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The choice of production type dictates the machine requirements, organizational system to a large extent, layout planning and inventory subsystems. Three main types of production are job, batch and flow or process production. The simplest way is to classify based on production and processes by lot size, namely single unit production, small lot production, moderate lot production, large lot production, and continuous production. The second classification comprises three categories, namely small size production of a large variety of products, medium-scale production of a limited range of products, and a large-scale production of a small variety of products. Obviously, this method is related to the number of product types and production lot sizes, and is an effective means of analyzing modern production management. The third classification is related to the size of the production system expressed through the number of employees or the amount of fixed assets involved, namely small production unit employing less than 30 employees, medium-small having 30 to 300 employees, medium with 301 to 2,000 employees and large with 2001 to 15,000 employees, and a giant corporation employing more than 15,000 employees Job shop production deals the manufacture of very small lots, often of single jobs. This may be required in special situations for the purpose of proving a design, making prototypes, in tool making or for special purpose applications. In view of the very small lot, no special purpose machines or tooling can be economically justified. Hence, the manufacturing has to be carried on with the general purpose machines and tooling, which is a very lengthy and often an error prone process.

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