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Lecture One

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Production and

Operations
Management
Lecture One

Dr/ Hend Awad Mahmoud


Chapter One

Introduction
Topic One: What is meant by production?

❑ Production/operations management is the process, which


combines and transforms various resources used in the
production/operations subsystem of the organization into value
added product/services in a controlled manner as per the
policies of the organization.

❑ It is that part of an organization concerned with transforming a


range of inputs into the required (products/services) with the
requisite quality level.
Meaning ❑
of production
❑ The Production function is that part of an organization, which
is concerned with the transformation of a range of inputs into
the required outputs (products) having the requisite quality
level.

❑ Production is defined as the step-by-step conversion of one


form of material into another form through a chemical or
mechanical process to create or enhance the utility of the
product to the user. Also, it is defined as a process by which
goods and services are created
Production system

❑ The production system of an organization is that part, which


produces products of an organization.

❑ The Production system is defined as activity where 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.

❑ It is shown in the following diagram,,


Figure (1): Production system
Characteristics of Production system

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 to 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.
Classifications of Production system

The production system has the following classifications:

1. Job Shop
2. Batch
3. Mass Production systems
4. Continuous Production systems
Each system will be explained as follows,
Figure (2): Classifications of Production system
1. Job shop production

❑ Job shop production are characterized by manufacturing of few


quantity of products designed and produced as per the
specification of customers within prefixed time and cost.

❑ It depend on producing 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.

The characteristics of this production system are:


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
The limitations of a job-shop production system are :

1. Higher cost due to frequent setup changes.


2. Higher level of inventory at all levels and hence higher
inventory cost.
3. Production planning is complicated.
4. Larger space requirements.
2. Batch production system

❑ Batch production is defined as a form of manufacturing in which


the job passes through the functional departments in lots or
batches and each lot may have a different routing.

❑ It is characterized by the manufacture of a limited number of


products produced at regular intervals and stocked awaiting
sales.
Batch production system is used under the following
circumstances:
1. When there is shorter production runs.
2. When plant 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.
The limitations of a batch production system are :
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.
3. Mass production system

❑ This production system is justified by very large volume of


production.

❑ The machines are arranged in a line or product layout. Product


and process standardization exists, and all outputs follow the
same path.
The characteristics of a mass production system are :

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 back tracking.
8. Production planning and control is easy.
9. Material handling can be completely automatic.
The limitations of a mass production system are :

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 operation.
4. Continuous production system

❑ Production facilities are arranged as per the sequence of


production operations from the first operation 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.
The characteristics of a continuous production system are :
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 are routine actions.

The limitations of a continuous production system are :


1. Very high investment for setting flow lines.
2. 3. Product differentiation is limited.

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