Production refers to the act of manufacturing, mining, or growing goods (commodities) typically in bulk for trade. It is the process employed to create or provide essential goods and services for consumers. This process involves utilizing intangible inputs like ideas, creativity, research, knowledge, and wisdom. Additionally, it transforms tangible inputs such as raw materials, semi-finished goods, and unassembled products into finished goods or commodities.
System
System is an organized assembly of interdependent processes (activities) based on specific logic and functioning as a whole. It is designed to achieve certain objectives or perform particular tasks. Large systems are often composed of smaller sub-systems.
Production System
Production system comprises three main components: Inputs, Conversion Process, and Outputs.
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Inputs:
Include raw materials, machines, man-hours, components or parts, drawings, instructions, and other paperwork.
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Conversion Process:
Refers to the actual production operations, which can be manual, mechanical, or chemical. This process transforms inputs into outputs. It also involves 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, and warehousing finished products.
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Outputs:
Consist of finished products, parts, and services.
A production system is the combination of these three components. Everything involved in producing goods and services or achieving production objectives falls under the scope of the production system.
Examples of Production Systems
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Tangible Goods:
Consider a sugar industry. Here, sugarcane serves as the input. The juice extracted from sugarcane undergoes a conversion process to produce refined sugar, the final output for mass consumption.
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Intangible Goods:
In the software development industry, written program codes are the inputs. These codes are integrated into a database and provided with a user-friendly interface through a conversion process, resulting in an executable application program as the output.
Types of Production Systems
Production systems can be categorized into two main types:
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Continuous Production System
A continuous production system involves a nearly continuous physical flow of materials. It uses special-purpose machines and produces standardized items in large quantities. These processes are adopted by organizations that produce goods or services continuously, in anticipation of customer demand rather than in response to specific orders.
Examples:
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Petroleum Industry
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Chemical Industry
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Steel and Sugar Industry
Classification:
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Mass Production System:
This system involves continuous manufacturing in anticipation of demand, despite non-uniform demand throughout the year. Standardization is key, and it is also known as the ‘Flow Production System.’
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Process Production System:
An extension of mass production, this system involves continuous production through a uniform, predetermined sequence of operations. The finished product of one process often serves as the raw material for the next, as seen in large industries like petroleum refining and heavy chemical manufacturing. For example, crude oil is processed into kerosene, gasoline, and other products.
2. Intermittent Production System
In an intermittent production system, facilities must be flexible to handle a variety of products and sizes. Production is done in batches rather than a continuous flow, often based on customer orders. The finished products are heterogeneous but within a range of standardized options assembled by producers.
Examples:
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Automobile Industry
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Electrical Goods Manufacturing
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Printing Presses
Classification:
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Job Production:
Goods are produced according to customer orders, without continuous demand assurance. Production occurs only when specific orders are received.
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Batch Production:
Manufacturing is done in batches or groups, based on customer orders or anticipated continuous demand. This system supports medium-scale production. An example is the chemical industry, where different medicines are produced in batches.
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