economy

definition of production process

The concept of productive process designates that series of operations that are carried out and that are widely necessary to realize the production of a good or a service. It should be noted then that the aforementioned operations, actions, occur in a dynamic, planned and consecutive way and of course produce a substantial transformation in the substances or raw materials used, that is, the inputs that come into play to produce this or that product will undergo a modification to form that product and later to place it in the corresponding market to be marketed.

With the above we want to indicate that the production process or production chain, as it is also called, implies from the design, the production of the product itself to its consumption by consumers.

In addition, physical, economic, technological and human resources participate in this process, among others.

Now, in the market we can find two types of products, on the one hand, the final products, which are those that are marketed in the markets for the final consumer to acquire and enjoy, and on the other hand Intermediate products which are those that are used as factors, raw materials, to complete other actions that are part of the production process.

Without a doubt, the industrial Revolution it was a fact that would mark a before and after in the production of goods and services back in the 19th century when it was developed. The inclusion of machines made us go from an agricultural production to a mechanized one that of course would change the rules of work forever and also would not stop evolving.

Years later, in the 20th century, chain production or mass production, a new way of organizing production, would also cause a schism because this system that is based on the assembly line will delegate to each worker a special and specialized function that will be carried out on highly developed machines. The automobile entrepreneur and founder of the company Oldsmobile, Ransom Eli Olds was the first to put it into practice, while, years later, his colleague Henry ford, would develop an assembly line that had a superior production capacity.

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