manufacturing and processes

Manufacturing & Processes

Manufacturing refers to the processing of finished products from raw materials using various methods, human labor, and equipment according to a detailed plan in a cost-effective way. Large-scale manufacturing uses core assets, including assembly line processes and sophisticated technologies for the mass production of goods.

Manufacturers take advantage of the economies of scale to enhance efficiency and produce more units at reduced costs. As a value-adding process, manufacturing allows raw materials to undergo a change process to become part of a product and eventually sell at a higher price than the value of raw materials. Information about manufacturing is compiled and disseminated by the Conference Board (CB) and is intensively examined by economists.

Humans are historically linked with making artifacts from materials such as ceramics, stone, wood, and metal ore. Businesses and individuals add value to raw materials by altering their form, refining, and processing them into more useful finished products.

By adding value to raw materials, manufacturing creates wealth in the form of a profit, rendering it a profitable venture. While people started to specialize in the skills classical to manufacturing goods, other people provided businesses with funds to acquire materials and equipment.

The characteristics of manufacturing processes and operations continue to change over time. The type and amount of the workforce needed varies depending on the nature of the desired finished product. At one extreme, products are manufactured using more traditional processes, such as by hand or through the use of basic equipment. The method is associated with traditional artifacts comprising carpentry, metalwork, leatherwork, or textile production.

At the other, companies use special purpose machines to facilitate large-scale manufacturing. The latter process does not require as many manual operations.

manufacturing chart