Aspect Manufacturing Loca ons Service Loca ons

Minimize produc on costs (raw Maximize customer reach and revenue

materials, labor, u li es, by focusing on accessibility(# 03a.
Primary Objec ve
transporta on)(# 03a. Facility Facility Loca o…)(# 03b. Facility
Loca o…)(# 03b. Facility Loca o…) Loca o…)

Crucial for industries like cement,

Not dependent on raw materials; focus
Proximity to Raw steel, and sugar. Raw materials
on proximity to target customers(#
Materials dictate loca on(# 03a. Facility
03b. Facility Loca o…)
Loca o…)(# 03b. Facility Loca o…)

Proximity to transporta on hubs

Focus on accessibility for customers,
Transporta on and (ports, railways, highways) to reduce
especially for retail and professional
Logis cs costs(# 03a. Facility Loca o…)(# 03b.
services(# 03b. Facility Loca o…)
Facility Loca o…)

Skilled labor is necessary, but

Lower labor costs and access to
Labor availability may override cost
skilled labor are cri cal(# 03b.
Considera ons considera ons, especially for R&D and
Facility Loca o…)
tech services(# 03b. Facility Loca o…)
Aspect Manufacturing Loca ons Service Loca ons

Less land required, but proximity to

Large land areas, inexpensive land,
Land and high-traffic areas and good
availability of u li es are key(# 03b.
Infrastructure infrastructure is important(# 03b.
Facility Loca o…)
Facility Loca o…)

Less direct influence; na onal/global Crucial; service loca ons must be near
Market and
markets o en priori zed over target customers (e.g., retail,
Customer Access
proximity(# 03b. Facility Loca o…) healthcare)(# 03b. Facility Loca o…)

High u lity costs (electricity, water) Less dependent on u li es, though

play a significant role, especially in reliable services like electricity and
U lity Costs
power-intensive industries(# 03b. internet are important for tech-based
Facility Loca o…) services(# 03b. Facility Loca o…)

Focus on local business-friendly

Regula ons on environment, labor,
Regula ons and regula ons and tax policies. Retail, for
and tax incen ves influence loca on
Laws instance, needs to consider zoning laws
decisions(# 03b. Facility Loca o…)
(# 03b. Facility Loca o…)

Demographics and popula on

Climate, geographic factors, and
Environmental characteris cs (income, lifestyle) are
environmental impact influence
Factors key considera ons(# 03b. Facility
decisions(# 03b. Facility Loca o…)
Loca o…)

Loca ons chosen with future Expansion involves adding more

Expansion and expansion in mind; availability of branches rather than expanding
Scalability land is cri cal(# 03b. Facility exis ng loca ons(# 03b. Facility
Loca o…) Loca o…)

Availability of power, fuel, and

Services generally require basic u li es
u li es plays a major role, especially
U lity Availability like electricity and internet(# 03b.
for industries like steel and cement(#
Facility Loca o…)
03b. Facility Loca o…)

Crucial, as services must be easily

Not a priority in manufacturing, but
accessible to consumers (e.g.,
Customer Proximity significant in market-oriented
hospitals, retail outlets)(# 03b. Facility
industries(# 03b. Facility Loca o…)
Loca o…)

Focus on maximizing revenue by being

Cost Minimiza on Focus on reducing opera onal and
near customers and ensuring
vs. Revenue produc on costs(# 03b. Facility
accessibility(# 03a. Facility Loca o…)(#
Maximiza on Loca o…)
03b. Facility Loca o…)

Newly Ensured Points:

 U lity Availability: This was men oned earlier but not explicitly covered in the table. Now
added.
  Customer Proximity: Further clarified for services that being close to the customer is
essen al, while it is less crucial for manufacturers unless the industry is market-oriented.

 Cost Minimiza on vs. Revenue Maximiza on: This overarching point, differen a ng
manufacturing and service loca ons, was emphasized and added as its own row.

Breakdown Maintenance

Concept: Breakdown maintenance, o en referred to as repair maintenance, involves wai ng for

equipment to fail before taking any ac on. No preven ve measures or checks are done un l the
machine ceases to func on.

Characteris cs:

 No preven ve ac on; repairs are only made a er failure.

 There’s no regular servicing except for basic cleaning or lubrica on.

 Leads to higher repair costs and recurring breakdowns due to lack of early interven on.

Real-life Example:

 Car Breakdown: You ignore warning lights and odd noises coming from your car. One day, the
engine suddenly fails while you're on the road, forcing you to call a mechanic for emergency
repairs.

Factory Example: In a produc on plant, a conveyor belt is used con nuously un l it snaps. Only
when the belt breaks is it replaced, causing hours of unplanned down me.

Pros:

 No upfront maintenance costs.

Cons:

 Unpredictable down me and high emergency repair costs.

 Loss of produc vity as breakdowns can occur at any me, leading to disrup ons.

Correc ve Maintenance

Concept: Correc ve maintenance is performed to restore equipment to an acceptable working

condi on a er it shows signs of deteriora on or malfunc on. It is a reac ve approach but takes
place before the equipment fully breaks down.

Characteris cs:

 Restores equipment to working condi on a er signs of wear and tear are detected.

 Deals with both minor and major repairs that may arise due to normal aging of the machine.

Real-life Example:
  Car Repairs: You regularly drive your car and maintain it, but a er several years, certain parts
like brake pads start to wear out. You replace them when the wear becomes no ceable but
before complete failure.

Factory Example: A machine producing faulty parts due to worn gears is repaired before the gears
completely fail.

Pros:

 Ensures equipment is restored before complete failure.

Cons:

 Can s ll cause down me during repairs.

Rou ne Maintenance

Concept: Rou ne maintenance involves cyclic checks and services carried out at regular intervals. It
ensures that equipment is regularly monitored and maintained to avoid major breakdowns.

Characteris cs:

 Regularly scheduled tasks like cleaning, lubrica ng, and inspec ng machines.

 A simple method to catch minor faults before they escalate.

 Does not focus on the specific needs of the machine but instead follows a general servicing
rou ne.

Real-life Example:

 Oil Changes: You take your car for rou ne oil changes every few months or a er a specific
number of miles, regardless of the car’s current condi on.

Factory Example: A maintenance schedule ensures all compressors are checked every Monday, with
two machines lubricated daily in rota on.

Pros:

 Helps detect small issues early, preven ng major breakdowns.

Cons:

 Doesn’t account for specific machine needs; blanket maintenance might miss cri cal issues
or over-service equipment.

Planned Maintenance

Concept: Planned maintenance is a systema c approach where maintenance is scheduled based on

the specific needs of the machine and the manufacturer's guidelines. It involves detailed instruc ons
and a predetermined maintenance plan.

Characteris cs:
  Focuses on machine-specific needs (e.g., opera ng condi ons, load usage).

 Maintenance is planned well in advance, o en incorpora ng manufacturer

recommenda ons.

 Involves more detailed records and control over scheduling compared to rou ne
maintenance.

Real-life Example:

 Air Condi oning Service: You plan an annual service for your home’s air condi oning unit
based on its usage pa erns and manufacturer guidelines. During these planned checks, the
technician examines all parts and replaces those nearing wear.

Factory Example: A plant opera ng under high temperatures plans for specialized cooling system
maintenance every three months to avoid overhea ng issues.

Pros:

 Tailored to the specific needs of the machine, resul ng in more reliable performance.

Cons:

 Requires detailed planning and tracking, which can be me-consuming.

Preven ve Maintenance

Concept: Preven ve maintenance is a proac ve method where parts are replaced or serviced before
they show signs of failure. It aims to maintain the equipment’s reliability by addressing poten al
issues before they cause breakdowns.

Characteris cs:

 A preven ve approach that seeks to avoid failures by addressing weak points early.

 May involve replacing s ll-func oning parts to ensure con nuous reliability.

 O en carried out at fixed intervals based on usage or me.

Real-life Example:

 Replacing Tires: Even if your car’s res s ll look usable, you replace them a er a certain
amount of wear to avoid the risk of blowouts.

Factory Example: Bearings on machines are replaced a er a set number of opera onal hours, even if
they haven’t yet failed, to avoid interrup ons in produc on.

Pros:

 High level of reliability and assurance that equipment will func on properly without
unexpected failures.

Cons:

 Can be costly due to replacing parts that might s ll be func onal.

Predic ve Maintenance

Concept: Predic ve maintenance uses data from real- me monitoring to predict when a machine is
likely to fail, allowing for repairs only when necessary. It focuses on machine health and performance
data.

Characteris cs:

 Condi on monitoring tools (e.g., sensors) are used to track machine performance and
predict failures.

 Minimizes unplanned down me by conduc ng maintenance based on real- me data.

 Reduces unnecessary repairs, as maintenance is only performed when the equipment shows
signs of poten al failure.

Real-life Example:

 Fitness Tracker Alerts: You wear a fitness tracker that monitors your heart rate and alerts
you when there are signs of poten al health issues. This lets you take preven ve ac on
before a serious issue arises.

Factory Example: A refinery uses vibra on sensors on pumps to detect abnormal ac vity. If unusual
vibra ons are detected, it predicts bearing failure, and the necessary repairs are scheduled before
the breakdown occurs.

Pros:

 Maximizes machine up me by predic ng failures well in advance.

Cons:

 Requires investment in data monitoring tools and systems.

Total Produc ve Maintenance (TPM)

Concept: TPM is a holis c approach that involves all employees in maintaining equipment to
maximize its effec veness. It emphasizes teamwork, con nuous improvement, and autonomous
maintenance, where workers take responsibility for the equipment they use.

Characteris cs:

 Focuses on maximizing equipment effec veness over its en re life cycle.

 Involves all employees, from operators to management, in maintenance tasks.

 Aims to improve machine performance through preven ve, correc ve, and autonomous
maintenance.

Real-life Example:

 Restaurant Kitchen: In a busy restaurant, chefs and kitchen staff are responsible for
maintaining and cleaning their equipment daily to ensure everything runs smoothly during
rush hours.
Factory Example: Workers on a produc on line are trained to perform basic maintenance tasks on
the machines they use. They clean, inspect, and lubricate their equipment daily, while more complex
tasks are handled by maintenance teams.

Pros:

 Total employee involvement improves equipment performance and reduces down me.

Cons:

 Requires a cultural shi within the company and consistent training to implement
successfully.

Table of Differences

Breakdown Correc ve Rou ne Planned Preven ve Total Produc ve

Predic ve
Aspect Maintenan Maintenan Maintenan Maintenanc Maintenanc Maintenance
Maintenance
ce ce ce e e (TPM)

Reac ve Proac ve Proac ve Proac ve

Reac ve Proac ve Proac ve
(a er a (machine- (replacing (involving all
Proac vity (a er (regular (based on real-
defect is specific before employees in
failure) checks) me data)
no ced) schedule) failure) maintenance)

Restore Machine- Predict failure

Repair General Maximizing
equipment specific, Prevent based on
Focus a er maintenan equipment
to working OEM-based breakdowns condi on
failure ce tasks effec veness
condi on maintenance monitoring

Planning
Replacing
Repairing a annual Replacing a
worn brake Lubrica ng Replacing a
machine machine ming belt Autonomous
pads a er machines bearing based
Examples only when overhauls before it maintenance by
signs of on a set on vibra on
it breaks based on reaches its factory workers
deteriora schedule data
down usage usage limit
on
condi ons

Detailed,
Restores machine- Increased
Reduces
No upfront equipment Simple, specific Prevents employee
down me by
Advantages maintenan func onalit cyclical maintenance unexpected involvement,
predic ng
ce costs y a er process ensures failures higher equipment
failures early
wear op mal effec veness
func on

Higher Can s ll Requires Higher costs Requires cultural

Disadvantag repair costs Doesn't High setup
lead to thorough due to change, training,
es account for costs for
and down me planning, replacing and coordina on
specific condi on
frequent while tracking, and s ll-
 Breakdown Correc ve Rou ne Planned Preven ve Total Produc ve
Predic ve
Aspect Maintenan Maintenan Maintenan Maintenanc Maintenanc Maintenance
Maintenance
ce ce ce e e (TPM)

breakdown repairs are machine regular func onal monitoring

s made needs updates parts systems

Comparison Table

Maintenance
Real-Life Example Pros Cons
Type

Breakdown Repairing a car only when it No upfront Expensive and leads to

Maintenance breaks down on the road. maintenance costs. unplanned down me.

May cause short-term

Correc ve Replacing worn brake pads Repairs made before
down me during
Maintenance before complete failure. complete failure.
repairs.

Changing a car’s oil every 3 Doesn't consider

Rou ne
months regardless of its Prevents major issues. machine-specific
Maintenance
condi on. needs.

Annual service plan for an air

Requires detailed
Planned condi oning system based on Tailored to machine-
planning and
Maintenance its specific usage and specific needs.
adjustments over me.
environment.

High reliability and Can be costly by

Preven ve Replacing car res before they
minimal unexpected replacing parts that
Maintenance wear out to avoid blowouts.
failures. are s ll func onal.

Maximizes machine Requires investment in

Predic ve Fitness tracker predic ng health
up me by predic ng data monitoring
Maintenance issues based on real- me data.
failures in advance. systems.

Chefs maintaining their cooking Involves everyone, Requires cultural

Total Produc ve
equipment daily to ensure maximizing equipment change and may be
Maintenance
readiness during rush hours. performance. difficult to implement.

Conclusion

Each maintenance strategy has its strengths and weaknesses, making them suitable for different
scenarios:

 Breakdown maintenance is reac ve and suitable for non-cri cal equipment.

  Correc ve maintenance ensures issues are addressed before full failure but s ll responds to
signs of wear.

 Rou ne maintenance offers consistent upkeep but might not meet specific machine needs.

 Planned and preven ve maintenance aim to improve equipment reliability and lifespan,
with planned maintenance tailored to usage pa erns.

 Predic ve maintenance uses real- me data to minimize down me and costs.

 Total Produc ve Maintenance (TPM) encourages a company-wide culture of maintenance,

improving overall equipment efficiency.

Push System vs. Pull System

In opera ons management, Push and Pull systems are two dis nct inventory management and
produc on strategies. The key difference lies in how demand is forecasted and how produc on or
replenishment is triggered.

Push System

A Push system is a produc on strategy where goods are produced based on forecasted demand. The
company predicts how much product will be needed and pushes it through the supply chain to
customers or stores, regardless of actual demand.

Characteris cs:

 Forecast-based: Produc on decisions are made based on demand forecasts. Manufacturers

produce goods ahead of me and push them to warehouses or retailers.

 High inventory: Since produc on is done based on predic ons, large amounts of inventory
are kept in storage to meet future demand.

 Poten al for overproduc on: If forecasts are inaccurate, there is a risk of overproducing,
leading to excessive inventory and wastage.

 Long lead mes: Products are made in advance, leading to longer wai ng periods between
produc on and actual sales.

Real-life Example:

 Seasonal clothing: A fashion retailer predicts demand for summer clothing months in
advance. It produces large volumes of summer wear and stocks it in stores, hoping demand
will match the forecast.

 Mass produc on in automo ve: Car manufacturers o en produce vehicles based on

an cipated sales forecasts, pushing the products into dealerships.

Pros:

 Ability to plan produc on and manage resources efficiently.

 Can handle high volume produc on with consistency.

Cons:

 Risk of overstocking if the forecast is wrong.

 High inventory costs and poten al for waste or obsolescence.

Pull System

A Pull system is a demand-driven produc on strategy where goods are produced only in response to
actual customer demand. Produc on is ini ated when orders are placed, minimizing excess
inventory and aligning closely with real- me market needs.

Characteris cs:

 Demand-based: Produc on begins only when there is actual demand. No inventory is

produced un l an order is received.

 Low inventory: Because goods are made on demand, there’s minimal inventory, leading to
lower storage costs.

 Reduced risk of overproduc on: Since produc on is based on real demand, there is li le to
no risk of overproducing.

 Short lead mes: The system operates more flexibly, but it may require shorter produc on
cycles to fulfill customer orders promptly.

Real-life Example:

 Custom-made products: Companies like Dell that allow customers to configure their own
laptops follow a pull system. The laptop is only assembled once an order is placed.

 Restaurants: Fast food chains like McDonald’s use a pull system for food prepara on. Burgers
are only made when customers place their orders, ensuring freshness and minimal waste.

Pros:

 Minimized waste and inventory costs.

 Be er ability to respond to changing customer preferences.

Cons:

 Requires flexible produc on capabili es to respond quickly to orders.

 May result in longer wait mes for customers if produc on cannot keep up with demand.

Key Differences Between Push and Pull Systems

Aspect Push System Pull System

Trigger for
Based on forecasted demand Based on actual customer demand
Produc on
Aspect Push System Pull System

Higher inventory as goods are Lower inventory as goods are made to

Inventory Levels
produced in advance order

Risk of Higher risk of overproduc on if Minimal risk of overproduc on, as

Overproduc on forecasts are inaccurate produc on follows demand

Longer lead mes due to advance Shorter lead mes, but may vary based
Lead Times
produc on on produc on flexibility

Mass produc on of cars or seasonal Custom-made products like laptops or

Example
clothing restaurant food

Efficient for high-volume produc on; Reduces waste, lower inventory costs,
Advantages
planned resource use flexible to demand

Inaccurate forecasts can lead to May result in delayed fulfillment if

Disadvantages
excess inventory demand exceeds capacity

Summary

 Push systems rely on forecas ng to plan produc on in advance, which can result in
overproduc on or excessive inventory. It's suited for industries where high-volume
produc on is common and demand can be reasonably predicted.

 Pull systems are demand-driven, producing only what is needed when it’s needed. This
minimizes waste and inventory costs but requires a more responsive and flexible produc on
process to avoid delays in fulfillment.

Each system has its strengths and weaknesses, and companies o en use a combina on of both to
op mize efficiency and meet customer needs. For example, many businesses use a Push-Pull Hybrid
where upstream produc on is based on forecasts (Push), while downstream (closer to the customer),
they use a pull system to meet real- me demand.
The differences between Mass Produc on, Job Shop Produc on, Con nuous Produc on, and
Project Produc on lie in the scale, flexibility, and approach to the produc on process. Each type is
suited to different industries and product types, depending on the volume, customiza on, and
produc on flow. Here’s a breakdown of each:

1. Mass Produc on

Mass produc on involves manufacturing large quan es of standardized products. This type of
produc on is highly repe ve, with minimal varia on in the final products. It is best suited for
products that are in high demand and require minimal customiza on.

 Characteris cs:

o High volume of iden cal products.

o Uses specialized machinery and assembly lines.

o Low labor cost per unit due to economies of scale.

o Products move through a fixed sequence of opera ons.

o Minimal flexibility; the same product is produced over long periods.

 Examples:

o Automo ve manufacturing (e.g., cars, motorcycles).

o Consumer electronics (e.g., smartphones, televisions).

o Packaged food products (e.g., canned goods, snacks).

 Advantages:

o High efficiency and produc vity.

o Lower cost per unit due to economies of scale.

 Disadvantages:

o Li le flexibility; hard to adjust produc on lines for different products.

o High ini al setup cost for machinery and assembly lines.

2. Job Shop Produc on

Job shop produc on is a custom manufacturing process in which small batches of a variety of
products are made. This type of produc on is flexible, allowing for highly specialized products that
are made to order.

 Characteris cs:

o Low volume, highly customized products.

o Each product has a different process route.

o General-purpose machinery and skilled labor are used.

 o Focus on cra smanship and flexibility over speed and volume.

 Examples:

o Custom furniture making.

o Specialized machine parts or tools.

o Tailored clothing or bespoke jewelry.

 Advantages:

o High customiza on to meet specific customer needs.

o Flexibility in produc on processes and product types.

 Disadvantages:

o High cost per unit due to customiza on and lower volume.

o Longer produc on mes compared to mass produc on.

3. Con nuous Produc on

Con nuous produc on is a streamlined, uninterrupted produc on process where materials are
constantly in mo on. It is typically used for commodi es or products that flow through pipelines or
conveyors, and operates 24/7.

 Characteris cs:

o High volume of produc on without interrup ons.

o Products are homogeneous or very similar.

o Uses highly automated equipment.

o Runs con nuously, o en 24/7, to avoid high start-up and shut-down costs.

 Examples:

o Oil refining.

o Power genera on.

o Chemical manufacturing (e.g., plas c produc on, fer lizer).

o Beverage bo ling (e.g., so drinks).

 Advantages:

o Extremely efficient for high-volume produc on.

o Lower per-unit produc on cost.

 Disadvantages:

o High setup and maintenance costs.

o Limited flexibility in changing product designs or specifica ons.

4. Project Produc on

Project produc on is used for large, complex products that are typically one-of-a-kind and involve
several tasks or stages. Produc on is unique to each project, and resources are allocated to complete
a specific, temporary project.

 Characteris cs:

o Large-scale, one-off products or services.

o Produc on is organized as a project with a defined meline and resources.

o O en involves complex planning and coordina on.

o Requires a wide range of skills, equipment, and materials.

o Custom work is done for a specific customer.

 Examples:

o Construc on projects (e.g., buildings, bridges).

o Shipbuilding.

o Aerospace projects (e.g., satellites, aircra ).

o Film or large event produc ons.

 Advantages:

o Highly tailored produc on to meet the exact specifica ons of the project.

o Flexibility in design and processes.

 Disadvantages:

o High cost and complexity.

o Longer project melines.

5. Batch Produc on

Batch produc on involves manufacturing products in groups or batches. Each batch goes through the
en re produc on process before the next batch starts, and the setup may change between batches
to accommodate different products.

 Characteris cs:

o Medium volume produc on.

o Allows for varia ons between batches.

o Moderate flexibility between customiza on and standardiza on.

o Useful for products where demand fluctuates.

  Examples:

o Bakery goods (e.g., cakes, bread).

o Pharmaceu cal products.

o Clothing manufacturing.

 Advantages:

o More flexibility compared to mass produc on.

o Reduced down me compared to job shop produc on.

 Disadvantages:

o Requires changeovers between batches, which can increase costs.

o Less efficient than con nuous or mass produc on for large volumes.

 comparison table between Mass Production, Job Shop Production, Continuous

Production, Project Production, and Batch Production across various elements.

Mass Job Shop Continuous Project Batch

Element
Production Production Production Production Production
Very high Low volume, Extremely One-time or
Medium
Production volume, highly high volume, low volume,
volume,
Volume standardized customized continuous unique
multiple batches
products products flow products
High Medium
Minimal High Very low or
Product customization customization,
customization customization no
Customizatio , unique, products may
, standardized , tailor-made customizatio
n often vary between
output products n
complex batches
High, each
High,
Very low, project is Medium,
Very low, adaptable to
designed for unique and changes can be
Flexibility highly specific
uninterrupted requires made between
repetitive customer
production specific batches
needs
resources
Job-specific Custom
routing, each processes,
Sequential, Continuous, Sequential but
Production product designed for
assembly with no with pauses
Process follows each
lines interruptions between batches
different individual
paths project
Low-skilled Highly skilled
Low-skilled
Skilled labor labor for labor, diverse Combination of
Labor labor, often
for custom overseeing roles skilled and
Requirement repetitive
work automated depending on unskilled labor
tasks
processes the project
 Mass Job Shop Continuous Project Batch
Element
Production Production Production Production Production
General-
General- Highly Project-
Specialized, purpose
Machinery & purpose, automated, specific
high-cost machinery with
Equipment flexible specialized machinery
machinery flexibility for
equipment machinery and tools
adjustments
Long setup
Shorter setup
Long setup, initially but High setup Moderate setup
for each job
Setup Time rarely rarely time per time between
but varies per
changes requires project batches
product
changes
Varies
Longer Moderate
Short per Constant, significantly
Production production production time,
unit, very fast 24/7 based on the
Time time due to repeated for
once set up production complexity of
customization each batch
the project
Low Low
High levels of Moderate levels
inventory, inventory of
raw material Continuous of raw material
Inventory produced raw materials,
and finished supply of raw and work-in-
Requirements based on planned
goods materials progress
specific according to
inventory inventory
orders the project
Very long
Long lead Short lead
Short lead lead time
time, custom time for the Moderate lead
time due to depending on
Lead Time products take final product, time between
standardized project size
time to long initial batches
processes and
manufacture setup
complexity
Very low
High cost per Moderate cost
Low cost per cost per unit High cost per
unit due to per unit,
unit due to due to high- unit, each
Cost per Unit low volume economies of
economies of volume project incurs
and scale with each
scale automated its own costs
customization batch
production
Intermittent, Intermittent,
Continuous, Continuous,
Production depending on starts and Intermittent,
no significant 24/7
Continuity order volume ends with between batches
interruptions operations
and demand each project
Tailored Quality
Standardized Ongoing, Standardized
quality checks occur
Quality quality constant checks within
control, at specific
Control checks at monitoring and between
focused on milestones in
various points of quality batches
precision the project
Highly
Resource Less efficient, Extremely Varies, Moderate
efficient,
Utilization varied efficient, resources are efficiency,
optimized for
 Mass Job Shop Continuous Project Batch
Element
Production Production Production Production Production
minimal resource minimal allocated per downtime
waste utilization downtime project phase between batches
Poor,
Poor, Very Adaptable, Moderately
Demand requires
designed for adaptable to resources can adaptable to
Variability stable and
stable, high demand be ramped up demand
Handling constant
demand fluctuations or down fluctuations
demand
Very high
High due to Low to Variable,
due to Moderate,
specialized moderate, depending on
Initial specialized between mass
machinery depending on the
Investment and production and
and equipment complexity of
continuous job shop setups
automation needs the project
machinery
Fixed
Product Process Product
position Product layout
Production layout with layout, layout with
layout, with periodic
Layout assembly grouped by continuous
product stays changes
lines function flow
in one place
Large, unique Medium-
Standardized Custom High-volume
projects with volume, variety
products with products with commodities
defined of products with
Suitability for high, stable low, varied with constant
timelines fluctuating
demand (e.g., demand (e.g., demand (e.g.,
(e.g., demand (e.g.,
cars) prototypes) chemicals)
construction) baked goods)
Custom Oil refining, Building Food
Automotive,
furniture, beverage construction, processing,
electronics,
Examples machine bottling, shipbuilding, pharmaceuticals
consumer
parts, bespoke cement aerospace , clothing
goods
jewelry production projects manufacturing

Key Points to Remember:

 Mass Produc on: Best for standardized, high-volume items where efficiency is key.

 Job Shop Produc on: Suited for highly customized, low-volume products with complex
requirements.

 Con nuous Produc on: Ideal for industries with a constant, uninterrupted produc on flow
and very high demand.

 Project Produc on: Involves large-scale, one-off products where every project is unique.

 Batch Produc on: A middle ground, offering flexibility for medium-volume produc on where
different products can be produced in batches.
The TIMWOOD concept is a framework used in Lean Manufacturing and Lean Thinking to iden fy
and eliminate the seven types of waste in a produc on or business process. The term "TIMWOOD" is
an acronym for the seven categories of waste:

1. T - Transporta on

 Defini on: Unnecessary movement of products, materials, or informa on between

processes.

 Example: Moving raw materials from one loca on to another without adding value.

 Impact: Increases lead me and costs without contribu ng to the end product's quality or
value.

2. I - Inventory

 Defini on: Excess inventory beyond what is necessary to complete orders (raw materials,
work-in-progress, or finished goods).

 Example: Overstocking materials that are not immediately needed.

 Impact: Ties up capital, increases storage costs, and can result in obsolescence or damage to
goods.

3. M - Mo on

 Defini on: Unnecessary movements of people or equipment within a workspace.

 Example: Workers walking back and forth to retrieve tools or materials.

 Impact: Wastes me and can lead to worker fa gue, injuries, and inefficiency.

4. W - Wai ng

 Defini on: Idle me when employees, materials, or machinery are wai ng for the next step
in produc on.

 Example: A machine si ng idle while wai ng for parts to arrive.

 Impact: Decreases produc vity and increases produc on me, leading to delays in delivery.

5. O - Overproduc on

 Defini on: Producing more than what is needed or producing products before they are
needed.

 Example: Manufacturing products in bulk that do not have immediate demand.

 Impact: Leads to excess inventory and storage costs, es up capital, and increases the risk of
product obsolescence.

6. O - Overprocessing

 Defini on: Doing more work or adding more features to a product than what is required by
the customer.

 Example: Polishing a component to a higher level than the customer demands.

  Impact: Wastes me, materials, and energy by doing unnecessary work that does not add
value from the customer’s perspec ve.

7. D - Defects

 Defini on: Errors or mistakes that result in rework, repairs, or discarded products.

 Example: A product being produced with a flaw that requires it to be fixed or scrapped.

 Impact: Results in wasted materials, me, and labor, along with poten al damage to the
company’s reputa on.

Why is TIMWOOD Important?

TIMWOOD helps organiza ons:

 Reduce costs by iden fying and elimina ng wasteful ac vi es.

 Improve efficiency by streamlining processes and focusing only on value-added steps.

 Enhance customer sa sfac on by ensuring faster delivery and higher quality products.

 Increase profitability by op mizing resource use and reducing unnecessary expenditures.

Lean prac oners focus on con nuously improving processes by minimizing or elimina ng these
wastes, thus increasing overall opera onal efficiency and value for customers.