The below-mentioned article provides a full explanation of the Meaning and Types of Production Function…
Meaning of Production System
The production system is the framework in which the conversion of input into output occurs. At the one end of the production system are the inputs and at the other end, outputs, inputs, and output are linked by certain operations or processes impact to the inputs and are called transformation process.
This production function is based on proper production management.
System Aspects of Production Function-
It includes two aspects:-
- Goods produced
- Services rendered
Types of Production System:-
There are mainly two main production systems:-
(A) Continuous Production System
- Mass Production System
- Process Production System
(B) Intermittent Production System
- Job Production
- Batch Production
(A) Continuous Production System-
This is the first or primary type of production system and it means it involves a continuous or almost continuous physical flow of material. It makes use of special purpose machines and produces standardized items in large quantities.
Such processes are adopted by the concern which produces goods or services continuously by putting them through a series of successive connected operations in anticipation of customer demand and rather than in response to customers or orders.
Examples are- Examples of an industry using such technology are:-
- Petroleum Industry
- Chemicals Industry
- Steel and Sugar Industry
Classification of Continuous Production System-
(i) Mass Production System-
This system of production is used by concerns where manufacturing is carried on continuously in anticipation of demand through the demand of the product may not be uniform through the year.
Standardization is the keynote of mass production. This system may also be called “Flow Production System”.
(ii) Process Production System-
This system is an extended form of mass production where production is carried on continuously through a uniform predetermined sequence of operations.
Generally under this system finished product of one process is used in the next process as a raw material until the last process. Large industries like petroleum refining, heavy chemical industries generally use this system of production.
Under this system, generally, one principal raw material is transformed into several products at different stages of operations. For Example– Crude oil is processed into kerosene, gasoline, and other products.
(B) Intermittent Production System-
Intermittent Production System situations are those where the facilities must be flexible enough to handle a wide variety of products and sizes or where the basic nature of activity imposes changes of important characteristics the input.
Under this system of manufacturing production is done in lots rather than on a continuous flow of basis. It is done more often on the basis of customer orders. The finished product is heterogeneous but within a range of standardized options assembled by the producers.
This type of production system is based on the nature of the proper management system.
Examples of such industries are:-
- Auto-Mobile Industry
- Electrical Goods
- Manufacturing plants Printing press etc.
Classification of Intermittent Production System-
Intermittent Production System may be divided into two types:–
(i) Job Production-
In this system, goods are produced according to the orders of the customers. Continuous demand for such items is not assured and therefore production is done only when the orders for the manufacturing of items are produced from the customers.
(ii) Batch Production-
Under this system, the manufacturing is done in batches or groups or lots either on the basis of customer’s order or with a hope of a continuous demand of the product. Under this system, medium scale production is warranted. The best example of this type of production system is the chemical industry where different medicines are produced in batches.