2.1 Introduction
A “Production System”
is
a system whose function is to transform an input into a
desired output by means of a process (the production process) and of resources. The definition of a production
system is thus based on four
main elements: the input, the resources, the production process and the output.
Resources
Input - Production Process - Output
Most of the organizations (including non-profit organization) can be described as production systems.These organizations transform (or convert) a set of inputs (such as materials, labour,
equipment, energy etc.) in to one
or useful outputs. The outputs of a production system are
normally called
products. These products may be:
(a)Tangible goods (b)Intangible services (c)combination of (a) and (b)
(Steels,chemicals etc.) (Teaching,health care etc.) (fast food,tailoring etc.)
III. Mathematical model:
Explanatios
Objectives
Production system refers to manufacturing
subsystem that includes all functions required to design, produce, distribute and service
a manufactured product. So this system produces goods and/or
services on a continuous
and/or batch basis with or without profit as a primary objective.
Production is
the basic
activity of
all organizations and
all other activities
revolve around
production activity. The output of production is the creation of goods and services which satisfy the needs of the customers. In some organization the product is physical (tangible) good. For example, refrigerators, motor cars, television, toothpaste etc., while in others it is
a service (insurance,
healthcare etc.).The production
system has
the following characteristics:
§ Production
is an organized activity, so every production
system
has an objective.
§ The
system transforms the various inputs (men, material, machines,information,energy)
to useful
outputs (goods and/or services).
§ Production system doesn’t oppose in isolation from the other organization system such as
marketing, finance etc.
§ There exists a feedback about the activities which is essential to control and improve system performance.
The transformation process involves many
activities and operation necessary
to change
inputs to output. These operations and activities can be
mechanical, chemical, inspection and
control, material
handling operation etc.
2.2 Models of Production
system:
A model is a representation of reality
that captures the essential features of an
object/system/process. Three types of models are
there such as physical, schematic and mathematical.
I. Physical model: Replica of a physical object with
a change of scale.
a. For big/huge structure of physical object: small scale
(Ex.
solar system)
b. For microscopic objects: magnified scale(Ex.
Atomic model)
II. Schematic
model: These are 2-D
models which represents
• Price fluctuations
with year.
• Symbolic chart
of activities in
sequence for a job.
• Maps
of routings
• Networks
of timed events.
The pictorial aspects
are
useful for good demonstration purposes.
Formulas and equations have long
being
the servants of physical sciences. One can represent the important aspect of a system/problem in mathematical form using variables, parameters and functions. This is called mathematical model .by analyzing and
manipulating the mathematical model, we can learn how the real system will behave under
various conditions.
2.3 Product vs. services
Product
1-tangible, durable products.
2- Output can be
inventoried.
3-consumption/use takes more time.
4-low costumer’s
involvement.
5-long response time.
6-available
at regional,
national and
international market.
7-Reqire large facilities.
8-Capital intensive.
9-Quality easily measured.
10-Demand
variable
on weekly, monthly,
seasonally.
Services
1- Intangible, perishable products.
2-
Output can’t be inventoried.
3-Immidiate consumption.
4-
High
costumer’s involvement.
5-
Short response time.
6-local market.
7-
Require small facilities.
8-Labour intensive.
9-
Quality not easily measured.
10- Demand variable on hourly, daily, weekly basis.
Manufacturing
organization generally
transfer tangible
inputs or raw
materials
into some
tangible output (ex: steel, refrigerator, toothpaste, soap etc.) Other
inputs such as labour skills, management
skills, capitals
are used as
well.
Manufacturing organizations perform
some
chemical /physical processes (such as blending
refining, welding, grinding.etc) to transfer their raw material into tangible products. Service providing organization though transform a set of
input into set of output, they
don’t produce a tangible output.(ex: mail service, library
service, restaurant etc.).or
provide service(ex: health care, hair care, watch and automobile repair etc.). The
service of service providing organization
is intangible.
A 2nd distinction
is based on inventories .durable goods can be
kept for longer time these goods
can
be stored for longer time and can be transported in anticipation
in future demand .Thus with
durable goods ,operation manager can co up with the peaks and valleys in demand
by creating
inventories and smoothing out output levels. Whereas service can’t
be
pre produced.
For example:
getting fast
food from a fast food center, getting treatment from hospital etc.
A 3rd distinction is based on consumption/use of output. The products (goods) generally take
longer period for its use, for ex refrigerator, T.V. automobile etc. can be used at least for 10
years. On the other hand, the output produced from a service operation (i.e. service) is consumed within a small time. Ex. consumption of fastfood,taking hair care, enjoying journey by a bus/train/aero
plane enjoying entertainment program.
A 4th distinction
is based on customer contact. Most of the consumers/customers have little or no contact with production system/organization. Whereas, in many service providing
organization
consumers/customers are directly involved. For example: students
in an educational institution,
patients in
hospital.
The 5th distinction is based on lead time/response time to customers demand. Manufacturers take generally some lead time (i.e. time period from placing the order to get the product) in terms of days/week. Whereas the services are
offered within few minutes of customers arrival. For
ex:
ATM Service, getting postal stamps, getting grocery from a retail shop and getting examined by
a doctor etc.
The 6th distinction is on availability. Products can be available from regional, national or
international markets due to availability of transportations and distribution facilities whereas,
service can’t shipped to distant locations. Thus service organization requiring
direct customer contact must
locate
very near
to the customers.
The 7th distinction is based on liabilities/facilities. Manufacturing unit/organization producing products generally require larger facilities, more automation and greater capital investment than service providing organization.
The
8th distinction is based on capital/labour priority. Generally manufacturing firm producing goods/products require more
capital than a service provider. Ex. An automobile firm requires
more capital than a post office/Nursing home. The 9th and 10th distinction is based on quality and
demand variation.
2.4 Various
types of Layout:
Plant layout means the disposition of the various facilities (equipment, material, manpower etc.)
and services
of the plant within the area of
site located.
§ Material handling and
transportation
is minimized
and effectively controlled.
§ Bottlenecks and points of congestions are eliminated (by line balancing) so that the raw- material and semi-finished goods
move fast from one workstation
to other.
§ Workstations are designed
suitable and properly.
§ Suitable
spaces are allocated to production
centers
and service centers.
§ The
movements made by the workers
minimized. Layout can be classified
into the following four categories:
a.
process layout
b. product layout
c. Group
layout(combination layout)
d. Fixed position
layout
a. process layout:
• It is
also known as functional
layout.
• Here similar machines and services located together Ex. All the lathe machines
will be at one place and
all
milling machines at
another place and
so on.
• This type
of
layout
generally employed
for
industries
engaged in job-shop
production and non-repetitive
kind of production.
• When
there variety of
products manufactured at low
volume we prefer this
type of layout.
• Ex.
furniture manufacturer company, restaurant
etc.
b. Product
layout
• It is
also known as line (type)
layout.
• The flow of
product will smooth
and logical.
• When
the machines and auxiliary services are located according to
the
processing sequence we prefer this layout.
• It implies that
various operations
raw material are
performed in a sequence and
the machines are placed along the product flow line.
• The product layout
is selected when the volume of production of a product is
high
such that separate
production line to manufacture it can
be justified.
• Assembly
line production
or
mass
production prefer
this type
layout. Ex.
Assembly of
television sets assembly of computer key-board etc.
c. Group
layout:
• It is
the combination of both process
and product layout.
• In this
type of layout a set
of machinery or equipment
is grouped
together in a section so that
each group of machines
or equipment
is used to perform similar
operations to produce a family of components.
These machines grouped
in to cells.
It minimizes the sum of cost of transport and the cost of equipment.
2.5 Process-focused and product-focused system:
In process-focused system the
arrangement
of facilities is made according
to the process layout
and in product-focused system
the arrangement of
facilities is made according to the product layout.
Comparison of process oriented layout
and product
oriented layout
Sl No.
|
Different
Aspects
|
Process
oriented
|
Product oriented
|
1
|
Product
|
Diversified
products using
operations,
varying rate
of output or small batches of many different products
|
Standardized
product,
large volume,stable
rate
of output
|
2
|
Workflow
|
Variable flow depending on
nature of job
|
Identical flow and same
sequence of
operations for
each unit.
|
3
|
Human skills
|
Semiskilled craftsman
and
able
to do various/different categories of
work
|
Highly specialized and
able to perform
repetitive
tasks at fixed place
|
4
|
Supporting
staffs
|
Less;scheduling,material
handeling,production
and inventory control
|
Large; schedule materials
and people,
monitor and maintain works
|
5
|
Material
handling
|
Material
handling cost
high,handeling sometimes duplicated
|
Less dectble , flow
systematized and
often automated.
|
6
|
Inventory
|
In process inventory less
|
In process inventory high
|
7
|
Space
utilization
|
Space
and capital are tied up
by
work in
process
|
Less space is occupied by
work in transit and
for temporary storage.
|
8
|
Capital
requirement
|
Comparatively low investment
in machines required
|
Large investment in
specialized
equipment and
processes
|
9
|
Production
cost
|
Relatively low fixed
cost, high
variable cost(for direct
labour,material and material handling)
|
Relatively high fixed
cost, low variable cost
(for labour
and materials)
|
10
|
Production
time
|
Through
time is larger.
|
Throughput
time is
lesser.
|
11
|
Flexibility of
design change
|
high
|
low
|
12
|
Effect of
breakdown
|
Break down of any machine
doesn’t effect
much
on the final
output
|
Seriously affected;
as all
are interrelated
system.
|
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