Types Of Production System
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26-Jan-19
ME 403 PRODUCTION PLANNING & CONTROL
TYPES OF PRODUCTION SYSTEM Mahjabin Rahman Dept. of MPE
2
Types of Production System Production
System
depends
on
planning
characteristics,
production planning etc. Production system is organized in aiming to maximize profitability while maintaining a satisfied consumer base with limited resources.
1
26-Jan-19
3
Classification Production system can be classified into many types based on several characteristics. Commonly found classifications are• Product-process type • Material flow characteristics • Customer ordering policy • Batch size
4
Based on Product-process type Product-process type – based on physical characteristics of input material and finished goods. 1. Discrete manufacturing – products and parts are separately identifiable. Parts or components can be counted when disassembled. 2. Process manufacturing – input ingredients can not be identified once the final product is produced. Operations like- mixing, heating, stirring, chemical reactions etc. are associated with it.
2
26-Jan-19
5
Based on Product-process type 1. Discrete manufacturing – Tailor shop, Job shop, RMG industry, Smartphone and electronic goods manufacturers etc. 2. Process manufacturing – cosmetic products,
pharmaceuticals, drinks
and oil production etc.
6
Based on materials flow Material flow characteristics – based on how materials flow in the production floor. 1. Intermittent or discontinuous flow 2. Continuous flow manufacturing
3
26-Jan-19
7
Based on materials flow Intermittent or discontinuous flow • Jobs pass through production process in lots (batches) • Move from one step to another as a group • Production is set at a given rate and produced in bulk • “Rate-based” production system • Assembly line (automobiles), sewing section in RMG industry, electronic goods.
8
Based on materials flow Continuous flow manufacturing • Materials flow continuously through the system, without interruption • Organized production equipment with fixed sequence • Products can not be counted by number, rather by amount • Production equipment is organized and sequenced according to the steps involved in production process. • Oil refining, sugar production, chemical production.
4
26-Jan-19
9
Based on materials flow
Assembly line
10
Based on customer ordering policy Customer ordering policy – based on how production orders are planned and products are designed. 1. Make-to-stock (MTS) 2. Make-to-Order (MTO) 3. Assemble-to-Order (ATO) 4. Engineer-to-Order (ETO)
5
26-Jan-19
11
Based on customer ordering policy Make-to-stock (MTS) – products are produced based on producers plan and design. Products are sold from the stock to the customers. Television, refrigerator, furniture, etc. Make-to-Order (MTO) – production begins after getting the customer order. Customer provides the design specification. Some raw materials are also provided by customers. Tailor shop, Apparel companies etc.
12
Based on customer ordering policy Assemble-to-Order (ATO) – combination of MTS and MTO. Basic standardized components are kept as stock by the producers. When customer order arrives, final assembly of the product is done based on the customer specification. Dell computer. Engineer-to-Order (ETO) – engineering design of the product is totally based on customer requirements. Each product is unique than the others and usually produced in small quantities. Online shop, Formula 1 cars, Building etc.
6
26-Jan-19
13
Based on customer ordering policy
14
Based on customer ordering policy Table: Basis for production planning MTS
MTO
ATO
ETO
Forecast (F/G level)
Customer orders
Forecast (R/M level)
Customer orders (customized)
7
26-Jan-19
15
Based on lot size or batch size Batch size – production batch size; quantity per batch or lot. 1. Job Shop 2. Batch 3. Mass Production
16
Based on lot size or batch size Job Shop – Commercial printing firms, machine shops, tailor shops, small furniture making shops. Batch – Apparel industry, Pharmaceuticals, Bank note printing press.
8
26-Jan-19
17
Based on lot size or batch size Job Shop
Batch System
Product variation is high
Product variation is low
Per unit production cost is high
Per unit production cost is low
Production batch size is very small
Production batch size is very large
Frequent setup of machine is required
Fewer setup of machine is required
18
Based on lot size or batch size Mass Production • A particular type of product is produced in huge amount • Fewer setup of machine is required • Lower production cost per unit - “Economy of Scale”.
9
26-Jan-19
19
Based on lot size or batch size Mass Production -
Ford Model T
Production of Coca-Cola
20
10
ME 403 PRODUCTION PLANNING & CONTROL
TYPES OF PRODUCTION SYSTEM Mahjabin Rahman Dept. of MPE
2
Types of Production System Production
System
depends
on
planning
characteristics,
production planning etc. Production system is organized in aiming to maximize profitability while maintaining a satisfied consumer base with limited resources.
1
26-Jan-19
3
Classification Production system can be classified into many types based on several characteristics. Commonly found classifications are• Product-process type • Material flow characteristics • Customer ordering policy • Batch size
4
Based on Product-process type Product-process type – based on physical characteristics of input material and finished goods. 1. Discrete manufacturing – products and parts are separately identifiable. Parts or components can be counted when disassembled. 2. Process manufacturing – input ingredients can not be identified once the final product is produced. Operations like- mixing, heating, stirring, chemical reactions etc. are associated with it.
2
26-Jan-19
5
Based on Product-process type 1. Discrete manufacturing – Tailor shop, Job shop, RMG industry, Smartphone and electronic goods manufacturers etc. 2. Process manufacturing – cosmetic products,
pharmaceuticals, drinks
and oil production etc.
6
Based on materials flow Material flow characteristics – based on how materials flow in the production floor. 1. Intermittent or discontinuous flow 2. Continuous flow manufacturing
3
26-Jan-19
7
Based on materials flow Intermittent or discontinuous flow • Jobs pass through production process in lots (batches) • Move from one step to another as a group • Production is set at a given rate and produced in bulk • “Rate-based” production system • Assembly line (automobiles), sewing section in RMG industry, electronic goods.
8
Based on materials flow Continuous flow manufacturing • Materials flow continuously through the system, without interruption • Organized production equipment with fixed sequence • Products can not be counted by number, rather by amount • Production equipment is organized and sequenced according to the steps involved in production process. • Oil refining, sugar production, chemical production.
4
26-Jan-19
9
Based on materials flow
Assembly line
10
Based on customer ordering policy Customer ordering policy – based on how production orders are planned and products are designed. 1. Make-to-stock (MTS) 2. Make-to-Order (MTO) 3. Assemble-to-Order (ATO) 4. Engineer-to-Order (ETO)
5
26-Jan-19
11
Based on customer ordering policy Make-to-stock (MTS) – products are produced based on producers plan and design. Products are sold from the stock to the customers. Television, refrigerator, furniture, etc. Make-to-Order (MTO) – production begins after getting the customer order. Customer provides the design specification. Some raw materials are also provided by customers. Tailor shop, Apparel companies etc.
12
Based on customer ordering policy Assemble-to-Order (ATO) – combination of MTS and MTO. Basic standardized components are kept as stock by the producers. When customer order arrives, final assembly of the product is done based on the customer specification. Dell computer. Engineer-to-Order (ETO) – engineering design of the product is totally based on customer requirements. Each product is unique than the others and usually produced in small quantities. Online shop, Formula 1 cars, Building etc.
6
26-Jan-19
13
Based on customer ordering policy
14
Based on customer ordering policy Table: Basis for production planning MTS
MTO
ATO
ETO
Forecast (F/G level)
Customer orders
Forecast (R/M level)
Customer orders (customized)
7
26-Jan-19
15
Based on lot size or batch size Batch size – production batch size; quantity per batch or lot. 1. Job Shop 2. Batch 3. Mass Production
16
Based on lot size or batch size Job Shop – Commercial printing firms, machine shops, tailor shops, small furniture making shops. Batch – Apparel industry, Pharmaceuticals, Bank note printing press.
8
26-Jan-19
17
Based on lot size or batch size Job Shop
Batch System
Product variation is high
Product variation is low
Per unit production cost is high
Per unit production cost is low
Production batch size is very small
Production batch size is very large
Frequent setup of machine is required
Fewer setup of machine is required
18
Based on lot size or batch size Mass Production • A particular type of product is produced in huge amount • Fewer setup of machine is required • Lower production cost per unit - “Economy of Scale”.
9
26-Jan-19
19
Based on lot size or batch size Mass Production -
Ford Model T
Production of Coca-Cola
20
10
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