Mass Production, Job

Production &
Batch Production

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 Acknowledgement
We gratefully acknowledge the valuable assistance we received
from our Logistics Management Professor Mr. Vipin Saboo.
Without his help, guidelines and encouragement, this
presentation wouldn’t have been possible.

We would also like to thank our coordinator Mrs. Richa Jain for her
help and assistance.

We would also like to thank our College Library for providing us

with available information.

We would like to thank our parents for all the help and support
they gave us.

We would like to thank our classmates, who helped us in all ways

possible despite being competitors.

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Last but not the least; we would like to thank our teammates for
their extended support and co-operation.

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Group members

Aastha Pandey
937001

Krishnakant Tiwari
937006

Pratik Tiwari
937007

Rishav Sadh
937009

Sneha Gandhi
937041

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Rahul Surwade
937046

Index
Table of Contents
Production Logistics ..............................................................................5
Classification of Manufacturing Systems.................................................................6
Mass production.....................................................................................7
History & Invention of the method..........................................................................8
Features of Mass Production..................................................................................11
Job
Production………………………………………………………………………………………………
………………………………….12

Case Study 1 (construction of a House)

……………………………………………………………………………………………..13

Features of Job
Production…………………………………………………………………………………………………
……………. 17

Batch
Production………………………………………………………………………………………………
…………………………….20

Production of Cricket
Bats…………………………………………………………………………………………………………
……….21

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 Case study 2 ( Bicycle batch Production)
…………………………………………………………………………………………….27

Features
………………………………………………………………………………………………………………
……………………………29

Comparison between the three

methods………………………………………………………………………………………..31

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Production Logistics
That part of logistics concerning research, design, development,
manufacture, and processing of material. In consequence, production
logistics includes: standardization and interoperability, contracting, quality
assurance, initial provisioning, transportability, reliability and defect analysis,
safety standards, specifications and production processes, trials and testing
(including provision of necessary facilities), equipment documentation,
configuration control, and modifications.

The purpose of production logistics is to ensure that each machine and

workstation is being fed with the right product in the right quantity and
quality at the right point in time.

Need for Logistics in Production

A simple definition of production logistics is the management of material and

information flows in a production process, though the larger definition runs
much wider. Regardless of manual or automated work processes in your
production, you require a continuous flow and a strict control of the products
through each step.

Logistics help solve operational problems like

 Products waiting to be processed which represent lost time

 Tied up capital
 Underutilization of machines
 Occupied floor space

Logistics helps in the following ways:

 Management of material ensures that each machine and workstation

is being fed with the right material in the right quantity and quality in
the right point in time.
 Management of information flow streamlines and controls the flow
through the value adding processes and eliminates non-value adding
ones.

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  Management of a production process provides the means to
achieve improved productivity, responsiveness and capital efficiency.
 Production logistics can be applied in existing as well as new plants.

Classification of Manufacturing Systems

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Mass production

Definition
The manufacture of goods in large quantities, often using standardized
designs, assembly-line techniques and a division of skills amongst the labor
force or specialized machines arranged in the most efficient manner
possible. The most famous mass produced automobile is the Ford Model T.

Mass production is capital intensive and energy intensive, as it uses a high

proportion of machinery and energy in relation to workers. It is also usually
automated to the highest extent possible. With fewer labour costs and a
faster rate of production, capital and energy are increased while total
expenditure per unit of product is decreased. The benefits of economies of
scale are also available to Mass production

Typical examples of Mass production units are continuous manufacturing

industries like plastic goods, hardware, assembly shops of automobiles,
aeroplanes, refrigerators, radios, television sets , electric fans, domestic
appliances etc.

Invention of Mass production system

Most people credit Henry Ford with inventing the automobile. The fact is he
didn't, but Henry Ford held many patents on automotive mechanisms. He is
best remembered, however, for helping devise the factory assembly
approach to production that revolutionized the auto industry by greatly
reducing the time required to assemble a car.

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As with most great enterprises, Ford Motor Company's beginnings were
modest. The company had anxious moments in its infancy. Beginning in
1903, the company began using the first 19 letters of the alphabet to name
new cars. The earliest record of a shipment of a Model A is July 20, 1903,
approximately one month after incorporation, to a Detroit physician. With the
company's first sale came hope—a young Ford Motor Company had taken its
first steps.

Henry Ford's insistence that the company's future lay in the production of
affordable cars for a mass market caused increasing friction between him
and the other investors. As some left, Ford acquired enough stock to
increase his own holdings to 58.5 percent. Henry Ford became president in
1906, replacing John S. Gray, a Detroit banker who had served as the
company's first president.

In 1907, Henry Ford announced his goal for the Ford Motor Company: to
create "a motor car for the great multitude." At that time, automobiles were
expensive, custom-made machines. Ford's engineers took the first step
towards this goal by designing the Model T, a simple, sturdy car, offering no
factory options; not even a choice of color.

He still met resistance to his ideas for mass production of a car the average
worker could afford. But he stuck to his goal and finally in 1908, began
production of the Model T. The company began selling his famous Model T

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for $850 each. The Model T was inexpensive for its day, and proved to be
sturdy, reliable and easy to operate. It quickly became very popular; and
soon Ford found he was unable to meet the enormous demand for his cars.
Ford's solution was to invent a moving industrial production line. By installing
a moving belt in his factory, employees would be able to build cars one piece
at a time, instead of one car at a time. This principle, called "division of
labor," allowed workers to focus on doing one thing very well, rather than
being responsible for a number of tasks.

Ford gradually adapted the production line until in 1913, his plant
incorporated the first moving assembly line. Demand for the affordable car
soared even as production went up: before Ford stopped making the model T
in 1927, 15 million had been sold, and Ford had become the leading auto
manufacturer in the country. In addition to the moving assembly line, Ford
revolutionized the auto industry by increasing the pay and decreasing the
hours of his employees, ensuring he could get enough and the best workers.

Perhaps Ford Motor Company's single greatest contribution to automotive

manufacturing was the moving assembly line. First implemented at the
Highland Park plant (in Michigan, US) in 1913, the new technique allowed
individual workers to stay in one place and perform the same task repeatedly
on multiple vehicles that passed by them. The line proved tremendously
efficient, helping the company far surpass the production levels of their
competitors—and making the vehicles more affordable.

By early 1914 this innovation, although greatly increasing productivity, had

resulted in a monthly labor turnover of 40 to 60 percent in his factory,
largely because of the unpleasant monotony of assembly-line work and
repeated increases in the production quotas assigned to workers. Ford met
this difficulty by doubling the daily wage then standard in the industry,
raising it from about $2.50 to $5. The net result was increased stability in his
labor force and a substantial reduction in operating costs. These factors,
coupled with the enormous increase in output made possible by new
technological methods, led to an increase in company profits from $30
million in 1914 to $60 million in 1916.

Ford found his new system produced cars quickly and efficiently; so
efficiently that it considerably lowered the cost of assembling the cars. He
decided to pass this savings along to his customers, and in 1915 dropped the

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price of the Model T from $850 to $290. That year, he sold 1 million cars.

Instead of constant turnover of employees, the best mechanics in Detroit

flocked to Ford, bringing in their human capital and expertise, raising
productivity, and lowering training costs. Ford called it 'wage motive.' The
company's use of vertical integration also proved successful, as Ford built a
gigantic industrial facility on the Rouge River in Dearborn, Michigan that
shipped in raw materials and shipped out finished automobiles.
Ford's manufacturing principles were adopted by countless other industries.
The process was so revolutionary that the term "to Fordize" meant to
standardize a product and manufacture it by mass means at a price so low
that the common man could afford to buy it. Henry Ford went beyond his
1907 goal of making cars affordable for all; he changed the habits of a
nation, and shaped its very character.

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Henry Ford with his Model T

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Characteristics of Mass production
 Continuous flow of material : the flow of materials is
continuous & there is little or no queuing at any stage of
processing

 Special purpose machines & layout: Special purpose

machines are used & the plant assembly stages are laid out
on the basis of product type & layout-by-sequence

 Mechanized Materials handling: Materials handling is

comparatively less firstly because materials move through a
short distance between stages & secondly the materials
handling activity is mostly mechanized by conveyors &
transfer machines

 Less skilled labour: Relatively less skilled labour is employed

& supervision is relatively easier as only few instructions are
necessary that too at the start of the job

 Limited Work-in-progress: Work-in-progress is comparatively

less since the manufacturing line is balanced

 Less flexibility in production schedules: Interruptions due to

breakdowns & absenteeism seriously affects production as
stoppage of one machine usually disturbs the working of
other machines. Systematic maintenance & ‘provisioning of
stand-by operators’ are therefore two important
management functions

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Job Production
Definition: “Job production means manufacturing of products to meet
specific customer requirements of special order”.

Job production involves producing a one-off product for a specific customer.

Job production is most often associated with small firms (making railings for
a specific house, building/repairing a computer for a specific customer,
making flower arrangements for a specific wedding etc.) but large firms use
job production too. Examples include:

• Designing and implementing an advertising campaign

• Auditing the accounts of a large public limited company
• Building a new factory
• Installing machinery in a factory

Job production helps ensure that the product or service matches the
customer’s exact needs, as closely as the firm is able, because it is literally
‘custom-made’. In many cases, skilled or specialized staff makes products of
very high quality, or which have individual character that might have less
appeal if they were mass-produced.

Job production is a relatively expensive process because it requires

specialized and skilled staff who concentrates on the individual job or
project. It is therefore labour intensive, although some projects – such as the
cruise liner – may also need a lot of expensive capital equipment.

Jobs can be small-scale/low technology as well as complex/high technology.

Low technology jobs: Here the organization of production is extremely

simply, with the required skills and equipment easily obtainable. This method
enables customer's specific requirements to be included, often as the job
progresses. Good examples of the job method include:

• A hairdresser comes across different people every day. Their needs

and requirements are different from each other and so the hairdresser
has to adjust his hair cutting style for every customer.

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 • A tailor has to cut and stitch clothes differently according to the needs
and requirements of his customer.

• The other one is of an architect who has to design each & every house
according to the needs of his clients.

High technology jobs: High technology jobs involve much greater

complexity - and therefore present greater management challenge. The
important ingredient in high-technology job production is project
management, or project control. Examples of high technology / complex jobs
include:

• Film production
• Large construction projects (e.g. like Bandra-Worli Sea Link.)
• Installing new transport systems (e.g. Metro trains in Delhi & Mumbai.)
In this system products are made to satisfy a specific order. However that
order may be produced-

⇒ only once

⇒ at irregular time intervals as and when new order arrives

⇒ at regular time intervals to satisfy a continuous demand

Example: Construction of a house –

Vision Builders is a construction company located in Newyork, USA

specializing in construction of Row Houses and small bungalows. Vision
Builders was formed by her sister company Chris Architects Ltd of South
Africa in the 2003 as an American Satellite Office. In such a short span of 6
years Vision Builders has become renowned for its efficient working and

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quality services. The construction process used by Vision Builders is given
below:

The Process consists of Five Phases:

⇒ The Program Phase

⇒ The Design Concept Phase

⇒ The Design Development Phase

⇒ The Interior Design Phase

⇒ The Construction Phase.

The Program Phase

In this phase the Vision Builders learns about the customer’s dreams, his
ideas, needs, life style, personal tastes, and the home site. In this phase the
Vision Builders asks the client to provide:-

-The topographic survey of the home site, and other legal descriptions of it.
- A written statement which they call the Program which describes the ideas
about the new home, customer’s wants, needs, and their specifications for
the home.
- Photos and magazine clippings showing things customer likes or wishes to
have included in the home.
- A completed questionnaire about specifications of the home.

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 The Design Concept Phase

In this phase Vision Builders studies the entire information client has
gathered and develops their concepts about how all this can be put together
with foundation, walls, and roof and how this will co-relate with the site. In
this phase Vision Builders uses the creativity of its executives to make the
concept of a house that is according to the needs and wants of the customer
and is economically suited to the client’s budget.

The Design Development Phase

After studying the client’s ideas and requirements about the house, Vision
Builders begins to design a blue print of the house. The company makes an
estimate of what will be the cost of making the house, the time required to
construct the house and gives the estimate to the client. If the blue print is
according to the client’s requirements the interior design phase takes place,
if the client is not satisfied then the company makes another blue print to
suit the client’s requirements.

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 The Interior Design Phase

In this phase Vision Builders makes designs for the interior design of the
house. The interior design may also be given to a separate interior designer
by the client or Vision Builders uses its own interior designers.

If the client is satisfied by the interior design then the construction of the
house commences. If the client is not satisfied, then a new interior design is
made according to client’s requirements.

The Construction Phase

This is the final phase where the actual construction of the house starts. The
construction phase consists of various jobs such as ordering of inventories
(such as wooden logs, concrete, etc) leveling of the plot, installation of
machineries, etc. The construction stage is the most complicated stage
because even a minor mistake can change the shape and look of the house

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and make the client unhappy. When the last job of construction is done the
possession of the house is handled over to the client and Company gets the
balance payment receivable from the client.

Features of job production system:

1. Machines and methods employed are of general purpose as product

changes are quite frequent.

2. Planning and control system are flexible enough to deal with the
frequent changes in product requirements.

3. A permanent staff of highly skilled employees is necessary in order to

manufacture products of wide range as per the job orders collected.

4. Schedules are actually nonexistent in this system, as no definite data

is available on the product.

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 5. In process inventory is usually high as accurate plans and schedules do
not exist.

6. Product cost is normally high because of high material and labor costs.

7. Large storage space and adequate extra machines in the machine

storerooms are required to meet customer’s requirements.

8. This system is very flexible as management has to manufacture

varying product types.

9. Material handling systems are also flexible to meet changing product

requirements.

Advantages of job production system:

1. Job production can change with an evolving market, which allows small
firms to stay ahead of competitors.

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2. A high level of customization is possible to meet the customer's exact
requirements.

3. As the work is concentrated on a specific unit, supervision and inspection

of work is relatively simple therefore work is generally of a high quality.

4. Significant flexibility is possible, especially when compared to Mass

production.

5. Workers can be easily motivated due to the skilled nature of the work
they are performing.

6. Business is likely to be able to ‘add value’ to the products and possibly

create a unique selling point (USP), both of which should enable it to sell
at high prices.

Disadvantages of job production system:

1. Job production method is the most complex system of production and also
difficult to operate.

2. Raw material and work – in- progress inventories are high due to uneven
and irregular flow of work.

3. Material handling cost is high and large space is required.

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4. It involves high cost of production as it is labour intensive. This raises
costs to firms as the payment of wages and salaries is more expensive
than the costs of running machines.

5. It requires the use of specialist labour (compared with the repetitive, low-
skilled jobs in mass production).

6. It is slow as compared to other methods (batch production and mass

production).

7. The lead times required to complete the order can be lengthy.

8. Comprising all the costs of wages and salaries of labour, material handling
costs and overall production cost, the selling costs may become high.

9. A firm using job production method does not get the advantage of
“Economies of Scale”.

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 Batch Production
Definition – “The manufacture of product in batches (small or large)
or lots by a series of operations each operation being carried out on
the whole batch before any subsequent operation is undertaken”

Batch production is the production of a number of identical articles either to

meet a specific order or to satisfy continuous demand.

When the production is complete the plant and equipment are available for
the production of similar or other products.

Batch production system is found to be suitable when the demand for the
commodity is limited or the rate of production (production capacity) is very
high as compare to the likely consumption.

The production takes place periodically. The quantity is so regulated that it

satisfies the demand for a given period of time only.

Each product is manufactured in quantities corresponding to the total likely

demand during the cycle period.

Example:-

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When a bakery bakes loaves of whole meal bread, a large ball of whole meal
dough will be split into several loaves which will be spread out together on a
large baking tray. The loaves on the tray will then together be cooked,
wrapped and dispatched to shelves, before the bakery starts on a separate
batch of, for example, crusty white bread. Note that each loaf is identical
within a batch but that loaves can vary from batch to batch.

Batch production is a very common method of organizing manufacture. Good

examples include:

• Production of electronic instruments

• Bakery

• Paint and wallpaper manufacturers

• Clothing

The example production line (shown below) is that of an engineering

company, manufacturing small steel products such as hinges and locks. They
manufacture batches of five hundred at a time. The workers are unskilled
and semi skilled. As each task is completed the item being manufactured is
passed down the production line to the next worker, until it is complete.

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Batch production of Cricket bats

Receiving a lot of willow trees.

Cutting down into logs.

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 Logs are split into half.

Removing the barks.

Logs are converted into clefts.

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 Inspection by supervisor.

Clefts are shifted to the bat makers department.

Construction of bats by hands.

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 Finishing of bats.

Cutting a wedge for the handle.

Shaping the bat handle.

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 Inserting the handle.

The completed bats are shipped to various companies.

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 Bats are ready for sale.

BICYCLE BATCH
PRODUCTION

Modern bicycle manufacture is component based. The company

buys parts such as pedals from other manufacturers and puts the
bicycle together on a production line.

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 The tube for the bicycle frame is cut to
The tube for the size. One person will do this job and they
frames - cut to size cut enough tube for a batch of several
hundred bikes in a week.

The tubes are set up in a ‘jig’ which holds

The tube is put the frame together. The frame travels
together and along the production line and the joints
prepared for welding. are preheated to save time. A gas torch is
used to weld the frame together.

After welding the frames and the front

forks need cleaning in the ‘Grit-Blaster’.
The frames are
This shoots tiny particles of sand, at high
cleaned in the ‘Grit-
speed, at the frame and cleans away the
Blaster’.
‘residue’ left behind by the welding
process.

Each frame is All frames are checked to ensure that they

checked. are straight. Small adjustments can be
QUALITY CONTROL made at this stage.

Paint is sprayed on The frames are now ready for painting.

to the frames and This is done by using a fine spray which
forks. covers every part of the frame with paint.

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 The frame then moves down the
production line into a special oven which
‘bakes’ the paint giving it a tough finish.

The wheels are assembled by hand and

The wheels are they are individually tested in a machine
assembled. which automatically tensions each spoke
to ensure that they are perfectly straight.

The frames are

The frames are machined so that other
machined for other
parts such as the handle bars and the
parts.
bottom bracket (pedals) can be attached.
People operate the machine tools but they
need some training before they can use
Other parts are fixed
the machines safely and efficiently.
to the frame.

The bicycles are now ready for the shops

Bicycles are ready where they will be viewed by customers
for the shops and agents. Agents will buy ‘batches’ of
bicycles for large stores.

Before sending the bicycles to the shops,

Agents view bicycles agents view them and suggest changes
and suggest for the next batch. This helps the
changes. manufacturer improve the design and
production of bicycles.

Features of Batch Production

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1. The machines and equipments are arranged according to the sequence
of operations.

2. A large variety of products are manufactured in lots or batches.

3. The manufacturing plants should be well equipped with machines and

equipments with capacity to undertake production of wide variety of
products.

4. The general purpose machines and special purpose machines are used
in the production process.

5. The production period required for each product/part is comparatively

long as each batch has to wait before going over to the next machine
for subsequent operation.

6. Stock of work in progress is high and the product design department is

comparatively large.

7. The costing system need to be efficient in order to calculate the total

cost of production for each piece work and each batch of the finished
product.

8. The success of Batch production method depends upon the efficiency

of the production planning and control department.

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Advantages of Batch Production

1. The company that uses it has a variety of products rather than just one
type so therefore it gives customer a larger choice and hence a larger
possibility of sales.

2. Capital investment is comparatively low.

3. Specialized supervision is possible.

4. The company is reducing its risk on simply concentrating on one

product; it produces a variety of different ones of the same type.

5. Batch production is also useful for a factory that makes seasonal items,
products for which it is difficult to forecast demand.

6. If a retailer buys a batch of a product that does not sell, then the
producer can cease production without having to sustain huge losses.

Disadvantages of Batch Production

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 1. Work in progress inventory is high and large storage space is required.

2. Standard sequence of operation is absent.

3. Machines and tooling arrangement need frequent changes in product

design.

4. There is idle time between one operation and the other. The work has
to wait till a particular operation is carried out on the whole batch.

5. Production time is longer and skills of higher order are required due to
the variety of job.

Comparison between Mass Production, Job Production and Batch

Production

Basis of Mass Production Job Production Batch Production

Compariso
n
Mass production Job production means Batch production
Meaning means production of manufacture of means production of a
one or two standard products as per number of identical
products on a large specifications given by items to meet a specific
scale. the customer. It is a order or to satisfy
special order continuous market
production. demand.
Here, the flow of Job production is the In batch production, the
Method materials is in a manufacture of a work content of each

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of straight line. All single complete unit unit is broken into a
Productio facilities are arranged by an operator or a number of operations
n as per the sequence group of operatives. It and operations are
of operations. is providing goods or divided into groups for
Standardization is the services according to the completion of work
keynote of mass the needs of the group – wise.
production method. customers.
Mass production The job production Batch production is
Flexibility method is highly method using general more flexible than Mass
inflexible. purpose machines is production method but
more flexible. is less flexible than Job
production method.
Huge capital The capital investment Low capital investment
Capital investment is required differs from is required as
Investme required due to the type of job compared to Mass
nt duplication of undertaken. For e.g. a production and Job
machineries. tailor undertaking production.
stitching job requires
low investment
whereas a road or dam
constructing company
requires huge capital
investment.
Work in Work in Process Raw materials and Work in Process
Process Inventories is small as work in process Inventory is high and
Inventori output of one process inventories are high large space is required
es becomes input of the due to the uneven and due to production of
next process. irregular flow of work. more variety of
products.
Skilled/ Unskilled or semi- Highly skilled workers Semi- skilled and
Unskill skilled workers are are required in a large Skilled workers are
ed used as most of the quantity as production required according to
Worker work is machine is highly specialized. the type of production
s based. undertaken.
Example Products of mass Smalls jobs such as Clothing, bakery and
s consumption such as Tailoring or hairdresser electrical goods.
Colgate toothpaste, and Big jobs such as
Lux soaps, etc. construction of a
house, dam or bridge
building, etc.

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