Production (economics)

Production, ( from Latin: producere = apparent cause ), manufacturing, fabrication, in legal parlance, the production, is the man (producer ) resulted in the transformation process, which consists of natural as already produced raw materials ( material ) using energy produced work force and certain means of production storable economic or consumer goods (economic good).

The production is part of the business process. A comprehensive consideration of production extends not only to organizational and technological aspects, but also on socio-cultural and ethical- normative values ​​about work, which it is subject as one of the basic operations to cover human needs.

Disambiguation production

The concept of production is not initially restricted to the industrial sector, but also refers to the production of goods in general. Produces well in crafts, agriculture and forestry, and in the artistic field. Services are restricted producible, as long as one is producing at least in moderation as an object to conceptive product ( television program ). In publishing the traditional term production rate remains as a large work area, in charge of paper and on-line organization, etc. Not storable commodities such as electricity, are, however, usually does not produce ', but provided.

In industrial production, the production is distinguished ( piece goods ), the manufacturing process ( flow of goods) and process technology (from raw materials to goods ).

• Under manufacturing technology is the manufacture and assembly of discrete, countable parts. The different production methods are from a business perspective, differentiated according to the type of production, which is differentiated according to the type of production with number of parts produced as a classification criterion and the manufacturing organization. The production technology describes the technical methods of production.
• In the technical process of production ( process manufacturing ) emissions of goods is measured quantities or volume oriented. Areas of application are esp. the chemical and food industries, mining and bulk materials such as cement.
• In process engineering, the processing of raw materials is considered to be a primary product. This continuous and discontinuous processes can be distinguished.

Production today

Competitive goods production in high-wage countries is based on qualified professionals, but especially on a high degree of technology. The production research develops methods, equipment and production facilities including for the automotive industry or manufacturing. Particularly important are their results but in machine and plant construction, determine the products of the performance of other industries.

In recent years, the globalization of production has greatly increased. Here, the two main motives cost reduction and market development play important roles. The labor costs and proximity to market are therefore both relevant location factors for production. Successful global companies it is almost everywhere in the world able to achieve excellent productivity and quality. These companies are adapting to the different situations and use the site-specific production technology and employment strategy.

Production management, production theory

The consideration of the production, however, is particularly focused on the industrial production in the production process. The Business Administration to establish, as one of the classic functions in the operation ( production management, industrial management, technology).

In economics, production theory describes the derivation of the supply curve ( offer ( economics ) ) in the market model. From a technology based, which describes all technically feasible combinations of input factors can be the most efficient combination of factors - for given prices - derived (so-called profit maximization ). Hence the factor demand and the supply of goods can be derived.

Production models

• Factor Substitution: The factors can be combined as one factor to another replace ( substitute ) can.
• Partial factor variation: In contrast to factor substitution, in which the output quantity with changing the ratio of input factors remain constant, the output quantity changes. Partially also means that only a change factor is another constant.
• Total factor variation: all factors of production can be used freely ( no restriction ).

With regard to the factor relationships, substitutional and limitational production functions can be distinguished. In substitutional production functions, the yield factors are not in a fixed relation to the quantitative yield. Substitionale factors of production can therefore be interchanged. Here, however, is possibly a decreasing marginal rate of substitution observed, that is, that with progressive substitution of one factor of production is increasing demand for the other factors of production is to replace a unit of the substituted factor.

In contrast, the factors are at limitational production functions in a technically deterministic relation to the planned production quantity. To produce a certain yield a technically well-defined quantity limitational each factor of production is required. This often can be found in the chemical industry.

Economics

In economic terms such as Manufacturing and production value are used.