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    PRODUCTION SYSTEMS

    Dr. Rajeev SahaAsst. Prof.

    YMCA UST, Faridabad

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    Objectives

    You will be able to

    Identify components of a typical production system

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    Classify production system based on various criteria

    Explain generalized model of production system

    Summarize features of service organizations

    Explain life cycle approach to production management

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    To produce goods and services needed for

    human consumption in the Right Quantity

    Aim of Production Systems

    Right Quality

    Right Time

    Right Price

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    INPUT Transformation OUTPUTManpower

    A Typical Production System

    Manpower

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    Money

    Materials

    Management

    Information

    Energy

    or

    Service

    Money

    Materials

    Management

    Information

    Energy

    or

    Service

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    Physiologicalas in Hospitals

    Attitudinalas in Welfare Organization

    Transformations in a Production System

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    Informationalas in Reading

    Gratificationalas in Entertainment

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    In the Production System

    Value Addition at different operations. Use of various tools & techniques. Performance Indicators like

    Value Addition at different operations. Use of various tools & techniques. Performance Indicators like

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    Production, Productivity, Efficiency,Effectiveness.Production, Productivity, Efficiency,Effectiveness.

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    Production System can be classified on

    the basis of

    Size small, medium & large

    Input Man, machine, material, money,

    information, energy.

    Size small, medium & large

    Input Man, machine, material, money,

    information, energy.

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    Output Goods and services

    Volume & Variety - Project, Job, Batch, Mass,Continuous

    Output Goods and services

    Volume & Variety - Project, Job, Batch, Mass,Continuous

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    Project Production System

    work is carried out at the siteof the work

    All resources such as tool,material, labour etc. are

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    production e.g. construction projects &

    heavy and large product

    based projects

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    Job Production System

    Commonly used to meeta particular customer

    need. Production lot size is

    generally small.

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    Product variety is high. Production equipments

    are mostly general

    purpose and flexible.Highly skilled labour is

    needed to handle the

    equipments.

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    Batch Production System

    Commonly used to meetrepeated customer orders.

    Production lot size ismedium and in batches.

    Product variet is moderate.

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    Production equipments aregeneral purpose but suitablefor higher production

    volume. Less skilled labour required

    compared to Job production.

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    Mass Production System

    Particularly suited for highdemand items.

    Production lot size is very high. Product variety is very low. Special purpose tools and

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    .

    Skill Level of workers may bemoderately low.

    Entire plant is designed to cater

    to few special varieties ofproducts. Higher investments may be

    needed for special purpose

    machines.

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    Continuous Production System

    Particularly suited for very highand regular demand items.

    Production is continuous. Product variety is very low. Special purpose tools and

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    .

    Skill Level of workers are low. Plant is generally automated and

    computer controlled.

    Higher investments are requiredfor system monitoring andcontrolling.

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    Volume Variety Suitability

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    Legends:P: Project ProductionJ: Job ProductionB: Batch ProductionM: Mass Production

    C: Continuous Production

    Fig. Volume Variety Suitability for various productionsystems

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    Preferred Layout

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    Fig. Effect on some factors and preferred layout for various production systems

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    Production System can be categorized as

    Make to Stock

    e.g. TV, Motors, Nuts & Bolts, Bearings etc.

    Make to Order

    Make to Stock

    e.g. TV, Motors, Nuts & Bolts, Bearings etc.

    Make to Order

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    e.g. ustom Tai ore ot ing, pecia Purpose M/c etc.

    Assemble to Order

    e.g. Computer System

    e.g. ustom Tai ore ot ing, pecia Purpose M/c etc.

    Assemble to Order

    e.g. Computer System

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    Generalized Model of Production System

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    Distinctive Features

    Service Organizations

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    1) Customer is a participant in service department

    Input/ Resource

    Immediate interaction with operation2) Production and Consumption occur simultaneously

    Distinctive Features of Service Organizations

    1) Customer is a participant in service department

    Input/ Resource

    Immediate interaction with operation2) Production and Consumption occur simultaneously

    Capacity to provide service must be available whendemanded

    3) Service capacity is time perishable Synchronous demand/ capacity

    Forecasting/ capacity adjustment challenging

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    Capacity to provide service must be available whendemanded

    3) Service capacity is time perishable Synchronous demand/ capacity

    Forecasting/ capacity adjustment challenging

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    4) Site selection dictated by customer location

    Multiple, local area sites

    5)Operations are labour intensive

    New technology difficult to implement

    Distinctive Features of Service Organizations

    4) Site selection dictated by customer location

    Multiple, local area sites

    5) Operations are labour intensive

    New technology difficult to implement

    Emp oyees c aracteristics in uence t e services6) Services are intangible

    Units of output difficult to define/ measure

    Q.C. system difficult to establish

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    Emp oyees c aracteristics in uence t e services6) Services are intangible

    Units of output difficult to define/ measure

    Q.C. system difficult to establish

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    Life Cycle Approachto

    ro uc on anagemen

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    Stage Decision

    Birth of systemGoals?

    Product / Service?

    Form & Appearance of

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    ro u nProcess Selection

    Design of system

    Technology how shouldthe product be made?

    Facility Location,

    Physical Layout

    Determine demand,perceived quality

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    Stage Decision

    Manning thesystem

    Assigning jobs to workers

    How job to be performed,measured?

    Compensation of worker

    How to et s stem into

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    ar up othe system

    The system inSteady state

    operation?How long it will take toreach desired stage?

    How to run system- daytoday, improve the system,deal with problems

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    Stage Decision

    Revision of thesystem

    New technology, threats/opportunities

    Revision of markets

    Newer methods ofmanufacture

    Newer products

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    Termination of

    system

    Innovation

    How does a system die?

    How to salvage resources?

    Sell out/ merger/ sell m/cs

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    What you have gained Distinguish various components of a typical

    production system Classify production system

    Ex l in n r liz m l f r i n

    system Explain features of a service organization

    Explain life cycle approach to production

    management

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    What you have understood

    Identify salient features of Toyota

    Production System (automobile) usingonline and offline resources.

    ompare oyota ro uct on ystem w tany other automobile production system inIndia.

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    Further Readings

    Industrial Engineering - Dr. Ravi Shankar

    Production & operations management -Buffa, Edwood

    Industrial Engineering and productionmanagement Martand Telsang

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