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7/28/2019 OM2 TPS.pptx
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OPERATIONS MANAGEMENT
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TYPES OF PRODUCTION SYSTEMS
Production systems can be classified as project production ,
Job – shop ,Batch , Mass & continuous production systems.
Production system may be defined as “ the means by which
we transform resource inputs to create useful goods &
services as outputs “.
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CLASSIFICATIONS OF PRODUCTION SYSTEMS
PROJECT
PRODUCTI
ON
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TYPES OF PRODUCTION
INTERMITTENT
PRODUCTION
PROJECTPRODUCTIO
N JOB SHOPPRODUCTION
BATCHPRODUCTION
CONTINUOUSPRODUCTION
MASS & FLOWPRODUCTION PROCESS PRODUCTION
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INTERMITTENT PRODUCTION
The goods are manufactured specially to fulfill orders madeby customers rather than for stock. Here, the flow of material
is intermittent. Under intermittent production system, thebasic product design changes from time to time.
Production system is flexible
Design of the product can be change time to time
We can adjust production system according to the order Characteristics of Intermittent Production
General purpose machines and equipment are used
Variety of the product can be produced
Production is not continuous
Process layout is adopted
Volume of production is small
Production is as per the customer order
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Project Production Single assignment job is there
Complex in nature
This system is for specific time period
Specific expenditure is there
All the operations are carried out in a fixed position layout
Examples are: - ships, locomotives air crafts, roads, building,spacecrafts,bridge,Dam etc... Construction of A Dam
Characteristics of Project Production Short life cycle
Low Volume end of the continuum
High customization
The sequence of operations is unique to each project
Products cannot be produced to stock because needs of next customer unknown
Fixed position layout
Involvement of different agencies
Examples are: - ships, locomotives ,aircrafts, roads, building,spacecrafts.
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JOB-SHOP PRODUCTION Job-shop production are characterised by manufacturing one or a few
quantity of products designed and produced as per the specification of
customers 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.
EXAMPLE : foundries, machine shops, cabinet shops, print shops, many
restaurants, & the fashion industry
Job-shop Production is characterized by
1. High variety of products and low volume.
2. Use of general purpose machines and facilities.
3. Highly skilled operators who can take up each job as a challengebecause of uniqueness.
4. Large inventory of materials, tools, parts.
5. Detailed planning is essential for sequencing the requirements of each
product, capacities for each work centre and order priorities.
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Advantages
1.Because of general purpose machines and facilities variety
of products can be produced.
2. Operators will become more skilled and competent, as each job gives them learning opportunities.
3. Full potential of operators can be utilised.
4. Opportunity exists for Creative methods and innovative
ideas.
Limitations
1. Higher cost due to frequent set up changes.
2. Higher level of inventory at all levels and hence higher
inventory cost.
3. Production planning is complicated.
4. Larger space requirements.
B h P d i
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Batch Production American Production and Inventory Control Society
(APICS) defines Batch Production as a form of manufacturing in which the job pass through the
functional departments in lots or batches and each lotmay have a different routing. It is characterised by themanufacture of limited number of products produced atregular intervals and stocked awaiting sales.
Example :Cola manufacturing
Characteristics of Batch Production
1. Shorter production runs.
2. Plant and machinery are flexible.
3. Plant and machinery set up is used for the productionof item in a batch and change of set up is required for processing the next batch.
4. Manufacturing lead-time and cost are lower ascompared to job order production.
Ad t
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Advantages
Following are the advantages of Batch Production:
1. Better utilisation of plant and machinery.
2. Promotes functional specialisation.
3. Cost per unit is lower as compared to job order production. 4. Lower investment in plant and machinery.
5. Flexibility to accommodate and process number of products.
6. Job satisfaction exists for operators. Limitations
Following are the limitations of Batch Production:
1. Material handling is complex because of irregular andlonger flows.
2. Production planning and control is complex.
3. Work in process inventory is higher compared tocontinuous production.
4. Higher set up costs due to frequent changes in set up.
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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 thesequence of operations through material handling devices
such as conveyors, transfer devices, etc. Example : Sugar
mill
Continuous Production is characterised by 1. Dedicated plant and equipment with zero flexibility.
2. Material handling is fully automated.
3. Process follows a predetermined sequence of operations.
4. Component materials cannot be readily identified with
final product.
5. Planning and scheduling is a routine action.
Ad t
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Advantages
Following are the advantages of Continuous Production:
1. Standardisation of product and process sequence.
2. Higher rate of production with reduced cycle time.
3. Higher capacity utilisation due to line balancing.
4. Manpower is not required for material handling as it iscompletely automatic.
5. Person with limited skills can be used on theproduction line.
6. Unit cost is lower due to high volume of production.
Limitations
Following are the limitations of Continuous Production:
1. Flexibility to accommodate and process number of products does not exist.
2. Very high investment for setting flow lines.
3. Product differentiation is limited
M P d ti d Fl P d ti
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Mass Production and Flow 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 arearranged in a line or product layout. Product and process
standardisation exists and all outputs follow the same path. Assembling : Assembling a car
Mass Production is characterised by
1. Standardisation of product and process sequence.
2. Dedicated special purpose machines having higher productioncapacities and output rates.
3. Large volume of products.
4. Shorter cycle time of production.
5. Lower in process inventory.
6. Perfectly balanced production lines. 7. Flow of materials, components and parts is continuous and without
any back tracking.
8. Production planning and control is easy.
9. Material handling can be completely automatic.
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THE ASSEMBLY LINE OF MASS PRODUCTION SYSTEM
INPUT
ASSEMBLE
D
PRODUCTS
WORKSTATION
A
WORKSTATION
C
WORK
STATION B
The assembly line of operations of material can be manual or through conveyor
belts.Mass production system is generally employed in industries where the
production is carried on without interruption. The quality of production is
superior and uniform due to standardization and mechanization
Ad t
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Advantages
Following are the advantages of Mass Production:
1. Higher rate of production with reduced cycle time.
2. Higher capacity utilisation due to line balancing. 3. Less skilled operators are required.
4. Low process inventory.
5. Manufacturing cost per unit is low.
Limitations
Following are the limitations of Mass Production:
1. Breakdown of one machine will stop an entire
production line. 2. Line layout needs major change with the changes in
the product design.
3. High investment in production facilities.
4. The cycle time is determined by the slowest
Process Production
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Process Production
Process production is characterized by the manufacture of a singleproduct produced
The flexibility of such plants is almost zero as only one type of product canbe produced in the plant
Examples are refineries, petrol, kerosene, and diesel oil.
Characteristics of Process Production
Special purpose machines and equipments are used
Material handling is highly mechanized
In this manufacturing cycle time is almost zero. The whole plant is like onelarge machine where materials are entered at the one end.
Labour required is having semi skilled workmen and skilled techniciansare required
Supervision in this type of production is high.
Types of Process Production There are two types of Process Production
1. Analytical Process: Here raw material is broken down into its componentparts. Ex: Crude oil in refinery is broken down into individual fractions likeKerosene. Petrol, Naphtha etc.
2. Synthetic Process: Mixing of two or more parts of materials to form a
finished product like soap
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PRODUCT DESIGN
The objective of the product decision is to develop & implement
a product strategy that meets the demands of the marketplace
with a competitive advantage Products are born , they live & they die. They are cast aside by
a changing society .It may be helpful to think of a product’s life
as divided into four phases. Those phases are Introduction ,
Growth ,Maturity & Decline Regardless of the length of the cycle the task for the operations
manager is the same: to design a system that helps introduce
new products successfully
Product by value analysis : A listing of products in descendingorder of their individual dollar contribution to the firm as well as
the total annual dollar contribution of the product.
It helps to take decisions
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GENERATING NEW PRODUCTS
Because products die ;products must be replaced becausefirms generate most of their revenue & profit from new
products Product selection , definition , & design take place on a
continuing basis
Consider recent product changes TV to HDTV,land lines tocell phones, walkman to iPod & the list goes on
Knowing how to successfully find & develop new products isa requirement
PRODUCT DEVELOPMENT
Product development system : An effective product strategy
links product decisions with cash flow , market dynamics ,product life cycle , & the organization capabilities. A firmmust have the cash for product development , understandthe changes constantly taking place in the market place , &have the necessary talents & resources available .The
product development system may well determine not only
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QUALITY FUNCTION DEPLOYMENT ( QFD )
A process for determining customer requirements (
customer wants ) & translating them into the attributes thateach functional area can understand & act on.
House of quality : A part of the quality function deployment
process that utilizes a planning matrix to relate customer
“wants” to “how” the firm is going to meet those “wants”
PRODUCT DEVELOPMENT STAGES
Product concepts are developed from a variety of sources ,
both external & internal to the firm . Concepts that survive
the product idea stage progress through various stages,with nearly constant review , feedback , & evaluation in a
highly participate environment to minimize failure.
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Scope of
product
development
team
PRODUCT DEVELOPMENT SYSTEM
Scope for design andengineering
teams
Evaluation
Introduction
Test Market
Functional Specifications
Design Review
Product Specifications
Customer Requirements
Ability
Ideas
Figure 5.3
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PRODUCT DEVELOPMENT TEAMS
Teams charged with responsibility of moving from market
requirements for a product to achieving product success.
Such teams often include representatives from marketing,manufacturing , purchasing , quality assurance & field service
personnel.