Full Form of MFG – Manufacturing
The Full Form of MFG is Manufacturing. Manufacturing is the process of converting raw material or assembling of parts into complete goods or finished goods with the help of hand, labor, machines, tools, chemicals, etc. in such a manner that the ultimate goods produced have entirely different characteristics, appearance, use from its raw materials.
- For ages, people have found different ways to convert raw materials such as oil, wood, food, and other stuff into finished goods like gas, furniture, eatables, etc. This started the industrial process, which converted raw materials into finished products in large quantities and turned into the industrial revolution in the 19th century. Earlier, these products were made by hands. These processes, in turn, helped to increase the production with reduced labor work.
- Huge production and assembly line manufacturing helped companies make parts that could be used one by one and helped the production be done more rapidly by lowering the customization process. The age of computers and high-tech technological gadgets has helped companies achieve a more reliable and accurate manufacturing method. Outputs of such companies require skilled labor and more capital investmentCapital InvestmentCapital Investment refers to any investments made into the business with the objective of enhancing the operations. It could be long term acquisition by the business such as real estates, machinery, industries, etc..
- The method of operations and processes used have changed with time in the manufacturing process. Many jobs in the manufacturing sector with low skills have been transferred from developed countries to developing countries due to the reason that labor in developing countries is cheaper over there. High tech and skilled manufacturing are carried out in developed economies. As result, labor is more productive, and manufacturing is more efficient. As a result of this, production is increased in massive quantity, but the number of human interference has gone down drastically.
Types of MFG
The following are the types of manufacturing –
#1 – Discrete
The discrete method provides a variety of produced products. It is a dynamic methodology and can vary from a few steps to frequent steps of changes. The result of products may be the same or can be totally different from each other.
#2 – Repetitive
The most common and long-established method is repetitive manufacturing. Under this method, the same product or those of similar nature or of the same family is frequently produced one after another. But this method doesn’t provide huge opportunities to fulfill what is expected.
#3 – Job Shop
The job shop doesn’t have a production line and provides one product at a time. Most of the time, these are done on customer demand and don’t have any relation with finished products. These are always more expensive as one product is being made at a time and doesn’t give better opportunities.
#4 – Batch Process
In the manufacturing industry, goods are made in batches that are combined and put together to make a single batch. The batch process may cover many small batches over time or one batch with huge quantity over its span. It can be carried out over a long period of time.
#5 – Continuous Process
A continuous process is quite similar to the repetitive process as both run all the time. The main difference is the raw material used may be liquids, slurries, powder, gases.
Process of Manufacturing
The manufacturing process will depend on the type of finished goods been produced and is unique for each material produced. However, in common, every manufacturing process will involve conversion, assembling, or working upon raw material with the help of either man, machine, or any other equipment. After the conversion, assembling, or working, the manufacturedproduct will have an entirely different appearance, characteristics, uses, etc.
Examples of MFG
- Transportation MFG – These include automobile manufacturing transportation equipment.
- Electronics like mobiles, TVs.
- Fast-moving consumer goods – Cosmetics, food, beverages, soaps, detergents.
- Chemical Industry – Supply of chemicals used in various industries.
- Paper industry – Manufacturing of pulp and related products.
- Pharmaceuticals industry – Making of medicines, medical devices, and healthcare.
- Printing and publishing – Books, colors, etc.
- Industrial equipment – Infrastructure needs and heavy equipment.
- Furniture and fixture – Sofa, bed, cushion. Almira.
Manufacturing vs Production
- Manufacturing includes technology, machinery, software, labor to make consumer goods which are saleable in the market, while production doesn’t deal with machines, the raw material to make its output.
- Manufacturing of products is not an easy task in today’s dynamic business scenario as the inputs have to go through several processes to become output. Manufacturing is done by making the proper balance between machinery, workers, and input materials to be used to get the final product while production is only the additional process done to make the goods saleable to consumers.
- Increase in Efficiency – Quality is the foremost requirement in manufacturing and can be achieved only by the use of machines, technology, and labor as a part of the manufacturing process. This has made the manufacturing process more efficient by reducing errors, defects, and various inefficient factors.
- Lowering the Cost – Cost is the basic factor which affects the business, the lower the cost, the more is the profit. If the process is efficient, then there are low mishaps, and less amount of wastage, and the more amount of money is saved.
- Rapid Production – The manufacturing process includes machines, less labor, and works more efficiently and faster.
- Task-Oriented – As the manufacturing process involves machines and technology, which are automatic so they will do only whatever is programmed to be done, and therefore, creativity is reduced as there is no human intervention.
- Increases Global Issues – Manufacturing process is entirely technology-driven and machine-based. It requires gases, chemicals, fuels, and energy to run, which produces industrial waste and dangerous gases that contribute to global warming and substantially degrading our environment.
- Lowering Jobs – As machines are doing human jobs with more accuracy, human requirement reduces numbers and leads to an increase in unemployment problems.
Manufacturing can be defined as the process of converting, assembling, changing raw material into a product that is entirely different in use and the appearance of its from raw material. The process of manufacturing started a long back during ancient times. There are different forms of manufacturing, like discrete, batches, etc. Examples of manufacturing include automobile mfg, Electronics mfg, etc. The manufacturing process has radically transformed over a period of time under which technology intervention is increasing, and human intervention is reducing, thereby leading to unemployment problems for economies.
This has been a guide to the Full Form of MFG, i.e. (Manufacturing). Here we discuss history, types, the process of manufacturing along with examples, advantages, and disadvantages. You may refer to the following articles to learn more about finance –