Classification of Production Systems

Classified based on production processes:

Production systems
Gestione Strategica delle Organizzazioni
Prof. Moreno Muffatto 2011-2012

Continuous flow production system Discrete production system

Classified based on market relationship:
make to stock produce to order

Classified based on industry:
manufacturing industry service industry

4 basic type production Systems System Job Shop Batch Processing Flow Shop (Production Line) Continuous Flow Example Commercial Printer

Job Shop

Product 1 Heavy Equipment Car Assembly Sugar Refinery

Product 2



Most Processes are some where between Job shop and Flow shop

Job Shop

Flow Shop

Functional layout or Process layout

− − − − − − − −

low volume, high variety customized products flexible resources skilled human resources jumbled work flows high material handling large of inventories long flow time highly structured information system high cost per unit of product but low investment

Product 1


Product 2



The facility failure can bring in great loss. Few product sorts 5. highly specialized and expensive 6. metallurgy. The production process is relatively steady. high standardization. Production process is required to cooperate with many departments.Flow Shop Continuous Flow Production System − − − − − − − − − Product layout or line layout Discrete flow shop: assembly line Continuous flow shop: beverage. needs mass production. plastics. and low skilled labor prevent flexibility Characteristics 1. special purpose equipment. fossil oil. chemical plant. Difference between Continuous Flow and Discrete Production Differences Primary characteristic Continuous flow Capital high fewer low high low low easy Discrete Workforce comparatively low many low high low high high difficulty Primary characteristic Customer amount Product sorts Product standardization Customization Demand Continuous flow few few high low steady Discrete many many low high changing Key production elements Automation level the types of material WIP product inventory output flexibility product structure flexibility operation information collecting 2 . The facility is highly automated. Short product life cycle. products are changed quickly (since customers’ demands change continually). chemical fertilizer. industries: Chemistry industry. High customization proportion Production and operations management are complex. beverage. so the equipment maintenance is very important Continuous Flow Production System Discrete Production System Discrete products. The standardization of products is high 4. The construction of products is complex. few customer sorts 3. 2. many parts and components. pharmacy. process plant. Customers are usually organizations (including commercial organization) . the markets is not so steady. affected by customers greatly. high speed low material handling short flow time low unit-processing costs high investment cost.

general equipments are required. low production stability The high productivity special equipments can not be used There are many products in production at the same time so that the management is very complex. and also equipments and process are high specialized. Arrange reasonably the product kind. Improve the connection between processes. it will keep going on some rhythm. The products quality is easy to be guaranteed. and quality management Multi-product and Low Volume Production Characteristic Low volume. Ù Discrete production systems Mass production Multi-products and low volume production One of a kind production Characteristics High productivity: workers are designated to a work with high specialization. quantity and interval to produce products in batches and in turns. more control over suppliers. continuous flow operation.Discrete Production System Mass Production Only one or a few types of products are produced repeatedly in a long period. unit cost decline. e. ABC Analysis in Production System Design Matching Process and Product Life Cycles The Process Life Cycle three major stages of the manufacturing process life cycle Early stage-job shop. which need a long adjustment period with low efficiency to different product workers are also required to be generalists. Management Emphasis Optimize product mix to pursue the largest economic benefits while satisfying the market demand and production resources constraints. Management emphasis: facility maintenance. different kind needs different production process.g. shipbuilding. Variety Volume Flow Shop Batch Productio n Job Shop 3 . batch process and some transfer lines (assembly lines). generating electricity equipment Characteristics many kind of products. airplane making. every order has only one or several quantity. worker management. with difference delivery time. Skilled workers: workers repeat the same operations Simple production planning and scheduling: once a production line is set up properly. being responsive to changes in the product design. a varied mix of relatively lowvolume orders. Control and balance WIP. logistic and product inventory One of a Kind Production Start to organize production after receiving order. Last stage-automated process and standardized production process. Middle stage-some automation. Low production cost.

Process Matrix Classified based market relationship Few Major Product High Volume Highest Volumes Standardized Low Volume Customized Multi product Low volume Job Shop Printing Shop Apparel Make to Stock Characteristic: production based on the forecasting mass production. it can be further classified into assembly to order. the production of parts and components are like make to stock with following properties: high standardization and generalization parts or components big production batch high productivity in many cases. quantity. use flow production line 4 . multiple products fewer majors products.The Product-Process Matrix (PPM) The Product-Process Matrix (PPM) The Four Phases in product Life Cycles in term of production volume and the number of product types The Four Stages in the evolution of the manufacturing process in term of process structure Job Shop Batch Production Assembly Line Continuous Flow (for process industries) low volume. make to order and engineer to order. high volume Product. one-of-a kind low volume. Assembly to Order (ATO) First produce semi-finished products in advance. quality and delivery time nearly zero inventory delivery time is the key multi-product and low volume production complex production organization and management high customer satisfaction According to the level of customization. e. Then assemble them into different products according to customer order. higher volume few products. in big batch high product inventory high productivity simple production organization Disadvantage: high risk of excess inventory or out of stock Opportunity costs Batch Assembly Line Auto Assembly Continuous More costs Oil Refinery Produce to Order Characteristics: produce based on the order different product has different specification. automobile manufacturing The most mature production mode.g.

Some raw materials and standard parts are prepared based on the forecasting Forecasting should be paid great attention Engineer to Order (ETO) First design products according to customer’s requirement after receiving order. and then make them. ATO order Make to Stock. and Then manufacture and assembly them into products the customer requires.Make to Order (MTO) All products have been designed in advance Later according to customer orders. buy raw materials and parts. MTO order Assembly to Order. then purchase. ETO Make to Order. components. Long production cycle Pay more attention to reducing design cycle Standard and general parts should be used as much as possible Product Type and Production Batch order Engineer to Order. MTS order delivery many MTO Product type ETO few MTS ATO design purchase manufacture assembly delivery small Production batch large Auto Industry High custom High unit margin Low volume Process Flexible Shop All mfgers at the beginning Auto Industry Product Low custom Low unit margin High volume High custom High unit margin Low volume All mfgers at the beginning Product Process Flexible shop Low custom Low unit margin High volume Rigid flow Rigid flow Ford Model T Baton Rouge plant 5 .

Auto Industry: process & variety High custom High unit margin Low volume Process Flexible shop All mfgers at the beginning Auto Industry: introducing flexibility into the process Low custom Low unit margin High volume High custom High unit margin Low volume All mfgers at the beginning GM Multibrand strategy Ford Model T Baton Rouge plant Product Product Process Flexible shop Low custom Low unit margin High volume GM Multi-brand strategy Rigid flow Rigid flow Toyota Just-in-time Ford Model T Baton Rouge plant Auto Industry: mass customisation High custom High unit margin Low volume All mfgers at the beginning Product Low custom Low unit margin High volume Process Flexible shop GM Multibrand strategy Rigid flow ? Toyota Just-in-time Ford Model T Baton Rouge plant 6 .

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