Top 10 factors that can affect the manufacturing process

Factors of production means the inputs used in the production of goods or services in order to make an economic profit. Land, labour, capital and entrepreneurship are some of the factors of production. These production factors are also known as management, machines, materials and labor and knowledge and they are potentially the new factor of production.

Factors of production depend on the availability of various items and the ultimate use of the product, various elements or agents which help in the fulfillment of production. Thus the goods and services which enable the process of production is carried on are known as factors of production and they are also known as inputs. Anything which contributes to an output is known as input or factors of production.

Source: tiepco.com

Any resource needed for the creation of a good or services are included in the factors of production. Land, labor, capital and entrepreneurship encompass all of the inputs which are needed to produce a good or service. Land includes all natural resources like timber and gold needed for the production of a good. All the work that the laborers and workers do at all level of an organization, except for the entrepreneur is included in labor. Entrepreneur is a person who takes an idea and attempts to make an economic profit from it by combining all other factors of production. The entrepreneur bears all the risks and rewards of the business. Capital includes the tools and machinery used to produce a good or service.

Manufacturing process is a complex one and it can be affected by factors like supplies, equipment, factory overhead, the need for special parts and all the people who are involved in the process at various points. If the variables are more then there is great possibility of disruption to the smooth operations of a factory. Positive or negative impact also puts a great impact on the process by management styles.

Some of the top 10 factors that can affect the manufacturing process are mentioned below:-

Policies of Management - Type of product, quality, scale of production, level of plant integration, type of production, possibility of future expansion etc., are some of the policies of the management which influence the type of layout to be adopted.

Capital – Capital is a produced means of production. A means of production as it helps in the production of wealth. Examples of capital are buildings, raw materials, machines, highways, posts, etc.

Land – One of the important factors of production is land and this is a free gift of nature. Land in every day usage means the surface of the earth. Land has a special meaning in economics. Land is of course surface of earth and also includes free gift of nature like forest resources, mineral resources or anything which help in carrying our production of goods and services and nature provides it free of cost.

People – Workers or people who are directly involved in the manufacturing process directly affect the process in many ways. To prevent a negative impact on manufacturing sick days and vacations must be taken into account during manufacturing process. Human error is one of the tangible factors which is often dealt with. Human insight into a manufacturing process leads to more labor efficient and cost effective methods of production affecting the manufacturing process in a positive way.

Organization or Entrepreneurship – Organization is a specialized human element related to production. An entrepreneur plays an important role as it is the entrepreneur who takes up the risks and sets the entire productive machinery into motion. 

Safety of Employees – The safety of employees is given prior importance while deciding a particular type of production layout unit. The layout should provide for obstruction free floors, non-slippery floors, protection against dangerous fumes, strong odors, excess heat, etc.

Supplies – Manufacturers rely on raw materials supplied from outside sources. Problems with transportation or unconditional weather can delay or hamper the delivery schedule like problems with weather and unconditional weather. If there is no continuous supplies then the manufacturing process will slowdown.

Equipment – Manufacturing process involves complex machines to complete production and any temporary breakdown in the equipment will affect the manufacturing process. By finding out the means of improving efficiency of all working parts of production helps in more continuous and efficient operation. Production is also affected the position of equipment and the personnel needed to operate machines. Sometimes machines fail to operate due to lack of cleaning.

Factory Overhead – In factories, manufacturers depend on utilities to power machines, cool equipment and light in workspace. The production process can be affected by temporary shutdown of the power supply or lack of proper water supply. Besides management style can have a significant impact in both negative and positive ways on production.

Special Parts – An unforeseen change will have a significant impact on the manufacturing process in case they are shipped over long distances from offsite. Inequality in quality may require multiple orders for the same inventory resulting in delays and temporary slowdowns or shutdowns of the same manufacturing process. 

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