 Hello friends, as a part of further discussion on production management, today in this session we will discuss about what are the various types of production systems. Already we know types of productions we know, we already generally talk about productions as mass production, batch production and so on and so forth, so therefore the discussion today we are going to have is on the various types of production systems, so you will be able to understand what are the various production systems as such. So there are basically three types of production systems we are talking about is, one is called as make to stock, one is called as make to order and then assemble to order. What is a production system? The production system is a integration of facility, all the equipments and operating methods that a company uses and that depends upon the type of product that is offered to the customer and the strategy that it employs to serve its customer. What is production is that support I have got a manufacturing plant and I am catering to some customer where I am manufacturing a hardware component. Then the production system is that I need to have a building, I need to have a manufacturing facility like a workshop, it has got all types of machines, equipments, it has got a raw material, it has got all types of tools, pictures, maintenance, quality systems and quality equipments and all those taken together and all this combined with the various manpower required at various operation levels will integrately is called as the production system whereas when I will receive some order through this entire system operations I will be able to make the end product to the customer and will satisfy the customer needs. So, production system is the integration of all types of plant and facilities, it short in simple terms it can be involved into a human resource and it can also involved into a infrastructural resource. Human resource can be a variety of grades and skills and infrastructure may be included into hardware and software components of the entire facilities as such. We are talking about mass batch and job production in the conventional production methods. Now, when you talk about production systems as such, production systems can be in a different way can be classified into three types that is make to stock, make to order and assemble to order. Now, what is make to stock? In the system manufacturer stocks the finished goods or the products in the inventory for immediate shipment. Suppose now it is a consumer good factory and I am a manufacturing of a soap or manufacturing of a toothpaste then in that case this generally is coming under the manufacturing under the manufacturing to stock or generally called as MTS is also called as MTS made to stock in some other conventional methodologies this is also called as MTS and MTO, MTS is made to stock and MTO is made to order. Now, when customer comes to a particular retail counter and ask for a toothpaste now it is but obvious that the retailer should have enough of stock available at his retail counter when you talk about enough retail counter stock you can imagine how much huge amount of quantity production should take place at the manufacturing factor and then the manufacturer should have enough of sufficient quantity of goods to be produced into a distower as a requirement. So, where the lead time given by the customer please listen very carefully where the lead time given by the customer is very very less as compared to lead time to manufacture and then distribute to the entire supply chain in that case MTS or made to stock is the only choice available for all manufacturers. We don't have enough time to serve the customer when the customer ask immediately suppose today I want to purchase a mobile handset and then immediately I go to the retail counter and say that I want a particular handset you cannot say that okay you give the order today and then we will manufacture it and we will supply the handset after one month please come after one month this cannot be possible. So, under this situation it is generally called as MTS or made to stock and therefore the system has to ensure that the delivery of goods quality and reasonably priced and it is of the shelf standard of the shelf is ready made always share as some of the examples are automobiles, bearings, rear to rear garments, nuts, bolts, motors, televisions, etc. Where the situation is preferred it is the constant and predictable demand products are few and they are standardized the most important thing is standardized production system it has almost no variation from part to part in this case only we can go for MTS short delivery as I explained right now short delivery time expected by the customer and products having higher shelf life shelf life is the expiry date we can have the product shelf life it cannot be for the perishable items as such where I purchased something today and then immediately I will have to sell it to the next movement then in this case MTS becomes very difficult and now what is the information needed for MTS is the forecasted demand for the planning period starting inventory level desired ending inventory level and any previous orders to be fulfilled that is any back orders if I got the data related to these three four points that is I need to have some forecasting data I need to have inventory levels inventory levels at two points the starting inventory and the desired inventory at the end and if there is any backlog of the orders what is the meaning of backlog is that already there are some orders pending which could not be made because of the shortage of the capacity or because of some capacity constraints or manufacturing constraints at my end therefore then taken together I can estimate the production quantity with the help of the simple formula that total production can be forecasted demand of course plus backlog orders and then plus the ending inventory and minus the opening inventory they should give a reasonably good estimate of the production quantity to be produced this gives a starting trigger for the production systems that how much should I produce and what should be the tentative figures for all these things they should give me the trigger for the quantity productions as such now as already we have discussed but now think for a while and they tell me some of the examples of the made to stock production systems what are the make to stock production systems or MTS obviously the answers are all FMCG FMCG is fast moving consumer goods as I said it can be a toothpaste it can be a soap or it can be a simple day to day requirement it can be a two wheeler it can be four wheeler it can be mobile phone hands it can be computers it can be laptops it can be anything which is required immediately even it can be a wrist watch it is required nowadays and you will go to the market and suddenly you expect that that should be available of the shelf all those category of items are called as MTS if you just go to them all you will find that full of full of shelf items are there all those shelf items which are there are coming under the MTS or made to stock production as such okay coming to the next type of production system is generally called as MTO or generally called as make to order production system what is make to order I will make the product only when I receive the order that is the meaning of make to order the products are not at all made for the stock the products are not at all manufactured early in advance before I receive the particular order therefore this is called as MTO a simple example I will give you is that suppose there is a garment shop which is producing readymade shirts now readymade shirt is an example of made to stock but if I go for a tailor made shirt where the customer comes in customer wants his specifications that okay I want this passion I want these these these additional features for my shirt and then I want this particular cloth all these specific requirements are to be made in that particular order therefore it is also called as tailor made production where the production is made as per the requirement of the customer no directly finished would available make to order production system describe the manufacturing facility in which the final product is usually made from the parts or components already designed but may include some customer design components also it can have a combination that we can have some specific components required for the customer and then some requirements are already available in this now when the made to order is preferred it is mainly when the production is done as per the customer specifications customer can wait of course a made to order will take a longer lead time and customer is ready for the waiting product is non-standard and expensive suppose if I am a manufacturing of electric motor and customer wants that I want a electric motor of 7.5 up is a 7.9 HP now I have got a 7.5 HP motor I got 8 HP motor I cannot have a manufacturing standard item as 7.9 HP motor then this becomes MTO and where are their several product options are also available to the stores in these cases only we can go for made to order production the third category is made to assembly where the semi-finished or the assembly components are ready off the shelf but the final assembly is not there assembly will take place only when the customer gives order where a number of alternative combinations are possible amongst the various parts then I cannot wait or I cannot stock for the components because I don't know for a particular order when the particular item is expected to be market demanded in that case I will have a semi-finished items which are ready available in my components and only assembly will be made as per the requirement of the particular customer so this is a assemble to order production assemble to order production is up to the assembly stage all other components are ready only assembly is done as per the requirement of the customer generally it is applicable for the aesthetic or beauty related product features rather than the manufacturing aspects as such manufacturing is only there customer wants a particular color only now you have to you can wait for the entire product and is that okay I can give the product as per your requirement only assembly is there so in this case this is possible made to assembly is a combination of either made to stock or made to order as such in short we have studied what are the various steps of production systems what is made to stock what is made to order and what is made to assemble okay thank