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Chapter III - Manufacturing Mgmt.-30.6.04
Chapter III - Manufacturing Mgmt.-30.6.04
Chapter III - Manufacturing Mgmt.-30.6.04
Manufacturing System
A manufacturing organization can be looked upon as a production system by
which goods and services are produced. A typical production system
comprises of three main components: inputs, transformation process (or,
conversion process) and output. The manufacturing system needs to interact
with both internal and external environment. The internal environment is the
combination of engineering, marketing, personnel and accounts activities
whereas the external environment comprises of customers, competitors,
suppliers, labour unions etc. A manufacturing system in the combination of
operations and activities employed to create the output goods and services.
Project Industries
10
8 Project Industries
5 Batch Industries
Mass Production Industries
2
1
0 1 200 2000 2,00,000 α
Volume (in
Log Scale)
Fig.5 The relationship of volume & variety across different industry profile.
High product variety (i.e., many products in one, or, few numbers) require
highly skilled labour, general-purpose machines detailed and sophisticated
production planning and control systems.
Fig.6
Cost
(Rs.)
Total Cost (Continuous)
Intermittent Continuous
Break
Manufacturing Manufacturing
Even
Range Volume Range
Volum
e
d) Lead time: Lead-times are more appropriately called delivery lead times
expected by the customers in another major influencing factor in a
competitive market. As a general rule, faster deliveries are expected in a
competitive market. The product may be required to be produced to stock
using principles of batch production / mass production.
e) Efficiency: Efficiency measures the speed and the cost of the conversion
process. Efficiency is the greatest when the product is mass-produced. But
to mass-produce a product, greater sales are required.
The above mentioned manufacturing methods are now detailed below and
shown in chart form as below:
Type of
Production
Intermitten Continuou
t s
Continuous
Cost
(Rs.)
Maturity Phase (use
Process form)
Introduction
(use project
form)
Maturity Phase
(use Mass
Growth Phase
Production
(use batch form)
form)
Fig.8: Selection of Manufacturing Process according to the Product Life Cycle (PLC)