The Basic Needs of a Manufacturing Business
To be able to operate properly, a manufacturing business should have these three basic requirements which are raw materials, labor, and management system. Having these three requirements is needed to produce a commodity or to provide a service.
Manufacturing works in different ways such that its need for raw materials varies from one industry to another industry. Some manufacturing businesses process natural raw materials to enhance a specific characteristic of a product such as the longevity of its shelf life. Other businesses make use of the final product of other manufacturers, processing them to be combined with each other to get a much better product. For example, in food preservation industry, the raw materials could be fruits or vegetables that came fresh from the farm. At the end of the process, bottled or canned products with a longer shelf life are produced. Another example is in the automotive industry, raw materials include steel (body and chassis), rubber (tires), and plastic (dashboard) are combined all together to produce a powerful machine.
Though many modern manufacturing facilities operate using machines instead of manual labor, these machines require skillful controllers. Though other manufacturing businesses use robotics in their processes, human control is still an indispensible part of the company’s labor system.
Final decisions regarding the overall operation of a manufacturing business relies greatly on the management system. Managers are assigned to create production plans and goals, and they are the ones who are tasked to check that these plans and goals are carried out.
