Production Systems

Meaning and Types of Production System

Production: Production is the process of creating goods and services. It involves converting inputs such as raw materials, components, and knowledge into finished products or services. Production can involve various activities such as manufacturing, mining, or growing commodities. This process employs both tangible inputs (raw materials, machinery) and intangible inputs (ideas, research, knowledge).

System: A system is an organized assembly of interdependent processes that function together to achieve specific objectives. Large systems are often composed of smaller sub-systems that work in coordination.

Production System

A production system is the framework within which inputs are converted into outputs. It consists of three main components: Inputs, Conversion Process, and Outputs.

  • Inputs:
    • Raw materials
    • Machines
    • Man-hours
    • Components or parts
    • Drawings and instructions
    • Paperwork
  • Conversion Process:
    • The actual production operations (manual, mechanical, or chemical)
    • Supporting activities such as:
      • Production planning and control
      • Purchasing raw materials
      • Receiving, storing, and issuing materials
      • Inspecting parts and work-in-progress
      • Testing products
      • Quality control
      • Warehousing finished products
  • Outputs:
    • Finished products
    • Parts
    • Services

Examples of Production Systems

  • Tangible Goods:
    • Sugar Industry: Inputs include sugarcane, the conversion process involves extracting juice and refining it, and the output is refined sugar.
  • Intangible Goods:
    • Software Development: Inputs are written program codes, the conversion process involves integrating these codes into a database and creating a user interface, and the output is an executable application program.

Types of Production Systems

1. Continuous Production System:

  • Involves a nearly continuous flow of materials.
  • Utilizes special-purpose machines.
  • Produces standardized items in large quantities.
  • Suitable for industries that produce goods or services continuously.

Examples:

  • Petroleum Industry
  • Chemical Industry
  • Steel and Sugar Industry

Classification:

  • Mass Production System:
    • Continuous manufacturing in anticipation of demand.
    • Standardization is key.
    • Also known as ‘Flow Production System.’
  • Process Production System:
    • Extension of mass production.
    • Involves continuous production through a uniform sequence of operations.
    • Often seen in industries like petroleum refining and heavy chemical manufacturing.

2. Intermittent Production System:

  • Facilities must be flexible to handle various products and sizes.
  • Production is done in batches.
  • Often based on customer orders.
  • Produces heterogeneous products within a range of standardized options.

Examples:

  • Automobile Industry
  • Electrical Goods Manufacturing
  • Printing Presses

Classification:

  • Job Production:
    • Goods are produced according to customer orders.
    • No assurance of continuous demand.
  • Batch Production:
    • Manufacturing is done in batches.
    • Based on customer orders or anticipated demand.
    • Supports medium-scale production, such as in the chemical industry where different medicines are produced in batches.

Conclusion

Understanding the nature and types of production systems helps in selecting the appropriate method for manufacturing goods and services efficiently. A production system ensures that inputs are effectively transformed into valuable outputs through well-planned processes, thereby meeting customer demand and maintaining competitive advantage.