What Is Manufacturing?

Manufacturing is the process of converting raw materials into products through a variety of machine processes and operations following well-organized planning. In this article, we will understand what is manufacturing and its processes.

Manufacturing in a broad sense is the process of turning raw materials into finished products. The process can be in the form of changing the appearance, assembly of various components into products, machinery, and through physical or chemical processes.

So the manufacturing process is the activity of changing raw materials / semi-finished materials by using a variety of resources such as machinery, tools, methods, and humans so that it becomes or takes another form that has added value and can meet human needs.

However, manufacturing is now growing so it doesn’t have to mean processes made by hand or traditionally. Today manufacturing uses computer controls and automation systems.

Manufacturing Industry

According to experts, the definition of manufacturing industry is an industry whose main activity is to convert raw materials, components, or other parts into finished goods that meet specific standards. Manufacturing industry in general is capable of producing on a large scale.

The manufacturing industry consists of primary industry, secondary industry, and tertiary industry. Primary industries exploit natural resources. Secondary industries process the results of primary industries so that they can be used by consumers. Tertiary industry is engaged in service.

The primary industry consists of:

Agriculture
Forestry
Farm
Fishing
Mining
Petroleum

Secondary industries consist of:

Automotive
Clothing
Drinks
Building materials
Metal
Chemical
Computer
Electronic
The drugs
Textile
Paper
Plastic
Rubber
Furniture

The tertiary industry consists of:

Banking
Communication
Education
Government
Health and medicine
Entertainment
Hotel
Transportation
Workshop

Manufacturing Products

The final products made by the manufacturing industry can be divided into two main classes, namely: consumer goods and capital goods.

Consumer goods are products purchased directly by consumers, such as cars, motorcycles, computers, TVs, and clothing.

Capital goods are goods purchased by the company to produce goods or provide services. Examples of capital goods include aircraft, office computers, communication equipment, medical equipment, trucks, trains, buses, locomotives, machine tools, and construction equipment.

In addition to the final product, there are other manufactured items such as materials, components, and supplies used by the company that makes the final product. Examples of these items include: sheet steel, metal bars, engine parts, moulds, cutting tools, die, and lubricants.

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Almost all the goods we use daily are the result of manufacturing industry processing, ranging from food, clothing, electronic equipment, to medicines. A manufacturing industry not only functions in the production process, there are several other functions to support the implementation of all activities and objectives of the manufacturing industry, including marketing functions, administrative and general functions, and financial functions. Therefore, manufacturing information systems are also needed to support this.

The production function is the main activity of the manufacturing industry. Without this function there will be no resulting goods that can be sold. Then there is the marketing function that also plays an important role to introduce and invite people to buy products so that they get the most profit.

There are also administrative and general functions that aim to manage the company’s activities in order to run properly such as determining company policies, directing and supervising the production process, and others. And no less important is the financial function to allocate the funds needed by the company such as for the cost of production process and product development.

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Manufacturing Industry Business Process

Given the complexity of an industry’s business continuity, there are several business processes involved in manufacturing companies, including:

Purchase

Procurement is a business process related to the purchase of goods and other needs in supporting business continuity.

It includes raw materials, spare parts, and other components.

Production

The function of the production process is to process raw materials so that they become finished goods and can be sold to consumers.

In practice, there is a wider division according to the needs of the industry. For example, PPIC (Production Planning and Inventory Control) and also the Quality Control section.

Inventory

Given the process of converting raw materials into finished products, there will be many goods or materials that automatically enter and come out of the company.

Inventory management is a business process that manages the inputs and outputs of these items, the key is the control of the flow of goods.

Sales and Marketing

The function that is used to achieve the objectives of the production process and sell the products and whose purpose is to make a profit.

For example, manage product promotions, marketing costs such as promotional costs, shipping costs, warehouse rental costs and so on.

Administration

The function of operational activities related to determining policy, direction and control in order to carry out activities more effectively and efficiently.

For example, this activity manages costs such as accounting fees, staff costs, employee salaries, and others.

Finance

Finance and accounting ensures that a business’s finances meet operational and manufacturing requirements, as well as debt control.

In addition, accounting in particular has an obligation to regulate taxes that must be paid to the state by the factory.

Manufacturing Industry Examples

Some examples of manufacturing industries, usually in the supply chain, are:

Automotive Manufacturing Industry

The automotive industry is a manufacturing industry that uses high-end technology in the manufacturing process.

Products of the automotive industry include motorcycles, automobiles, airplanes and others.

Textile Manufacturing Industry

This industry manages cotton into yarn and yarn into fabrics, so that later the fabric can be processed back into clothing and others.

This industry can absorb a lot of labour, so you will find many who work in the textile industry.

Garment Manufacturing Industry

If the textile industry succeeds in making cotton into fabrics, the garment industry will be used to make fabrics, clothes, pants etc.

Electronic Manufacturing Industry

Just like the automotive industry, in the process of production the electronics industry uses a high level of technology

Some of the products of the electronics industry are microchips, antennas, radars, televisions, refrigerators, computers, mobile phones and others.

Handicraft Industry

Handicraft industry products can be made from various raw materials according to the products to be produced.

Usually handicrafts are exported abroad, but most of them are also sold domestically like ceramic, woven fabric, wood or stone carving, rattan and similar products.

Manufacturing Industry for Household Purposes

This industry produces products for domestic use and, of course, there are many varieties.

Some of the products are pots, spoons, forks, dishes, soap, toothpaste and others.