UPES – The Nation Builders University

• Types of production systems

• Productivity

30th July 2019

Centre for
Continuing Education
UPES – The Nation Builders University

PRODUCTION SYSTEMS

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UPES – The Nation Builders University

TYPES OF MANUFACTURING SYSTEMS

•Continuous (mass)
•Batch
•Assembly line
•Job shop
•Project

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CONTINUOUS FLOW TECHNOLOGY

 
•Production of a standard product
•Sequence of operations remains same
•Production volumes are high
•Flexibility is low

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BATCH TECHNOLOGY

•Production of a group of products belonging to

same family like cosmetics, pharmaceuticals
•Common resources are shared by all products
•Sequence of operations varies

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ASSEMBLY LINE TECHNOLOGY

•Similar to continuous production

•Products are made by assembling of components
•Production rate is high
•Sequence of assembling remains same

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UPES – The Nation Builders University

JOB SHOP TECHNOLOGY

•There is no standard product

•Resources are available
•Every time the product is new
•A different sequence is adopted every time as per
requirement of specific product
•Flexibility is high
•Production volumes are low

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UPES – The Nation Builders University

PROJECT TECHNOLOGY

• A unique product is created

• The product remains stationary and resources
move as per requirement

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  Project Job shop Batch Assembly Continuous
line

Size Variable Small Moderate Large Large

Process No pattern Several Few Rigid Rigid

flow

Speed Variable Slow Moderate Fast Fast

Run length Short Short Moderate Long Long

Rate of Slow Slow Moderate High High

change

Labour High High Variable Low Low

skill high high mixed low variable

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CLASSIFICATION OF MANUFACTURING
SYSTEMS

• MTO (Make to order)

• MTS (Make to stock)
• ATO (Assemble to order)

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PRODUCTIVITY

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PRODUCTIVITY
 
A measure of effective use of resources usually
expressed as ratio of output to input.

Partial measures
 

Output / Labor Labour productivity

Output / Machine Machine productivity

Output / Energy Energy Productivity

Output / Capital Capital Productivity

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Compute the Partial and multifactor productivity measure for each of the
weeks shown. Assume 40 hours week and an hourly wage of Rs12.
Overhead is 1.5 times weekly labour cost. Material cost is Rs 6 per kg.

Week Output (units) Workers Material (Kg)

1 300 6 45

2 338 7 46

3 322 7 46

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As part of a study for the Department of Labor Statistics, you are assigned the
task of evaluating the improvement in productivity of small businesses. Data for
one of the small businesses you are to evaluate is shown below. The data are the
monthly average of last year and the monthly average this year. Determine the
multifactor productivity using the following costs:
 
• Labor Rs 8 per hour;
• Capital .83% per month of investment;
• Energy Rs 0.60 per unit
 
Average Month
Last Year This Year
Production (Dozen) 1,500 1,500
Labor (hours) 350 325
Capital investment 15,000 18,000
Energy (Units) 3,000 2,750
 

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Joanna French is currently working a total of 12 hours per day to produce 240
dolls. She thinks that by changing the paint used for the facial features and
fingernails that she can increase her rate to 360 dolls per day. Total material
cost for each doll is approximately Rs3.50; she has to invest Rs20 in the
necessary supplies (expendables) per day; energy costs are assumed to be only
Rs4.00 per day; and she thinks she should be making Rs10 per hour for her
time. Viewing this from a total (multifactor) productivity perspective, what is
her productivity at present and with the new paint?
 
How would total (multifactor) productivity change if using the new paint raised
Ms. French’s material costs by Rs 0.50 per doll?
 
If she uses the new paint, by what amount could Ms. French’s material costs
increase without reducing total (multifactor) productivity?

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The manager of XYZ Corporation was examining the production data of last 5 days.

Day 1 2 3 4 5 Total
No of workers 4 4 5 5 5 23
Units produced 200 180 230 220 240 1070

Each unit of product requires 0.5 Kg of steel, which costs Rs 100 per Kg. Each day is of 8 hours and the wages of workers
are Rs. 50 per hour.
“How much is the overhead cost”, the manager asked the accountant. “It is 50% of the total wages” the accountant replied.
“We really need to bring down the overheads”, manager said. The accountant assured to look into the matter.
The manager was presented the data for next five days
“We have been able to bring down the overheads to 45% of the total wages in the last 5 days” the accountant said. The
production has also gone up as you can see from the bar chart.

Day 6 7 8 9 10 Total
No of workers 6 6 7 6 9 34
Units produced 210 260 260 250 340 1320

350
300
250
200
150
100
50
0
1 2 3 4 5 6 7 8 9 10

The manager was not impressed. “Although the production has gone up but productivity has come down”.

Questions
•Do you agree that the productivity has gone down in the last 5 days?
•What was the average productivity during first 5 days and last 5 days? Centre for
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UPES – The Nation Builders University

Sources of waste

•Waste form overproduction

•Waste of waiting time
•Transportation waste
•Inventory waste
•Processing waste
•Waste of motion
•Waste from product defects

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