Unit 1Managementof Manufacturing System (KMBN OM05)

GIMT/IQAC/LDP-06
Unit – I
Syllabus
Unit 1: (6 hours)
Manufacturing System: Introduction and components, Importance of Manufacturing for
Technological and Socioeconomic developments, Production versus Productivity; Strategic benefit
of Plant location & Plant Layouts. Types of manufacturing System: Job shop. Mass, Batch,
Project shop, Continuous process Linked cell system (Cellular manufacturing system), Flexible
Manufacturing System (FMS)

Manufacturing System:
Introduction and components
Manufacturing is part of a bigger scheme known as operations. The term Operations takes in all
systems that involve getting work done. This includes services as well as manufacture. The
process always involves a transformation of some raw materials (or inputs) to a finished item or
service. The goal is to create and add value to the inputs during the transformation. In the case of
manufacturing, the goal is to add value to a raw material by changing its shape or properties. In the
case of a service, often knowledge or know how is brought together to fulfil some need. The
process is shown in the diagram below.

Inputs Outputs
Materials
Transformation process Goods
Labour Services
Equipment
Capital

The manufacturing process is used to turn raw material into finished items. The manufacturing
process contributes the technology to bring this about.

Machinery
Power

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Starting material Manufacturing process Processed Part
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The word manufacture is derived from two Latin words, manus (hand) and factus (make); the
combination means made by hand. The English word manufacture is several Centuries old, and ‘‘made
by hand’’ accurately described the manual methods.

Technologically, manufacturing is the application of physical and chemical processes to alter the
geometry, properties, and/or appearance of a given starting material to make parts or products;
manufacturing also includes assembly of multiple parts to make products. The processes to accomplish
manufacturing involve a combination of machinery, tools, power, and labor, as depicted in Figure 1.1.

Manufacturing is the economic term for making goods and services available to satisfy human wants.
Manufacturing implies creating value by applying useful mental or physical labor. The manufacturing
processes are collected together to form a manufacturing system (MS).The manufacturing system is a
complex arrangement of physical elements characterized by measurable parameters. The manufacturing
system takes inputs and produces products for the external customer.
The production system includes the manufacturing system plus all the other functional areas of the plant
for information, design, analysis, and control. These subsystems are connected by various means to each
other to produce either goods or services or both.

Manufacturing industries can be grouped into either Primary, Secondary or Tertiary industries.
• Primary Industries exploit natural resources e.g. agriculture or mining
• Secondary Industries take the output of primary industries and convert them into consumer goods.
Manufacturing is mostly concerned with this category but construction can also be included here.
• Tertiary Industries contribute to the service sector of the economy. e.g. Banks, insurance,
A manufacturing system is a combination of tools and procedures used to turn raw materials into
completed products. Its objective is to create products and services profitably, effectively, and by client
requests.
The process of such a system typically involves several stages, including:
1. Planning involves determining the type of products, resources, and production process.
2. Design involves designing the products, tools, and equipment used in manufacturing. It may include
creating detailed drawings, specifications, and blueprints.
3. Procurement involves obtaining the raw materials and components to create the finished products. It
may include purchasing materials from suppliers or sourcing them from internal inventory.
4. Production: Transformation of raw materials into finished goods through various manufacturing
processes such as assembly, fabrication, and inspection. It may involve the use of multiple types of
machinery and equipment, as well as manual labor.
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5. Quality Control involves inspecting and testing the finished products to ensure they meet the required
quality standards.
6. Distribution involves delivering the finished products to customers or storing them in inventory for
future use.
7. Maintenance involves maintaining the manufacturing equipment and tools to ensure they are in good
working condition and can operate at optimal performance.
8. Continuous improvement involves continuous monitoring, which will increase efficiency, reduce
waste, improve quality and reduce costs.

Components
Components of a manufacturing system can include:
1. Equipment and machinery can constitute the tools and machines used to transform raw materials into
finished goods. It can consist of everything from essential hand tools to highly automated and computer-
controlled machinery.
2. Raw materials and components are used to create the finished goods. It can include raw materials,
such as metal and plastics, to purchased ingredients, such as motors and sensors.
3. Labor includes the human resources needed to operate the equipment and perform tasks such as
assembly and inspection.
4. Methods and procedures include the systems that transform raw materials into finished goods. It
includes assembly instructions, fabrication techniques, and quality control procedures.
5. Software and control systems include the software and control systems used to manage and control the
manufacturing process. It can have everything from simple manual controls to sophisticated computer-
controlled systems that monitor and adjust production in real-time.
6. Workflow and production planning include the manufacturing process layout, the flow of materials
and information, and the production schedule.
7. Maintenance and repair include the maintenance and repair of the equipment and facilities to ensure
that the manufacturing process runs efficiently.
8. Quality Control includes inspecting and testing the finished products to ensure they meet the required
quality standards.
(https://www.wallstreetmojo.com/manufacturing-system/#components)

Importance of Manufacturing for Technological and Socioeconomic developments:

(https://www.geeksforgeeks.org/importance-of-manufacturing-industries/)
Manufacturing industries are described as the backbone of development in general and economic
development in particular; mainly because these industries not only help in modernizing agriculture
but also reduce the heavy dependence of people on agriculture by providing them jobs in secondary
and tertiary sectors.
The manufacturing industries convert raw materials into finished products. It makes use of machinery
or labor to manufacture the finished goods. The economic prevalence and stand of the nation are
measured by the development of manufacturing industries. Industrial development is an important
precursor for the eradication of poverty and unemployment in our country. Industries are important to
bring down regional disparities by establishing industries in tribal and other backward areas.
Manufacturing is the process of converting inexpensive raw materials into large quantities of more
valuable goods. The secondary sector's manufacturing industries are those that turn raw materials into
finished commodities. A nation's overall, and particularly its economic development, depends heavily on
its manufacturing sector. A nation's economic strength is determined by the growth of its manufacturing
sectors.
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Importance of the Manufacturing

 The manufacturing sector is regarded as the backbone of both social and economic development.
 They aid in the modernization of agriculture and the reduction of people’s significant reliance on
agricultural income by offering jobs in the secondary and tertiary sectors.
 It is the main principle underpinning public sector enterprises and joint sector operations in India
that industries serve to reduce unemployment and poverty.
 By building companies in tribal and backward areas, they reduce regional inequities.
 Exporting manufactured items boosts trade and brings in much-needed foreign currency.
 Countries that convert their basic materials into a diverse range of higher-value finished items are
affluent.
 Agriculture and industry are not mutually exclusive. They’re walking hand in hand. In India, for
example, agro-industries have provided agriculture a substantial boost by increasing productivity.
 In today’s globalized world, our sector must become more efficient and competitive, with only the
best products remaining competitive.

Contribution of industries to the National Economy

 Manufacturing’s portion of GDP has remained stable at 17% of GDP, out of a total of 27% for the
industry, which includes 10% for mining, quarrying, power, and gas.
 India’s GDP is substantially lower than that of several East Asian economies, which ranges from
25 to 35 percent.
 Manufacturing has grown at a rate of roughly 7% per year on average over the last decade.
 With proper government policy interventions and increased efforts by industry to improve
productivity, the desired growth rate over the following decade is 12%.
 The National Manufacturing Competitiveness Council (NMCC) was established solely for this
purpose.

Difference between Production and Productivity:

PRODUCTION AND PRODUCTIVITY: Production and productivity are two different words with
different meaning. Production refers to quantity of production while productivity means the efficient use
of resources consumed for achieving that production. Resources are of several types—material, men,
machine hours, energy consumed, space utilised etc. Lesser is the consumption of such resources per
unit of production, higher is the productivity.

Let us take the example of two motor cycle manufacturers who produce similar motorbikes— same
design, same HP etc. If one manufacturer uses 1.5 tonnes of steel per motorcycle and the other uses 1.4
tonnes of steel, the latter’s material productivity is higher. Productivity should not be confused with cost
of manufacture, although a plant with higher productivity will use less resources and its product is likely
to be cheaper.

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Another example will make the difference between production and productivity clear. If one steel maker
uses 6 tonnes of coke per tonne of steel produced, its productivity is higher as compared to another steel
maker who uses 6.8 tonnes of coke per tonne of steel produced. The fact that the first steel maker
produces only 1.5 m.t. of steel per year, whereas the second steel maker produces 4.5 m.t. of steel per
year is of no consequence, when we talk about productivity. Productivity of plants or any other
manufacturing activity is a very important concept. Recent growth of Japan is attributed to the high
productivity levels achieved by their manufacturing concerns. Productivity alone will make the products
competitive, production alone will not help a nation become great.

Production
Production is defined as the process of producing goods from raw materials. The raw materials and
immaterial inputs are used for manufacturing a variety of products. The products manufactured
contribute to the utility of the individuals. There are three significant stages of production, i.e., the total
product, marginal product, and the average product. Now, there are four prominent factors of production
through which goods and services are produced. They are land, capital, labor, and entrepreneurship.
Other factors include factories, machinery, tools, raw materials, enterprise, etc. These factors help in
making the economy strong.
Apart from all the factors of production, software and professional services have become extremely
important in the modern world. Along with this, labor is considered to be the most crucial factor of
production because, without labor, manufacturing and production are not possible. Besides labor, the
land is considered to be the most abundant factor because it is used for agriculture. Capital is one of the
rare/ scarce factors of production. Capital is not available in abundance, and people are not able to
arrange it. Therefore, capital is not easily available to people.
Well, there are three major kinds of production, i.e., batch production, flow production, and job
production. In batch production, the groups of several items are made together. In flow production,
identical items are manufactured. Finally, in job production, the products are manufactured separately.
Every good is finished before the next product is started.
The primary objective of production is to produce a good quality of products for the economy. The
products manufactured must be of the right quality and quantity by using minimum cost and effort.
Productivity
Productivity is defined as the process of producing goods and services efficiently. Productivity is often
measured through the ratio of aggregate output to the single output. In layman's language, productivity is
defined as the ratio between input and output. Productivity measures how the factors of production
(land, labor, entrepreneurship, and capital) are utilized. Productivity is essential for the economy
because, with the growth in production, more goods and services will reach the general public, thereby
bringing efficiency to their lifestyle. There are different kinds of productivity, like capital productivity,
labor productivity, material productivity, total factor productivity, etc.
Apart from the major types, there are several ways of increasing and improving productivity. They are:
o Tracking the time that has been spent on manufacturing goods.
o Taking regular breaks during the production.
o Arranging meetings for short-term and long-term goals.
o Quit multitasking.
o Setting up self-imposed deadlines in order to increase the efficiency of an individual.
Efficiency is the key factor in increasing production. Once the labor of the company is organized, it
becomes easier to achieve the company's goals. Now, how do we calculate productivity? Well, one
formula has to be kept in mind in order to calculate productivity, i.e., total output/ total input.
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S.NO PRODUCTION PRODUCTIVITY

.

1. Production is defined as the process of On the other hand, productivity is defined as

producing goods from raw materials. the process of producing goods and services
efficiently.

2. The production focuses on the availability of Productivity focuses on the ways these
the factors of production, i.e., land, capital, factors of production are utilized.
entrepreneurship, and capital.

3. The land is the key factor of production. Efficiency is the key factor of productivity.

4. A production is an act of creating something. Productivity is the act of calculating the

products produced.

5. Production is undertaken to produce goods. Productivity is used for adaptation.

6. Production controls the output value. Productivity controls the formation/

production issues.

7. The production represents the number of Productivity represents the ratio of output to
products produced. input.

8. Production is the process of conversion. Productivity is the process of utilization of

the available resources.

9. Production is expressed in absolute terms. Productivity is expressed in relative terms.

10. The production helps in fulfilling the needs of Productivity helps in increasing and
the customers. improving productivity.
(https://www.educationalstuffs.in/plant-location-and-layout/)

STRATEGIC BENEFITS OF PLANT LOCATION AND PLANT LAYOUT:

Plant location refers to the choice of region and the selection of a particular site for setting up a business
or factory.
But the choice is made only after considering cost and benefits of different alternative sites. It is a
strategic decision that cannot be changed once taken. If at all changed only at considerable loss, the
location should be selected as per its own requirements and circumstances. Each individual plant is a
case in itself. Businessman should try to make an attempt for optimum or ideal location.

An ideal location is one where the cost of the product is kept to minimum, with a large market share, the
least risk and the maximum social gain. It is the place of maximum net advantage or which gives lowest

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unit cost of production and distribution. For achieving this objective, small-scale entrepreneur can make
use of locational analysis for this purpose.
Plant Location is the right location for the manufacturing facility; it will have sufficient access to the
customers, workers, transportation, etc. For commercial success, and competitive advantage following
are the critical factors:
Overall objective of an organization is to satisfy and delight customers with its product and services.
Therefore, for an organization it becomes important to have strategy formulated around its
manufacturing unit. A manufacturing unit is the place where all inputs such as raw material, equipment,
skilled labors, etc. come together and manufacture products for customers. One of the most critical
factors determining the success of the manufacturing unit is the location.

Plant location decisions are strategic, long term and non-repetitive in nature. Without sound and careful
location planning in the beginning itself, the new facility may pose continuous operating disadvantages,
for the future operation. A right selection of a plant location can make and a wrong decision mar an
organization. Location decisions are affected by many factors such as technology used, the capacity, the
financial position, the work force required and also by economic, political and social conditions in the
various localities. The efficiency, effectiveness, productivity and profitability of the facility are also
affected by the location decision. The facilities location problem is concerned primarily with the best
location depending on the appropriate criteria of effectiveness.

GENERAL FACTORS AFFECTING PLANT LOCATION DECISION:

INPUT CONSIDERATIONS
 Material- Quantity, quality, cost and regular supply.
o Land- Site availability and cost, cost of construction, constructional regulations.
o Equipment- Cost and availability.
o Plant utilities- Water, electricity, gas, coal etc.
o Labor- Availability, skill, wage rates etc.
PROCESSING CONSIDERATIONS
o Production analysis
o Process analysis
o Forecasting and scheduling
o Production control
o Maintenance
o Cost control
OUTPUT CONSIDERATIONS
o Distribution- Distribution and storage facilities
o Transportation- Facilities and cost
o Present and future market potential
o Local rates
o Local taxes
OTHER CONSIDERATIONS
o Community attitude towards industry and company
o Public and community services
o Stockholder interests
o Organizational decentralization policies.
o Political situation

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o Environmental standards

PLANT LAYOUT
 Layout refers to the arrangement of facilities in a particular workstation. It may be plant layout,
office layout, auditorium layout etc.
 Plant Layout implies the physical arrangement of machines, equipment and other industrial
facilities on the factory floor in such a manner that they may be handled efficiently.
 Plant layout refers to the arrangement of physical facilities such as machinery, equipment,
furniture etc. within the factory building in such a manner so as to have quickest flow of material
at the lowest cost and with the least amount of handling in processing the product from the
receipt of material to the shipment of the finished product.
 Layout is a Fundamental of every organization and enterprise.
 Kitchen, Retailers, offices, service organization and all the enterprises have a specific layout.
 Previously Layouts were based on intuition, experience and judgment.
 With the complexities and competition now scientific methods are used.
 The Layout comes in picture after the location has been finalized.
 Development of good layout depends on decisions already taken on location, capacity, facility,
manufacturing method and material handling techniques.

CHARACTERISTICS OF PLANT LAYOUT:

 Provide space for machine / materials / storage / etc.
 Flexible for future changes in capacity / Design / Process etc. ( Cellular design).
 Accommodate future expansion.
 Deals with government rules & regulations ( Municipal corporation / Labor law & rules).
 Safety of employees / visitors / vendors is prime concern.
 Achieve economy in operation.
IMPORTANCE OF PLANT LAYOUT:
 It is long-term commitment.
 It facilitates the production process, minimizes material handling, time and cost, and allows
flexibility of operations.
 It facilitates easy production flow, makes economic use of the building, promotes effective
utilization of manpower, and provides for employees’ convenience, safety, comfort at work,
maximum exposure to natural light and ventilation.
 It affects the flow of material and processes, labor efficiency, supervision and control, use of
space and expansion possibilities .
OBJECTIVES OF PLANT LAYOUT :
 Overall simplification of production process in terms of equipment utilization, minimization of
delays, reducing manufacturing time and better provisions for maintenance.
 Overall integration of men, materials, machinery, supporting activities and many other
considerations in a way that result in the best compromise.
 Minimization of material handling cost by suitably placing the facilities in the best flow
sequence.
 Saving in floor space, effective space utilization and less congestion.
 Increased output and reduced inventories in process.
 Better supervision and control.
 Worker convenience, improved morale and worker satisfaction.
 Better working environment, safety of employees and reduced hazards.
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 Minimization of waste and higher productivity.

 Avoid unnecessary capital investment.
 Higher flexibility and adaptability to changing conditions.
EVIDENCE OF POOR LAYOUT:
 Slow movement of materials through the plant.
 High handling and transportation costs.
 Crowded stock rooms and production departments.
 Congested workplaces.
 Inconveniently located service departments.
 In-process materials are frequently damaged, misplaced or lost.

PRINCIPLE OF PLANT LAYOUT:

 Principle of Overall Integration:
All the plant facilities are integrated one single operating unit considering all the servicing
necessary for operations.
 Principle of Minimum Distance Moved:
Attempts are made to minimize the movements as far as possible. However, the principle of
overall integration should be considered while planning for the minimum distance moved.
 Principle of Flow:
A layout must arrange the work areas as far as possible, in the same way as the sequence of
operations or processes. The basic idea is to move the work towards completion progressively
without interference of backtracking with a minimum of interruption or congestion.
 Principle of Cubic Space:
Economy is obtained by using effectively available space- both vertical and horizontal.
 Principle of Satisfaction and Safety:
Satisfaction of working people is an important factor to be kept in mind. Similarly due
consideration must be given to safely requirements.
 Principle of Flexibility:
The layout must be sufficiently flexible to take care of the necessity of rearranging the
production facilities, when the need comes.

TYPES OF LAYOUT
From the point of view of plant layout, we can classify small business or unit into
three categories:
1. Manufacturing units
2. Traders
3. Service Establishments

1. Manufacturing units
In case of manufacturing unit, plant layout may be of four types:
(a) Product or line layout
(b) Process or functional layout
(c) Fixed position or location layout
(d) Combined or group layout

(a) Product or line layout:

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Under this, machines and equipments are arranged in one line depending upon the sequence of
operations required for the product. The materials move form one workstation to another sequentially
without any backtracking or deviation. Under this, machines are grouped in one sequence. Therefore
materials are fed into the first machine and finished goods travel automatically from machine to
machine, the output of one machine becoming input of the next, e.g. in a paper mill, bamboos are fed
into the machine at one end and paper comes out at the other end.

The raw material moves very fast from one workstation to other stations with a minimum work in
progress storage and material handling.
The grouping of machines should be done keeping in mind the following general principles.

a) All the machine tools or other items of equipments must be placed at the point demanded by the
sequence of operations
b) There should no points where one line crossed another line.
c) Materials may be fed where they are required for assembly but not necessarily at one point.
d) All the operations including assembly, testing packing must be included in the line

(b) Process layout:

In this type of layout machines of a similar type are arranged together at one place. E.g. Machines
performing drilling operations are arranged in the drilling department, machines performing casting
operations be grouped in the casting department. Therefore the machines are installed in the plants,
which follow the process layout.
Hence, such layouts typically have drilling department, milling department, welding department, heating
department and painting department etc. The process or functional layout is followed from historical
period. It evolved from the handicraft method of production. The work has to be allocated to each
department in such a way that no machines are chosen to do as many different job as possible i.e. the
emphasis is on general purpose machine.
The work, which has to be done, is allocated to the machines according to loading schedules with the
object of ensuring that each machine is fully loaded.

(c) Fixed Position or Location Layout:

In this type of layout, the major product being produced is fixed at one location. Equipment labour and
components are moved to that location. All facilities are brought and arranged around one work center.
This type of layout is not relevant for small scale entrepreneur. The following figure shows a fixed
position layout regarding shipbuilding.

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(d) Combined layout:

Certain manufacturing units may require all three processes namely intermittent process (job shops), the
continuous process (mass production shops) and the representative process combined process [i.e.
miscellaneous shops].

In most of industries, only a product layout or process layout or fixed location layout does not exist.
Thus, in manufacturing concerns where several products are produced in repeated numbers with no
likelihood of continuous production, combined layout is followed. Generally, a combination of the
product and process layout or other combination are found, in practice, e.g. for industries involving the
fabrication of parts and assembly, fabrication tends to employ the process layout, while the assembly
areas often employ the product layout. In soap, manufacturing plant, the machinery manufacturing soap
is arranged on the product line principle, but ancillary services such as heating, the manufacturing of
glycerin, the power house, the water treatment plant etc. are arranged on a functional basis.

2. Traders
When two outlets carry almost same merchandise, customers usually buy in the one that is more
appealing to them. Thus, customers are attracted and kept by good layout i.e. good lighting, attractive
colours, good ventilation, air conditioning, modern design and arrangement and even music. All of these
things mean customer convenience, customer appeal and greater business volume. The customer is
always impressed by service, efficiency and quality. Hence, the layout is essential for handling
merchandise, which is arranged as per the space available and the type and magnitude of goods to be
sold keeping in mind the convenience of customers.

There are three kinds of layouts in retail operations today.

1. Self service or modified self service layout
2. Full service layout
3. Special layouts

The self-service layouts, cuts down on sales clerk’s time and allow customers to select merchandise for
themselves. Customers should be led through the store in a way that will expose them to as much
display area as possible, e.g. Grocery Stores or department stores. In those stores, necessities or
convenience goods should be placed at the rear of the store. The use of color and lighting is very
important to direct attention to interior displays and to make the most of the stores layout.
All operations are not self-service. Certain specialty enterprises sell to fewer numbers of customers or
higher priced product, e.g. Apparel, office machines, sporting goods, fashion items, hardware, good
quality shoes, jewelry, luggage and accessories, furniture and appliances are all examples of products
that require time and personal attention to be sold. These full service layouts provide area and equipment
necessary in such cases.
Some layouts depend strictly on the type of special store to be set up, e.g. TV repair shop, soft ice cream
store, and drive-in soft drink stores are all examples of business requiring special design. Thus, good
retail layout should be the one, which saves rent, time and labour.

3. Services centers and establishment

Services establishments such as motels, hotels, restaurants, must give due attention to client
convenience, quality of service, efficiency in delivering service and pleasing office ambience. In today’s
environment, the clients look for ease in approaching different departments of a service organization and
hence the layout should be designed in a fashion, which allows clients quick and convenient access
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to the facilities offered by a service establishment.

Types of manufacturing System: Job shop. Mass, Batch, Project shop,

Continuous process Linked cell system (Cellular manufacturing system), Flexible Manufacturing
System (FMS):

Manufacturing or Production systems can be classified as Job-shop, Mass, Batch, and Continuous
production systems.
1. Job-Shop Production: Job-shop production are characterized by manufacturing one or few quantity
of products designed and produced as per the specification of customers within prefixed time and cost.
The distinguishing feature of this 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 is characterized by:
1. High variety of products and low volume.
2. Use of general purpose machines and facilities.
3. Highly skilled operators who can take up each job as a challenge because of uniqueness.
4. Large inventory of materials, tools, parts.
5. Detailed planning is essential for sequencing the requirements of each product, capacities for each
work centre and order priorities.
Advantages: There are .certain advantages of Job-shop Production:
1. Because of general purpose machines and facilities variety of products can be produced.
2. Operators will become more skilled and competent, as each job gives them learning opportunities.
3. Full potential of operators can be utilized.
4. Opportunity exists for Creative methods and innovative ideas.
Limitations: Following are the limitations of Job-shop Production:
1. Higher cost due to frequent set up changes.
2. Higher level of inventory at all levels and hence higher inventory cost.
3. Production planning is complicated.
4. Larger space requirements.

2. Batch Production: American Production and Inventory Control Society (APICS) defines Batch
Production as a form of manufacturing in which the job pass 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.
Batch Production involves moving groups of the product through the manufacturing process in groups or
batches. The volume is relatively low and demand for the items can fluctuate. Examples of batch
production are • bakeries, • furniture making • cheese making, printing of books, production of machine
tools, pumps, compressors etc. etc
Batch Production is characterized by
1. Shorter production runs.
2. Plant and machinery are flexible.
3. 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.
4. Manufacturing lead-time and cost are lower as compared to job order production.

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Advantages: Following are the advantages of Batch Production:

1. Better utilization of plant and machinery.
2. Promotes functional specialization.
3. Cost per unit is lower as compared to job order production.
4. Lower investment in plant and machinery.
5. Flexibility to accommodate and process number of products.
6. Job satisfaction exists for operators.
Limitations:
Following are the limitations of Batch Production:
1. Material handling is complex because of irregular and longer flows.
2. Production planning and control is complex.
3. Work in process inventory is higher compared to continuous production.
4. Higher set up costs due to frequent changes in set up.

3. Mass Production: Manufacture of discrete parts or assemblies using a continuous process are called
Mass Production. This production system is justified by very large volume of production. The machines
are arranged in a line or product layout. Product and process standardization exists and all outputs
follow the same path.

Mass Production produces large volumes of a standard product for a mass market. The demand for the
product is stable and the demand is high. Most consumer goods are produced using this method. There is
usually a degree of automation involved. Examples are • cars, • computers • fast food such as burgers,
sewing machines, scooters, cycles, cars, electric switches, electric fans etc.

Mass Production is characterized by

1. Standardization of product and process sequence.
2. Dedicated special purpose machines having higher production capacities and output rates.
3. Large volume of products.
4. Shorter cycle time of production.
5. Lower in process inventory.
6. Perfectly balanced production lines.
7. Flow of materials, components and parts is continuous and without any back tracking.
8. Production planning and control is easy.
9. Material handling can be completely automatic.

Advantages:
Following are the advantages of Mass Production:
1. Higher rate of production with reduced cycle time.
2. Higher capacity utilization due to line balancing.
3. Less skilled operators are required.
4. Low process inventory.
5. Manufacturing cost per unit is low.
Limitations:
Following are the limitations of Mass Production:
1. Breakdown of one machine will stop an entire production line.
2. Line layout needs major change with the changes in the product design.
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3. High investment in production facilities.

4. The cycle time is determined by the slowest operation.

4. Continuous Production:
Production facilities are arranged as per the sequence of production operations from the first operations
to the finished product. The items are made to flow through the sequence of operations through material
handling devices such as conveyors, transfer devices, etc. Continuous Production is used for very high
volume products. These are highly standardised and are produced using highly automated systems.
Examples of this are • electricity, • treated water, • foodstuffs, • paper

Continuous Production is characterized by

1. Dedicated plant and equipment with zero flexibility.
2. Material handling is fully automated.
3. Process follows a predetermined sequence of operations.
4. Component materials cannot be readily identified with final product.
5. Planning and scheduling is a routine action.

Advantages: Following are the advantages of Continuous Production:

1. Standardization of product and process sequence.
2. Higher rate of production with reduced cycle time.
3. Higher capacity utilization due to line balancing.
4. Manpower is not required for material handling as it is completely automatic.
5. Person with limited skills can be used on the production line.
6. Unit cost is lower due to high volume of production.

Limitations: Following are the limitations of Continuous Production:

1. Flexibility to accommodate and process number of products does not exist.
2. Very high investment for setting flow lines.
3. Product differentiation is limited

5. A Project takes a long time to complete, involves a large investment of resources and produces one
item at a time to a customer order.
Examples include • roads, • construction projects, • aircraft manufacturing • new product development
e.g. iPhone where the outcome of the project is a prototype iPhone.

Continuous Process Linked Cell system (Cellular

manufacturing system):

Cellular manufacturing is a type of manufacturing system in which the production process is organized into
individual cells, each of which is responsible for producing a particular part or component.

Cells typically consist of a few machines, sometimes a single machine, that are dedicated to producing a
particular part or component. Cellular manufacturing aims to group similar operations together and reduce the

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amount of non-value-added movement of features and materials. This helps to reduce costs and increase the
efficiency of the production process.

Cellular manufacturing is a method of production that originated in Japan in the 1970s. It is a type of lean
production that focuses on reducing waste and increasing efficiency by organizing production processes into
individual, self-contained cells.

Each cell is designed to produce a specific type of product and has the necessary equipment, personnel, and
materials to complete the task. This makes it easier to create a variety of products without having to reconfigure
the production line constantly.

Cellular manufacturing has been used in various industries, including automotive, aerospace, medical device,
and consumer goods. Creating smaller, more efficient production cells has enabled companies to reduce costs,
improve quality and reduce lead times. The ability to quickly switch between different product types has also
increased flexibility and responsiveness to demand forecasts.

Goals of Cellular Manufacturing?

the goals of cellular manufacturing:

1. Minimize setup times

2. Maximize flow efficiency
3. Reduce work in process
4. Increase flexibility
5. Improve quality
6. Reduce lead times
7. Maximize machine utilization
8. Improve cost control
9. Increase product variety
10. Enhance the working environment

Cellular manufacturing occurs when production equipment is grouped together and used for the
sequential production of a set of parts that have similar characteristics. This concept is used in a
lean manufacturing operation, as part of the effort to strip waste from the production process. The
following are characteristics of cellular manufacturing:

 Machines within a cell are grouped close together, so that unfinished parts can be walked from one
machine to the next.

 Employees may operate more than one machine within the production cell.

 Parts processed through the cell have similar characteristics, so that machine setups are minimized.

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 There are likely to be a number of production cells within a manufacturing process.

Advantages of Cellular Manufacturing

By using cellular manufacturing, a business can benefit from greatly reduced inventory levels,
since there is no room for much inventory to pile up between machines. Also, it will become
immediately apparent if there are problems with a part, so quality levels tend to be quite high. In
addition, the tight packing of equipment tends to reduce the total square feet of floor space required
for production operations.
Types of Cellular Manufacturing Layout:

Group Technology Layout

Group Technology Manufacturing Layout is a type of layout used in manufacturing that groups machines with
similar functions and processes together. This layout allows for efficient production and reduces the time and
resources needed to manufacture products.

Additionally, the grouping of machine functions can improve safety and quality control in the manufacturing
process.

Fixed Position Layout

Fixed position manufacturing layout is a type of layout where the location of the product is fixed, and the
resources are moved to it. This is usually used for large and/or complex products, like ships, aircraft, or large
machinery.

It is also used for highly specialized products like medical devices. This type of layout is designed to ensure the
highest quality since the product is not moved during the production process.

Modular Manufacturing Layout

A modular manufacturing layout is a type of manufacturing system in which a factory is divided into modules
or distinct production areas. Each module is designed to produce a specific product or range of products.

The modules are arranged to maximize the efficiency of production, and the parts and components that are
used in the various modules are supplied from a centralized source. Modular manufacturing is often used by
companies that produce a variety of products and need to switch from one product to another quickly.

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Assembly Line Layout

Assembly line layout is a production layout in which workstations are arranged in a line, and materials are
moved from one workstation to the next in a continuous flow. The goal of an assembly line layout is to
streamline production, reduce costs, and produce products quickly and efficiently.

This type of layout is used in many industries, including automotive, electronics, and food production.

Flexible Manufacturing System (FMS) Layout

A Flexible Manufacturing System (FMS) Layout is an organized arrangement of machines, workstations, and
other components used to produce a specific product or family of products. The layout of an FMS is designed
to optimize production flow and maximize worker productivity.

It typically includes conveyor systems, robotic arms, automated material handling systems, and other
specialized equipment. The layout is also designed to be flexible enough to accommodate changes in
production requirements.

Linear or I-shaped Cellular Layout

A linear or I-shaped cellular manufacturing layout is a factory floor plan where machines are arranged in a
linear sequence to produce a product. This type of layout is designed to reduce the movement and labor
required to make a product, resulting in shorter production times, lower costs, and improved quality.

Additionally, this type of layout is helpful in providing quick and easy access to parts and materials.

U-shaped Cellular Manufacturing Layout

A U-shaped cellular manufacturing layout is a production line layout where machines are arranged in a U-
shape, allowing for easy access to each station by the operator.

This type of configuration has the advantage of allowing for quick and efficient workflows, and the proximity
of machines to each other often allows for reduced cycle times. It also makes it easier to track and monitor the
production process and identify any potential problems quickly.

O-shaped Cellular Manufacturing Layout

An O-shaped cellular manufacturing layout is an arrangement of machines and workstations in which each
workstation is located in a separate, distinct area (cell) within the production facility. The machines and
workstations are arranged in an 'O' shape, with the devices located at the outside of the 'O' and the workstations
located in the middle of the 'O'.

This type of layout facilitates the flow of materials, reduces material handling costs, and allows for quick
product changeover. The layout also encourages machine operators to work together as a team and helps
reduce production costs.

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T-shaped Cellular Manufacturing Layout

A T-shaped cellular manufacturing layout is an arrangement of production equipment and workers in a factory
in which machines are arranged in the shape of a “T,” with the vertical line representing the main production
line and the horizontal line representing the secondary production line.

This layout facilitates the efficient movement of materials and workers between the production lines, allowing
for a more efficient production process.

S-shaped Cellular Manufacturing Layout

An S-shaped Cellular Manufacturing Layout is a manufacturing production system in which machines are
arranged in a U- or S-shaped configuration. This arrangement allows for more efficient production. It is
because the machines are set in a continuous loop, and the products can move from one machine to the next
without having to be transported between multiple workstations.

This arrangement allows for the elimination of wasted motion, which in turn leads to increases in productivity
and cost savings.

Flexible Manufacturing System (FMS):

A flexible manufacturing system (FMS) is a production method that is designed to easily adapt to
changes in the type and quantity of the product being manufactured. Machines and computerized
systems can be configured to manufacture a variety of parts and handle changing levels of production.

 A flexible manufacturing system (FMS) is designed up front to be readily adapted to changes in

the type and quantity of goods being produced.
 Production in an FMS is largely automated, reducing overall labor costs.
 An FMS system is, however, more expensive to design and put in place than a fixed system, and
it requires skilled technicians.

The concept of flexible manufacturing was developed by Jerome H. Lemelson (1923–1997), an

American industrial engineer and inventor who filed a number of related patents in the early 1950s. His
original design was a robot-based system that could weld, rivet, convey, and inspect manufactured
goods.

An FMS may include a configuration of interconnected workstations with computer terminals that
process the end-to-end creation of a product. Functions may include loading and unloading, machining
and assembly, storing, quality testing, and data processing. The system can be programmed to run a
batch of one set of products in a particular quantity and then automatically switch over to another set of
products in another quantity.

Flexible manufacturing can be a key component of a make-to-order strategy that allows buyers to order
customized products.

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Pros and Cons of an FMS

The main benefit is the enhancement of production efficiency. Downtime is reduced because
the production line does not have to be shut down to set up for a different product.

The disadvantages of an FMS include its higher up-front costs and the greater time required to design
the system specifications for a variety of future needs. Specialized technicians needed to run,
monitor, and maintain the FMS also add expense. However, advocates of FMS maintain that the
increase in automation typically results in a net reduction in labor costs.

flexible management system (FMS) set up:

An FMS may be set up in a number of ways. After all, its main lure is its adaptability. One
configuration might involve interconnected computer workstations that process the end-to-end creation
of a product. This starts with loading/unloading functions and proceeds to machining and assembly,
storing, quality testing, and data processing. The FMS programming can automatically switch from one
set of products in a certain amount to another set in a different amount.

benefits and drawbacks of an FMS

The main benefit of an FMS is that it makes production more efficient. Delays are reduced, as
production doesn’t have to be shut down to set up for a different product.

Drawbacks include higher up-front costs and the greater time required to design the system
specifications for a variety of future needs. There is also an additional cost for the specialized
technicians who work the FMS.

Nevertheless, the system’s automation generally leads to an overall reduction in labor costs.

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