Mass Production, Job Production & Batch Production
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Acknowledgement We gratefully acknowledge the valuable assistance we received from our Logistics Management Professor Mr. Vipin Saboo. Without his help, guidelines and encouragement, this presentation presentation wouldn’t have been possible. We would also like to thank our coordinator Mrs. Richa Jain for her help and assistance. We would also like to thank our College Library for providing us with available information. We would like to thank our parents for all the help and support they gave us. We would like to thank our classmates, who helped us in all ways possible despite being competitors.
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Last but not the least; we would like to thank our teammates for their extended support and co-operation.
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Group members Aastha Pandey 937001
Krishnakant Tiwari 937006
Pratik Tiwari 937007
Rishav Sadh 937009
Sneha Gandhi 937041
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Rahul Surwade 937046
Index Table of Contents Production Logistics ..............................................................................5
Classification Classification of Manufacturing Manufacturing Systems........................................................... Systems........................................................... ......6 Mass production.....................................................................................7
History & Invention of the method.............................. method....................................................... ......................... ...................8 ............ .......8 Features of Mass Production............................... Production.......................................................... ...................................................11 ........................11 Job Production……………………………………………………………………………………………… ………………………………….12
Case Study 1 (construction of a House) ……………………………………………………………………………………………..13 Features of Job Production………………………………………………………………………………………………… ……………. 17 Batch Production……………………………………………………………………………………………… …………………………….20
Production of Cricket Bats………………………………………………………………………………………………………… ……….21 5|Page
Case study 2 ( Bicycle batch Production) …………………………………………………………………………………………….27 Features ……………………………………………………………………………………………………………… ……………………………29 Comparison between the three methods………………………………………………………………………………………..31
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Production Pr oduction Logistics That part of logistics concerning research, design, development, manufacture, and processing of material. In consequence, production logistics includes: standardization and interoperability, 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 Underutilization of machines Occupied floor space
Logistics helps in the following ways:
Management of material ensures that each machine and workstation is being 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 flow through the value adding processes and eliminates non-value adding ones.
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Management of a production process provides the means to achieve improved productivity, responsiveness and capital efficiency. Production logistics can be applied in existing as well as new plants.
Classification Classification of Manufacturing Systems
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Mass production Definition The manufacture of goods in large quantities, often using standardized designs, assembly-line techniques and a division of skills amongst the labor force or specialized machines arranged in the most efficient manner possible. The most famous mass produced automobile is the Ford Model T.
Mass production is capital intensive and energy intensive, as it uses a high proportion of machinery and energy in relation to workers. It is also usually automated to the highest extent possible. With fewer labour costs and a faster rate of production, capital and energy are increased while total expenditure per unit of product is decreased. The benefits of economies of scale are also available to Mass production Typical examples of Mass production units are continuous manufacturing industries like plastic goods, hardware, assembly shops of automobiles, aeroplanes, refrigerators, refrigerators, radios, television sets , electric fans, domestic appliances etc. Invention of Mass production system Most people credit Henry Ford with inventing the automobile. The fact is he didn't, but Henry Ford held many patents on automotive mechanisms. He is best remembered, however, for helping devise the factory assembly approach to production that revolutionized the auto industry by greatly reducing the time required to assemble a car.
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As with most great enterprises, Ford Motor Company's beginnings were modest. The company had anxious moments in its infancy. Beginning in 1903, the company began using the first 19 letters of the alphabet to name new cars. The earliest record of a shipment s hipment of a Model A is July 20, 1903, approximately approximately one month after incorporation, to a Detroit physician. With the company's first sale came hope—a young Ford Motor Company had taken its first steps. Henry Ford's insistence that the company's future lay in the production of affordable cars for a mass market caused increasing friction between him and the other investors. As some left, Ford acquired enough stock to increase his own holdings to 58.5 percent. Henry Ford became president in 1906, replacing John S. Gray, a Detroit banker who had served as the company's first president. In 1907, Henry Ford announced his goal for the Ford Motor Company: to create "a motor car for the great multitude." At that time, automobiles were expensive, custom-made machines. machines. Ford's engineers took the first step towards this goal by designing the Model T, a simple, sturdy car, offering no factory options; not even a choice of color. He still met resistance to his ideas for mass production of a car the average worker could afford. But he stuck to his goal and finally in 1908, began production of the Model T. The company began selling his famous Model T 10 | P a g e
for $850 each. The Model T was inexpensive for its day, and proved to be sturdy, reliable and easy to operate. It quickly became very popular; and soon Ford found he was unable to meet the enormous demand for his cars. Ford's solution was to invent a moving industrial production line. By installing a moving belt in his factory, employees would be able to build cars one piece at a time, instead of one car at a time. This principle, called "division of labor," allowed workers to focus on doing one thing very well, rather than being responsible for a number of tasks. Ford gradually adapted the production line until in 1913, his plant incorporated the first moving assembly line. Demand for the affordable car soared even as production went up: before Ford stopped making the model T in 1927, 15 million had been sold, and Ford had become the leading auto manufacturer in the country. In addition to the moving assembly line, Ford revolutionized the auto industry by increasing the pay and decreasing the hours of his employees, ensuring he could get enough and the best workers. Perhaps Ford Motor Company's single greatest contribution to automotive manufacturing was the moving assembly line. First implemented at the Highland Park plant (in Michigan, US) in 1913, the new technique allowed individual workers to stay in one place and perform the same task repeatedly on multiple vehicles that passed by them. The line proved tremendously efficient, helping the company far surpass the production levels of their competitors—and making the vehicles more affordable.
By early 1914 this innovation, although greatly increasing productivity, had resulted in a monthly labor turnover of 40 to 60 percent in his factory, largely because of the unpleasant monotony of assembly-line work and repeated increases in the production quotas assigned to workers. Ford met this difficulty by doubling the daily wage then standard in the industry, raising it from about $2.50 to $5. The net result was increased stability in his labor force and a substantial reduction in operating costs. These factors, coupled with the enormous increase in output made possible by new technological methods, led to an increase in company profits from $30 million in 1914 to $60 million in 1916. Ford found his new system produced cars quickly and efficiently; so efficiently that it considerably lowered the cost of assembling the cars. He decided to pass this savings along to his customers, and in 1915 dropped the 11 | P a g e
price of the Model T from $850 to $290. That year, he sold 1 million cars. Instead of constant turnover of employees, the best mechanics in Detroit flocked to Ford, bringing in their human capital and expertise, raising productivity, and lowering training costs. Ford called it 'wage motive.' The company's use of vertical integration also proved successful, as Ford built a gigantic industrial facility on the Rouge River in Dearborn, Michigan that shipped in raw materials and shipped out finished automobiles. Ford's manufacturing principles were adopted by countless other industries. The process was so revolutionary that the term "to Fordize" meant to standardize a product and manufacture it by mass means at a price so low that the common man could afford to buy it. Henry Ford went beyond his 1907 goal of making cars affordable for all; he changed the habits of a nation, and shaped its very character.
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Henry Ford with his Model T
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Characteristics of Mass production
Continuous flow of material : the flow of materials is continuous & there is little or no queuing at any stage of processing
Special purpose machines & layout: Special purpose machines are used & the plant assembly stages are laid out on the basis of product type & layout-by-sequence
Mechanized Materials handling: Materials handling is comparatively less firstly because materials move through a short distance between stages & secondly the materials handling activity is mostly mechanized by conveyors & transfer machines
Less skilled labour: Relatively less skilled labour is employed & supervision is relatively easier as only few instructions are necessary that too at the start of the job
Limited Work-in-progress: Work-in-progress is comparatively less since the manufacturing manufacturing line is balanced
Less flexibility in production schedules: Interruptions Interruptions due to breakdowns & absenteeism seriously affects production as stoppage of one machine usually disturbs the working of other machines. Systematic maintenance & ‘provisioning of stand-by operators’ are therefore two important management functions
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Job Production Definition: “ Job production means manufacturing of products to meet specific customer requirements of special order ”. Job production involves producing a one-off product for a specific customer. Job production is most often associated with small firms (making railings for a specific house, building/repairing a computer for a specific customer, making flower arrangements arrangements for a specific wedding etc.) but large firms use job production too. Examples include: • • • •
Designing and implementing an advertising campaign Auditing the accounts of a large public limited company Building a new factory Installing machinery in a factory
Job production helps ensure that the product or service matches the customer’s exact needs, as closely as the firm is able, because it is literally ‘custom-made’. In many cases, skilled or specialized staff makes products of very high quality, or which have individual character that might have less appeal if they were mass-produced. Job production is a relatively expensive process process because it requires specialized and skilled staff who concentrates on the individual job or project. It is therefore labour intensive, although some projects – such as the cruise liner – may also need a lot of expensive capital equipment. Jobs can be small-scale/low technology as well as complex/high technology. Low technology jobs: Here the organization of production is extremely simply, with the required skills and equipment easily obtainable. This method enables customer's specific requirements requirements to be included, often as the job progresses. Good examples of the job method include: •
A hairdresser comes across different people every day. Their needs and requirements are different from each other and so the hairdresser has to adjust his hair cutting style for every customer.
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•
•
A tailor has to cut and stitch clothes differently according to the needs and requirements of his customer. The other one is of an architect who has to design each & every house according to the needs of his clients.
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: • • •
Film production Large construction projects (e.g. like Bandra-Worli Sea Link.) Link. ) 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
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 16 | P a g e
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. The Program Phase
In this phase the Vision Builders learns about the customer’s dreams, his ideas, needs, life style, personal tastes, and the home site. In this 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, customer’s wants, needs, and their specifications for the home. - Photos and magazine clippings showing things customer likes or wishes to have included in the home. - A completed questionnaire about specifications of the home.
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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 client’s budget.
The Design Development Phase
After studying the client’s ideas and requirements about the house, Vision Builders 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 client’s requirements the interior design phase takes place, if the client is not satisfied then the company makes another blue print to suit the client’s requirements. 18 | P a g e
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 made according to client’s requirements.
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 19 | P a g e
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 Company gets the balance payment receivable from the client.
Features of job production production system:
1. Machines Machines and methods methods employed employed are of general general purpose purpose as product product changes are quite frequent.
2. Planning Planning and control control system system are are flexible flexible enough enough to deal with with the frequent changes in product requirements.
3. A permanent permanent staff staff of highly skilled skilled employees employees is necessar necessary y in order to manufacture products of wide range as per the job orders collected.
4. Schedules are actually nonexistent in this system, as no definite data
is available on the product.
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5. In process process inventory inventory is usually usually high as accurate accurate plans plans and schedules schedules do not exist.
6. Product Product cost is normally normally high high because of high high material material and labor labor costs.
7. Large Large storage storage space and adequat adequate e extra machine machines s in the machine machine storerooms are required to meet customer’s requirements.
8. This system system is very flexibl flexible e as management management has to manufact manufacture ure varying product types.
9. Material Material handlin handling g systems are also also flexible flexible to meet changing changing product requirements.
Advantages of job production system:
1. Job production production can change change with an evolving evolving market, market, which which allows allows small firms to stay ahead of competitors.
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2. A high level level of customization customization is possible possible to meet meet the customer's customer's exact exact requirements.
3. As the work is concentrated on a specific unit, supervision and inspection
of work is relatively simple therefore work is generally of a high quality.
4. Significant flexibility flexibility is possible, especially when compared compared to Mass production.
5. Workers can be easily motivated due to the skilled nature nature of the work they are performing.
6. Business is likely likely to be be able to to ‘add value’ value’ to the products and possibly possibly create a unique selling point (USP), both of which should enable it to sell at high prices.
Disadvantages Disadvantages of job production system:
1. Job production production method method is the most complex complex system system of production production and also difficult to operate.
2. Raw material material and work – in- progress inventories inventories are are high due to uneven and irregular flow of work.
3. Material Material handli handling ng cost is high and and large space space is require required. d.
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4. It involves involves high cost of productio production n as it is labour intensive intensive.. This raises 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 mass
production).
7. The lead lead times requir required ed to complete complete the order order can be lengthy lengthy..
8. Comprising all the costs of wages and salaries of labour, material material handling handling costs and overall production cost, the selling costs may become high.
9. A firm using using job production production method method does not not get the advantag advantage e of “Economies of Scale”.
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Batch Production Definition – “The manufacture of product in batches (small or large) or lots by a series of operations each operation being carried out on the whole batch before any subsequent operation is undertaken” Batch production is the production of a number of identical articles either to meet a specific order or to satisfy s atisfy continuous demand. When the production is complete the plant and equipment are available for the production of similar or other products. Batch production system is found to be suitable when the demand for the commodity is limited or the rate of production (production capacity) is very high as compare to the likely consumption. The production takes place periodically. The quantity is so regulated that it satisfies the demand for a given period of time only. Each product is manufactured in quantities corresponding to the total likely demand during the cycle period. Example :24 | P a g e
When a bakery bakes loaves of whole meal bread, a large ball of whole meal dough will be split into several loaves which will be spread out together on a large baking tray. The loaves on the tray will then together be cooked, wrapped and dispatched to shelves, before the bakery starts on a separate batch of, for example, crusty white bread. Note that each loaf is identical within a batch but that loaves can vary from batch to batch. Batch production is a very common method of organizing manufacture. Good examples include: •
Production of electronic instruments
•
Bakery
•
Paint an and wa wallpaper ma manufacturers
•
Clothing
The example production line (shown below) is that of an engineering company, manufacturing small steel products such as hinges and locks. They manufacture batches of five hundred at a time. The workers are unskilled and semi skilled. As each task is completed the item being manufactured is passed down the production line to the next worker, until it is complete.
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Batch production of Cricket bats
Receiving a lot of willow trees.
Cutting down into logs. 26 | P a g e
Logs are split into half.
Removing the barks.
Logs are converted into clefts. 27 | P a g e
Inspection by supervisor.
Clefts are shifted to the bat makers department.
Construction of bats by hands. 28 | P a g e
Finishing of bats.
Cutting a wedge for the handle.
Shaping the bat handle.
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Inserting the handle.
The completed bats are shipped to various companies.
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Bats are ready for sale.
BICYCLE BATCH PRODUCTION
Modern bicycle manufacture is component based. The company buys parts such as pedals from other manufacturers and puts the bicycle together on a production line.
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The tube for the frames - cut to size
The tube for the bicycle frame is cut to size. One person will do this job and they cut enough tube for a batch of several hundred bikes in a week.
The tube is put together and prepared for welding.
The tubes are set up in a ‘jig’ which holds the frame together. The frame travels along the production line and the joints are preheated to save time. A gas torch is used to weld the frame together.
The frames are cleaned in the ‘GritBlaster’.
After welding the frames and the front forks need cleaning in the ‘Grit-Blaster’. This shoots tiny particles of sand, at high speed, at the frame and cleans away the ‘residue’ left behind by the welding process.
Each frame is checked. QUALITY CONTROL
Paint is sprayed on to the frames and forks.
All frames are checked to ensure that they are straight. Small adjustments can be made at this stage.
The frames are now ready for painting. This is done by using a fine spray which covers every part of the frame with paint. 32 | P a g e
The frame then moves down the production line into a special oven which ‘bakes’ the paint giving it a tough finish.
The wheels are assembled.
The frames are machined for other parts.
Other parts are fixed to the frame.
The wheels are assembled by hand and they are individually tested in a machine which automatically tensions each spoke to ensure that they are perfectly straight.
The frames are machined so that other parts such as the handle bars and the bottom bracket (pedals) can be attached. People operate the machine tools but they need some training before they can use the machines safely and efficiently.
Bicycles are ready for the shops
The bicycles are now ready for the shops where they will be viewed by customers and agents. Agents will buy ‘batches’ of bicycles for large stores.
Agents view bicycles and suggest changes.
Before sending the bicycles to the shops, agents view them and suggest changes for the next batch. This helps the manufacturer improve the design and production of bicycles.
Features of Batch Production
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1. The machines machines and equipme equipments nts are arranged arranged accordi according ng to the sequence sequence of operations.
2. A large variet variety y of products products are manufactur manufactured ed in lots or batches. batches.
3. The manufactu manufacturing ring plants plants should be well well equipped equipped with machines machines and equipments with capacity to undertake production of wide variety of products.
4. The general general purpose purpose machines machines and special special purpose purpose machines machines are used used in the production process.
5. The production production period period required required for each product/par product/partt is comparativel comparatively y long as each batch has to wait before going over to the next machine for subsequent operation.
6. Stock of work work in progress progress is high high and the product product design design departme department nt is comparatively comparatively large.
7.
The costing costing system system need to to be effici efficient ent in order order to to calculate calculate the total total cost of production for each piece work and each batch of the finished product.
8. The success success of Batch productio production n method depends depends upon the efficienc efficiency y of the production planning and control department.
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Advantages of Batch Production
1. The company that uses it has a variety of products products rather than than just one type so therefore it gives customer a larger choice and hence a larger possibility of sales.
2. Capital Capital investment investment is comparat comparativel ively y low.
3. Specializ Specialized ed supervision supervision is possibl possible. e.
4. The company is reducing its risk on simply concentrating on on one product; it produces a variety of different ones of the same type.
5. Batch production is also also useful for a factory that makes seasonal seasonal items, products for which it is difficult to forecast demand.
6. If a retailer retailer buys a batch of a product that does not sell, then the producer can cease production without having to sustain s ustain huge losses.
Disadvantages Disadvantages of Batch Production 35 | P a g e
1. Work in progress progress inventor inventory y is high and large storage storage space space is required. required.
2. Standard Standard sequenc sequence e of operati operation on is absent. absent.
3. Machines Machines and tooling tooling arrangem arrangement ent need frequent frequent changes changes in product product design.
4. There is is idle time time between between one operation operation and and the other. other. The work work has to wait till a particular operation is carried out on the whole batch.
5. Productio Production n time is longer and and skills of higher higher order are are required required due to the variety of job.
Comparison between Mass Production, Job Production and Batch Production Basis of Compariso n Meaning
Method
Mass Production Mass production means production of one or two standard products on a large scale. Here, the flow of materials is in a
Job Production
Batch Production
Job production means manufacture of products as per specifications specifications given by the customer. customer. It is is a special order production. Job production is the manufacture of a
Batch production means production of a number of identical items to meet a specific order or to satisfy continuous market demand. In batch production, the work content of each 36 | P a g e
of Productio n
straight line. All single complete unit facilities are arranged by an operator or a as per the sequence group of operatives. It of operations. is providing goods or Standardization is the services according to keynote of mass the needs of the production method. customers. Mass production The job production Flexibility method is highly method using general inflexible. purpose machines is more flexible.
Capital Investme nt
Work in Process Inventori es Skilled/ Unskill ed Worker s Example s
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 undertaking stitching job requires low investment whereas a road or dam constructing company requires huge capital investment. Work in Process Raw materials and Inventories is small as work in process output of one process inventories are high becomes input of the due to the uneven and next process. irregular flow of work.
Unskilled or semiskilled workers are used as most of the work is machine based. Products of mass consumption such as Colgate toothpaste, Lux soaps, etc.
Highly skilled workers are required in a large quantity as production is highly specialized. Smalls jobs such as Tailoring or hairdresser and Big jobs such as construction construction of a house, dam or bridge building, etc.
unit is broken into a number of operations and operations are divided into groups for the completion of work group – wise. Batch production is more flexible than Mass production method but is less flexible than Job production method. Low capital investment is required as compared to Mass production and Job production.
Work in Process Inventory is high and large space is required due to production of more variety of products. Semi- skilled and Skilled workers are required according to the type of production undertaken. Clothing, bakery and electrical goods.
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