Productive Process It can also be understood as a series of necessary operations and processes carried out in a plan and successive manner to produce products.
Companies that use information and technology to manufacture products carry out the production process.
In addition, companies develop their production processes to meet market demand.
Stages Of The Production Process
The production process follows a series of stages; the most important are:
Acquisition Of Raw Materials
Therefore, in this first stage of the production process, the company gathers all the raw materials essential for manufacturing the products it will offer to the market.
On the other hand, companies seek in this phase to obtain the most significant amount of raw materials at the lowest possible cost since it will depend on whether they can bring business profits or losses—everything.
Then, at this stage, the company contacts its suppliers and will choose those that provide the best prices and the best quality of inputs.
In the same way, it should consider the costs of transportation and storage of the required resources.
Finally, it is necessary to determine the production objective to complete this phase. The correct quantities of raw materials requested and the equipment required to develop the production process efficiently will depend on it.
Production
In this second phase, raw materials and supplies transformation is recognize as convert into products.
Indeed, it is the manufacturing process of goods and services. For that reason, it is essential to maintain strict controls to comply with the required quality standards.
If the products delivered to the market manage to satisfy the market demands, the company will be able to obtain profits and profits.
Whereas, if the products do not meet these requirements, they will cause significant problems for the companies, from complaints to the loss of customers; and consequently a drop in sales and profits.
Product Adaptation
Then, adapting and adapting the product to the client is carry out. This phase of the process is directly orient to the operation of marketing goods and services.
Of course, it is crucial to consider the logistics of storage, transportation, and the intangible elements of the services based on the demand that arises within the market.
Consequently, in this step, it is possible to evaluate if the goals establish by the company have been met and, in the same way, proceed to make the necessary corrections.
Finally, the company will establish the prices at which the manufactured products will be marketed, considering the costs incurred throughout the process and a profit margin.
Elements Of The Production Process
Essential elements to be considered in the production process are the following:
Factors Of Production
The factors of production are the land, capital, and labor require to carry out the production process.
Production Process
The production process includes all the technology use within the process and determines how the combination of human and material means is carry out to develop the production process.
Products
The products are all the goods and services that the company produces for the final consumption of the economic agents, the consumers, or capital goods used to make other satisfiers or generate more productive wealth.
Types Of Production Processes
Production processes can be classified as follows:
Serial Production
So, mass production is carry out when products with homogeneous characteristics are produce; therefore. They are standardize products. Do not have any differentiation. And are made for mass consumption.
For example, garments with sizes XS, S, M, L, and XL. As well as shoes for men number 42, 40, 38, etc.
Production On Request
On the other hand, production to order produces a different product adapt to each client’s specific needs.
We can exemplify the case of the manufacture of a jewel, a tailored suit, and a portrait of a person, among others.
Batch Production
While batch production for a certain number of products that receive the name of show, batch group of products, produce
Each production batch is produce identically. But product characteristics may change when making a different production batch.
Characteristics Of The Production Process
The characteristics of the production process are as follows:
- It involves transforming raw materials into goods (consumer or intermediate) that will deliver to the customer.
- It is important to remember that the production process is perfectible. And also It can change over time.
And also It is subject to improvements, which will depend on technological progress.
- It must design according to market requirements (with the materials preferred by the client, for example).
- The production process must have precise objectives and strict controls because only this way can the company obtain profits.
Production Process Example
Let’s look at an example of a production process. For instance, for the sale of ground coffee:
- First, potential coffee suppliers (bean or green) are contact, choosing those that offer the product with the best value for money.
- It will take the coffee to be roast and then ground. Subsequently, the coffee is bagged in 1/2 and 1-kilogram presentations.
- Finally. The product is store without humidity and at a warm temperature to be later distribute to customers based on their requirements.
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