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Manufacturing (from Latin language
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
product (business) 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
Fabrication (semiconductor) and
Fabrication (metal) 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
Economy of the United States include economists Paul Craig Roberts and
Ravi Batra, and commentator
Lou Dobbs.
Context
- The economics and commercial of a company is covered in Business.
- The classification of those Businesses is covered in Industry.
- The economic decisions taken within this activity is covered in Production, costs, and pricing.
- The law as applied to businesses in covered in Commercial Law.
- The general management of a business is in Management (see also: General manager).
- The political impact of the development of industry is covered in Political economy
- The use of computer technology is covered by Product Lifecycle Management, Advanced Planning & Scheduling and Scheduling (production processes)
History and development
- 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.
Manufacturing systems: The changing methods of manufacturing
Economics of manufacturing
According to some economists, manufacturing is a wealth-producing sector of an economy, whereas a
service sector tends to be wealth-consuming. {{cite web | last = Friedman
| first = David
| authorlink =
| coauthors =
| title = No Light at the End of the Tunnel
| work = Los Angeles Times
| publisher = New America Foundation
| date = 2006
| url= http://www.newamerica.net/publications/articles/2002/no_light_at_the_end_of_the_tunnel
| format =
| doi =
| accessdate = 2007-05-12 -->{{cite web
| last = Joseph
| first = Keith
| authorlink = Sir Keith Joseph
| coauthors =
| title = Monetarism Is Not Enough
| work = Center for Policy Studies
| publisher = Margaret Thatcher Foundation
| date = 1976
| url= http://www.margaretthatcher.org/commentary/displaydocument.asp?docid=110796
| format =
| doi =
| accessdate = 2007-05-12 --> 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.{{cite web
| last = Roberts
| first = Paul Craig
| authorlink =
| coauthors =
| title = America is losing
| work = Counter Punch
| publisher =
| date = 2005-05-12
| url= http://www.counterpunch.org/roberts05122005.html
| format =
| doi =
| accessdate = 2007-06-06--> [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
Taxonomy of manufacturing processesManufacturing Process Management
Manufacturing categories
Theories
Control
See also
References
External links
- Cato Institute article: Thriving in a Global Economy: The Truth about U.S. Manufacturing and Trade
- How Everyday Things Are Made: video presentations.
- Society of Manufacturing Engineers
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