What Is the Meaning of Production System?

Production systems are the methods and procedures for producing goods.

Production systems are the methods and procedures used to produce goods for the market. Production systems utilize material, capital, transportation, and labor resources to produce and distribute products.

Allocating Resources

Managing resources and supplies is the start of a production system.

Bringing in materials and equipment is an important step in a production system. It involves working with suppliers, warehousing raw materials and supplies, installing machines and equipment, and making the most use of materials with as little waste as possible.

Division of Labor

Using workers skills in the right way increases quality and productivity.

Division of labor is how workers and their skills are utilized. Assembly line methods simplify a worker's skills to limited tasks to increase productivity. Flexible "lean manufacturing" requires workers to work with a team at a station and be able to do many tasks. How divisions are made depends on the nature of the work.

Designing Workspaces to Meet Demand

Multiple models of a product can be made in the same factory.

The factories and other locations where assembly happens must be organized in a rational and efficient way to increase production.

Factories may be designed for maximum efficiency of one product, such as using an assembly line method, or be designed to build multiple products to meet market demand, such as using lean manufacturing methods.

Distribution

The movement of materials and finished goods relies on efficient transportation.

Transportation over land, water, and air is essential for getting goods to the market. Communications technology and globalization have allowed goods to be shipped all over the world.

Famous Examples

The Hollywood studio system standarized film production techniques.

Henry Ford pioneered the use of the moving assembly line in auto manufacturing and created cars the average consumer could afford.

The Toyota system focused on creating more flexible factories to meet demand, allowing the company to better utilize resources and avoid overproduction.

The Hollywood studio system was the model for movie production from the 1920s to the 1950s. It kept most film production centralized and allowed for a prolific output of films.

References

• Bureau of Labor Statistics: Industrial Production Managers
• PBS : Ford Installs Moving Assembly Line
• Toyota: Toyota Production System
• Film Reference: Studio System

Resources

• APICS: The Association for Operations Management