Manufacturing is one of the core elements of any economy, playing an important role in creating products and services to meet market demand. So what is manufacturing and how does manufacturing take place? In this article, let's explore manufacturing activities with 1C Vietnam to better understand the role of this activity in the development of businesses and the economy.

1. What is production?

Production is an important process in the economy, which involves transforming raw materials and resources into valuable products or services. This process begins with the collection of raw materials and combining them through processing steps, to create goods that meet market needs.

Production can take place at many levels from manual to highly automated, depending on the size and goals of the business. The main purpose of production is to create added value for products, while meeting consumer demand and generating profits for the business.

2. Basic factors in the production process

Each factor plays an important role in ensuring the efficiency and quality of the product. Analyzing from the concept of what is production , it can be seen that this process is made up of the following basic factors:

• Labor: Is the human element involved in the production process, from workers to managers. They perform tasks such as operating machinery, checking quality, and managing the production process.
• Land: A natural resource needed for production, including space for factories and raw materials such as minerals and agricultural products.
• Capital: Capital includes the finances and equipment required to invest in machinery, technology, and tools to support production. Capital also refers to the cost of other factors such as raw materials and labor.
• Business skills: The ability to coordinate and manage factors of production to optimize performance. This skill includes planning, data analysis, and strategic decision making.

3. Factors related to production activities

Manufacturing operations are not only related to internal factors but also influenced by external stakeholders. These stakeholders contribute significantly to the success of the manufacturing process. Specifically:

4. Characteristics of production activities

In addition to understanding what production is , businesses need to grasp the outstanding characteristics of the production process, reflecting the methods and requirements of this activity:

• Value creation objective: The production process aims to create a product or service that has added value compared to raw materials. This includes meeting customer needs and ensuring differentiation from competing products.
• Combination of raw materials and technology: The manufacturing process combines many factors such as raw materials, machinery and technology to create a finished product. The effective coordination between these factors is the key to achieving the best results.
• Interaction between production steps: Each step in the production process does not operate independently but interacts and depends on each other. Managing these steps in a synchronized and efficient manner is essential to ensure the quality of the final product.
• Factors determining efficiency: Factors such as production processes, technology used, and quality control all affect the efficiency of manufacturing operations. Businesses need to continuously monitor and adjust these factors to improve efficiency.
• Quality and continuous improvement: Ensuring product quality is an integral part of the manufacturing process. Businesses need to implement quality control measures and process improvements to maintain and improve product quality.

5. The role of production activities

Manufacturing activities play an essential role in the economy and society, including:

• Creating goods and services: Manufacturing satisfies human consumption needs by creating a variety of products and services, from food to industrial equipment.
• Value creation: The production process converts raw materials into finished products, creating value added and contributing to economic growth.
• Creating jobs and income: Manufacturing provides employment opportunities and income for workers, contributing to improving living standards as well as promoting socio-economic development.
• Contribution to economic growth: Manufacturing is an important factor in the economic development of a country, improving economic indicators and promoting diversification.
• Building economic infrastructure: Manufacturing requires strong infrastructure, including factories, transportation systems, and energy to support economic growth.

6. What are the basic stages of the production process?

The manufacturing process involves several stages, from preparation to finished product. The basic steps in the manufacturing process include:

6.1 Phase 1: Market research and idea generation

To begin the production process, businesses need to conduct market research to understand customer needs and consumer trends. From there, businesses develop product ideas that meet market needs. This stage includes analyzing competition and determining the necessary requirements for the product.

6.2 Phase 2: Developing and perfecting the product model

Based on the technical requirements and features of the product, designers develop the idea into drawings or models. Product prototypes are created to test feasibility and collect feedback from customers. This stage is an important step to ensure that the product best meets the needs and desires of the market.

6.3 Phase 3: Testing and evaluating sample products

Product samples must undergo testing to ensure quality and performance. This process involves evaluating the product against quality standards and technical requirements. Testing helps to detect and correct errors before the product is mass produced.

6.4 Phase 4: Mass production

Once the product sample has been approved, the company will proceed to mass production. The company will carry out each step such as purchasing raw materials, setting up production processes and training employees. Production steps need to be monitored and managed to ensure the product meets quality and is on schedule.

6.5 Phase 5: Monitoring and improving the production process

After production, businesses need to monitor the process and product performance. Monitoring activities help to identify problems and opportunities for improvement. Businesses should make continuous improvements to improve product quality and production efficiency.

7. Effective production management with 1C:ERP solution

1C:ERP provides comprehensive business management solutions, with a prominent production management subsystem. The subsystem effectively manages production activities by supporting production planning, product data management, production progress and order management, store management, repair management, etc.

• Production planning: Provide flexible production plans; Monitor the production process as well as semi-finished products; Analyze the feasibility of the plan, considering cost factors (raw materials, labor, equipment).
• Manufacturing data management: 1C:ERP supports the creation and maintenance of a unified regulatory database for a product category instead of a single product.
• Production order management: Planning and integrating with product demand; Scheduling production as well as coordinating with different departments in production; Monitoring production work, executing schedules…
• Production Schedule Control: Allows conversion of customer production requests into a production order queue, considering priority and timing factors.
• Workshop Management: Monitor the supply of resources to production stages; Use optimization criteria to check the work schedule and load schedule of the center; Schedule route sheets; Notify the head coordinator of deviations from the production schedule; Automatically manage the work in the shift…
• Repair management: Record and store information of working equipment; Register operating time for each equipment; Plan scheduled repairs…

8. Popular production models today

In the context of the rapidly growing and changing global economy, production models have been changing significantly to meet market demand as well as optimize production processes. Understanding the popular production models today not only helps businesses grasp trends, but also helps choose the right production strategy. Below are some production models that are widely applied and proven effective in many fields:

Understanding what manufacturing is not only helps businesses master processes but also provides insight into how businesses create value and meet customer needs. Hopefully, through this article, businesses have a more comprehensive and clear view of manufacturing activities and their impact on the economy. Don't forget to apply professional support solutions such as 1C:ERP to improve production efficiency and enhance business competitiveness in an increasingly fierce market.