1 Types of production systems 2 Factors Influencing Process Choices Volume: Average quantity of the products produced in a manufacturing system – – – Variety: Number of alternative products and variants of each product that is offered by a manufacturing system – Low volume: Turnkey project management firms such as L&T and BHEL High volume: Consumer non-durable and FMCG sector firms, Automobile, Chemical Processing Mid-volume: Consumer durables, white goods and several industrial products Variety of product offerings is likely to introduce variety at various processes in the system; alternative production resources, materials, and skill of workers (Titan ,Telco) Flow: Flow indicates the nature and intensity of activities involved in conversion of components and material from raw material stage to finished goods stage 3 Relationship between volume and variety Volume Mass Production Petrochemicals, Automobile Variety Mid volume Mid variety Motor Manufacturing Pharmaceuticals Project Organisations Turnkey Project Execution 4 Processes & Operations Systems Available Alternatives Three types of flows occur in operating systems: – Continuous – Intermittent – Jumbled 5 Types of industries Basic Industries Manufacturing Discrete Process Services Project 6 Paper Manufacturing An example of process industry Logs and chips of wood stored Processing of the wood Crushing of logs and chips Preparatory Drying the wood pulp Refining the Wood pulp Pulp making Stretching Paper rolling Cutting Final packing Paper making Cleaning & Bleaching 7 Continuous Flow System Mass production in discrete manufacturing In discrete manufacturing various components are manufactured in discrete fashion and the final product is obtained through an assembly process In a mass production system, the volume of production is very high and the number of variations in the final product is low – Examples: » Automobile and two wheeler manufacturers, » Manufacturers of electrical components such as switches and health care products such as disposable syringes The entire manufacturing is organised by arranging the resources one after the other as per the manufacturing sequence (known as product line structure) 8 Intermittent Flow System Characterised by mid-volume, mid-variety products/services Increases the flow complexities Flow and capacity balancing are difficult but important – Process industries use batch production methods – Discrete industries use alternative methods of designing layout issues Capacity Estimation is hard Production Planning & Control is complex 9 Jumbled Flow System Occurs on account of non-standard and complex flow patterns characteristic in certain systems – Highly customised items – customer orders for one or a few Examples – turnkey project executor such as BHEL or L&T – customised manufacturing systems such as PCB fabricators, sheet metal fabricators, tool room operators and printing and publishing Operational complexity arising out of jumbled flow is high 10 Types of Production systems Job Shop Type of Production Flow Continuous Production Types of Production Systems Mass Production Batch Type of Production 11 Types of Production Systems Job Shop Type of Production as per Customer demand, e.g. heavy m/c s, low volume –high variety. Use of general purpose m/cs Highly skilled operators Large inventory of material, tools, parts. Detailed planning required. Limitations high cost, production planning is complicated 12 Batch Type of Production: Lot Production of similar items – job passes through the functional departments in lots or batches. E.g : medicines. Shorter production runs. Plant and machinery are flexible. Better utilization of plant and machinery Limitations – production planning becomes complex. 13 Mass Production : manufacture of discrete parts and accessories using a continuous process is called mass production, Demand pattern known, Standard product, Large batches. Dedicated assembly lines. lines, E.g :TV •Higher rate of production. •Higher capacity utilization. •Less skilled operators are required. •Manufacturing cost per unit is low. •Limitations ; breakdown of one m/c will stop entire prodn line. High investment. 14 Flow /Continuous Production : production facilities are arranged as per sequence of operations. Material is made to flow through sequence of e.g. Cement, Petrol/Diesel Dedicated plant and machinery with Zero flexibility. Material handling is fully automated. Planning and scheduling is routine action. High volume of production. 15 Manufacturing Reference Model Low volume D I S C R E T E JOB/ASSEMBLY Machine-Tools Farming Equipments Shutters Jewelry HIGH VOLUME/ REPETITIVE Electronic Components Spinning Mills Batteries Tyres BATCH/MIX Food Beverages, Wine Dairy Products Pharmaceuticals Paint PROCESS/FLOW Refineries Glass Graphite Paper Mills Steel Fertilizers High Volume P R O C E S S 16 Product – Process Matrix Low Volume Low Standardisation One of a kind Jumbled Flow (Job Shop) None Machine Tools Connected Line Flow (Assembly Line) . High Volume Few Major Products High Standardisation Higher Volume Commodity Products Satellite Launch Vehicle Disconnected Line Flow (Batch) Continuous Flow Multiple Products Low Volume Auto electric parts None Polyethylene 17 Manufacturing Strategies raw materials components semi finished finished goods eng prod prod prod make-to-stock s assemble-to-order u p p make-to-order l i e engineer-to-order r standard customer driven c u s t o m e r