Manufacturing Process

A set of activities whose output is a finished product (= has passed through all stages of the production process and final inspection).

It includes:
a) the primary process (production) – the interaction of production factors; this is the transformation of raw materials into a product
b) the auxiliary process – enables the production process (maintenance, on-site power generation, wastewater treatment plant)
c) the support process – accompanies the primary process (storage, transportation, inspection)

By-products: arise during production, can be valued and sold, e.g., coke oven gas in steel mills

Types of production

a) Custom
production – production of a wide range of products, a large number of product types in small quantities of each type (custom-made, made-to-order), it is irregular and requires thorough preparation, high costs (the cost level is related to low or zero production repetition), workers must be highly skilled, equipment is multi-purpose

b) batch production
– a smaller number of product types in larger quantities of each type, repetitive production, multi-purpose equipment, production lines, e.g., automobile manufacturing, cosmetics, workers have varying levels of qualification

c) mass production
– a narrow product range, a small number of product types in large quantities of each type, high repeatability, workers may have low qualifications, mechanical/monotonous work, assembly line production, high degree of division of labor (= breaking down the production process into individual operations or tasks; characterized by specialization and cooperation), low costs, high labor productivity (= an indicator of the efficiency and effectiveness of human labor)
¦ Factors influencing labor productivity
:- technical development (both equipment and technology)
– worker
qualifications- organization of the division of labor

Production program

= an overview of all products manufactured by the company during a given period, including technical parameters, e.g., all types of beer in a single brewery
—it changes according to market demands, economic results, or new technical knowledge

Innovation

= a positive qualitative change, improvement of a product or technology, development of a new product or process (the highest level of innovation)

Stages of the production process

Classification by time
a. Pre-production – production preparation (technical documentation, procurement)
b. Production – conversion of raw materials into finished products, including assembly and final inspection
c. Post-production – storage, packaging (labeling), shipping (loading onto a vehicle), actual sales, handling complaints

Classification of the production process

based on labor involvement:
a. manual – the worker acts on the material using a machine or tool, highest proportion of labor
b. automated – the worker prepares, directs, and monitors the production process, minimal human labor, e.g., operating a production line
c. natural – humans do not participate
1. biological – fruit ripening, dough rising
2. chemical – oxidation
3. physical – freezing, baking