Production and Manufacturing Systems
Production and Manufacturing
Production adds value to a good or service through transformation. It amends goods or services to satisfy a need.
Production Examples:
- Copper extraction
- Car assembly
- Rock concert preparation
The Input
Every element undergoing transformation within a system is an input.
Types of Input:
- Physical Information: Raw materials, product preforms, other supplies, accounting, financial, sales data, etc.
- Human Energy: Students, patients, unskilled workers
- Energy Sources: Electricity, oil, natural gas
The Product
The product is the result of any production system. It can be:
- Tangible: A physical good
- Intangible: A service
Both are considered outputs resulting from input transformation.
Processing Operations
Processing operations are the sequence of actions that transform input into a product or service. Machines, teams, and individuals can participate in these operations.
Production System
Any modern geo-social system comprises people, goods produced and accumulated by humans and nature. To survive, these systems develop and perfect production systems to generate, maintain, and exchange necessary material goods.
3.1. Production System Definition
A production system is a set of components that convert inputs into a desired product through transformation operations or processes.
Transformations
Transformation processes include:
- Physical Location: Manufacturing, transportation
- Exchange Storage: Retail, warehousing
- Physiological/Informative: Patient care, communications
3.3. Production Function
Production activities form the basis of a nation’s economic system. They transform capital, human, and material resources into goods and services of higher value.
The Productive System
Modern geo-social systems, composed of people and goods from human and natural sources, rely on production systems for generating, maintaining, and exchanging essential material goods.
Transformations
See above.
3.3. Production Function
See above.
Production Management
Production administration involves collecting and processing resources within a system in a controlled manner to add value according to pre-set objectives.
Manufacturing Operations vs. Service Operations
Key differences include:
- Product tangibility (physical vs. intangible)
- Method of product consumption
- Nature of jobs
- Degree of consumer contact
- Consumer participation in transformation
- Performance measurement
4.3. Elements of a Production System
Production systems utilize human, material, and financial resources to achieve a specific function. Key elements include:
- Role
- Input
- Human resources
- Physical resources
- Processing operations sequence
- Environment
- Product
Function
A production system’s function is its purpose or reason for existence. It guides all system activities. Examples:
| System | Function |
|---|---|
| Personnel | Human Resources Management |
| Manufacturing | Product Manufacturing to Specifications |
Industrial System
Industrial systems produce consumer and production goods. They encompass all production cycle activities, from needs analysis and product design to commercialization. Key functions include:
- Marketing
- Industrial Production
- Procurement and Logistics
- Finance and Accounting
- Human Resources
- Information Technology
Marketing
Marketing connects the organization with its market. Activities include market research, sales forecasting, order management, promotion, advertising, and post-sale service.
Industrial Production
Industrial production creates products that meet consumer needs and preferences with acceptable quality and cost, ensuring profitability. It includes:
- Manufacturing
- Planning
- Control
- Procurement
- Maintenance
- Quality Assurance
- Research and Development
- Labor Organization
- Security
Supply and Logistics
This subsystem ensures the continuous operation of the organization by procuring necessary goods and services.
Finance-Accounting
This subsystem manages capital through financial planning, investment analysis, transaction recording, and financial statement analysis.
Human Resources
This subsystem manages human resources and industrial relations, including recruitment, compensation, benefits, collective bargaining, and service administration.
Information Technology
This subsystem manages computer systems and communication networks within the organization.
Product Definition
The product is the end result of a production system. It can be a tangible good or an intangible service. Its meaning varies depending on the organizational subsystem.
Product Life Cycle
Products have a life cycle similar to humans, with stages of birth, growth, maturity, decline, and demise.
Product Growth
This stage involves measuring consumer reaction through surveys to improve the product.
Product Maturity
Demand peaks, and efforts focus on maintaining demand through advertising and promotion while planning for product replacement to prevent decline.
Product Decline
Production gradually decreases until complete cessation.
Product Disappearance
The product is no longer available. New product introductions may occur during the decline or disappearance of older products.
9.1. Process Definition
A process is a series of operations that transform an input into a product.
Production Processes
A process is the succession of different phases or stages of an activity. Can also be defined as the set of successive actions performed with the intention of getting a result over time.
The production process consists of three elements:
Inputs: initial material is incorporated into the process for processing. Product: final result of a production system. Operations: stages of transformation necessary to convert inputs into finished products.
There are two production systems:
a. Continuous production:
– Raw materials are received from suppliers, then stored and released into the production process, which follows a preset route. All operations were raised following a routine combined logically and ideal, so that materials are processed while being transported.
– You use this system when demand is sustained and predictable in the short term. The company may engage in production without rest.
– Requires skilled labor and unskilled.
Example: oil refining, manufacture of pasteurized milk, the production of biscuits, etc.
b. of
intermittent production:
– It produces and prepares a batch of products having a predetermined level of production, then it is produced or produced wholly or partly using the facilities and with the same staff, another batch of another product, which is another level of production.
– You use this system when the demand for a product is not large enough to fill all available time of the production line.
– The workforce is more specialized and the cost is higher than in continuous production systems.
Example: production of parts for appliances.
A process can be represented by a black box which we only have information for their exits and their entrances. This is represented by a block certain things which enter and leave others.
Block: one can represent the different operations of a process.
Flow of matter: show the materials that enter the block transform operations.
Energy flow: to perform some operations on the subject of energy is required. This can come from gas, electricity or of the strength of operators.
Flow of information: along with the materials and energy, you need information on what amounts are needed to produce? How should I?. Are some of the questions that enter into the process. Y is represented by the arrow.