PRODUCTION

          Production can be defined as an organised activity of transforming raw materials into finished products.

TYPES OF PRODUCTION

          Depending upon the scale of production and the kind of product, the production can be classified as:

1. Piece (or) job lot production,

2. Batch (or) medium size production, and

3. Mass (or bulk or continues ) production.

          This classification is important, because depending upon the scale of production; different manufacturing strategies are adopted by plant managers for efficient production.

1. Piece or job lot production:

Here the parts are produced in small quantities and repeat orders are not likely. Therefore, the plant does not invest in buying any special kind of machinery. The work is managed with general purpose machines only and as far as possible, standard tools and universal measuring facilities are used.

Factories adopting this type of production are generally smaller in size.The layout of such factories is made flexible so that maximum different types of work can be easily and effectively carried out with slight adjustment. The workers have to be more skilled as they have to tackle different kinds of jobs from day to day. Typical examples are parts required for maintenance of machinery and replacement of worn-out parts. These are one off requirements.

Advantages:

Ø It is the only method which can meet the individual requirements.

Ø There is no managerial problems because of less number of workers.

Ø This type production requires less money and it is easy to start.

Ø There is less risk of loss to the factory adopting this type of production.

Ø Because of flexibility there is no chance of failure due to the reduction of demand

Dis Advantages:

I. There is no scope of commercial economy

II. As the purchase of raw material is less hence cost of raw material amount will be slightly higher.

III. For handling different type of jobs only skilled and intelligent workers are needed,Thus labour cost will increase.

2. Batch production:

Here the orders are for small quantity only but orders are repeated again after an interval of time. Therefore this is known as batch production. Machinery and plant used is mostly general purpose type only, but greater use of jigs and fixtures is made to reduce cycle-time and ensure accuracy of parts. Some common examples of this type of production are—printing of books, production of machine tools, pumps, compressors etc.

In this type of production different type of products are manufactured, stored and then sold on receipt of orders.

Advantages:

v If demand for one product decreases then the production for another product may be increased thus the risk of loss is very less.

v When compared with mass production it requires less capital.

Dis Advantages:

1) Comparing with mass production cost of sales and advertisement per unit is more.

2) Raw materials are purchased less in quantity so it is slightly costlier that of mass production.

3. Mass production  or Continues production : 

Here very large quantities of products have to be manufactured month after month. The quantity may be 100,000 a year or more. Common examples are manufacture of bolts, nuts, sewing machines, scooters, cycles, cars, electric switches, electric fans etc.

Here the manufactures relies upon specialized machinery to cut down manufacturing time, use of special gadgets etc.In this method with the use of automatic machines, articles automatically move forward from one stage to the next stage of manufacturing operation. The management normally resorts to a line or product type of layout for the plant and relies upon semi skilled or even unskilled labor to do the job, as most jobs are repetitive in nature. Even robots are used in plants to perform repetitive jobs.

Advantages:

² Mass production gives better quality and increase production.

² Wastage is minimum.

² Only few skilled and rest semi-skilled workers are required hence labour cost is reduced.

² Sales and advertising do not prove costly and their expenses are spread over thousands of articles,hence cost per unit is low.

Dis Advantages:

a) During the period of less demand heavy losses on the invested capital may take place.

b) All the machines used are special purpose so cost of investment is high and also they are single purpose so production is not changeable.