Production is defined as the process of transforming raw material (Input) into desired shape (Output) by performing a sequence of operations with the use of resources. There are three types of production systems.
Job Production: It comes into picture when different orders are received and each order needs special design, special machines and tools. Each job is to be manufactured as per the customer requirement. The products are made only after receiving order from customer. The raw material is purchased after receiving the order from customer. The general purpose machines are used as they can handle variety of jobs. Also skilled labour is required to handle variety of jobs as they do their work independently. The product cost in job production is high. Manufacturing cycle time is also high as the material flow from one location to another is discontinuous. Examples of Job production are manufacturing of ships, boilers, material handling machines etc.
Batch Production: The products are made in batches. Most of the products in this world are produced by batch production. Batch size is decided by considering various costs like set up costs and inventory carrying costs. Production run is calculated after deciding the batch size. Then master schedule is prepared and delivery dates are worked out. Process type plant layout is used in batch production. Lower supervision is required as compared to Job production. Examples of Batch production are pharmaceuticals, paint manufacture, soft drinks etc
Mass Production: It is the production of standardized products in large numbers. The product type plant layout is used for this type of production. Less skilled labor are employed to perform the job. The product moves continuously from one machine to another in order of sequence of operations so material handling is reduced. Special purpose machines are used to perform the operations. Less variety of products is produced so production, planning and control are easy. The production cost per unit is low and production rate is very high. Example of mass production can be seen in automobiles manufacturing, television, computer manufacturing etc