TYPES OF PRODUCTION

INTRODUCTION
 Production means application of
processes, (Technology) to the raw
material to add the use and
economic values to arrive at
desired product by the best
method, without sacrificing the
desired quality.
 Production can also defined as
“the step-by-step conversion of
one form of material into another
form through chemical or
mechanical process to create or
enhance the utility of
the product to the user
 PRODUCTION SYSTEM
 The production system of an organization is
that part, which produces products of an
organization.
 It is that activity whereby resources, flowing

within a defined system, are combined and

transformed in a controlled manner to add
value in accordance with the policies
communicated by management.
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 to useful outputs.

 It does not operate in isolation
from the other organization
system.
 There exists a feedback about the

activities, which is essential to

control and improve system
performance.
CLASSIFICATION OF
PRODUCTION SYSTEM
Production systems can be
classified as
Job production
Batch production
Mass production
Continuous Production
JOB SHOP PRODUCTION
 Job shop production are characterised
by manufacturing of one or few
quantity of products designed and
produced as per the specification of
customers order within prefixed time
and cost.
 The distinguishing feature of this is low

volume and high variety of products.

A job shop comprises of general
purpose machines arranged into
different departments.
 Each job demands unique

technological requirements,
demands processing on machines in
a certain sequence.
THIS SYSTEM MAY BE
FURTHER CLASSIFIED AS.
(i) The Job produced only once:
Here the customer visits the firm
and books his order. After the
completion of the product, he takes
delivery of the product and leaves
the firm.
 He may not visit the firm to book

the order for the same product.

 Thefirm has to plan for material,
process and manpower only after
receiving the order from the
customer. The firms have no
scope for pre-planning the
production of the product.
(ii) The job produced at
irregular intervals: Here the
customer visits the firm to place
orders for the same type of the
product at irregular intervals.
 The firm will not have any idea of

customer’s visit.
 Here also planning for materials,
process and manpower will start
only after taking the order from
the customer.
 In case the firm maintains the

record of the Jobs Produced by it,

it can refer to the previous plans,
when the customer arrives at the
firm to book the order.
(iii) The Jobs Produced periodically
at regular intervals: In this system,
the customer arrives at the firm to
place orders for the same type of
product at regular intervals.
 Here firm knows very well that the

customer visits at regular intervals, it

can plan for materials, and process and
manpower and have them in a master
file.
 As soon as the customer visits and books
the order, the firm can start production.
 If the volume of the order is considerably

large and the number of regularly visiting

customers are large in number, the Job
Production system slowly transform into
Batch Production system.

 Job Production Shop: Tailors shop; cycle

and vehicles repair shops, Job typing shops,
small Workshops
CHARACTERISTICS
 The Job-shop production system
is followed when there is:
 High variety of products and low

volume.
 Use of general purpose machines

and facilities.
Highly skilled operators who can
take up each job as a challenge
because of uniqueness.
Large inventory of materials,
tools, parts.
Detailed planning is essential for
sequencing the requirements of
each product, capacities for each
work centre and order priorities.
ADVANTAGES
Following are the advantages of job
shop production:
 Because of general purpose machines

and facilities variety of products can

be produced.
 Operators will become more skilled

and competent, as each job gives

them learning opportunities.
 Full potential of operators can be
utilised.
 Opportunity exists for creative

methods and innovative ideas.

LIMITATIONS
 Followingare the limitations of job
shop production:
Higher cost due to frequent set up
changes.
Higher level of inventory at all levels
and hence higher inventory cost.
Production planning is complicated.
Larger space requirements.
2. BATCH PRODUCTION
 Batch Production is the manufacture of
number of identical products either to
meet the specific order or to satisfy the
demand.
 When the Production of plant and

equipment is terminated, the plant and

equipment can be used for producing
similar products.
THIS SYSTEM CAN BE CLASSIFIED
UNDER THREE CATEGORIES.
(i) A batch produced only once: Here
customer places order with the firm for
the product of his specification.
 The size of the order is greater than

that of job production order. The firm

has to plan for the resources after
taking the order from the customer.
(ii) A Batch produced at irregular
intervals as per Customer order
or when the need arises:
As the frequency is irregular, the
firm can maintain a file of its
detailed plans and it can refer to its
previous files and start production.
(iii) A Batch Produced periodically at
known Intervals: Here the firm either
receives order from the customer at
regular intervals or it may produce the
product to satisfy the demand.
 It can have well designed file of its plans,

material requirement and instructions for

the ready reference.
 It can also purchase materials required in

bulk in advance.
 As the frequency of regular orders
goes on increasing the Batch
Production system becomes Mass
Production System.
 Here also, incase the demand for a

particular product ceases, the plant

and machinery can be used for
producing other products with slight
modification in layout or in machine
and equipment.
 Batch Production Shop:
Tyre Production Shops,
Readymade dress companies,
Cosmetic manufacturing
companies...etc.
CHARACTERISTICS
 Batch production system is used
under the following
circumstances:
 When there is shorter production

runs.
 When plant and machinery are

flexible.
 When plant and machinery set up
is used for the production of item
in a batch and change of set up is
required for processing the next
batch.
 When manufacturing lead time

and cost are lower as compared to

job order production.
ADVANTAGES
 Following are the advantages of
batch production:
 Better utilisation of plant and
machinery.
 Promotes functional specialisation.
 Cost per unit is lower as compared
to job order production.
 Lower investment in plant and
machinery.
 Flexibility to accommodate and

process number of products.

 Job satisfaction exists for

operators.
LIMITATIONS
 Followingare the limitations of
batch production:
Material handling is complex
because of irregular and longer
flows.
Production planning and control
is complex.
 Work in process inventory is
higher compared to continuous
production.
 Higher set up costs due to

frequent changes in set up.

MASS PRODUCTION
 Manufacture of discrete parts or
assemblies using a continuous process are
called mass production.
 This production system is justified by very

large volume of production.

 The machines are arranged in a line or

product layout. Product and process

standardisation exists and all outputs
follow the same path.
CHARACTERISTICS
 Mass production is used under the
following circumstances:
 Standardisation of product and process

sequence.
 Dedicated special purpose machines

having higher production capacities and

output rates.
 Large volume of products.
 Shorter cycle time of production.
 Lower in process inventory.
 Perfectly balanced production lines.
 Flow of materials, components and

parts is continuous and without

any back tracking.
 Production planning and control is

easy.
 Material handling can be

completely automatic.
 ADVANTAGES
Following are the advantages of mass
production:
 Higher rate of production with reduced cycle

time.
 Higher capacity utilisation due to line

balancing.
 Less skilled operators are required.
 Low process inventory.
 Manufacturing cost per unit is low.
LIMITATIONS
 Followingare the limitations of
mass production:
Breakdown of one machine will
stop an entire production line.
Line layout needs major change
with the changes in the product
design.
 High investment in production
facilities.
 The cycle time is determined by

the slowest operation.

CONTINUOUS PRODUCTION
 Production facilities are arranged as per
the sequence of production operations
from the first operations to the finished
product.
 The items are made to flow through the

sequence of operations through material

handling devices such as conveyors,
transfer devices, etc.
CHARACTERISTICS
Continuous production is used
under the following
circumstances:
Dedicated plant and equipment

with zero flexibility.

Material handling is fully

automated.
 Process follows a predetermined
sequence of operations.
 Component materials cannot be

readily identified with final

product.
 Planning and scheduling is a

routine action.
ADVANTAGES
 Followingare the advantages of
continuous production:
Standardisation of product and
process sequence.
Higher rate of production with
reduced cycle time.
Higher capacity utilization due to
line balancing.
 Manpower is not required for
material handling as it is
completely automatic.
 Person with limited skills can be

used on the production line.

 Unit cost is lower due to high

volume of production.
LIMITATIONS
 Following are the limitations of
continuous production:
Flexibility to accommodate and
process number of products does not
exist.
Very high investment for setting flow
lines.
Product differentiation is limited.