Manufacturing is the use of machines, tools and labor to produce goods for use o r sale.

The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw mater ials are transformed into finished goods on a large scale. Such finished goods m ay be used for manufacturing other, more complex products, such as aircraft, hou sehold appliances or automobiles, or sold to wholesalers, who in turn sell them to retailers, who then sell them to end users the "consumers". Manufacturing takes turns under all types of economic systems. In a free market economy, manufacturing is usually directed toward the mass production of product s for sale to consumers at a profit. In a collectivist economy, manufacturing is more frequently directed by the state to supply a centrally planned economy. In free market economies, manufacturing occurs under some degree of government reg ulation. Manufacturing industry refers to those industries which involve in the manufactu ring and processing of items and indulge in either creation of new commodities o r in value addition. The manufacturing industry accounts for a significant share of the industrial sector in developed countries. The final products can either serves as a finished good for sale to customers or as intermediate goods used in the production process. Identification The basic organizational structure of a manufacturing company follows the tradit ional hierarchical organizational structure, consisting of a Board of Directors, Chief Executive Officer (CEO), Chief Operations Officer (COO), department heads and then employees. However, because of the importance of quality in manufactur ing, the head of quality or quality assurance ranks up there with the CEO. Working of manufacturing industry: Manufacturing industries are the chief wealth producing sectors of an economy. T hese industries use various technologies and methods widely known as manufacturi ng process management. Manufacturing industries are broadly categorized into eng ineering industries, construction industries, electronics industries, chemical i ndustries, energy industries, textile industries, food and beverage industries, metalworking industries, plastic industries, transport and telecommunication ind ustries. Manufacturing industries are important for an economy as they employ a huge shar e of the labor force and produce materials required by sectors of strategic impo rtance such as national infrastructure and defense. However, not all manufacturi ng industries are beneficial to the nation as some of them generate negative ext ernalities with huge social costs. The cost of letting such industries flourish may even exceed the benefits generated by them. World Manufacturing Industry Owing to the emerging technologies worldwide, the world manufacturing industry h as geared up and has incorporated several new technologies within its purview. E conomists consider the World manufacturing industry as a sector which generates a lot of wealth. Generating employment, introducing latest techniques, real earn ings from shipments etc., have put the world manufacturing industry in a favorab le position. World manufacturing industry and type of economy: Capitalist economy: Manufacturing industry in a capitalist economy, indulge in mass production and m ake them available to the customers by earning profits. Collectivist economy: Manufacturing industry in a collectivist economy is guided by a state run agency for making available the manufactured goods depending on the requirement. Modern economy: Manufacturing industry in a modern economy operates under regulations framed by the Government.

Modern manufacturing includes all intermediate processes required for the produc tion and integration of a product's components. Some industries, such as semicon ductor and steel manufacturers use the term fabrication instead. The manufacturing sector is closely connected with engineering and industrial de sign. Examples of major manufacturers in North America include General Motors Co rporation, General Electric, and Pfizer. Examples in Europe include Volkswagen G roup, Siemens, and Michelin. Examples in Asia include Toyota, Samsung, and Bridg estone. Function: In the manufacturing industry, quality is everything. Just consider the automobi le industry and how quality or the perception of quality can affect sales. In ad dition to internal quality specifications and assurances, companies have to meet international quality management standards such as ISO 9000, according to Praxi om.com. In a manufacturing company the production function may be split into five sub-fu nctions: 1. The production and planning department will set standards and targets for eac h section of the production process. The quantity and quality of products coming off a production line will be closely monitored. In businesses focusing on lean production, quality will be monitored by all employees at every stage of produc tion, rather than at the end as is the case for businesses using a quality contr ol approach. 2. The purchasing department will be responsible for providing the materials, co mponents and equipment required to keep the production process running smoothly. A vital aspect of this role is ensuring stocks arrive on time and to the right quality. 3. The stores department will be responsible for stocking all the necessary tool s, spares, raw materials and equipment required to service the manufacturing pro cess. Where sourcing is unreliable, buffer stocks will need to be kept and the u se of computerized stock control systems helps keep stocks at a minimal but nece ssary level for production to continue unhindered. 4. The design and technical support department will be responsible for researchi ng new products or modifications to existing ones, estimating costs for producin g in different quantities and by using different methods. It will also be respon sible for the design and testing of new product processes and product types, tog ether with the development of prototypes through to the final product. The techn ical support department may also be responsible for work study and suggestions a s to how working practices can be improved. 5. The works department will be concerned with the manufacture of products. This will include the maintenance of the production line and other necessary repairs . The works department may also have responsibility for quality control and insp ection. A key aspect of modern production is ensuring quality. The term quality means fi tness for purpose i.e. a product; process or service should do exactly what is e xpected of it. Manufacturers organize as needed to maximize productivity and increase quality a ssurances. Manufacturing companies must organize to maximize productivity, quality and shar eholders' value. Because of the importance of quality, the organizational struct ure gives quality assurance special consideration. Considerations: To improve quality, some manufacturing organizations use a matrix organizational

structure close to the production line. This is where a production team, led by a production manager, can work together and make decisions and address producti on and quality issues without having to coordinate with department heads. Depart ment heads focus on general operating policy in this scenario.