Manufacture

economic-dictionary

A manufacture is the result of converting raw materials into a manufactured product through an industrial process. In this way, the finished goods are obtained, ready for sale in the different markets.

Through the action of manufacturing, companies have the ability to transform different raw material inputs into those products or outputs that they wish to offer to the market, thus carrying out their economic activity. Manufacturing is therefore one of the key pieces of the secondary sector.

The main objective when creating a manufacture is the subsequent placing on the market. In other words, companies produce in order to take their production towards the final sale. This denomination is usually identified with the complete development of a product. Its mass production and its offer to the market.

On the other hand, it is understood that the manufacturing process encompasses from the initial design of the product to the assembly of its components, all encompassing the transformation phases to shape it for its final sale.

History of the manufacturing concept

Originally the concept and meaning of manufacturing referred to the form of artisan production, more typical of previous centuries. With the development of new production processes, technology and the growth of the industry over time, this name has become what was previously explained.

That said, historically it is understood that the origin of the concept we know as manufacturing is located in the Industrial Revolution and the social and economic changes that this milestone caused.

Traits of production by manufacturing

The manufacturing concept has a series of main characteristics:

  • Considering the complexity of the product, manufacturing actions may have a greater or lesser number of intermediate production processes.
  • Although the usual is the majority use of machinery, it is also understood as a manufacturing process to artisan production, where the transformation is carried out manually.
  • It assumes the existence of separation or division of processes, which leads to the specialization of work.
  • It seeks the optimization of resources and, therefore, the achievement of a higher level of profit for companies.

Tags:  banking comparisons finance 

Interesting Articles

add