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Operation Management
Management
Characteristics of Mass and Continuous Operating System
 Quadrant-I
Description of Module
Subject Name Management
Paper Name Operation Management
Module Title Characteristics of Mass and Continuous Operating System
Module Id Module- 06
Pre-requisites
Objectives 1. To understand the concept of manufacturing system.
2. Understanding different types of manufacturing system
Keywords Manufacturing System, Job Shop, Batch Shop, Process
Production, Intermittent Manufacturing System, Continuous
Manufacturing System, Mass Customization.

Learning Objectives:
The Learning objectives of the module are to address the following questions:
1. To know the concept of manufacturing system.
2. Understanding different types of manufacturing system.
3. To know the concept of Mass and continuous Operating System

1. Introduction:
A Production system is the process of arrangement and operation of machines,
tools, material, people and information to produce a value-added physical,
informational or service product whose success and cost is characterized by
measurable parameters.
Production systems interact with both internal and external environment of the
organization. Internal environment includes marketing, accounts, personnel,

Operation Management
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Characteristics of Mass and Continuous Operating System
 operations, and finance. External environment include customers, labour,
unions and suppliers.
A Production system is an approach to making products that is based upon
several factors. These include how much of the product is needed, how quickly
the product must be produced and how unique the product must be to ensure
sufficient sales.
Following figure shows Production System

Decision Maker
Internal Environment External Environment

Control

Input Processing Output

Figure 1: Production System

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 2. Types of Production System
There are mainly two types of manufacturing system which is depicted in
following figure:

Types of Production System

Continuous Manufacturing System Intermittent Manufacturing System

Mass Production Project Projection Flows

Job Shop
Process Production

Batch Shop

Figure 2: Types of Manufacturing System

Some of the most important types of production are: (i) Job Production (ii) Batch
production and (iii) Mass or flow production.
A production manager will have to choose most appropriate method for his
enterprise.
The final decision regarding any particular method of production is very much
affected by the nature of the products and the quantity to be produced.
Production methods may be broadly classified as Job Production, Batch
production and Mass or Flow Production.
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 2.1 Job Production:
Under this method peculiar, special or non-standardized products are produced
in accordance with the orders received from the customers. As each product is
non- standardized varying in size and nature, it requires separate job for
production. The machines and equipment’s are adjusted in such a manner so as
to suit the requirements of a particular job.
Job production involves intermittent process as the work is carried as and when
the order is received. It consists of bringing together of material, parts and
components in order to assemble and commission a single piece of equipment
or product. Ship building, dam construction, bridge building, book printing are
some of the examples of job production. Third method of plant layout viz.,
Stationery Material Layout is suitable for job production.
2.1.1 Characteristics:
The job production possesses the following characteristics.
1. A large number of general purpose machines are required.
2. A large number of workers conversant with different jobs will have to be
employed.
3. There can be some variations in production.
4. Some flexibility in financing is required because of variations in work load.
5. A large inventory of materials, parts and tools will be required.
6. The machines and equipment setting will have to be adjusted and readjusted
to the manufacturing requirements.

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 7. The movement of materials through the process is intermittent.
2.1.2 Limitations:
Job production has the following limitations:
1. The economies of large scale production may not be attained because
production is done in short-runs.
2. The demand is irregular for some products.
3. The use of labor and equipment may be an inefficient.
4. The scientific assessment of costs is difficult.

2.2 Batch production:

Batch production pertains to repetitive production. It refers to the production of
goods, the quantity of which is known in advance. It is that form of production
where identical products are produced in batches on the basis of demand of
customers’ or of expected demand for products.
This method is generally similar to job production except the quantity of
production. Instead of making one single product as in case of job production, a
batch or group of products are produced at one time. It should be remembered
here that one batch of products may not resemble with the next batch.
Under batch system of production the work is divided into operations and one
operation is done at a time. After completing the work on one operation it is
passed on to the second operation and so on till the product is completed. Batch
production can be explained with the help of an illustration. An enterprise wants
to manufacture 20 electric motors.

Operation Management
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 The work will be divided into different operations. The first operation on all the
motors will be completed in the first batch and then it will pass on to the next
operation. The second group of operators will complete the second operation
before the next and so on. Under job production the same operators will
manufacture full machine and not one operation only.
Batch production can fetch the benefits of repetitive production to a large extent,
if the batch is of a sufficient quantity. Thus batch production may be defined as
the manufacture of a product in small or large batches or lots by series of
operations, each operation being carried on the whole batch before any
subsequent operation is operated. This method is generally adopted in case of
biscuit and confectionery and motor manufacturing, medicines, tinned food and
hardware’s like nuts and bolts etc.
2.2.1 Characteristics:
The batch production method possesses the following characteristics:
1. The work is of repetitive nature.
2. There is a functional layout of various manufacturing processes.
3. One operation is carried out on whole batch and then is passed on to the next
operation and so on.
4. Same type of machines is arranged at one place.
5. It is generally chosen where trade is seasonal or there is a need to produce
great variety of goods.
(iii) Mass or flow production:
This method involves a continuous production of standardized products on a
large scale. Under this method, production remains continuous in anticipation of

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 future demand. Standardization is the basis of mass production. Standardized
products are produced under this method by using standardized materials and
equipment. There is a continuous or uninterrupted flow of production obtained
by arranging the machines in a proper sequence of operations. Process layout
is best suited method for mass production units.

2.3 Flow production:

Flow production is the manufacture of a product by a series of operations, each
article going on to a succeeding operation as soon as possible. The
manufacturing process is broken into separate operations.
The product completed at one operation is automatically passed on to the next
till its completion. There is no time gap between the work done at one process
and the starting at the next. The flow of production is continuous and
progressive.
2.3.1 Characteristics:
The mass or flow production possesses the following characteristics.
1. The units flow from one operation point to another throughout the whole
process.
2. There will be one type of machine for each process.
3. The products, tools, materials and methods are standardized.
4. Production is done in anticipation of demand.
5. Production volume is usually high.
6. Machine set ups remain unchanged for a considerable long period.

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 7. Any fault in flow of production is immediately corrected otherwise it will stop
the whole production process.
2.3.2. Application of Flow Production:
1. There must be continuity in demand for the product.
2. The products, materials and equipments must be standardized because the
flow of line is inflexible.
3. The operations should be well defined.
4. It should be possible to maintain certain quality standards.
5. It should be possible to find time taken at each operation so that flow of work
is standardized.
6. The process of stages of production should be continuous.
Advantages of mass production:
2.3.3. Advantages of Flow Production
A properly planned flow production method, results in the following advantages:
1. The product is standardized and any deviation in quality etc. is detected at
the spot.
2. There will be accuracy in product design and quality.
3. It will help in reducing direct labor cost.
4. There will be no need of work-in-progress because products will automatically
pass on from operation to operation.
5. Since flow of work is simplified there will be lesser need for control.
6. A weakness in any operation comes to the notice immediately.
7. There may not be any need of keeping work-in-progress, hence storage cost
is reduced.

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 2.4. Continuous Production System:
Continuous means something that operates constantly without any irregularities
or frequent halts. In continuous production system, goods are produced
constantly as per demand forecast. Goods are produced on a large scale for
stocking and selling. In continuous production system, goods are not produced
on customer’s orders. Here, the inputs and outputs are standardized along with
the production process and sequence.
Following figure highlights the concept of a continuous production system.

Demand Forecast
Continuous Production System

Production is on a large
Food Industry Fuel Industry
Scale

Figure 3: Continuous Production System

Exhibit I: Production System in a Food Industry

The production system of a food industry is purely based on the demand
forecast. Here, a large-scale production of food takes place. It is also a
continuous production system. In the food industry the production doesn’t
depends upon the demand of customers.
Similarly, the production and processing system of a fuel industry is also purely
based on, demand forecast. Crude oil and other raw sources are processed

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 continuously on a large scale to yield usable form of fuel and compensate global
energy demand.

2.4.1 Characteristics of Continuous Production System:

The characteristics of a continuous production system are as under:
1. In a continuous production system the flow of production is continuous. It is
not intermittent.
2. The products produced in continuous production system are standardized
products.

3. In a continuous production system the products are produced on

predetermined quality standards.

4. The products are produced in anticipation of demand.

2.4.2. Types of Continuous Production System:

The continuous production system has two types:
2.4.2.1 Mass Production System

2.4.2.2. Process Production System

2.4.2.2 Mass Production System

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 History of Mass Production System:
The mass production system was first introduced by Henry Ford. In 1910 Henry
Ford laid the foundation of first highly organized assembly line system of
automobile manufacturing. He organized all the elements of a manufacturing
system – people, machines, tooling, and products – and arranged them in a
continuous system called conveyor belt system. Ford Motor Company also
assembled aircraft using mass production techniques. This mass production
success was known as “A-Bomber an Hour” production during World War II
when Henry Ford, upon request from US government, produced bomber air
craft’s for USA.

YouTube animation I : How Mass Production works

Following YouTube link
(i)Explains how Henry Ford perform incredible in the history of craft
assembling
https://youtu.be/iKlt6rNciTo
(ii)Explains how mass production of famous Model T was done
https://youtu.be/IXkxl8dSXb4

a. Definition: Manufacture of discrete parts or assemblies using a continuous

process are called mass production. It involves very large volume of
production. In mass production system the machines are arranged in a
line or product layout. In this system the product and process are
standardized in nature. All outputs follow the same path in mass
production system.

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 b. Scope: In mass production system generally, items are produced in large
quantities. The flow of material is uniform in this system of manufacturing.
Only one type of product is produced at one time. It utilizes different
combination of parts to manufacture different kind of products.

c. Application: Mass production refers to that manufacturing process in which

large quantities of standardized products are manufactured by using
assemble line technology. It refers to the process of creating large
numbers of similar products efficiently.

d. Characteristics of Mass Production System:

Following are the main characteristics of mass production system:

1. One of the main characteristics of mass production system is that the
product produced in this system is standardized.

2. The operator is able to do different kind of tasks in mass production

system of manufacturing.

3. The mass production system of manufacturing requires less time to

produce a product because the worker spends little time to develop
material or tools.

4. In mass production system the probability of human error and variation is

also reduced, as tasks are predominantly carried out by machinery.

5. In a mass production system of manufacturing the labour cost is very low

and the rate of production is very high. It enables a company to
produce a larger quantity of one product at a lower cost than using
traditional, non-linear methods.

e. Advantages of Mass Production System:

The main advantages of mass production system are as under:

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 1. In mass production system higher rate of production with reduced cycle
time.

2. It doesn’t require highly skilled operators. Semi-skilled operators are

sufficient for mass production system.

3. Manufacturing cost per unit is very low in mass production system.

f. Disadvantages of Mass Production System:

The main disadvantages of mass production system are as under:

1. In mass production manufacturing system every production line is linked
with each other. Breakdown of one machine will stop an entire production
line.

2. Mass production system of manufacturing requires high investment in

production facilities.

3. Line layout needs major change with the changes in the product design.

2.4.2.3 Process Production System:

Definition: Process manufacturing is the production of goods that are typically
produced in bulk quantities. Process manufacturing industries include
chemicals, food and beverage, gasoline, paint and pharmaceutical. The relevant
factors in process manufacturing are ingredients, and bulk materials rather than
individual units.
Scope: Process manufacturing is a kind of manufacturing that involves the
combination of supplies or ingredients according to formulas rather than
assembly of discrete parts through mechanical processes. The products of

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 process manufacturing may include such substances as plastics, food,
beverages and pharmaceuticals.
2.4.2.4. Intermittent Manufacturing System:
Definition: Intermittent means something that starts and stops at irregular
intervals. In the intermittent manufacturing system, goods are produced based
on customer’s orders. In this system, goods are produced on a small scale. The
flow of production is irregular. In other words, the flow of production is not
continuous. A variety of products are produced in intermittent manufacturing
system. These products are of different sizes. The design of these products
goes on changing. The intermittent production system is very flexible.

Exhibit I : Ornaments Producer

We can take example of ornaments producer and a tailor who stitches clothes to
understand the concept of intermittent production system. It is shown in
following figure:

Customers Order &

Customers Specific Intermittent Production System

No Continuous flow
of same size GoldSmith Tailor

Figure 4: Intermittent Manufacturing System

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 Now let’s first take the example of GoldSmith.
1. The work of a goldsmith is purely based on the frequency of his customer’s
orders. The goldsmith makes goods (ornaments) on a small scale basis as
per his customer’s requirements. Here, ornaments are not manufactured on a
continuous basis.

2. Similarly, the work of a tailor is also based on the number of orders he gets
from his customers. The tailor stitched clothes independently for every
customer as per their measurement and size. Stitched clothes are made on a
limited scale and are proportional to the number of orders received from
customers. Here, stitching is not done on a continuous basis.

Characteristics
The characteristics of an intermittent production system are listed as follows:
(I) The flow of production is not continuous. It is intermittent.

(II) Wide varieties of products are produced.

(III) The volume of production is small.

(IV) The intermittent production system utilizes general purpose machines.

These machines can be used to produce different types of products.

(V) The sequence of operation goes on changing as per the design of the
product.

(VI) The quantity, size, shape, design etc. of the product depends on the
customers orders.

Classification
The intermittent production system has three types which are as under:
(A) Project Production Flows,
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 (B) Job Shop Production System, and

(C) Batch Shop Production System.

3. Project Production Flows:

A project process lies at the high-customization, low volume end of the process-
choice continuum. Examples of project process are building a shopping center,
planning a major event, constructing a new hospital, doing management
consulting work, or developing a new technology or product. Once a project is
completed it can be characterized by a high degree of job customization, scope
of the project, and the release of substantial resources. Different projects have
different sequence of operations and process as per their requirement. In
manufacturing and service sector the process must be customer specific.
Firms with project processes sell themselves on the basis of their capabilities
rather than on specific products or services. Projects are large, complex and
take a long time. There are many interrelated tasks in a project which requires
close coordination. Therefore, firms need to focus on coordination between
various interrelated tasks. Projects typically make heavy use of certain skills and
resources at particular stages and then have little use for them the rest of the
time. A project process is based on a flexible flow strategy. Work flows are
redefined with each new project.

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 Job Shop Production System:
Job shop production system is a system that manufactures one or few quantity
of products which are designed and produced as per the specification of
customers within prefixed time and cost. The distinguishing feature of this
system is 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.
Job shop production system requires versatile and skilled labour force which
can be utilized for multitasking by the organization. It involves high capital
investment and high unit cost of production. In job shop production system the
control operations are relatively simple.
Job shop process is a kind of manufacturing process in which small batch of a
variety of custom products are made. Job shops are typically small
manufacturing systems that handle job production. Job production means,
custom or semi-custom manufacturing processes such as small to medium size
customer orders or batch jobs. Job shops typically move on to different jobs
(possibly with different customers) when each job is completed. In job shops
machines are aggregated in shops by the nature of skills and technological
processes involved, each shop therefore may contain different machines. Job
shop process is basically a manufacturing process which produces piece goods
in small batches.
A job shop is a flexible operation that has several activities through which work
can pass. In a job shop, it is not necessary for all activities to be performed on
all products, and their sequence may be different for different products.
To illustrate the concept of a job shop, consider the case of a machine shop. In
a machine shop, a variety of equipment such as drill presses, lathes, and milling
machines is arranged in stations. Work is passed only to those machines
required by it, and in the sequence required by it. This is a very flexible
arrangement that can be used for wide variety of products.

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 A job shop uses general purpose equipment and relies on the knowledge of
workers to produce a wide variety of products. Volume is adjusted by adding or
removing labor as needed. Job shops are low in efficiency but high in flexibility.
Rather than selling specific products, a job shop often sells its capabilities.
A job shop process creates the flexibility needed to produce a variety of
products or services in significant quantities. Customization is relatively high and
volume for any one product or service is low. The work force and equipment are
flexible and handle various tasks. A job shop process primarily involves the use
of flexible flow strategy, with resource organized around the process. Most jobs
have a different sequence of processing steps.
Characteristics of Job Shop Production System:
The main characteristics of job shop production system are as under:
(I) It involves high variety of products and low volume.

(II) A job shop production system utilizes general purpose machines and
facilities.

(III) The operators of job shop production system are highly skilled who can
take up each job as a challenge because of uniqueness.

(IV) It involves large inventory of materials, tools, parts etc.

(V) Detailed planning is essential for sequencing the requirements of each

product, capacities for each work centre and order priorities.

Advantages of Job Shop Production System:

Following are the advantages of job shop production:
(I) An important advantage of the job shop production system is that a
variety of products can be produced because it utilizes general purpose
machines.

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 (II) The operators of the job shop production system will become more
skilled and competent, as each job gives them learning opportunities.
They are capable of doing multitasking.

(III) In job shop production system the organization can utilised full potential
of operators.

(IV) There is an opportunity for creative methods and innovative ideas in job
shop production system.

Disadvantages of Job Shop Production System:

Some of the disadvantages of job shop production system are as under:
(I) The job shop production system is a costly system due to frequent set
up changes.

(II) This system involves higher inventory cost as it requires higher level of
inventory to operate systematically.

(III) As the job shop production system requires higher level of inventory,
therefore the space requirement is very large for proper maintenance of
the inventory.

(IV) Job shop manufacturing will require skilled workers who will be
involved in a variety of tasks. If skilled workers are not available then
this system will not function properly.

Batch Shop Production System:

A batch process is similar to a job shop, except that the sequence of activities
tends to be in a line and is less flexible. In a batch process, dominant flows can
be identified. The activities, while in-line, are disconnected from one another. It
means, a batch process executes different production runs for different

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 products. The disadvantage is the setup time required to change from one
product to the other, but the advantage is that some flexibility in product mix can
be achieved. As its name indicates, products are produced in batches.
Batch production is most common in bakeries and in the manufacture of sports
shoes, pharmaceutical ingredients, water purifying, inks, paints etc. A batch flow
process differs from the job process with respect to volume, variety, and
quantity. The primary difference is that volumes are higher because the same or
similar products or services are provided repeatedly.
The American Production and Inventory Control Society (APICS) define batch
production 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 limited number of products produced at
regular intervals and stocked awaiting sales.
In batch production system items are processed in lot or batch and the
produced product is unique. It utilizes specialized labour for each operation.
Organization and planning is more complicated in batch production system.
In batch production system new batch is undertaken for production only when
the work on all items of a batch is completed.
Characteristics of Batch Production System:
Batch production system has following characteristics:
(I) Plant and machinery utilized in batch production system are flexible.

(II) In batch production system 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.

(III) The manufacturing lead time and cost are lower in batch production
system as compared to job production system.

Advantages of Batch Production System:

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 The advantages of batch production system are as under:
(I) Better utilisation of plant and machinery is possible under batch
production system.

(II) It promotes functional specialisation.

(III) In batch production system the per unit cost is lower as compared to
job production system.

(IV) Investment in plant and machinery is lower. Therefore it is a cost

beneficiary method of manufacturing.

(V) The batch production system provides flexibility to accommodate and

process number of products.

Disadvantages of Batch Production System:

The main disadvantages of batch production system are as under:
(I) In batch production system the material handling process is complex
because of irregular and longer flows.

(II) In this system the production planning and control is complex.

(III) Work in process inventory is higher compared to continuous

production.

(IV) Set up cost is higher due to frequent changes in set up.

4. Mass Customization:
The concept of mass customization is based on the notion of ‘economies of
scope’, where advances in manufacturing and information technology, as well
as new management methods i.e. just in time and lean production, enables
firms to provide a variety of product and customization through flexibility and
quick responsiveness in many industries.

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 Customization enables firms to produce a variety of products so that everyone
finds exactly what he or she wants at a reasonable price. The main objective of
mass customization is that to provide such kinds of products that best meet
customers’ needs. Mass customization is very vital for companies to survive in
an increasingly diversified and competitive market.
Mass customization is the new concept in the field of manufacturing and
marketing. The specialty of mass customization is that it provides custom made
products with a low cost. Through mass customization firms are able to diversify
their product ranges. Customization helps companies to improve the customer
value that will provide a competitive advantage in the industry.
According to Kotler (1989) the concept of ‘mass market’ is dead and market
segmentation has now progressed to the era of mass customization. Kotler and
others argue that firms operating in the current competitive landscape can no
longer produce standardized products or services for homogenous markets and
still command superior returns. In this context, mass customization represents
the ‘new frontier’ in a world of increasingly saturated markets and sluggish
growth in demand for many manufactured products.

5. Difference between Mass Production and Mass Customization:

The main difference between mass production and mass customization are as
under:
Basis of Difference Mass Production Mass Customization
Definition Mass production can be Mass customization
defined as the production refers to the process by
of large quantities of which customer made
standardized products products are made with a
quickly. low cost.
Customer Needs In mass production the In mass customization,
customer needs are the needs of the
homogeneous in nature. customers are
For example, in Asian heterogeneous or
countries rice is the diverse in nature. For
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 staple food during lunch example, different
time. So, it is similar with customers have different
large number of requirements in a mobile
customers. phone. One may require
a large screen; one may
require a good camera,
and so on.
Suitability Mass production is Mass customization is
suitable for customers suitable for customers
who have homogeneous who have diverse kind of
kind of requirements. needs.
The market should be for
standardized products.
Key Features Stable demand for the Fragmented demand for
product; the product;
The market is large Heterogeneous niche
homogeneous; market;
The product have low The product have low
cost and consistent cost and high quality;
quality; Products and services
Products and services are customized in nature;
are standardized in The product
nature; development cycle is
The product short;
development cycle is The life cycle of the
long; product is short.
The life cycle of the
product is long.
Customer Involvement In mass production In mass customization
customers are passively customers are actively
involved in the value involved in the value
chain. chain.

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