Manufacturing is one of the key concepts in economics. Most often, production is understood as a certain set of operations through which raw materials are processed, changed through the use of material and intangible resources, and also a final product is created that is necessary to meet human needs.
Instructions
Step 1
Production is the activity of using the factors of production in order to achieve the desired result. This concept can be attributed not only to economic science, but also to other disciplines, even technical. In other words, the production process affects not only material production, but also the production of works and services.
Step 2
From the point of view of economics and entrepreneurship, the production process has some distinctive features: - in fact, it is a process of processing and transformation, as a result of which the value of what is processed increases; - it involves the production of goods, works and services; - requires professional knowledge and skills; - involves a simultaneous combination of decisions and actions; - is a wide area for investment; - is designed to meet the needs of consumers; - is the main factor in the profitability and efficiency of business entities.
Step 3
The main participants in the production process are suppliers who produce goods and services and consumers who receive them.
Step 4
Manufacturing is the process of transforming resources. That is, the sources of production are resources - a set of natural, social and spiritual values that can be used in the process of creating goods, works and services. Allocate natural, labor, material and financial resources.
Step 5
Using the simplest model, production can be represented as a process, at the input of which the factors of production (costs) for processing are indicated, and the receipt of finished products (result) at the output. But at the same time, the ratio of the result to the costs should be maximum. Only in this case, with the same amount of costs, the company will receive the greatest profit. In addition, finished products should be of greater value than competitors' counterparts.
