PRODUCTION SYSTEM

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.)







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.

    III. Mathematical model:
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 costumers 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   o weekly monthly, seasonally.


Services


1- Intangible, perishable products.
2- Output cant be inventoried.
3-Immidiate consumption.
4- High costumers 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.





Explanatios

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  cant  be  pre  produced.  For example: getting fast food from a fast food center, getting treatment from hospital etc.

A 3rdistinction 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 7tdistinction 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 8tdistinction 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.

  Objectives

§    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 manufacturecompany, 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. 
Iminimizes 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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About Dinesh Lamichhane

"राम्रो भोलिको लागि, आज सिकौं र सिकाऔं" भन्ने उध्येश्यका साथ संचालित, यो बल्ग शिक्षा, सञ्चार, जागरूकता, जानकारी, समन्वय, पुस्तकहरु, कक्षाहरू, आदि र समग्रमा लोकसेवा र कलेजको विद्यार्थी सँग सम्बन्धित ब्लग हो। देशमा बढीरहेको बेरोजगारी र नेपाली प्रशासनमा कमजोर कर्मचारी को समस्यालाई ध्यानमा राखी यो बल्ग निर्माण गरिएको हो । यहाँ हामी सके सके-सम्म सम्पुर्ण बिषयबस्तुहरु समावेस गर्ने प्रयास गरिरहेका छौ। जस्ले गर्दा कुनैपनि लोकसेवाको तयारी गरीरहेका र कलेज पढ्दै गरेका विद्यार्थीहरुलाई धेरै उपयोगी हुनेछ भन्ने हाम्रो विश्वास रहेको छ। तपाईपनि आ-आफ्नो ठाँऊबाट हामीलाई सहयोग गरिदिनुहुन अनुरोध गर्दछौ । तपाई सँग एदी कुनै लोकसेवाको लागी सहयोगी सामाग्रीहरु साथै बिभिन्न संकायका शैक्षिक सामाग्रीहरु छन् भने हामीलाई lcdinesh57@gmail.com र dineshlamichhane57@gmail.com मा मेल गरी सहयोग गर्न सक्नुहुन्छ ।
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