From the point of view of the economy, the production process is the impact of man on natural substances in order to create any goods and services required for the future development of society. Studying history, one can understand that production has gone through a rather long and difficult path of development, starting from the manufacture of the simplest products and ending with some complex technical systems, flexible complex and computing devices. All types of production are rather complex processes, without which the functioning of the economy would simply be unrealistic.
General definition
The production process can also be described as a purposeful activity, during which all raw materials and material products become ready for use with the help of labor. Any kind of production is the basis for the development of all countries.
Without the production process, it is simply impossible to develop the economy. Investors who invest their money in the manufacture of certain products and services, after their sale, receive a good profit. Fromfrom this profit they make tax and other deductions, thanks to which state institutions work.
Market and non-market production
Speaking about the existing types of production, it should be understood that they are all divided into market and non-market. The first type in this case involves the manufacture of products for further sale at the existing market value. In such cases, all types of market production will be aimed at extracting the maximum amount of profit.
Sometimes a product can be distributed for free, or at a very low cost. In this case, this type of production is already non-market. Basically, state funds or various non-profit companies belong to this type. In addition, sometimes profitable companies can make big discounts or sales in order to market their product, which has not been in great demand in the market for a long time.
Production related activities
It is also important to identify other types of production activities that are included in the definition of this concept.
- Activities for the production of products that are permitted by law.
- Illegal certain types of production.
- Movement of raw materials, semi-finished products and materials between individual branches of the company.
- The so-called shadow production processes, which include types of economic production that are hidden from paying taxes.
- Unfinisheda production process that includes materials that have already been processed, but have not yet been transformed into finished products.
- Types of production that comes to markets from households.
- Paid hired labor of service personnel.
- Construction and renovation works.
- The use of buildings to generate we alth and services.
Types of non-manufacturing activities
In the economy, it is also customary to single out those activities that have nothing to do with the production process. These include:
- all business and services that take place at home, which are carried out independently to satisfy their own needs;
- by-products, such as waste and garbage, that are generated during the main type of production and are not considered as its final destination.
Thus, if, for example, a person cooks food at home and cleans the room only for their own purposes, then this type of activity does not apply to production. But if such services are carried out in accordance with a contract of employment and for the purpose of obtaining benefits, then this is included in the above mentioned category.
Varieties of production
Speaking about what types of production exist, first of all, we should single out the material ones. They include the direct production of those products that have a real material form. This includes food, householdappliances, architectural structures, clothing and more.
If we talk about intangible types of organization of production, then this includes services in various areas, such as education, he althcare and others. Despite the fact that there is no material form, these services still have a specific value and carry a certain result.
Production activity
Organization of the production process, as a rule, is carried out on the basis of several varieties of relevant activities:
- Custom manufacturing, which is a type of production that meets a specific request. First of all, such activities are considered the most effective, as companies that manufacture a particular product insulate themselves from the risk of a decline in demand.
- Flexible or mass production, which involves the production of products on a large scale. In parallel, such activities may include several modifications at once, or be subject to changes due to existing demand.
- Inflexible or mass production, which differs from the previous category in that products are only made in a standardized form. Most often this applies to equipment, tools and other goods that require a certain degree of precision in production. It is also worth noting that this option will be relevant in cases where large-scale production of products is required.
- In-line production,which is organized as a continuous cycle. At the same time, materials are constantly used, and the goods are manufactured. Quite often, in order to improve efficiency, such a process is carried out in a continuous way. Thus, the company's employees work in shifts.
Types of factors of production
The production process cannot be carried out without some factors:
- Natural resources, which are an objective necessity for absolutely any enterprise, whether it be industrial or otherwise. This should include not only water, solar energy, soil, but also other resources, including even climatic conditions, which to a large extent determine the suitability of a particular region for the development of a certain type of production.
- Investment resources, which are one of the main factors, without which it is simply impossible to carry out this or that activity. This includes financial support for production, with the help of which it becomes possible to acquire the resources necessary for the entire process.
- Labour resources, which are people who have a certain level of qualification and education. Without such employees, it is simply impossible to carry out the production process. This includes both management personnel and ordinary workers, as well as those persons who serve the entire process of manufacturing products or services.
- Entrepreneurial ability, implying the individual qualities of people who stand inthe head of a plant for the production of any intangible or material goods. This factor is one of the main ones for the implementation of successful activities, since the managerial staff will determine how well the time is chosen to start the working day, how modern the technology will become, and also how correctly finished products will be sold.
Cost efficiency
Organization of the production process is aimed at getting some specific result of the work, reflected in the planning documentation. Basically, we are talking about economic efficiency, which is the ratio of net profit and costs. Thus, each company is moving towards getting the maximum return on investment in the production process. However, this effectiveness includes more than just the purpose of monetary rewards.
Technological efficiency
In addition to economic efficiency, there is also technological efficiency - when it is calculated how many units of production were produced using a specific method, technology and other factors. We talk about technological efficiency in the case when the actual volume of the production process tends to the maximum possible, based on the invested resources and the methods used. Also important is the fact that there should not be a more profitable option, thanks to which it would be possible to produce more products at the same cost.
Howdecide on the technology of the production process
The basic manufacturing process begins with choosing a technology that will meet the requirements of the products or services being produced. Such a decision must be made based on a number of factors:
- first of all, it is necessary to decide what kind of resources and equipment this or that company can afford in relation to the financial situation;
- of all the options for equipment that an organization can buy, it is recommended to select more efficient and modern models;
- after certain economic calculations, the final choice of one or another option is made.
Innovative production technologies
As in most countries, in Russia, new types of production cannot exist without innovative technologies. The structure of the development of the production process is carried out in a certain way:
- Initially, innovation appears, which may be a particular invention or a new way of working.
- If this new invention is used successfully, it will be transformed into an innovation.
- When this innovation is used on a large scale, and when it generates positive results, it becomes an innovation.
Changes in the structure of the production process should attract the attention of users, as well as meet their requirements and, accordingly, be aimed at increasing profits. Tounfortunately, most of these changes do not take into account the title of innovation. But this is observed in cases where the product is truly unique, unlike the rest, due to which the turnover and profit become larger.
It is customary to talk about innovations if it will be quite problematic for competitors to manufacture such products. To achieve a specific result, it is imperative to acquire a patent for a new technology, and quickly begin to promote your product on the market. Over time, if done right, brands become popular and in demand.
Quite often, domestic companies offer their products that do not meet certain criteria, due to which they fail. For this reason, all the pros and cons must be weighed before a technologically new product hits the market, because if it fails, the company will suffer losses. Most of the innovations are not considered radical, but still help to achieve some certain success.
New technologies at the exhibition
The best way to promote your products is to demonstrate them at various exhibitions. In addition, the product, participating in such an event, directly communicates with visitors. Exhibition sites have recently been organized more vividly, dynamically and in an original way. Thanks to such exhibitions, it is possible to establish communication, to understand what exactly is interesting for the audience. The exhibition is a visual presentation of products, after which you can in more detailget acquainted with the latest developments directly at the enterprise.
A few words in conclusion
Production is a rather complicated process, which is aimed primarily at the formation of intangible and material benefits. Manufacturing is fundamental to the functioning of the economy - both in a single country and around the world.
