ASSIGNMENT 1 and 2
NAME: ISHIKA CHAUHAN
ROLL NO.:22327
ELECTRICAL ENGINEERING (3rd YEAR)
SUB: IDEA TO BUSINESS MODEL
UNIT: 4
PRODUCTION SYSTEM:
In a business context, a production system refers to the set of activities, processes,
and resources that a company uses to create goods or services. It involves
everything from the initial input (such as raw materials or labor) to the final
output (the finished products or services). A production system is a crucial part of
the overall operations of a business, as it directly affects efficiency, quality, cost,
and delivery.
Key components of a production system typically include:
1. Inputs:
• Raw Materials: These are the basic materials needed to produce the
product.
• Labor: Human resources involved in the production process.
• Capital: Equipment, machinery, and technology required for production.
• Energy: Power needed to operate machinery and facilities.
• Information: Data and management systems for planning, coordinating, and
monitoring production.
2. Processes:
• These are the series of activities or operations that transform inputs into
finished goods or services. These processes could be manufacturing steps
like assembly, machining, or packaging, or service processes like
consultations, coding, or customer support.
• Examples of production processes include batch production, mass
production, continuous production, and job shop production.
3. Outputs:
• The end product or service produced through the system.
• Outputs are the goods or services that are delivered to customers, either in
finished form or after additional steps like packaging, marketing, and
distribution.
4. Control and Feedback:
• Production systems require constant monitoring to ensure that processes
are running efficiently and within quality standards.
• Feedback loops allow for adjustments to improve performance, address
problems, or optimize operations.
5. Supply Chain Management:
• The production system is closely connected to the supply chain, as inputs
(materials and resources) are sourced and delivered through supply chain
activities. The efficiency of the entire production system is often reliant on
the smooth functioning of the supply chain.
Objectives of a Production System:
• Efficiency: Maximizing output while minimizing waste (materials, time,
energy).
• Quality Control: Ensuring that products meet the desired specifications and
customer requirements.
• Flexibility: Being able to adapt production processes to changing demands
or product variations.
• Cost-effectiveness: Minimizing costs while maintaining the quality and
volume needed.
DESIGN OF PRODUCTION SYSTEM:
TYPES OF PRODUCTION SYSTEM:
Intermittent Production System :
Intermittent production system refers to a manufacturing system in which the
production of goods is based on customer orders and the flow of production is not
continuous, but rather occurs in irregular intervals. This system is characterized by
the production of a wide variety of products on a small scale. The design of these
products keeps changing according to the customer's orders, making the system
very flexible.
Some examples of intermittent production system are the work of a goldsmith,
who produces ornaments on a small scale basis as per the customer's
requirements, and a tailor, who stitches clothes for each customer independently
as per one's measurement and size. In this system, general-purpose machines are
used, and the sequence of operation keeps changing as per the design of the
product.
1. Job Shop Production System: In a job shop system, products are made
in small quantities or custom batches. Each job is unique, and production is
generally based on specific customer orders.
2. Batch Production System: Production is carried out in batches, where a
certain quantity of a product is produced at one time, and once the batch is
Continuous Production : Continuous Flow Production This system is used
for products that are produced in a continuous stream, often 24/7. There is little
to no stoppage, and it is commonly used for high-volume, low-variation products.
• Business Model Impact: It’s a highly efficient, cost-effective system for mass
production, but it requires significant investment in infrastructure and
equipment.
• Example: Oil refining, chemical production, or utilities.
Mass production: mass production is characterized by producing a
large number of identical products using an assembly line or continuous
flow process. It is highly efficient but less flexible.
Production Planning & Control (PPC)
• PPC, or Production Planning and Control, is a process used in manufacturing to
ensure that products are produced efficiently, on time, and at the desired quality
level. It involves the coordination of resources, including people, machines, and
materials, to meet production goals while minimizing waste and maximizing
efficiency.
• Production planning is the process of determining what products to produce,
how much to produce, and when to produce them. It involves creating a
production schedule, identifying necessary resources, and setting production
targets.
• Production control, on the other hand, is the process of monitoring and
controlling the production process to ensure that it runs smoothly and according
to plan.
• The main objectives of PPC are:
1. Meeting production targets
2. Optimizing utilization of resources
3. Ensuring timely delivery of products
4. Reducing production costs
5. Ensuring quality control
6. Minimizing production downtime
7. Enhancing customer satisfaction
8. Improving production efficiency
9. Facilitating continuous improvement in production processes.
STEPS OF PPC:
1. Demand Forecasting: Predict the future demand for products based on
historical data, market trends, and sales forecasts.
2. Production Planning: Develop a production plan that aligns with the demand
forecast.
3. Capacity Planning: Ensure the production facility can handle the forecasted
demand.
4. Material Requirement Planning (MRP): Ensure that the necessary raw
materials and components are available for production.
5. Scheduling: Determine the exact timing of production activities.
6. Production Execution: Carry out the production as per the plan.
7. Quality Control: Ensure that the final product meets the required standards.
8. Inventory Management: Ensure that there is an optimal amount of raw
materials, in-process goods, and finished goods.
9. Distribution and Delivery Planning: Ensure timely delivery of the finished
goods to customers or retailers.
10. Performance Monitoring and Feedback: Measure and improve the efficiency
of the production process.
