All the production processes cannot be separated from the production system in the company. The production process is the activity of converting raw materials into a product that can be used by consumers, commonly called finished or semi-finished goods. Companies need production systems to be able to run the production process.
The production system is developed based on the company’s product line and regulated to meet the company’s goals. It is a collection of several elements that are connected and cannot stand alone, consisting of two components: functional and structural. Functional components include supervision, planning, and control, while structural components include machinery, materials, labor, and equipment.
There are various types of production systems; however, we will only discuss production systems based on processes and objectives. You can check out the following production systems:
1. Process-Based Production System
The first is the process-based production system, divided into the continuous process and intermittent process types.
The continuous process is a production system that produces goods on a large scale continuously and usually produces goods based on a demand forecast. The goods here are mass-produced and meant to be stored as inventory. The goal is to be able to meet sudden spikes in the demand for these goods by increasing the company’s inventory. An example of an industry that applies a continuous process is the packaged food industry.
The second process-based production system is the intermittent process, which is a production system that runs based on consumer demand. Usually, this type of production process produces goods on a smaller scale. In the intermittent process, consumers can order custom products that the production process needs to adapt in the production funnel. The intermittent process’s application is typically used for services such as custom tailoring or bespoke furniture.
2. Production Systems Based on Operational Objectives
The second type of production system is a system based on the purpose or objective of its operations. There are four types of production systems based on their objectives:
1. The first production system is the Engineering to Order (ETO) production system. The ETO system is executed when consumers ask producers to produce goods or products starting from the design process.
2. The second production system is the Assembly to Order (ATO) production system. The ATO system is a type of production system that starts when the manufacturer has an operational module and a standard design. Manufacturers only need to assemble products based on the modules and designs that have been provided.
3. Another production system is the Make to Order (MTO) production system. The MTO system is a production system that runs when a producer has received an order.
4. The last production system is the Make to Stock (MTS) production system. This production system is designed for items meant to be stored or stocked in the warehouse. The production process will finish before there is an order from the consumers.
Well, those are all you need to know about the production system and its types. If you want to build a manufacturing company, you should look for an industrial area that has the complete facilities and a strategic location close to transportation routes.
One industrial area that has a strategic location is Karawang New Industry City (KNIC). Located close to the capital city of Jakarta and with a lot of access makes KNIC a suitable area for building and renting warehouses.
In addition, KNIC has 6 access points to national infrastructure such as the Jakarta-Cikampek toll road, the Jabodetabek LRT, the Trans Java line, the Jakarta-Bandung Railway, the Kertajati International Airport, and the Patimban port. In addition, KNIC is also supported by facilities such as premium electricity, natural gas, and fast internet connections to support the performance of manufacturing companies.