Operations Management

Dr. Inderdeep Singh

Department of Mechanical & Industrial Engineering
Indian Institute of Technology, Roorkee

Lecture - 04
Types of Production Systems

Namaskar Friends, welcome to session 4 in our course on operations management. As

we have seen in session one, we have covered the topics that we are going to cover in
this course. We have also seen the distribution of the course. We have seen that this
course is a 30-hour course in which there will be 12 weeks of discussion, each week we
will have half an hour sessions 5 sessions of half an hour each.

In session 2, we have covered the basic objectives. Be prior to that we have seen the
definitions of the word operations management, and then we have seen what are the
objectives of studying this course, or what are the objectives of this process of operations
management. In session 3 if you remember we have covered what are the functions of
the operations management personnel, or what are the overall defined areas of working
of operations management team. We have seen that for any organization, there are 3
broad verticals. One is related to finance, another is related to operations, another is
related to the marketing.

So, our focus primarily is on operations. Then we have seen that what are the important
areas or scope of operations of this subject. We have seen that starting from demand of
the product to the design of the product, then to the production planning, production
control, material handling system, materials management, inventory control, work
system design, capacity planning, aggregate production planning. There is a wide scope
of this subject that is operations management.

So, we have seen that the scope is very wide, but sometimes we have to classify the
scope so that we are able to understand the overall framework of the subject. Somebody
may ask a very simple question, a layman’s question; that what all do you study in
operations management. You need to have a very structured answer to this question, that
we have covered these important topics in this course. So, we need to have a structured
answer. The structured answer can be that starting from the conceptualization of the
product to the launch of the product in the market, how it is getting transformed into the
final product, managing the product development cycle is overall we can say the broad
umbrella under which all other subsystems can fall in.

So, we are starting from the conceptualization of the product then designing the product,
then forecasting that how much volume of product would be demanded in the market, or
what is the demand of that product, then planning our facilities, planning the production
processes, and then planning the manpower who are going to convert the raw material
into the product, then managing our capacity, then doing the production control finally,
evaluating the quality, warehousing and finally, the product is launched into the market.
So, managing all production operations usually we can say will fall under the overall
umbrella, the umbrella we can call as the operations management.

So, we have seen that it can maybe overall management of the production system that it
is a subsystem of the broader manufacturing system. So, we are here managing the
operations part of any manufacturing industry. We are not directly dealing with the
finance, we are not directly dealing with the marketing, we are directly dealing with the
operations part of the organization. So, we have seen that within operations part also,
there are so many sub components, or sub elements, or sub parts, that we that we can
discuss or that fall under the scope of operations management, or that fall under the
overall umbrella of operations management.

So, sub topics we have seen, and I think each one of them we are going to address in this
course, we are going to study product design and development we are going to study
sales forecasting, we are going to study plant layout, and facility location planning, we
are going to study aggregate production planning, we are going to study capacity
planning, we are going to study materials management. So, each and everything that falls
under the scope of operations management will be covered, and in summary we can say
conversion of raw material into the final product, managing the overall transformation
process, right from the raw material to the final product will be the scope of our study in
this course.

But in order to remember what is the overall broad framework, where we can focus our
efforts or focus our activities, we can club them into 5p’s. And those 5p’s I am very
quickly going to highlight today. And then we will focus our attention on these 5p’s in
context of the production system; that how we can classify the production system. There
can be we can say different types of manufacturing activity happening in an
organization; and how we can classify them that we will try to understand today.

So, let us quickly first see the operations management framework is divided into 5p’s.

(Refer Slide Time: 06:26)

Now what are these 5p’s? What are the focus areas we can say, we have to focus on the
product, we have to focus on the plant, we have to focus on the program in context of the
time, we have to focus on the processes, we have to focus on the people? So, these 5p’s
we have to manage in the overall framework of operations management in order to meet
our objectives; what are the objectives to produce a product which is of right quality in
right quantity at right time within a reasonable cost. So, or within an acceptable cost. So,
that is what is our objective, these are the 5 things on which we can focus.

So, as we have seen 4 words we can remember regarding the overall objectives of
operations management; that is, Q Q T C that is quality, quantity time, and cost, similarly
what we need to control in order to get all these 5 things, we need to focus on these 5p’s
that is; product plant program processes and people.

So, let us quickly see each one of these.

(Refer Slide Time: 07:49)

Product it is linked between production and it is a link between production and

marketing. So, marketing team will assess the needs and requirement of the market. The
needs and requirements of the customers, and then they will try to link it with
manufacturing. So, once we have to see that what we want to produce so that we will
cover in our week on product design and development. We will try to see some of the
tools and techniques which going to help us to make a successful product. Firstly,
designing the product and then finally, converting that product into a tangible product
after rapid prototyping or after prototyping.

So, a product must have performance, quality and reliability aesthetics and ergonomics,
quantity and selling price, delivery schedule. So, these are the important we can say
criteria related to a good product, that good product will be having good performance,
quality, reliability, cost justification. It should be able to satisfy the human needs and
requirements at the defined time. So, delivery schedule is important quantity is important
selling price is important. So, first and foremost is the product. So, we have to focus on
product design, and then we have to see all aspects related to the product in our overall
management of the operations. Then the plant.
(Refer Slide Time: 09:22)

The plant accounts for major investment if you have studied the analysis or the financial
analysis, you will see there will be some fixed assets. There will be direct cost there will
indirect cost, and accordingly we calculate the break even for the organization.

So, the plant accounts for the major investment, the plant are concerned with design and
layout of buildings and offices, reliability and maintenance of equipment, safety of
operations. So, we can see that whenever we are thinking of the plant, we have to take
into account all these things that the operations must be safe. Operations must be
maintenance free, or maybe may require the least or minimum maintenance, then the
layout should be such that we have optimal utilisation of the floor space. So, all these
points have to be taken into account. So, plant layout and facility location design is also
very, very important. So, plant layout must allow smooth movement of men and
materials. That is also one of the objectives of plant layout. Then type of layout depend
is dependent on production type, volume of demand etcetera.

So, we will see today the types of production system, there are intermittent type of
production system, there are continuous type of production system so that type of layout
will depend upon the type of production system. The volume of demand for example, we
require very high you can say production rate, or the demand is continuous we have to
supply the product at a very fast pace. That will dictate or have a bearing on the type of
layout, that we are planning for the operations.
So, first thing we have seen that we have to focus on product, then we have to focus on
the plant that is going to convert that raw material into the product form, or is going to
facilitate the transformation process of the raw material so that we get a good quality
product. So, 2 things are product, and then plant where the transformation will take
place. So, here we have seen that what are important criteria, when on which we can say
whether the plant or the facility design is good or bad. If it is making optimal utilisation
of resources, it is ensuring smooth movement of men and material, it is minimizing the
wastage of time and effort, we can say that yes, it is a good plant design.

So, we can see where we have to focus our energy. We have to focus our energy on
product design and development. We have to focus our energy on facilities location and
layout design. Then we have to focus our energy on process or the transformation
process that is converting the raw material into the final product.

(Refer Slide Time: 12:12)

So, the methods used to create a product or transform the raw materials into the product
form.

Now, selection of a particular process depends upon the following factors. We have to
take into account the available capacity. So, our capacity planning comes into picture.
Manpower skills available, so people comes into picture. Type of production system,
layout of plant it is related to the previous point that we have discussed; that is, plant
layout and facility location. Safety maintenance required manufacturing cost involved.
So, we have to focus on all these factors to come out with a solution that which is the
most efficient and effective process for our you can say requirement or for our target.
Our target is of quality and quantity of the final product. So, as per our requirement,
which process will give us the desired output.

So, we have to take a decision based on all these factors, that is capacity, manpower
skills, type of production system, layout of a plan, then safety of the operations
maintenance of the operations manufacturing cost. We can see this list can be endless.
There can be other criteria and parameters also which will affect the selection of the
process for the transformation, or the transformation process for finally creating our
product. Creating a product means, making a product or fabricating a product,
manufacturing of product, producing a product. So, basically, we have to see that which
transformation process will be most effective and efficient.

So, we have seen 3 things, we have to focus on the product, we have to focus on the
plant, we have to focus on the process. Then we have to focus on the program. We have
to see that how in what time space, or in what time frame we have to create our product.
So, program refers to the time table of production. Very easy in your classes or wherever
you are working you have a time table.

(Refer Slide Time: 14:30)

You have a time when you are going to enter into the office; there may be a time when
you have to leave your office. So, program refers to the time table. So, it can it prepare
the schedule for purchasing. So, we have to get the raw material, transforming we have
to see which processes are involved in the creation of the product or manufacturing of
the product. We have to see which machines have to be meant have to go under regular
maintenance at what intervals of time, we have to see the manage of cash flow. We have
to see the storage or management of cash flow we have to manage; and then storage and
transport.

So, time domain is also very, very important. And therefore, we have to manage the
overall manufacturing programme in such a way that our delivery schedules are met.
Finally, the most important part that is the people.

(Refer Slide Time: 15:30)

So, people are a part of organization progress of organization depends on attitude and
skills of the working people. So, we have to ensure that we are providing an environment
to our workers where they can feel comfortable and motivated to work for the objectives
of organization, or work for achieving the targets set by the organization. So, we have to
ensure the overall well being of our human resource. We not only the physical well
being, but also the mental well being of our work force or the human resource. Because
once our work force is motivated, they will work out wonders for the organization.

So, we have to focus on people also. So, the concepts of work system design, concepts of
the design of a system in such a way that the worker feels comfortable and motivated to
work for the organization. That is also coming under the overall framework of operations
management. So, job satisfaction of people depends upon good match between the
people and the jobs. And therefore, the concept of ergonomic design of work places is
very, very important, and we will cover the concept of ergonomics in our course on
product design and development. That when we are designing a product, we must
consider the aspect of ergonomics that the product is so designed that it is easy for an
operator or a customer or a user to use that product.

Similar concepts can be applied in work system design also, that the person when he is
performing his task or job or activity in an organization. He must be able to do it in the
most effective manner with minimum fatigue, and minimum discomfort. So, he must be
able to comfortably do his job in the organization. So, we have to ensure that the jobs
match with the people, people also enjoy doing their work. So, it is possible by providing
them right motivation, right kind of training, then conditions of work, and safety must be
ensured and proper wages and salaries. So, if the employees motivated, he feels like
coming to the company because the environment is congenial for doing the job. He is
properly trained to do his task, and he is getting adequate salary matching with his skills
and the amount of work he is doing. I do not believe, that or I do not feel that any worker
will have any problem working for an organization.

So, if we focus on these 5p’s starting from the product, then the plant, then we can see
the process, the program, and lastly the people if we focus on all 5p’s in the overall
framework of an organization. If we manage these 5p's properly, we will be able to
achieve the objective of operations management. So, the overall scope of operations
management must focus on these 5p's in order to be successful; so in order to ensure the
success of an organization. So now, we will try to see that; what are the different types of
production system. Currently, we have focused I think all learners must be now
acquainted well with why we are studying this subject, where we have to focus our
attention. What are the areas of concern, what are the factors that we need to look
forward to, when we are managing the different aspects of operation?

Now, we will see what are the types of systems and what are the maybe important
characteristics related to these systems, and how the things very in context of these 5 p's
for example, if we have to basically we will see there are 2 types of production system.
Intermittent type of production system, and a continuous type of production system. So,
we will see in context of people how the 2 systems vary. In case of intermittent, the
product design may keep on changing from time to time. Today we are producing a
specific design of a product, but there may be a change in order and the complete
redesign of the product may be required. Or there may be a new order in which we have
to manufacture a completely new design.

What type of skills are required for the people? I think you can answer it very quickly
when the product design is changing, and a regular basis or at a regular intervals of time,
we require a person, or we require people who can adapt to this type of changes. They
have a versatile skill set. Whereas, on the other side if there is a continuous type of
production, there is a regular demand and we are producing same product maybe for 3 or
5 years, what type of skills are required; specialised skill of a person because he has to
do the same task on a regular basis. So, we do not require a versatile skills set for a
person who is working on a specific operation in a continuous type of production system.

So, similarly that time that is the program, the plant layout, the process is used the
product that we are producing all these 5p's the product, plant process program, and
people all these 5 or related to the types of production system. Or they are interrelated
because we will see that when we see the type of production system and the
characteristics of each one of these production systems. We will see that their directly
related to these 5p's. And in that production system how these 5p's have to manage. That
is where the engineering skills will come into picture.

So, let us latest quickly go to the topic of production systems.

(Refer Slide Time: 21:47)

Now production system just for definition it is a manufacturing subsystem. So, we can
say manufacturing is on a broader perspective. Production is a subset we can say, or a
subsystem of the overall manufacturing activity. So, manufacturing subsystem that
includes all functions required to design, produce, distribute and service a manufactured
product.

So, you can see starting from product design to the act of creating that product, or
producing that product or fabricating that product, or manufacturing that product. So,
starting from the design of the product to the production of the product to the distribution
of the product, and finally, if there is some problem, the service of the product comes
under the overall production system. Elements are we have seen this diagram 2 3 times,
that there are inputs into the system, then their outputs from the system, and there is a
transformation happening to the input so that we get a usable or a tangible product in the
output. So, input transportation transformation sorry, and the output are 3 elements of
any production system.

Now, what are the types of production system that can be grouped in 2 categories
broadly. So, there are intermittent type of production system and there are continuous
type of production systems.
(Refer Slide Time: 23:06)

So, we can see type of production system broadly classified into 2. Intermittent and type
of production systems and continuous type of production system, then sub classifications
are there for intermittent type. What are sub-classification? Project, jobbing and batch;
and continuous side we have sub-classifications mass and process type of production
flows. So, in many good books and in many we can say websites, you will find out 3
classifications based on the type of activities involved or the characteristics involved.
You will see job shop type of production system, batch type of production system, and a
mass or continuous type of production system. But here we are trying to further classify
them into 2 broad categories, that one is intermittent, where the demand of the product is
changing over a period of time. And continuous is when there is a continuous production
of the product.

So, one simple example that I usually give; for continuous type of production system is
the production of power, either by hydropower or by coal; coal based power project. So,
you see continuous production is there once the production of power stops. There is a
shutdown of power maybe in certain number of cities or towns. So, that is a continuous
type of production system, we have input maybe water is coming flowing in the river
you make a dam you stop of water and then use that water for producing the hydropower.
That is continuous type of production system. And intermittent can be a workshop that
we have a maybe in a market; where a person has maybe put up two machines, and these
machines are being used for on a job shop basis. You go there the time I need a threading
on this parts.

So, what the person will do he will mount? That component on the machine make a
thread on that component hand it over to you. So, design changes are very frequent. Your
requirement goes to the person. And then he is managing, only that particular product for
you, job shop type; maybe, you are going for a specific job to that person. So, we can say
we have seen that two extreme cases, continuous manufacturing, and a product-based
manufacturing or a specific job-based production system. So, basically intermittent is
where the demand is not continuous, and continuous production system is where
continuously you are produce. So, we will very quickly try to understand the basic
aspects.

(Refer Slide Time: 25:49)

Now intermittent production systems, intermittent means something that starts may be
initiates and stops at regular or irregular intervals of time.

So, we can say that intermittent is time to time production system. In the intermittent
production system goods are produced based on customers, ordered as I have told you go
to a shop, and maybe tell that I need this particular product. I need threading here, I need
turning here. So, a person who has the lathe machine will work on your specific order
and try to satisfy your requirement. Large variety of products are produced, production
of goods of acceptable quality. Now you see that the design can change, I may have a
different requirement the other person have a different requirement. So, the product
design changes are very, very frequents of varieties of products are produced in
intermittent type of production systems. This system is very flexible, because the
demand is changing continuously. So, as per the demand the system will operate and
produce the product. Now what are the features, now you can try this can be an
assignment try to match the 5p's with these characteristics.

(Refer Slide Time: 26:55)

So, what are the features of intermittent production system very quickly we can see.
Flow of production is not continuous. Variety of products are produced. So, you can see
variety of products. So, focus is on products the first p of the overall framework of
operations management. Volume of production is small. So, it is related to the process.
So, volume of production is small, general purpose machines are used, because the
designs are changing continuously. So, we cannot have a specific dedicated machine.

So, we need to have a very, very versatile and general-purpose machines. Sequence of
operation changes as per design, and production depends upon the customer’s order. So,
we can see that it is a flexible type of system, that is the intermittent type of production
system. Now continuous production system, we can see that in; continuous means,
something that operates constantly.
(Refer Slide Time: 27:53)

So, it is a continuous as I have taken an example of hydro power generation, it is the

continuous process without any irregularities or frequent halts. Goods are produced
continuously as per the demand forecast. Goods are produced on a large scale for
stocking and selling.

So, we can see that it is a continue system goods are produced on a continuous basis. So,
goods are not produced on customer order. So, we can say may be we can take example
of readymade garments also. Readymade garments are continuously produced by the
company based on the marketing and based on the tastes and the fashion a prevailing in a
particular time domain. So, it is not that; if I will order then only the company will
produce that shirts. So, it is not based on the customer order continuous continues
production is there.

The inputs and outputs are standardized along with the production process and sequence.
Again, coming to the same example 42, size 40, size 44 shirt. So, the output is
standardized they have to produce their product based on the standardized; we can say
sizes, in case of an automatic production of garment manufacturing. So, the inputs and
outputs are standardized along with the production process and sequence. So, the process
is also standardized, there we will be dedicated department for cutting the you can say
cloth and then there can be stitching and then there can be finishing. So, we can say the
inputs and outputs are standardized, along with the production process as well as the
sequence is also standardized.

Now, what are the features of a continuous production system? So, features of a
continuous production system are flow production is continuous and not intermittent.
Products are standardized here. In previous case product design is changing
continuously. Here the products are standardized, may be one example of a continuous
production system can be manufacturing of automobiles. So, once the design is fixed. So,
you will continuously keep on producing that design or that particular week. What we
say the variant of a particular model of car. Products re produced as per quality
standards.

Products are produced in anticipation of demand. So, we have a anticipation we have a

forecast of the demand so that accordingly we will schedule our production.
Standardized routing sheets and schedules are prepared. So, the process is more or less
automatic. The schedules are also produced automatically and we are able to meet our
schedules because the there are not many frequent design changes not many frequent
process sequence changes. So, more or less we are able to meet our targets of time. So,
you can see that there is the difference between the 2 types of production systems; that is,
the intermittent type of production system. So, job shop and batch type of production
systems will fall under the intermittent type of production system. And continuous or
mass type of production systems will fall under the continuous production system.

So, broadly we can see the types of production systems can be classified into 2 broad
categories; that is, intermittent type and the continuous type. And we will see that
depending upon the type of production system being adopted or being followed in a
particular organization, our operations management tools and techniques will vary. Or
we have to adjust the operations management methodology specific to the specific type
of production system being followed. Yes, but the overall we can say objective of
operations management will remain same to ensure the quantity quality in specified time
at reasonable course, overall objectives will remain same in spite of or in we can say
irrelevant to the type of production system being followed.

So, we have a out we have a objectives of the operations management, that is clear to us.
Now depending upon the types of production systems being followed, we will follow the
principles of operations management and we will try to manage both types of production
systems whether it is intermittent type or it is continuous type. So, the learning or we can
say the understanding or the development of knowledge or the know how related to the
basic principles and rules and guidelines related to operations management, will help us
to manage both types of system the intermittent type of production systems also as well
as the continuous type of production systems also.

So, with this we close today’s session, we have tried to understand the overall framework
of operations management, where we need to focus our attention the 5p's in the overall
framework, and then we have tried to broadly classify the types of production systems
into intermittent type, and the continuous type. And we have tried to figure out what are
the specific characteristics of the intermittent type of production system as well as the
continuous type of production system.

In our next session, we will focus on the last session on these fundamental we
fundamental discussion related to the operations management. In our subsequent
discussion we will focus on specific may be areas, or specific sessions, or specific we
can say tools or techniques which will help us to manage our operations properly. And in
week 2 our focus will be on product design and development.

Thank you.