Manufacturing is the creation or production of goods with the help of equipment, labor, , , and chemical or biological processing or formulation. It is the essence of the secondary sector of the economy. The term may refer to a range of Human behavior, from handicraft to high-tech, but it is most commonly applied to industrial design, in which from the primary sector are transformed into on a large scale. Such goods may be sold to other manufacturers for the production of other more complex products (such as aircraft, Major appliance, furniture, sports equipment or automobiles), or distributed via the tertiary industry to and consumers (usually through wholesalers, who in turn sell to retailers, who then sell them to individual customers).
Manufacturing engineering is the field of engineering that designs and optimizes the manufacturing process, or the steps through which raw materials are transformed into a final product. The manufacturing process begins with the product design, and materials specification. These materials are then modified through manufacturing to become the desired product.
Contemporary manufacturing encompasses all intermediary stages involved in producing and integrating components of a product. Some industries, such as semiconductor and steel manufacturers, use the term fabrication instead.
The manufacturing sector is closely connected with the engineering and industrial design industries.
Copper smelting is believed to have originated when the technology of pottery kiln allowed sufficiently high temperatures. The concentration of various elements such as arsenic increase with depth in copper ore deposits and smelting of these ores yields arsenical bronze, which can be sufficiently work-hardened to be suitable for manufacturing tools. Bronze is an alloy of copper with tin; the latter of which being found in relatively few deposits globally delayed true tin bronze becoming widespread. During the Bronze Age, bronze was a major improvement over stone as a material for making tools, both because of its mechanical properties like strength and ductility and because it could be cast in molds to make intricately shaped objects. Bronze significantly advanced shipbuilding technology with better tools and bronze nails, which replaced the old method of attaching boards of the hull with cord woven through drilled holes. The Iron Age is conventionally defined by the widespread manufacturing of weapons and tools using iron and steel rather than bronze. Iron smelting is more difficult than tin and copper smelting because smelted iron requires hot-working and can be melted only in specially designed furnaces. The place and time for the discovery of iron smelting is not known, partly because of the difficulty of distinguishing metal extracted from nickel-containing ores from hot-worked meteoritic iron.
During the growth of the ancient civilizations, many ancient technologies resulted from advances in manufacturing. Several of the six classic simple machines were invented in Mesopotamia. Mesopotamians have been credited with the invention of the wheel. The wheel and axle mechanism first appeared with the potter's wheel, invented in Mesopotamia (modern Iraq) during the 5th millennium BC. Egyptian paper made from papyrus, as well as pottery, were mass-produced and exported throughout the Mediterranean basin. Early construction techniques used by the Ancient Egyptians made use of bricks composed mainly of clay, sand, silt, and other minerals.
An economic recession occurred from the late 1830s to the early 1840s when the adoption of the Industrial Revolution's early innovations, such as mechanized spinning and weaving, slowed down and their markets matured. Innovations developed late in the period, such as the increasing adoption of locomotives, steamboats and steamships, Hot blast and new technologies, such as the electrical telegraph, were widely introduced in the 1840s and 1850s, were not powerful enough to drive high rates of growth. Rapid economic growth began to occur after 1870, springing from a new group of innovations in what has been called the Second Industrial Revolution. These innovations included new Bessemer process, mass-production, , electrical grid systems, the large-scale manufacture of machine tools and the use of increasingly advanced machinery in steam-powered factories. Reprinted by McGraw-Hill, New York and London, 1926 (); and by Lindsay Publications, Inc., Bradley, Illinois, ()
Building on improvements in vacuum pumps and materials research, incandescent light bulbs became practical for general use in the late 1870s. This invention had a profound effect on the workplace because factories could now have second and third shift workers. Shoe production was mechanized during the mid 19th century. Mass production of and agricultural machinery such as reapers occurred in the mid to late 19th century. The mass production of bicycles started in the 1880s. Steam-powered factories became widespread, although the conversion from water power to steam occurred in England earlier than in the U.S.
Mass production was popularized in the late 1910s and 1920s by Henry Ford's Ford Motor Company, which introduced electric motors to the then-well-known technique of chain or sequential production. Ford also bought or designed and built special purpose machine tools and fixtures such as multiple spindle drill presses that could drill every hole on one side of an engine block in one operation and a multiple head milling machine that could simultaneously machine 15 engine blocks held on a single fixture. All of these machine tools were arranged systematically in the production flow and some had special carriages for rolling heavy items into machining positions. Production of the Ford Model T used 32,000 machine tools.
Lean manufacturing, also known as just-in-time manufacturing, was developed in Japan in the 1930s. It is a production method aimed primarily at reducing times within the production system as well as response times from suppliers and to customers. It was introduced in Australia in the 1950s by the British Motor Corporation (Australia) at its Victoria Park plant in Sydney, from where the idea later migrated to Toyota. News spread to western countries from Japan in 1977 in two English-language articles: one referred to the methodology as the "Ohno system", after Taiichi Ohno, who was instrumental in its development within Toyota. The other article, by Toyota authors in an international journal, provided additional details. Finally, those and other publicity were translated into implementations, beginning in 1980 and then quickly multiplying throughout the industry in the United States and other countries.
In regard to manufacturing performance, Wickham Skinner, who has been called "the father of manufacturing strategy",R. Sarmiento, G. Whelan, M. Thürer and F. A. Bribiescas-Silva, "Fifty Years of the Strategic Trade-Offs Model: In Memory and Honor of Wickham Skinner", in IEEE Engineering Management Review, vol. 47, no. 2, pp. 92–96, 1 Second Quarter, June 2019, , accessed August 22, 2023 adopted the concept of "focus",Skinner, W., " Focused Factory", Harvard Business Review, published May 1, 1974. with an implication that a business cannot perform at the highest level along all five dimensions and must therefore select one or two competitive priorities. This view led to the theory of "trade offs" in manufacturing strategy.Wassenhove, L. van and Corbett, C. J., "Trade-Offs? What Trade Offs? (A Short Essay on Manufacturing Strategy", p. 2, INSEAD, published April 6, 1991, accessed September 27, 2023 Similarly, Elizabeth Haas wrote in 1987 about the delivery of value in manufacturing for customers in terms of "lower prices, greater service responsiveness or higher quality".Haas, E. A., "Breakthrough Manaufacturing", Harvard Business Review, March/April 1987, pp. 75–81 The theory of "trade offs" has subsequently being debated and questioned, but Skinner wrote in 1992 that at that time "enthusiasm for the concepts of 'manufacturing strategy' had been higher", noting that in , executive courses and case studies, levels of interest were "bursting out all over".Skinner, W., "Missing the Links in Manufacturing Strategy" in Voss, C. A. (ed) (1992), Manufacturing Strategy – Process and Content, Chapman and Hall, pp. 12–25
Manufacturing writer Terry Hill has commented that manufacturing is often seen as a less "strategic" business activity than functions such as marketing and finance, and that manufacturing managers have "come late" to business strategy-making discussions, where, as a result, they make only a reactive contribution.Hill, T., Manufacturing Strategy: Developments in Approach and Analytics, University of Warwick, 1990, accessed 28 September 2023Hill, T. (1993), Manufacturing Strategy, second edition, Macmillan, chapter 2
On the other hand, most manufacturing processes may involve significant social and environmental costs. The clean-up costs of hazardous waste, for example, may outweigh the benefits of a product that creates it. Hazardous materials may expose workers to health risks. These costs are now well known and there is effort to address them by improving efficiency, reducing waste, using industrial symbiosis, and eliminating harmful chemicals.
The negative costs of manufacturing can also be addressed legally. Developed countries regulate manufacturing activity with labor laws and environmental laws. Across the globe, manufacturers can be subject to regulations and Ecotax to offset the environmental costs of manufacturing activities. Labor unions and craft guilds have played a historic role in the negotiation of worker rights and wages. Environment laws and labor protections that are available in developed nations may not be available in the third world. Tort law and product liability impose additional costs on manufacturing. These are significant dynamics in the ongoing process, occurring over the last few decades, of manufacture-based industries relocating operations to "developing-world" economies where the costs of production are significantly lower than in "developed-world" economies.
In addition to general overviews, researchers have examined the features and factors affecting particular key aspects of manufacturing development. They have compared production and investment in a range of Western and non-Western countries and presented case studies of growth and performance in important individual industries and market-economic sectors.
On June 26, 2009, Jeff Immelt, the CEO of General Electric, called for the United States to increase its manufacturing base employment to 20% of the workforce, commenting that the U.S. has outsourced too much in some areas and can no longer rely on the financial sector and consumer spending to drive demand. Further, while U.S. manufacturing performs well compared to the rest of the U.S. economy, research shows that it performs poorly compared to manufacturing in other high-wage countries. A total of 3.2 million – one in six U.S. manufacturing jobs – have disappeared between 2000 and 2007. In the UK, EEF the manufacturers organisation has led calls for the UK economy to be rebalanced to rely less on financial services and has actively promoted the manufacturing agenda.
UNIDO also publishes a Competitive Industrial Performance (CIP) Index, which measures the competitive manufacturing ability of different nations. The CIP Index combines a nation's gross manufacturing output with other factors like high-tech capability and the nation's impact on the world economy. Germany topped the 2020 CIP Index, followed by China, South Korea, the United States, and Japan.
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