A production system is concerned with the processing of physical materials or conversion of materials and parts of goods and products. In general terms, the services, marketing and distribution of finished goods are also included in overall production system. But, in everyday usage, the term production system is normally associated with the manufacturing of raw materials/parts, and assembly and provisioning of physical inputs rather than with the provision of services and support systems.Basically the production
system deals with process at three distinct levels: raw materials supply, manufacture of parts and lastly assembly of parts and sub assemblies. Many times upon the nature of industry or more explicitly upon the nature of the product being produced.
The efficiency of a production system depends upon seven basic components or resources – men, materials, machines, tools and jigs and other essential methods, space and time which are coordinated by plans with a specific objective of completing them within a time frame work and controls exercised by management.
The aim of any productive and or manufacturing system is to meet the customer demand on time. The operation managers face two uphill tasks of meeting the promised delivery date of supply to customer and arranging a well balanced a mix of resources to achieve high levels of operating efficiency within the productive system.
Once the delivery dates are promised to the customer, these form a driving force for triggering a chain of reactions in the productive system. Operation managers are increasingly coming under pressure to give delivery dates favorable to customers in the present day competitive field.
The quantity of products or services that can produce depends upon the capacity of the system and economics of production. The productive system capacity nab increased over a period by augmenting the machinery, recruitment and training of workers, and increasing support facilities.
When the productive system is over or under loaded, it is bound to create strain resulting in high labor and material cost per unit, decrease in labor efficiency and morale, and unfulfilled delivery promises. To maintain high internal operating efficiency, the productive capacity has to match with production or manufacturing plan.
Aggregate or capacity planning is the process of devising plan productive resources to support these intermediate or long term sales forecasts or product demand estimates.
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