Question

1. Search the web for virtual factory tours (example; Blue Belle Ice Cream) and choose three to explore. Classify each process you see as project from the four basic types of production process, batch production, mass production, or continuous production. What problems did you encounter in deciding on the classifications?

Answer 1

As we examine the four major types of production processes, keep in mind that the most successful organizations are those that have their process and product aligned.

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. A simplified production system is shown above.

The production system has the following characteristics:

1. Production is an organized activity, so every production system has an objective.
2. The system transforms the various inputs into useful outputs.
3. It does not operate in isolation from the other organization system.
4. 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 Shop, Batch, Mass, and Continuous Production systems.

Classification of production systems

Continuous Production Production/ Operations Volume Mass Production Batch Production Job-Shop Production Output/Product Variety

JOB SHOP PRODUCTION
Job shop production is characterized by the manufacturing of one or 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. This type of production is often used for very large projects or for individual customers. Because the customer’s needs and preferences play such a decisive role in the final output, it’s essential for the operations manager to maintain open and frequent communication with that customer. The workers involved in this type of production are highly skilled or specialists in their field.

The following are examples of the project- or job-based production:

• custom home construction
• haircuts
• yachts

Characteristics
The Job-shop production system is followed when there is:

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 challenge because 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.

Advantages
Following are the advantages of job shop production:

1. Because of general-purpose machines and facilities, a 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 utilized.
4. Opportunity exists for creative methods and innovative ideas.

Limitations
Following are the limitations of job shop production:

1. Higher cost due to frequent setup changes.
2. A higher level of inventory at all levels and hence higher inventory cost.
3. Production planning is complicated.
4. Larger space requirements.

BATCH PRODUCTION
Batch production is a method used to produce similar items in groups, stage by stage. In batch production, the product goes through each stage of the process together before moving on to the next stage. The degree to which workers are involved in this type of production depends on the type of product. It is common for machinery to be used for the actual production and workers participate only at the beginning and end of the process.

Examples of batch production include the following:

• bakeries
• textiles
• furniture

Characteristics
The batch production system is used under the following circumstances:

1. When there are shorter production runs.
2. When plants and machinery are flexible.
3. 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.
4. When manufacturing lead time and cost are lower as compared to job order production.

Advantages
Following are the advantages of batch production:

1. Better utilization of plant and machinery.
2. Promotes functional specialization.
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 and longer flows.
2. Production planning and control is complex.
3. Work in process inventory is higher compared to continuous production.
4. Higher set up costs due to frequent changes in set up.

MASS PRODUCTION
Manufacture of discrete parts or assemblies using a continuous process is called mass production. This production system is justified by a very large volume of production to meet high market demand. The machines are arranged in a line or product layout. Mass production is used by companies that need to create standardized products in large quantities as economically as possible. This type of production usually requires heavy investment in machinery and equipment; workers are generally needed to assemble component parts to make the finished good.

The following goods are mass produced:

• toilet paper
• cell phones
• automobiles

Characteristics
Mass production is used under the following circumstances:

1. Standardization of product and process sequence.
2. Dedicated special purpose machines having higher production capacities 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 backtracking.
8. Production planning and control is easy.
9. Material handling can be completely automatic.

Advantages
Following are the advantages of mass production:

1. Higher rate of production with reduced cycle time.
2. Higher capacity utilization 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. The breakdown of one machine will stop an entire production line.
2. The line layout needs major changes with the changes in the product design.
3. High investment in production facilities.
4. The cycle time is determined by the slowest operation.

CONTINUOUS PRODUCTION
Flow production, also known as continuous production, occurs when a process runs twenty-four hours a day. Companies whose products are homogeneous use this production approach to reduce cost and increase efficiency. These systems are highly automated, and workers act as monitors rather than as active participants.

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.

Examples of flow production:

• gas and oil
• steel
• chemicals

While these production methods are different from one another and are suitable for different production needs, it’s a mistake to conclude that products are manufactured according to one and only one process. Consider the home in which you live. When the house was built, the contractor used a job process, and highly skilled workers were brought in to install the plumbing, heating, and electrical systems. The carpet that was installed, however, was produced according to a batch process. The carpet manufacturer ran up a batch of carpeting in the color and style that now covers your floors. The kitchen and bathroom light fixtures, however, were probably mass-produced before you or the contractor purchased them from a home improvement store. The paint on the walls of your house, meanwhile, was likely the product of a continuous or flow process.

Characteristics
Continuous production is used under the following circumstances:

1. Dedicated plant and equipment with zero flexibility.
2. Material handling is fully automated.
3. The process follows a predetermined sequence of operations.
4. Component materials cannot be readily identified with the final product.
5. Planning and scheduling is a routine action.

Advantages
Following are the advantages of continuous production:

1. Standardization of product and process sequence.
2. Higher rate of production with reduced cycle time.
3. Higher capacity utilization due to line balancing.
4. Manpower is not required for material handling as it is completely automatic.
5. A person with limited skills can be used in the production line.
6. The unit cost is lower due to the high volume of production.

Limitations
Following are the limitations of continuous production:

1. Flexibility to accommodate and process a number of products does not exist.
2. Very high investment for setting flow lines.
3. Product differentiation is limited.