Paper Coordinator Co-Principal Investigator Development Team Prof.(Dr.) S.P. Bansal Principal Investigator Vice Chancellor, Maharaja Agreshen University, Baddi, Solan, Himachal Pradesh, INDIA Dr. Vijaya Khader Former Dean, Acharya N G Ranga Agricultural University Prof.(Dr.) YoginderVerma Co-Principal Investigator Prof.Vice Chancellor, Central University of Himachal Pradesh,Kangra Himachal Pradesh, INDIA Dr. Anil Gupta Paper Coordinator School of Hospitality and Tourism Management University of Jammu, Jammu (J&K), INDIA Dr. Sudhanshu Joshi Content Writer Head, School of Management, Doon University, Dehradun PIN 248001, Uttarakhand, INDIA 1 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 2 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: 3 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: 4 Operation Management Management Characteristics of Job and Batch Shop Operating System Customers Order & Intermittent Production System Customers Specific 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. 5 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 6 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 7 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