26-Jan-19

ME 403
PRODUCTION PLANNING & CONTROL

TYPES OF PRODUCTION SYSTEM

Mahjabin Rahman
Dept. of MPE

Types of Production System

Production System depends on planning characteristics,
production planning etc. Production system is organized in aiming
to maximize profitability while maintaining a satisfied consumer
base with limited resources.

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Classification
Production system can be classified into many types based on
several characteristics. Commonly found classifications are-

• Product-process type
• Material flow characteristics
• Customer ordering policy
• Batch size

Based on Product-process type

Product-process type – based on physical characteristics of input material
and finished goods.
1. Discrete manufacturing – products and parts are separately
identifiable. Parts or components can be counted when disassembled.
2. Process manufacturing – input ingredients can not be identified
once the final product is produced. Operations like- mixing, heating,
stirring, chemical reactions etc. are associated with it.

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Based on Product-process type

1. Discrete manufacturing – Tailor
shop, Job shop, RMG industry,
Smartphone and electronic goods
manufacturers etc.
2. Process manufacturing – cosmetic
products, pharmaceuticals, drinks
and oil production etc.

Based on materials flow

Material flow characteristics – based on how materials flow in the

production floor.

1. Intermittent or discontinuous flow

2. Continuous flow manufacturing

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Based on materials flow

Intermittent or discontinuous flow
• Jobs pass through production process in lots (batches)
• Move from one step to another as a group
• Production is set at a given rate and produced in bulk
• “Rate-based” production system
• Assembly line (automobiles), sewing section in RMG industry,
electronic goods.

Based on materials flow

Continuous flow manufacturing
• Materials flow continuously through the system, without interruption
• Organized production equipment with fixed sequence
• Products can not be counted by number, rather by amount
• Production equipment is organized and sequenced according to the
steps involved in production process.
• Oil refining, sugar production, chemical production.

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Based on materials flow

Assembly line

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Based on customer ordering policy

Customer ordering policy – based on how production orders are

planned and products are designed.
1. Make-to-stock (MTS)
2. Make-to-Order (MTO)
3. Assemble-to-Order (ATO)
4. Engineer-to-Order (ETO)

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Based on customer ordering policy

Make-to-stock (MTS) – products are produced based on producers
plan and design. Products are sold from the stock to the customers.
Television, refrigerator, furniture, etc.
Make-to-Order (MTO) – production begins after getting the
customer order. Customer provides the design specification. Some
raw materials are also provided by customers. Tailor shop,
Apparel companies etc.

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Based on customer ordering policy

Assemble-to-Order (ATO) – combination of MTS and MTO. Basic
standardized components are kept as stock by the producers. When
customer order arrives, final assembly of the product is done based on
the customer specification. Dell computer.
Engineer-to-Order (ETO) – engineering design of the product is
totally based on customer requirements. Each product is unique than
the others and usually produced in small quantities. Online shop,
Formula 1 cars, Building etc.

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Based on customer ordering policy

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Based on customer ordering policy

Table: Basis for production planning

MTS MTO ATO ETO

Forecast Customer Forecast Customer

(F/G level) orders (R/M level) orders
(customized)

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Based on lot size or batch size

Batch size – production batch size; quantity per batch or lot.

1. Job Shop
2. Batch
3. Mass Production

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Based on lot size or batch size

Job Shop – Commercial printing firms, machine shops, tailor

shops, small furniture making shops.
Batch – Apparel industry, Pharmaceuticals, Bank note printing
press.

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Based on lot size or batch size

Job Shop Batch System

Product variation is high Product variation is low

Per unit production cost is high Per unit production cost is low

Production batch size is very Production batch size is very

small large
Frequent setup of machine is Fewer setup of machine is
required required

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Based on lot size or batch size

Mass Production
• A particular type of product is produced in huge amount
• Fewer setup of machine is required
• Lower production cost per unit - “Economy of Scale”.

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Based on lot size or batch size

Mass Production -

Ford Model T Production of Coca-Cola

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