Manufacturing is the production of merchandise for use or sale using labour
and machines, tools, chemical and biological processing, or formulation. The term may refer to
a 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. Such finished goods may be sold to other manufacturers for the production of other,
more complex products, such as aircraft, household appliances, furniture, sports
equipment or automobiles, or sold to wholesalers, who in turn sell them to retailers, who then
sell them to end users and consumers.
Manufacturing engineering or manufacturing process are the steps through which raw
materials are transformed into a final product. The manufacturing process begins with the
product design, and materials specification from which the product is made. These materials
are then modified through manufacturing processes to become the required part.
Modern manufacturing includes all intermediate processes required in the production and
integration of a product's components. Some industries, such
as semiconductor and steel manufacturers use the term fabricationinstead.
The manufacturing sector is closely connected with engineering and industrial design. Examples
of major manufacturers in North America include General Motors Corporation, General
Electric, Procter & Gamble, General Dynamics, Boeing, Pfizer, and Precision Castparts. Examples
in Europe include Volkswagen Group, Siemens, FCA and Michelin. Examples in Asia
include Toyota and Samsung.
The process of converting raw materials, components, or parts into finished goods that meet a
customer's expectations or specifications. Manufacturing commonly employs a man-machine
setup with division of labor in a large scale production.
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DEFINITION of 'Manufacturing'
The processing of raw materials into finished goods through the use of tools and processes.
Manufacturing is a value-add process, allowing businesses to sell finished products at a
premium over the value of raw materials used.
BREAKING DOWN 'Manufacturing'
Humans have sought ways to turn raw materials, such as ore, wood, and foodstuff, into finished
products for most of history. By refining and processing this raw material into something more
useful, individuals and businesses were adding value. This added value carried with it a higher
price, making manufacturing a profitable endeavor. People began to specialize in the skills
needed to manufacture goods, while others provided funds to businesses to purchase tools and
materials.
How products are manufactured has changed over time. The amount and type of labor required
in manufacturing varies according to the type of product being produced. On one end of the
spectrum, products are manufactured by hand or through the use of basic tools using more
traditional processes. This type of manufacturing is associated with decorative art, textile or
leather work, carpentry, and some metal work. On the other end of the spectrum,
mechanization is used to produce items on a more industrial scale. This type of manufacturing
does not require as much manual manipulation of materials, and is often associated with mass
production.
The industrial process used to turn raw materials into products in high volumes emerged during
the Industrial Revolution of the 19th century. Prior to this period, handmade products
dominated the market. The development of steam engines and related technologies allowed
companies to use machines in the manufacturing process, reducing the number of personnel
needed to produce goods while also increasing the volume of goods that could be produced.
Mass production and assembly line manufacturing allowed companies to create parts that
could be used interchangeably, allowing finished products to be made more readily by reducing
the need for part customization. The use of mass production techniques in manufacturing was
popularized by the Ford Motor Company in the early 20th century. Computers and precision
electronic equipment have since allowed companies to pioneer high tech manufacturing
methods. Products made using these methods typically carry a higher price, but also require
more specialized labor and more expensive capital inputs.
The skills needed to operate the machines and develop the processes used in manufacturing
have changed drastically over time. Many low skill manufacturing jobs have shifted from
developed countries to developing countries, as labor in developing countries tends to be less
expensive. More skilled manufacturing, especially of precision and high-end products, tends to
be undertaken in developed economies. Technology has made manufacturing more efficient
and employees more productive, meaning that, even as the volume and number of goods
manufactured has increased, the number of workers required has declined.
Economists and government statisticians use various ratios when evaluating the role
manufacturing plays in the economy. Manufacturing value added (MVA), for example, is an
indicator that compares manufacturing output to the size of the overall economy. It is
expressed as a percentage of GDP - Gross Domestic Product. The ISM Manufacturing Index uses
surveys of manufacturing firms to estimate employment, inventories, and new orders, and is an
indicator of the health of the manufacturing sector.
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Manufacturing, any industry that makes products from raw materials by the use of manual
labour or machinery and that is usually carried out systematically with a division of labour.
(See industry.) In a more limited sense, manufacturing denotes the fabrication or assembly of
components into finished products on a fairly large scale. Among the most important
manufacturing industries are those that produce aircraft, automobiles, chemicals, clothing,
computers, consumer electronics, electrical equipment, furniture, heavy machinery, refined
petroleum products, ships, steel, and tools and dies.
An automobile being manufactured on an assembly line.
mypokcik/Shutterstock.com
Manufacturing is treated in a number of articles. For treatment of major manufacturing
industries, see automotive industry; aerospace industry; ship construction; clothing and
footwear industry; floor coverings; furniture industry; chemical industry; soap and
detergent; dye; pharmaceutical industry; explosive; elastomer; plastic; man-made fibre; surface
coating; adhesive; papermaking; building construction; electronics; food preservation; industrial
ceramics; industrial glass; industrial polymers, major; mineral deposit; textile; printing. For
treatment of manufacturing methods, processes, and organization, see automation; production
system; industrial relations. The utilization of energy in manufacturing is treated in energy
conversion. For the application of measurement and control in industrial processes,
see analysis; drafting. See also engineering; technology, history of.
