production and operations management project
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PRODUCTION ANDOPERATIONS
MANAGEMENT PROJECT
JOB SHOP PRODUCTION
MADE BY
ABHAY GUPTA 8155 BBS 2 D
ACHINT GULATI 8165 BBS 2 D
PRIYAM AGARWAL 8175 BBS 2D
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Index
Table of Contents
Production Logistics 4
Classification of Manufacturing Systems 5
Production process 6
Job Production
What is job shop production 7
Case Study 1 (construction of a House) 10
Features of Job shop Production 14
Advantages of Job Shop production 15
Disadvantages of Job Shop Production 16
Comparison between different production processes 17
Bibliography 19
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Production Logistics
That part of logistics concerning research, design, development, manuf acture,
and processing of material. In consequence, production logistics includes:
standardization and interoperability, contracting, quality assurance, initial
provisioning, transportability, reliability and defect analysis, safety standards,
specifications and production processes, trials and testing (including provision
of necessary facilities), equipment documentation, configuration control, and
modifications.
The purpose of production logistics is to ensure that each machine and
workstation is being fed with the right product in the right quantity and quality
at the right point in time.
Need for Logistics in Production
A simple definition of production logistics is the management of material and
information flows in a production process, though the larger definition runs
much wider. Regardless of manual or automated work processes in your
production, you require a continuous flow and a strict control of the products
through each step.
Logistics help solve operational problems like
Products waiting to be processed which represent lost time Tied up capital Underutilization of machines Occupied floor space
Logistics helps in the following ways:
Management of material ensures that each machine and workstationisbeing fed with the right material in the right quantity and quality in the
right point in time.
Management of information flow streamlines and controls the flowthrough the value adding processes and eliminates non-value adding
ones.
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Management ofa p odu tionp o ess prov es the me s to achieveimprove productivity responsiveness and capital e iciency
Produ tionlogisti scan be applied in e isting as well as new plants
Classifi ationofManufacturing Systems
Type of
Production
IntermittentProduction
Job
Production
BatchProduction
ProjectProduction
ContinuousProduction
ProcessProduction
Mass & flowProduction
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PRODUCTION PROCESS
Job Production
Definition:Jobproduction means manufacturing ofproductsto meet
specific customerrequirementsofspecialorder.
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High technology jobs: High technology jobs involve much greater complexity -
and therefore present greater management challenge. The important
ingredient in high-technology job production is project management, or
project control. Examples of high technology / complex jobs include:
y Film productiony Large construction projects (e.g. like Bandra-Worli Sea Link.)y Installing new transport systems (e.g. Metro trains in Delhi & Mumbai.)
In this system products are made to satisfy a specific order. However that
order may be produced-
only once at irregular time intervals as and when new order arrives at regular time intervals to satisfy a continuous demand
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PRODUCTION AND OPERATIONS
SYSTEM
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Example: Construction of a house
Vision Builders is a construction company located in Newyork, USA specializing
in construction of Row Houses and small bungalows. Vision Builders was
formed by her sister company Chris Architects Ltd of South Africa in the 2003
as an American Satellite Office. In such a short span of 6 years Vision Builders
has become renowned for its efficient working and quality services. The
construction process used by Vision Builders is given below:
The Process consists of Five Phases:
The Program Phase The Design Concept Phase The Design Development Phase The Interior Design Phase The Construction Phase.
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The Program Phase
In this phase the Vision Builders learns about the customers dreams, his ideas,
needs, life style, personal tastes, and the home site. In th is phase the Vision
Builders asks the client to provide:-
-The topographic survey of the home site, and other legal descriptions of it.
- A written statement which they call the Program which describes the ideas
about the new home, customers wants, needs, and their specifications for the
home.
- Photos and magazine clippings showing things customer likes or wishes tohave included in the home.
- A completed questionnaire about specifications of the home.
The Design Concept Phase
In this phase Vision Builders studies the entire information client has gathered
and develops their concepts about how all this can be put together with
foundation, walls, and roof and how this will co-relate with the site. In this
phase Vision Builders uses the creativity of its executives to make the concept
of a house that is according to the needs and wants of the customer and is
economically suited to the clients budget.
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The Design Development Phase
After studying the clients ideas and requirements about the house, VisionBuilders begins to design a blue print of the house. The company makes an
estimate of what will be the cost of making the house, the time required to
construct the house and gives the estimate to the client. If the blue print is
according to the clients requirements the interior design phase takes place, if
the client is not satisfied then the company makes another blue prin t to suit
the clients requirements.
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The Interior Design Phase
In this phase Vision Builders makes designs for the interior design of the house.
The interior design may also be given to a separate interior designer by the
client or Vision Builders uses its own interior designers.
If the client is satisfied by the interior design then the construction of the house
commences. If the client is not satisfied, then a new interior design is madeaccording to clients requirements.
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The Construction Phase
This is the final phase where the actual construction of the house starts. The
construction phase consists of various jobs such as ordering of inventories
(such as wooden logs, concrete, etc) leveling of the plot, installation of
machineries, etc. The construction stage is the most complicated stage
because even a minor mistake can change the shape and look of the house and
make the client unhappy. When the last job of construction is done the
possession of the house is handled over to the client and Compan y gets the
balance payment receivable from the client.
Features of job production system:
1. Machines and methods employed are of general purpose as productchanges are quite frequent.
2. Planning and control system are flexible enough to deal with thefrequent changes in product requirements.
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3. A permanent staff of highly skilled employees is necessary in order tomanufacture products of wide range as per the job orders collected.
4. Schedules are actually nonexistent in this system, as no definite data isavailable on the product.
5. In process inventory is usually high as accurate plans and schedules donot exist.
6. Product cost is normally high because of high material and labor costs.7. Large storage space and adequate extra machines in the machine
storerooms are required to meet customers requirements.
8. This system is very flexible as management has to manufacture varyingproduct types.
9. Material handling systems are also flexible to meet changing productrequirements.
Advantages of job production system:
1. Job production can change with an evolving market, which allows smallfirms to stay ahead of competitors.
2. A high level of customization is possible to meet the customer's exactrequirements.
3. As the work is concentrated on a specific unit, supervision andinspection of work is relatively simple therefore w ork is generally of a
high quality.
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4. Significant flexibility is possible, especially when compared to Massproduction.
5. Workers can be easily motivated due to the skilled nature of the workthey are performing.
6. Business is likely to be able to add value to the products and possiblycreate a unique selling point (USP), both of which should enable it to sell
at high prices.
Disadvantages of job production system:
1. Job production method is the most complex system of production andalso difficult to operate.
2. Raw material and work in- progress inventories are high due to unevenand irregular flow of work.
3. Material handling cost is high and large space is required.4. It involves high cost of production as it is labour intensive. This raises
costs to firms as the payment of wages and salaries is more expensive
than the costs of running machines.
5. It requires the use of specialist labour (compared with the repetitive,low-skilled jobs in mass production).
6. It is slow as compared to other methods (batch production and massproduction).
7. The lead times required to complete the order can be lengthy.
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8. Comprising all the costs of wages and salaries of labour, materialhandling costs and overall production cost, the selling costs may become
high.
9. A firm using job production method does not get the advantage ofEconomies of Scale.
Comparison between Mass Production, Job Production and Batch Production
Basis of
Comparison
Mass Production Job Production Batch Production
Meaning
Mass production
means production of
one or two standardproducts on a large
scale.
Job production
means manufacture
of products as perspecifications given
by the customer. It is
a special order
production.
Batch production
means production of
a number of identicalitems to meet a
specific order or to
satisfy continuous
market demand.
Method of
Production
Here, the flow of
materials is in a
straight line. All
facilities are
arranged as per thesequence of
operations.
Standardization is
the keynote of mass
production method.
Job production is the
manufacture of a
single complete unit
by an operator or a
group of operatives.It is providing goods
or services according
to the needs of the
customers.
In batch production,
the work content of
each unit is broken
into a number of
operations andoperations are divided
into groups for the
completion of work
group wise.
Flexibility
Mass production
method is highly
inflexible.
The job production
method using general
purpose machines is
more flexible.
Batch production is
more flexible than
Mass production
method but is less
flexible than Job
production method.
Capital
Investment
Huge capital
investment is
required due to the
duplication of
machineries.
The capital
investment required
differs from type of
job undertaken. For
e.g. a tailor
Low capital
investment is required
as compared to Mass
production and Job
production.
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undertaking stitching
job requires low
investment whereas
a road or dam
constructing
company requires
huge capital
investment.
Work in
Process
Inventories
Work in Process
Inventories is small
as output of one
process becomes
input of the next
process.
Raw materials and
work in process
inventories are high
due to the uneven
and irregular flow of
work.
Work in Process
Inventory is high and
large space is required
due to production of
more variety of
products.
Skilled/Unskilled
Workers
Unskilled or semi-skilled workers are
used as most of the
work is machine
based.
Highly skilled workersare required in a
large quantity as
production is highly
specialized.
Semi- skilled andSkilled workers are
required according to
the type of
production
undertaken.
Examples Products of mass
consumption such as
Colgate toothpaste,
Lux soaps, etc.
Smalls jobs such as
Tailoring or
hairdresser and Big
jobs such as
construction of a
house, dam or bridge
building, etc.
Clothing, bakery and
electrical goods.
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BIBLIOGRAPHY
y WWW.GOOGLE.COMy WWW.ANSWERS.COMy WWW.MANAGEMENTNOTES.COMy WWW.WIKIPEDIA.COM
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