Concept of Production System: The Production System of any organization is that part which produces the organizations products. [1] Production is the basic activity of any organization and all the other activities revolve around production activity. [2] The output of production is the criteria of goods of services, which satisfy the needs of the customer. [3] The production system of an organization is that part, which produces products of an organization. [4] It is that activity whereby resources, flowing within a defined system, are combined and transformed in a controlled manner to add value in accordance with the policies communicated by management.
A simplified Production System with Input-Output Model is shown in above figure. [1] In this, Men, materials, machineries, money etc, are the part of Inputs of the system. [2] The finished goods and services are the outputs of the system through the different conversion processes like product design, process and production planning and control, maintenance etc. [3] The inputs are processed by a service of operations in a predetermined sequence. [4] Also there is a feedback system about the activities, which is essential to control and improve system performance.