II Shreeram II

1.3 Production Systems

Types of Manufacturing Processes

Manufacturing processes are a group of activities that are linked together in different
patterns to produce the final product.

Processes need to be categorized to describe the patterns that are formed when they are
linked together. This categorization helps in understanding the similarities and differences
between processes.
There are a number of ways to categorize a process. Categorization is based on whether it
is a single-stage or a multiple-stage process.

Single-stage Process

If the forging machine were viewed as a simple black box, it would be categorized as a
single- stage process. In this case, all activities that are involved in forging the component
would be analyzed using the different factors to determine the overall economics and to
represent the process parameters.

Multiple-stage Process

- It has multiple groups of activities that are linked through flows. The connecting
rod, seen as a component for the engine, would have two stages for its
manufacture: the 'forging' stage and the 'machining' stage. The term stage
indicates multiple activities that are pulled together for analysis purposes.

- A multiple-stage process normally requires to be buffered internally if the

processes are not continuous. Buffering refers to a storage area where the output
of a stage is placed before being used in a downstream stage. Buffering allows the
stages to operate independently. If one stage feeds a second stage with no
intermediate buffer, then the assumption is that it is a continuous process and the
two stages are directly linked. In a continuous process, the most common
problems are 'blocking' and 'starving'.

- Blocking occurs when the activities in the stage move faster than that of the next
stage and it becomes necessary to stop the process because there is no place to
deposit its output.

- Starving occurs when the activities in a stage must stop because there is not
sufficient output from the stage preceding it.
 Types Processes

Processes by Market Orientation

1. Make to Stock (MTS): The goods usually are standard, mature products with
few product customization options. As a general rule, 'make to stock' products
compete primarily on the basis of cost and availability.
Example: Such products include most retail goods such as breakfast cereals, milk,
shirts, jeans, and office desks.
2. Assemble to Order (ATO): 'Assemble to order' products are standard items
that are assembled from in-stock subassemblies. This allows customers to
specify a wide range of options.

Example: Many camera dealers can 'assemble' any configuration of a single lens
reflex camera from a basic body. The customer specifies the exact type of lens
desired, or the viewing system, etc.
 3. Make to Order (MTO): Make to order products are made from previously
engineered designs, but are made only after an order has been received.
'Make to order' products are used when a standard product is: too costly to
stock, has too uncertain demand, or will deteriorate if stocked on a shelf.
Example: Goods made using the 'Make to order' products market
orientation are: commercial airplanes, prescription glasses, etc

4. Engineer to Order (ETO): This market orientation is used to make unique

products that have not been previously engineered. Extensive customization
to suit the customer's need is possible, but only if the customer is willing to
wait for this addition stage in the value creation process.
Example: specialized industrial equipment, hand-built furniture

Processes as Production Systems

A production system refers to how an organization organizes material flow using different process
technologies. There are five major types of production systems that have been generally identified.
They are:
1. Project: These are generally one-off projects. It is based on extensive customization that is
suited to the customer's need. Many construction projects, project management contracts,
shipbuilding and civil engineering projects fall in this category.

Example: Larson and Toubro's main business is executing projects. Much of the work is carried
out at site rather than in a factory. All equipment, tools, materials, labour, etc., are placed at
the site itself. Infosys sends its teams to the customer's facilities to install, test, and customize
its software.
2. Job Shop: Job shop production is characterized by processing of small batches of a large
number of different products, most of which require a different set or sequence of processing
steps. Production equipment is mostly general purpose to meet specific customer orders.
Highly skilled labour is needed to handle the processes, as the variety and product range are
generally very high.
Commercial printing firms, machine shops, and die, jigs and fixture making, etc., are
examples of this type of structure.
Example: Thomson Press operates on the basis of specific customer orders; Tools and
Equipment makes jigs and fixtures as per the design and requirements of its clientele. Tata
Consultancy Services (TCS) produce different types of software, based and customized to each
client's requirements.
3. Batch Production (Disconnected Line): Production is in discrete parts that are repeated at
regular intervals. Essentially, it is somewhat like a standardized job shop. Such a structure is
generally employed for relatively stable line of products, each of which is produced in medium
volume, either to customer order or for inventory. The process has the ability to switch over
from one product to another with relative ease. Though mostly general- purpose machine are
 used, they are supported with specially designed jigs and fixtures. The skill level of labour is
high but not critical.

Example: Equipment like X-ray machines, earth moving and material handling equipment, electronic
devices, etc. Wipro GE manufactures medical equipment and ECIL manufactures mainframe
computers using batch production.
This is also applicable to many small-scale enterprises or many chemical processes, etc., e.g., Oracle
or People Soft produce CDs with standard software in batch productions depending on the demand.
4. Assembly Line: An assembly line is a mass production process. On assembly line, production
follows in a predetermined sequence of steps, which are continuous rather than discrete. The
product moves from workstation to workstation at a controlled rate, following the sequence
needed to build the product. The product variety is low and special purpose tools and
equipment is normally employed. When other processes are employed in a line fashion along
with assembly, it is commonly referred to as a production line.

Example: Automobiles, appliances like washing machines, televisions, etc. Maruti makes cars on an
assembly production line; ECIL makes electronic components and McDonald's its burgers using the
same concept.

5. Continuous Flow: Continuous production is common in the food processing industry, and in
industries involving undifferentiated materials such as petroleum and chemicals. Most bulk
products are manufactured using continuous flow production. Generally, online control and
continuous system monitoring is needed. Such processes are usually highly automated and, in
effect, constitute one integrated machine. Shutdowns and start-ups are very expensive in this
production mode, and need to be avoided.

Example: The Reliance Petrochemical complex at Patalganga and the Thermal Power Plants operated
by NTPC.
6. Cell Manufacturing (Group Technology): A cell is a self-sufficient unit, in which all operations
required to make components or complete products can be carried out. It is like a mini-factory
within the factory, which is managed by a cell team. TI Cycles reorganized its manufacturing
into cells to serve other operations. Thus cell manufacturing creates a client-server
relationship between the different components of the production system. Cell layouts can be
U-shaped or a segment of a line (a product or sub-assembly stage) allowing a self-organizing,
multi-skilled group of fewer people to manage the operation. Shorter processing times, better
team attention to quality problems, reduction of work in progress, lower handling costs and
simpler scheduling can be achieved. Built in spare plant capacity (redundancy) or providing
additional machines to a cell can accommodate small changes or fluctuations in demand and
bring benefits.
7. Flexible Manufacturing Systems (FMS): A flexible manufacturing system generally consists of
a number of CNC machine tools and a materials handling system that is controlled by one or
more dedicated computers. A typical flexible manufacturing system can completely process
the members of one or more part families on a continuing basis without human
intervention. FMS brings flexibility to manufacturing so that a part can be produced when
the market requires it. The system is flexible enough to suit changing market conditions and
product type without buying other equipment.
Computer-aided manufacture and control enables to set up time on machines or minimize
changeover procedures. Computers control machines so that they can respond to pre-
programmed instructions. Parts or components are designed using Computer Aided Design
software (CAD) and the data from design specification provides the input to generate
instructions to computer- controlled machines. Due to this, the production of frequent,
small batches is possible and machine availability can be better scheduled in response to
customer orders and unit production costs can be kept low.
A production line assembling cars, e.g., Maruti, can switch from producing large batches of
one model of car to another model with a different shape and arrangement of sub-
assemblies within minutes and multi-skilled workers can re-configure their work stations
with required materials.