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Operation Management Management Characteristics of Job and Batch Shop Operating System
Quadrant-I
Description of Module Subject Name Management Paper Name Operation Management Module Title Characteristics of Job and Batch Shop Operating System Module Id Module- 05 Pre-requisites Basic understanding of Manufacturing setup, processes and operation management. 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
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 job shop production system and batch shop production system.
1. Introduction: A manufacturing 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. Manufacturing systems interacts with both internal and external environment of the organization. Internal environment
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Operation Management Management Characteristics of Job and Batch Shop Operating System
includes marketing, accounts, personnel, operations, and finance. External environment include customers, labor, unions and suppliers. A manufacturing 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 manufacturing system
.
Decision Maker
Internal Environment Control External Environment
Input Processing Output
Figure 1: Manufacturing System 2. Types of Manufacturing System:
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Operation Management Management Characteristics of Job and Batch Shop Operating System
There are mainly two types of manufacturing system which is depicted in following figure:
Types of Manufacturing System
Intermittent Manufacturing System Continuous Manufacturing System
Mass Production Project Production Flows
Job Shop Process Production
Batch Shop
Figure 2: Types of Manufacturing System 2.1. Intermittent Manufacturing System: 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. 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:
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Operation Management Management Characteristics of Job and Batch Shop Operating System
Customers Order & Customers Specific Intermittent Production System
No Continuous flow Of same size GoldSmith Tailor
Figure 3: Intermittent Manufacturing System
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.
2.2 Characteristics of Intermittent Production System: 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.
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Operation Management Management Characteristics of Job and Batch Shop Operating System
(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.
2.3. Types of Intermittent Production System: The intermittent production system has three types which are as under: (A) Project Production Flows, (B) Job Shop Production System, and (C) Batch Shop Production System. 2.3.1. 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
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Operation Management Management Characteristics of Job and Batch Shop Operating System
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.
2.3.2. 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
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Operation Management Management Characteristics of Job and Batch Shop Operating System
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. 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
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Operation Management Management Characteristics of Job and Batch Shop Operating System
involves the use of flexible flow strategy, with resource organized around the process. Most jobs have a different sequence of processing steps.
2.3.2.1 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.
2.3.2.2 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.
(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.
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Operation Management Management Characteristics of Job and Batch Shop Operating System
2.3.2.3. 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.
2.3.3. 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 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,
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Operation Management Management Characteristics of Job and Batch Shop Operating System
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.
2.3.3.1 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.
2.3.3.2. Advantages of Batch Production System: The advantages of batch production system are as under:
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Operation Management Management Characteristics of Job and Batch Shop Operating System
(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.
2.3.3.3. 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.
3. 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
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Operation Management Management Characteristics of Job and Batch Shop Operating System
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 Scale Food Industry Fuel Industry
Figure 4: Continuous Production System Let’s take first the example of 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 continuously on a large scale to yield usable form of fuel and compensate global energy demand.
3.1. Characteristics of Continuous Production System: The characteristics of a continuous production system are as under: (I) In a continuous production system the flow of production is continuous. It is not intermittent.
(II) The products produced in continuous production system are standardized products. 13
Operation Management Management Characteristics of Job and Batch Shop Operating System
(III) In a continuous production system the products are produced on predetermined quality standards.
(IV) The products are produced in anticipation of demand.
3.2. Types of Continuous Production System: The continuous production system has two types: (I) Mass Production System
(II) Process Production System
3.2.1. Mass Production System: 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. 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. 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. 3.2.1.1. 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 14
Operation Management Management Characteristics of Job and Batch Shop Operating System
when Henry Ford, upon request from US government, produced bomber air craft’s for USA. Following URL shows how Henry Ford and his engineers perform something unthinkable in the history of air craft assembling: https://youtu.be/iKlt6rNciTo Following URL shows the historic footage of how mass production of famous Model T was done there: https://youtu.be/IXkxl8dSXb4
3.2.1.1. Characteristics of Mass Production System: Following are the main characteristics of mass production system: (I) One of the main characteristics of mass production system is that the product produced in this system is standardized.
(II) The operator is able to do different kind of tasks in mass production system of manufacturing.
(III) The mass production system of manufacturing requires less time to produce a product because the worker spends little time to develop material or tools.
(IV) In mass production system the probability of human error and variation is also reduced, as tasks are predominantly carried out by machinery.
(V) 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.
3.2.1.2. Advantages of Mass Production System: The main advantages of mass production system are as under: 15
Operation Management Management Characteristics of Job and Batch Shop Operating System
(I) In mass production system higher rate of production with reduced cycle time.
(II) It doesn’t require highly skilled operators. Semi-skilled operators are sufficient for mass production system.
(III) Manufacturing cost per unit is very low in mass production system.
3.2.1.3. Disadvantages of Mass Production System: The main disadvantages of mass production system are as under: (I) In mass production manufacturing system every production line is linked with each other. Breakdown of one machine will stop an entire production line.
(II) Mass production system of manufacturing requires high investment in production facilities.
(III) Line layout needs major change with the changes in the product design.
4. Process Production System: 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. 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 process manufacturing may include such substances as plastics, food, beverages and pharmaceuticals.
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Operation Management Management Characteristics of Job and Batch Shop Operating System