written by | May 27, 2022

What is MFG? Types, Process & Examples

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Table of Content


MFG stands for manufacturing. Manufacturing is a significant and integral element in the economic system. It is the transformation and refinement of the raw materials, including ore, wood, food products, etc., into final items, like furniture, metal and processed food. Making these materials into something more efficient adds value, and the added value boosts the value of the finished product and makes manufacturing a profitable aspect of the chain. Certain people have specific skills needed for manufacturing goods, whereas others offer the money companies require to purchase equipment and supplies.

Did you know?

In 2020, India's manufacturing output was ₹ 26 lakh crores, 11.13% less than in 2019. In 2018, it was ₹ 31 lakh crores. However, in 2022, there's a slight incline. 

Manufacturing: History

Industrial advancements began in the early 19th century. Industrial revolutions ushered in the invention of the steam engine. In 1790, Philadelphian Samuel Hopkins received the country's first patent for an ingredient used in fertilisers. Hopkins was joined by British-born Samuel Slater, a former industrial spy, who built the first water-powered cotton spinning mill. Workers pushed the spinning machines by running on treadmills, dramatically increasing production and consistency.

In the 18th century, the first industrial revolutions occurred, and manufacturing took on a large scale. Before the industrial revolution, most manufacturing was done by hand. Without the help 

of computers, logistics were difficult to handle. Tradespeople had to solve problems in the supply chain, and they had to learn the trades to make the goods they needed. Today, many industries employ tens of thousands of people, creating a global workforce that makes products for almost every need.

In the 19th century, the Industrial Revolution ushered in the mechanisation of the manufacturing process and turned craftsmen into wage labour. Before the Industrial Revolution, people produced all kinds of products in small workshops with basic tools. In the 18th century, however, the advent of steam engines and machines brought the beginning of the first industrial revolution. This revolution changed everything. 

Types of MFG

Following are the 5 types of MFG:

Manufacturing With Repetition

The manufacturing industry uses processes such as repeated manufacturing for repeated production to set a production rate. Repetitive processing consists of dedicated production lines that make similar or identical items throughout the year. The producer can adjust the speed of operation to meet the demands of customers or needs.

Also Read: Most Profitable Manufacturing Business to Start in India

Discrete Manufacturing

The discrete manufacturing process is the cousin that is repetitive production. It also runs on production lines. However, the products that are made during this process typically differ significantly. 

                           

Manufacturing job shop

In contrast to other types of processes, job shop manufacturing uses production spaces instead of assembly lines. This process produces smaller batches of customised items, whether made-to-order (MTO) or made-to-order (MTS). If demand from customers requires it, the process could become a distinct manufacturing line, with specific tasks being replaced by automated equipment.

                                  

Continuous Process Manufacturing

Continuous processing manufacturing is similar to repetitive manufacturing. It is a continuous process that repeatedly produces similar or identical items and produces greater quantities for orders. It operates similarly to regular manufacturing except for the difference in the raw materials. 

Manufacturing by Batch Process

The final manufacturing process has a lot in common with both discrete and job shop processes -batch process manufacturing. In case of demand from consumers, the quantity of a batch may suffice to meet the need. Similar to the continuous manufacturing process the components of the product are the same, but the production process is flexible. 

             

Process of Manufacturing

After knowing what MFG is, now let's know the procedure. To make goods, companies use the manufacturing process. While these processes are fairly standard in many industries, they can vary greatly. For example, a company may produce clothes and shoes using one specific process for all its customers, while another may customise its productions based on its design specifications.

In addition, many manufacturing processes require various tools and machinery, varying in levels of automation. Understanding each of these processes is essential for any manufacturing company. This process creates goods by combining supplies, ingredients, or raw materials. Many industries, including food and beverage, pharmaceutical and plastics, employ process manufacturing. 

This method involves combining raw materials and undergoing a series of steps. Materials are combined through heat, chemicals, time and pressure to make a finished product. Once the product is complete, the raw material is no longer usable and must be discarded. Mass production began in the Industrial Revolution with Henry Ford's Model-T factory. Ford was able to produce many models of a car in one day. This process emphasises low costs and uniform products. Because the process is repetitive, manufacturers can reduce their costs and create a high volume of finished goods. However, manufacturers still need to incorporate electronics into their car designs. This type of manufacturing requires detailed planning and highly skilled employees.

Examples of MFG

There are numerous examples of manufacturing, ranging from automobile assembly lines to knitting textiles. Manufacturing is the process of transforming raw materials into finished goods. 

Example 1:

The first example involves assembling raw materials into finished goods. The second example demonstrates how a manufacturer can wait until a customer orders a specific type of sauce, such as ketchup. 

They can control their inventories and respond to market demand more effectively by waiting to process this order. In addition to this, a manufacturer can also take a hybrid approach, wherein multiple manufacturing processes are combined to create a single product.

Example 2:

Another example of manufacturing is continuous process manufacturing. This manufacturing process is similar to the former but is designed to repeatedly create the same or similar products in larger order quantities. 

The manufacturing process involves using liquids, powders, slurries and gases to create a finished product. Pharmaceutical companies, for example, create painkillers and other drugs in larger batches. Following this process makes the end product better than the raw material.

Example 3:

Another example of manufacturing is the automobile industry. Automobiles provide transportation for millions of people worldwide, and they provide cheap vehicles, employment and a variety of other products.

Ultimately, manufacturing is vital to the world economy. And this is why it has been so popular. You can't imagine a world without it, and if you can't imagine life without manufacturing, there's probably no other industry as important. And it's still the most important and profitable sector in the world.

Manufacturing vs Production

The answer depends on the nature of the product. The latter involves a complex process in which raw materials are procured and processed into a finished product. It also involves many human hands and other resources, including money and materials. The result of manufacturing is a utility or good that a consumer can use. It is important to remember that each process is not the same.

The definition of manufacturing varies from field to field. In general, manufacturing involves the conversion of raw materials into finished products. This process can be grouped into three main categories: chemical, physical and biological. The end product of manufacturing may be a consumable product for an end customer or a raw material for another industry. In both cases, raw materials and labour are combined to produce the finished product. Manufacturing is the more complex and costly of the two.

Both manufacturing and production involve transforming raw materials into finished goods. Production processes use machines or manual labour to turn raw materials into finished products. Although oil is not manufactured, it is a natural resource, so oil production is mentioned in total output amounts. Production is not an exact substitute for manufacturing. Manufacturing and production are both very similar processes. But there are some differences. Whether the production process is more complex or simpler depends on the context.

Also Read: List of Top Toy Manufacturing Companies in India

Advantages of Manufacturing

Manufacturing has many benefits that help increase the efficiency of a production facility. These advantages include: 

  • Enhances quality: Quality enhancement is one of the most beneficial technology elements for manufacturing. Production software means that humans are not required in all areas of scheduling and planning production and the actual production process itself. Automating the production of production schedules and production lines results in an optimised schedule that has reduced the risk of defects, inefficiencies and other mishaps.
  • Cost reduction: Reduced costs are one of the main purposes of modern manufacturing. This is due to the elimination of inefficiencies. Also, production waste is reduced in the manufacturing process. This can save a significant amount of money over the long term.
  • Reduced time to production: The longer the process takes, the more it will cost. Technologies for manufacturing drive the process of production and help get items out in a faster and more effective manner.

Conclusion

Technology has changed the way of manufacturing, and it continues to improve. Many new technologies and techniques are coming in. The development of 3D printing has made it possible for people to make their products in their homes. 
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FAQs

Q: What are MFG goods?

Ans:

A manufactured good is produced majorly by the labour application and capital to raw substances. Also, it can include some other intermediate inputs.

Q: What is the difference between production and manufacturing?

Ans:

If we talk about manufacturing and production differences, both mean creating goods, and both are the same. For example, both include production/manufacturing intangible and tangible products from substances like materials or resources.

Q: What is the MFG date meaning?

Ans:

The term "MFG date" is present on products to show their manufacturing date. Also, after knowing the MFG date definition, you must pay attention to when the expiry date is to avoid eating/using dangerous products.

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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.