What is Production System? Definition Meaning Examples

What is Production System? Definition Meaning

This article briefly explains the introductory concept of a production system.

Image Credits © Nathan

The meaning, definition and other basic points covered in this article on a production system are listed as follows:

1. Meaning of production.
2. Meaning of system.
3. Definition of production system.
4. Meaning of production system.
5. Components.
6. Examples.
7. Conclusion.

Now let's read each point to understand the basics of a production system.

1. Meaning of production

Production can be explained as an act of either manufacturing or mining or growing of goods (commodities) generally in bulk for trade.

Production is a method employed for making or providing essential goods and services for consumers. It is a process that puts intangible inputs like ideas, creativity, research, knowledge, wisdom, etc. in use or action. It is a way that transforms (convert) tangible inputs like raw-materials, semi-finished goods and unassembled goods into finished goods or commodities.

2. Meaning of system

System is an arrangement or assembly of inter-dependent processes (activities) that are based on some logic and function. It operates as a whole and is designed (build) with an intension to achieve (fulfill) some objective or do some work. Huge systems are often a collection (assembly) of smaller sub-systems.

3. Definition of production system

Production system may be defined as,

"The methods, procedure or arrangement which includes all functions required to accumulate (gather) the inputs, process or reprocess the inputs, and deliver the marketable output (goods)."

Production system utilizes materials, funds, infrastructure, and labour to produce the required output in form of goods.

4. Meaning of production system

Production system consists of three main components viz., Inputs, Conversion Process and Output.

1. Inputs include raw-materials, machines, man-hours, components or parts, drawing, instructions and other paper works.
2. Conversion process includes operations (actual production process). Operations may be either manual or mechanical or chemical. Operations convert inputs into output. Conversion process also includes supporting activities, which help the process of conversion. The supporting activities include; production planning and control, purchase of raw-materials, receipt, storage and issue of materials, inspection of parts and work-in-progress, testing of products, quality control, warehousing of finished products, etc.
3. Output includes finished products, finished goods (parts), and services.

The three components of a production system are depicted in this diagram.

Image credits © Moon Rodriguez.

Hence, we can say that, production system is a union or combination of its three main components viz., Inputs, Conversion Process, and Output. In short, everything which is done to produce goods and services or to achieve the production objective is called production system.

5. Examples

The examples of a production system are as follows:

1. Tangible goods : Consider an example of a manufacturing industry like a Sugar Industry. Here, sugarcane is first used as an input, then the juice of sugarcane is processed through a conversion process, finally to get an output known as a refined sugar (used for mass consumption).
2. Intangible goods : Consider an example from a service industry that of a software-development firm or company. Here, initially, written program codes are used as an inputs. These codes are then integrated in some database and are provided with a user-friendly interface through a conversion process. Finally, an output is made available in form of an executable application program.

6. Conclusion

Production system is a result of arranging inputs, their conversion process and output based on some logic and functions. Production system fails if any such arrangement made don't give a desired level of outcome.