What is the mode of production? 5 popular production methods
In the process of historical development, each stage has its own production method to create material wealth suitable to each situation. So what is the production method ? What are the common production methods? Let's find out with 1C Vietnam through the article below.
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1. What is the production method?
Production method is a way of human exploitation to create material wealth necessary to meet the existence and development of human society. This is how humans created matter in different historical stages during their development. The main production method is a combination of productive forces and production relations. So to better understand production forces and production relations, let's learn about the content below.
1.1. Producers
Production forces include the combination of workers and means of production. Means of production play the most important role as labor tools, helping human production become more efficient and creating material wealth necessary for life.
Specifically, the structure of LLSX includes:
- Labor force
- Production materials:
- Labor tools.
- Science Technology.
- Labor objects: Raw materials, resources, land,...
- Working facilities: Bridges, warehouses, roads,...
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1.2. Relations of production
Relations of production are the relationships between people in the process of creating physical products. Production planning includes elements such as:
- Relations in ownership of means of production.
- Relations in finished product distribution.
- Relations in production management.
These relationships have the effect of dividing the assets produced in society. This is often given in the form of laws and class relations in society.
Production relations are a social form created by humans. However, this relationship is formed objectively during the production process and is not completely controlled by humans. Therefore, relations of production can be considered material in social form.
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2. The relationship between productive forces and production relations
2.1. Production force decides on production relations
The continuous development of materials originates from the transformation and progress of the productive forces represented by the tools of labor.
The level of production forces is an index reflecting progress in its development process. The productive force is expressed through people's ability to overcome natural barriers in each historical period, expressed through people's tools, labor skills and accumulated experience.
In the course of human history, the level of labor has progressed from individualization to socialization. However, when this progress reaches a certain level, production relations may no longer be relevant and may limit the development of productive forces.
This limitation can stimulate the development of a new production relationship, which means creating a new method of production to replace the old one.
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2.2. Production relations affect production forces
If production relations are consistent with the level of production forces, this level will promote development. On the contrary, if production relations are not appropriate, it will inhibit the development of productive forces. At that time, new production relations suitable for production forces will be formed to replace the old production relations. From there, Production Relations will promote the development of production forces.
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3. Meaning of production method
Production methods play a very important role in the development of human society. This is a decisive factor and driving force for the development of society. Below are 4 important implications of production methods on human society:
- Production activities are a prerequisite for addressing basic human needs.
- As an important sign to distinguish between humans and animals, it is also the basic motivation to separate humans from other animals.
- Plays an important role in determining the development and change of socio-economic patterns.
- Considered a core factor in the development of human society.
4. Current popular production methods
4.1. Production and storage methods
The production and storage method (MTS) is a strategy based on forecasting consumer demand of the market and users, in which businesses will produce products based on forecast demand.
However, warehouse production is not recommended for businesses or products where demand is difficult to predict. Excessive inventory without determining demand can lead to unsold goods and unsold cash flow, affecting business profits.
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4.2. Production method according to orders
Make-to-order (MTO) is a business strategy based on customer ordering needs. This method is especially useful for customers who require customization to the desired specifications for their products. Made-to-order manufacturing is suitable for products that can be heavily customized.
4.3. Production method of assembly according to orders
This is a hybrid approach between MTS and MTO, in which the company stocks basic parts based on market requirements and delivers the finished product when customers order it. The biggest advantage of this method is the ability to quickly customize products according to customer needs.
4.4. Production method configured according to orders
Manufacturing to order (MTO) is the process by which a business determines product standards before configuring the product upon receiving an order from a customer.
4.5. Production methods are designed based on orders
Design production to order (ETO) is a business that will complete the product according to the specific requirements of the customer. Customers will be able to ask businesses to design special techniques and customize product features. These terms need to be included in the sales contract between the customer and the business.
In the above article, 1C Vietnam has helped you better understand the concept of " what is a production method " and current popular production methods in business activities. Hopefully with the above sharing, businesses will have a clearer and more general view of production methods, from there, businesses will plan and make appropriate production plans.
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