Goods Production Process

Products and Services

The production process results in new products and a network of complementary products. Using some products requires installed facilities, infrastructure, and support services. The availability of various technology products and associated services greatly influences our lifestyle.

Production Companies

The elaboration of different types and varieties of technological products is carried out by manufacturing administrations. Multinational companies have commercial offices and production centers distributed across different countries.

Organization of the Company

Product elaboration requires a variety of material and human resources, necessitating an organizational structure to define different areas of activity. The graphical representation of the administration structure is called an organizational chart (vertical).

The Technical Project

Sections of the Technical Project

  • Technical Report: Describes the characteristics of the products, their suitability to official regulations, and technical information regarding materials, calculations, or explanation of operation.
  • Plans: Provide a graphic description of the product, its shape, size, details of each piece and its installation, functional diagrams, etc.
  • Organization: Describes the resources and tasks needed to manufacture the product and includes a temporary plan for production and distribution.
  • Budget: Reflects expenditure on materials, personnel, facilities, and energy, which determines the product cost.

Models and Prototypes

Models or mock-ups show the appearance the product will have. When the model is an exact reproduction of the future product, it is called a prototype.

Manufacturing Process

Key Characteristics

  • Specialization: Factories specialize in producing one type or range of products, often in a limited number of models.
  • Division of Work: Work is divided into tasks, creating jobs where the same type of operations are always performed on specific parts or products.
  • Continuous Flow: Work processes are continuous, with parts moving through jobs on a continuous transport or assembly line.
  • Automation: Many operations are automated, performed by pre-programmed machines.
  • Control: Controls are performed periodically throughout the production chain and on the finished products.

Industrial Manufacturing

Resources Inside the Factory

  • Technical Resources: Include the main premises or warehouses containing workshops and storage, power supply, machinery and equipment, and materials and parts to be processed or assembled.
  • Human Resources: All the company’s workers.
  • Economic Resources: Money needed to acquire technical resources and cover worker salaries.

Product Promotion and Distribution

Distribution and Sale

For production to reach the consumer, a distribution network is needed, usually consisting of vehicles transporting products to retail stores for sale. Sale points can be small shops or large shopping centers. Products can also be distributed through home sales. Currently, this sales system has taken new forms such as teleshopping, Internet, or phone sales.

Advertising

Advertising is the means to announce products to millions of potential buyers. Product sales promotion is carried out through advertising campaigns using different media: press, radio, television, billboards, brochures, etc.