Production - forms of organization
| Production - forms of organization |
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The production is a very broad term, which can be understood in several ways. Most important areas of use are fields of: Economics and Management Sciences. For economists it will mean actions of enterprises providing goods and services on the market, while from the perspective of the management sciences it will mean mainly production process.
The main objective of companies operating on the market is profit maximization. Manufacturing companies decide on the size of the production on the basis of the economic calculation and assessment of demand for the manufactured good. In accordance with Economic Science production is studied from the point of view of production decisions made by all companies on the market.
In the context of Management Science production is described as a process consisting of several consecutive steps, which goal is to make a final good. The manufacturing process uses among others: raw materials, consumables, semi-finished products, parts and assemblies. Production process, however, is much more complex and includes: machines, configurations of equipment, control, transport and storage of finished products.
References
- Kleindorfer, P. R., Singhal, K., & Wassenhove, L. N. (2005). Sustainable operations management. Production and operations management, 14(4), 482-492.
