Manufacturing

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Manufacturing (from Latin manu factura, "making by hand") is the use of tools and labor to make things for use or sale. The term may refer to a vast range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale.

Manufacturing takes place under all types of economic systems. In a capitalist economy, manufacturing is usually directed toward the mass production of products for sale to consumers at a profit. In a collectivist economy, manufacturing is more frequently directed by a state agency to supply perceived needs. In modern economies, manufacturing occurs under some degree of government regulation.

Modern manufacturing includes all intermediate processes required for the production and integration of a product's components. Some industries, such as semiconductor and steel manufacturers use the term fabrication instead. The manufacturing sector is closely connected with engineering and industrial design. Examples of major manufacturers in the United States include General Motors Corporation, Ford Motor Company, Chrysler, Boeing, Gates Rubber Company and Pfizer. Examples in Europe include France's Airbus and Michelin Tire. Modern proponents of Fair Trade policy and a strong manufacturing base for the U.S. economy include economists Paul Craig Roberts and Ravi Batra, and commentator Lou Dobbs.

Toll manufacturing is an arrangement whereby a first firm with specialized equipment processes raw materials or semi-finished goods for a second firm.

Contents

  • In its earliest form, manufacturing was usually carried out by a single skilled artisan with assistants. Training was by apprenticeship. In much of the pre-industrial world the guild system protected the privileges and trade secrets of urban artisans.
  • Before the Industrial Revolution, most manufacturing occurred in rural areas, where household-based manufacturing served as a supplemental subsistence strategy to agriculture (and continues to do so in places). Entrepreneurs organized a number of manufacturing households into a single enterprise through the putting-out system.
  • The beginnings of modern industrial manufacturing are covered in the Industrial Revolution article.
  • The development of the modern manufacturing facility is covered in the factory article.
  • The development of the applied science behind manufacturing is covered in the industrial process article.

According to some economists, manufacturing is a wealth-producing sector of an economy, whereas a service sector tends to be wealth-consuming. [1][2] Economists who favor a strong manufacturinng base oppose outsourcing for the sake of labor arbitrage to obtain cheap labor as an example of absolute advantage which does not produce mutual gain, and not an example of comparative advantage which does.[3] Emerging technologies have provided some new growth in advanced manufacturing employment opportunities in the Manufacturing Belt in the United States. Manufacturing provides important material support for national infrastructure and for national defense.

On the other hand, some manufacturing may involve significant social and environmental costs. The clean-up costs of hazardous waste, for example, may outweigh the benefits of a product that creates it. Hazardous materials may expose workers to health risks. Developed countries regulate manufacturing activity with labor laws and environmental laws. In the U.S, manufacturers are subject to regulations by the Occupational Safety and Health Administration and the United States Environmental Protection Agency. In Europe, pollution taxes to offset environmental costs are another form of regulation on manufacturing activity. Labor Unions and craft guilds have played a historic role negotiation of worker rights and wages. Environment laws and labor protections that are available in developed nations may not be available in the third world. Tort law and product liability impose additional costs on manufacturing.

Taxonomy of manufacturing processes

Manufacturing Process Management

  1. ^ Friedman, David (2006). No Light at the End of the Tunnel. Los Angeles Times. New America Foundation. Retrieved on 2007-05-12.
  2. ^ Joseph, Keith (1976). Monetarism Is Not Enough. Center for Policy Studies. Margaret Thatcher Foundation. Retrieved on 2007-05-12.
  3. ^ Roberts, Paul Craig (2005-05-12). America is losing. Counter Punch. Retrieved on 2007-06-06.

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