Manufacturing Definition Types Examples and Use as Indicator
Manufacturing is the process of processing raw materials into finished goods using tools, human labor, machinery, and chemical processing. It allows businesses to sell finished products at a higher cost than the raw materials used. Efficient manufacturing techniques enable manufacturers to take advantage of economies of scale, producing more units at a lower cost.
There are different types of manufacturing, such as hand manufacturing and mechanization. Hand manufacturing involves the use of basic tools and is associated with decorative art, textile production, carpentry, and metalwork. Mechanization uses machines and requires less human capital.
Another type of manufacturing is additive manufacturing, commonly known as 3D printing. This process involves building up layers to create three-dimensional shapes using a special piece of equipment.
Advanced manufacturing involves using new technology to improve the production process and bring new products to market faster.
Contract manufacturing is when companies outsource certain manufacturing processes to third-party firms.
There are different manufacturing techniques, such as make-to-stock, make-to-order, and make-to-assemble. These techniques involve manufacturing products based on forecast demand or customer specifications.
Manufacturing can also be divided into different processes, such as discrete manufacturing, process manufacturing, mixed mode manufacturing, job shop manufacturing, and repetitive manufacturing.
Manufacturing has changed over time, with the Industrial Revolution introducing mass production and assembly line manufacturing. Modern manufacturing methods involve the use of computers and precision electronic equipment. Many low-skill manufacturing jobs have shifted to developing countries, while high-end products requiring precision are typically produced in developed economies.
Measuring manufacturing in the economy involves indicators like manufacturing value added (MVA) and the ISM Manufacturing Report.
The steps of manufacturing include developing the idea, performing market research, designing the product, finalizing and prototyping, prototype testing, manufacturing the good, and monitoring the process.
Manufacturing is different from production, as it involves processing raw materials into tangible finished goods, while production is a broader term that includes manufacturing and other processes.
Toyota is an example of a company known for its efficient manufacturing process, using a lean manufacturing system focused on efficiency and waste reduction.
Lean manufacturing is a production approach aimed at increasing efficiency and reducing waste.
Manufacturing overhead is the total indirect costs associated with manufacturing, including employee wages, asset depreciation, rent, leases, and utilities.
The purpose of manufacturing is to convert raw materials into finished, tangible products that can be sold to customers.
In conclusion, manufacturing is the process of converting raw materials into finished goods using various techniques, processes, and technologies. It plays a crucial role in the economy and has evolved over time with advancements in technology.
