequence of
operations in a predetermined order. In process storage is not
necessary, which in turn reduces material handling and
transportation facilities. First-in-First-out method is followed in the
system.

Characteristics of Continuous Production System

1. Standard products are manufactured, which have large demand
throughout the year.
2. Standardized inputs and standardized sequence of operations,
machine tools and equipment are used.

3. Division of labour is made more efficient.

4. Minimum and constant material handling.

5. Minimum flow of work at any point of time.

6. Small work in progress is involved.

7. Use of productivity techniques is feasible.

8. Minimum cost of production per unit is possible.

9. Rigid quality control is exercised.

10. More maintenance is required.

Types of Continuous Production

There are three types of continuous production viz., mass
production, process production and assembly production.

1. Mass Production
In this type of continuous production, only one type of product or a
maximum of two or three types are manufactured in large
quantities, as much emphasis is not given to orders of the
consumers. Standardization of product, process, materials, machine
and uninterrupted flow of materials are the main characteristics of
this system.

Mass production system is employed in several industries where the

production is carried on without any interruption. Electronics,
electrical, automobiles, bicycles and container industries are a few
examples of mass production industries.

Mass production system offers economies of scale as the volume of

output is large. Quality of products tends to be uniform and high
due to standardization and mechanization. In a properly designed
and equipped process; individual expertise plays a less prominent
role. Of course, the exact quality level depends upon the quality
control systems and management policy of the plant.

2. Process Production
This system is used for the manufacture of those items whose
demand is continuous and high. Here, single raw material can be
transformed into different kinds of products at different stages of the
production process e.g., processing of crude oil in refinery — we get
kerosene, gasoline, etc., at different stages of production. On the
basis of the nature of production process, flow of production may be
classified into
1. Analytical process of production and
2. Synthetic process of production.
Analytical Process of Production: In analytical process of production,
a raw material is broken into different products. For example, crude
oil is analyzed into gas, naphtha, petrol, etc. Similarly, coal is
processed to obtain coke, coal, gas, coal-tar, etc.
Synthetic process of production: Synthetic process of production, on
the other hand, involves the mixing of two or more materials to
manufacture a product. For instance, lauric acid, myristic acid,
plasmatic acid, stearic acid, linoleic acid, etc., are synthesized to
manufacture soap.
3. Assembly Production
In assembling process, two or more components are combined to
manufacture a finished product. Manufactured parts are joined into
sub-assemblies or final assemblies. Such process is employed in
assembling automobiles, radio sets, television sets, bicycles,
watches, cameras, etc.

Assembly line is a type of flow production which was developed in

the automobile industry in the U.S.A. A manufacturing unit prefers
to develop and employ the assembly line because it helps to improve
the efficiency of production. The use of flow production methods
results in cost reduction. Assembly line is particularly useful when a
limited variety of similar products is to be produced on a mass scale
or in fairly large batches on a regular or continuous basis.

In any production system, the most vital decision is the proper

layout of assembly line. The design of assembly line involves the
proper balancing of technology and other manufacturing facilities
 so as to develop a rational approach for optimization of results. The
assembly line design depends largely upon product
design and location of production. In order to develop an assembly
line, machines are positioned keeping the following considerations
in view:
i. the rate of flow of work
ii. the direction of manufacturing operations
iii. the inconvenience and comfort of operators or workers
iv. the availability of service facilities like water, electricity, compressed
air, oxygen, etc.
v. the supply and demand of materials.
In an assembly line, each machine must directly receive material
from the previous machine and pass it on directly to the next
machine. Therefore, the location of machines is automatically
regulated by the sequence of operations.

Machines and equipment should be arranged in such a manner that

every operator has a free and safe access to each machine. Space
should be provided for free movement of fork lifts, trucks, etc.,
which deliver materials and collect the finished products. The
passage should not be blocked and workers must not be in danger of
being hit by the moving trollies, etc. At the same time, there should
be commercial utilization of floor space.

Assembly line process is employed in assembling automobiles,

radios, television sets, computers and other electrical and electronic
products.

Advantages of Continuous Production System

1. Reduced Labour cost,

2. High accuracy,

3. Reduced material handling,

4. Simple control process,

5. Minimum wastage,

6. Better materials /inventory control,

 7. Higher return on investments.

Disadvantages of Continuous Production System

1. Heavy loss during slack demand period

2. Rigid maintenance and upkeep of machines

3. Customers’ tastes cannot be met as only one standard product is

manufactured.

4. Difficult to adjust to new situations and specifications.

5. Special purpose machine tools are required.

Suitability of Continuous Production System

Continuous system is best suited to organizations which intend to
produce a limited variety of products on a large scale. The heavy
fixed costs of specialized equipment that are utilized for operating
at low cost per unit can be distributed over a high volume of output.

Continuous production system can be applied to those industries

which satisfy the following requirements:

i. Uniform demand,
ii. High volume of production,
iii. product standardization, and
iv. Process balancing.

1. Mass production flows

Here, company produces different types of products on a large-scale and stock them in warehouses
until they are demanded in the market.
The goods are produced either with the help of a single operation or uses a series of operations.
E.g. of mass production is the production of toothpastes, soaps, pens, etc.
 The characteristics or features of mass production flows are as follows:

1. There is a continuous flow of production. However, this depends on the demand in the market.
2. Here, there is limited work-in-progress.
3. Supervision is easy because only few instructions are necessary.
4. The material handling is done mostly by machines, i.e. conveyors and automatic transfer
machines.
5. The flow of materials is continuous. There is little or no queuing at any stage of production.

2. Process production flows

Here, a single product is produced and stocked in warehouses until it is demanded in the market. The
flexibility of these plants is almost zero because only one product can be produced.
Examples of these plants include, steel, cement, paper, sugar, etc.
 The characteristics or features of process production flows are as follows:

1. There is a highly mechanized system for handling materials. Conveyors and automatic transfer
machines are used to move the materials from one stage to another.
2. Low-skilled labour and skilled technicians are required.
3. There is very less work-in-progress because material flow is continuous.
4. The production planning and scheduling can be decided well in advance.
5. The full production system is designed to produce only one specific type of item.