Production facilities and system

Important aspects in production management

Allows smooth transportation from inputs to outputs

Production Facilities

Before starting an organization, it is important to think what facilities to produce

Facilities are produced with the basis of requirement and availability of resources in an organization

7 DETERMINANTS OF PRODUCTION FACILITIES

 Types of products
 Location
 Market
 Competitors of product
 Product Variety
 Product Quantity
 Product Demand

7 FACTORS OF PRODUCTION FACILITES

 Machines and equipment’s

 Tools
 Technology
 Process details
 Inspection aid
 Operating Personnel
 Production Volume

Plant Locations

In maximizing the profits and minimizing costs, plant location plays an important role

4 FACTORS

Nearness to raw materials

Nearness to ancillary and related industries

Transportation

Land and labor costs

Plant Layout

Layout- Arrangement of facilities in a particular unit or flaw

Plant layout- Arrangement of machines, equipment and storerooms required for the process

4 FACTORS

Products

Production system

Safety and personnel policies

Inventory and purchase policy

Production system

Methods, procedures and arrangements which includes all function

Intermittent production system

-based on customers’ orders

-produces in small scale

3 TYPES

Project production system

Accepts one simple complex order, to be finished in a given time period and estimated cost

CHARACTERISTICS

Requirement of resources varies

Many agencies are involved

Delay takes place

Scheduling takes time

Job shop production

Company accepts a contract to produce either one or few units of a product strictly as per specification
given by the customer. Must be finished in a given time period and fixed cost, fixed cost is decided in the
signing of contract.

CHARACTERISTICS

Skilled labor
Production in small lots

Produced based on customer specification

Disproportionate manufacturing cycle time

Batch production system

Accepts contracts based on specific orders from demand forecasts

Produces in batches and lots

CHARACTERISTICS

Large work in progress

General purpose machines

Needs production planning and control

Made and stocked until demand

Continuous production system- produces constantly without irregularities and frequent halts

Large scale

Not based on customers’ orders

MASS production

Produces different types of products in large scale

Stocked and stores in warehouse till demand

Characteristics

Supervision is easy

Less work In progress

Continuous flow of material

Continuous production of materials ‘

No manual handling of material

Process production

Produces one product in a large scale and stocked until demans

Zero flexibility

CHARACTERISTICS

Very less work in progress

High mechanized system

Skilled technicians

Whole system for one item

Planning and scheduling is pre-decided