In: Economics
1. Production system of any product or service may be categorized as Job shop, Batch, Mass and Continuous production. Explain the characteristics of each system, identifying two advantages and two limitations of each system.
Solution
1.
a.Job Shop
This method is followed when there is customization in the products according to the needs of the customer.It is characterized by :
(i) Low volume and high variety of products
(ii) General purpose - machines and facilities will be used
(iii) Highly skilled labour is required in order to deliver the wide variety of products according to the diverse needs of the customer.
(iv) High amount of planning is required to execute the tasks in process
(v)High amount of inventory ( mostly basic tools etc.,),material and parts are required to be maintained.
Advantages
(i)The potential of the operators can be used to the fullest
(ii) There will be more opportunity for more innovation and creative methods
Disadvantages
(i) The complexity involved in production planning
(ii) Larger amount of space and also inventory is required since there is usage of common tools and every one uses the space in the same time and similar way
b.Batch
It is a form of manufacturing in which the a limited number of products (batch)are produced and stocked at regular interval of time.
For Example: It there is a same production line for manufacturing 2 different kinds of biscuits (the difference between the biscuits being the difference in the steps in the production process , then based on market demand ,the 2 products are manufactured in batches. but the number of batches to be produced continuosly will be decided.
Advantages
(i) It ensures better utilization of plant and machinery
(ii) It promotes function specialization
Disadvantages
(i) Material handling is tuff owing to irregular and longer flows
(ii) Production planning is very complex since the 2 products will have entirely different set of process activities but will be utilizing the same / similar production line
c.Mass Production
(i) Discrete / small parts / assemblies are manufactured continuosly
(ii) Specialized labour is used in production
(iii) Production is done in very large amounts
Advantages
(i) Less skilled workers are required
(ii) The manufacturing cost per unit of the product is very low
Disadvantages
(i) There is no job satisfaction for the labour
(ii) It requires high investment in production facilities
d.Continuous Production
(i) The items are made to pass to the next process with the usage of material handling devices like conveyor belts , transfer devices etc.,
(ii) The process follows the pre-defined sequence of operations
Advantages
(i)Reduction in cycle time resulting in higher rate of production
(ii)The per unit cost of production is the lowest due to huge volume of production and automation
Disadvantages
(i) Product variety is very limited due to low flexibility of the production line
(ii)Very high cost is involved for replacing / altering the production line
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