TYPES OF PRODUCTION

PROCESSES
NAME : Shivam Tripathi
CLASS : SY BBA ITM
ROLL NO : 49
SUBJECT : Operations Management
 INTRODUCTION
Production/Operations Management is the process, which
combines and transforms various resources used in the
production/operation’s subsystem of the organization into value
added products/services in a controlled manner as per the policy
of the organization.
The set of interrelated management activities, which are involved
in producing certain products, is called as PRODUCTIONS
MANAGEMENT. When services are added to productions
management, it is called as OPERATIONS MANAGEMENT.
 CONCEPT OF PRODUCTION
Production is defined as, “the step-by-step conversion of raw
material into another form through chemical and mechanical
processes to create or enhance the utility of the product to the user.”
Thus production is a value addition process. At each stage of
processing, there is value addition.
Edward Buffa defines production as, “a process by which goods and
services are created.”
Examples : Manufacturing boilers with specific capacity,
Manufacturing standardized products like cars,etc.
TYPES OF PRODUCTION PROCESSES
Continuous
Production

Mass
Production

Batch
Production

Job-Shop
Production
CONTINUOUS PRODUCTION PROCESS
Production facilities are arranged as per the sequence of production
operations from the first operation to the finished product. The items are
made to flow through the sequence of operations through material handling
devices like conveyors, transfer devices, etc.
CHARACTERISTICS:
1. Dedicated plant and equipment with zero flexibility.
2. Material handling is fully automated.
3. Planning and scheduling is a routine action.
4. Process flows through a pre-determined sequence
of operations.
ADVANTAGES:
1. Standardization of product and process sequence.
2. Higher rate of production with reduced cycle time.
3. Higher capacity utilization due to line balancing.
4. Person with limited skills can also be used for this production line.
5. Unit cost is lower due to high volume of production.
LIMITATIONS:
6. No flexibility to accommodate and processing a variety of products does
not exist.
2. Very high investment required for setting flow lines.
3. Product differentiation is limited.
 MASS PRODUCTION
Manufacturing of discrete parts or assemblies using a continuous process is
known as MASS PRODUCTION. This production system is justified by a
large volume of production. The machines are arranged in a line. Product and
process standardization exists and all outputs follow the same path.
CHARACTERISTICS:
1. Standardization of product and process sequence.
2. Large volume of products.
3. Shorter cycle time of production.
4. Perfectly balanced production lines.
5. Easy production planning and control.
6. Material handling can be completely automatic here.
ADVANTAGES:
1. Higher rate of production with reduced cycle time.
2. Higher capacity utilization due to line balancing.
3. Less skilled operators are required.
4. Low process inventory.
5. Manufacturing cost per unit is low.
LIMITATIONS:
6. Breakdown of one machine will stop the entire production line.
7. The layout needs major changes when product design changes.
8. High investment in production facilities.
9. The cycle time is determined by the slowest operation.
 BATCH PRODUCTION
Batch production is defined by the American Production and Inventory
Control Society (APICS) “as a form of manufacturing in which the job passes
through the functional departments in lots or batches and each batch might have a
different routing.” Here, limited number of products are produced at regular
intervals of time and stocked awaiting sales.
CHARACTERISTICS:
1. It has shorter production runs.
2. Plant and machinery are flexible.
3. Less lead time and cost during manufacturing.
4. Skilled labour requirements.
5. Manual material handling.
6. General purpose machines.
ADVANTAGES:
1. Better utilisation of plant and machinery.
2. Promotes functional specialization.
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:
7. Material handling is complex because of irregular and longer flows.
8. Production planning and control is complex.
9. Work in process inventory is higher compared to continuous production.
10. Higher set up costs due to frequent changes in set up.
 JOB-SHOP PRODUCTION
Job-shop production is characterized by manufacturing of one or few quantity
of products designed and produced as per the specifications of the customers
within prefixed time and cost. The distinguishing feature of this is low volume
and high variety of products.
CHARACTERISTICS:
1. Small Production.
2. General purpose machines and process layout.
3. Highly skilled labour.
4. Large work-in-progress.
5. Limited planning and control.
6. Improper manufacturing cycle.
7. Discontinuous flow of materials.
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:
5. Higher cost due to frequent set up changes.
6. Higher level of inventory at all levels and hence higher inventory cost.
7. Production planning is complicated.
8. Larger space requirements.