6 Manufacturing Business Processes: Starting From Procurement Of Goods To Marketing

Manufacturing business process (Freepik)

YOGYAKARTA - The manufacturing industry is one of the business opportunities with promising prospects. Many big entrepreneurs are involved in manufacturing businesses because the demand or demand is very high, as are the profits generated. So what are the business processes of manufacturing companies and their types of production?

Manufacturing companies carry out activities in their activities of converting raw materials into ready-to-use and sold products. Products produced will be used by the community or reprocessed by other companies. Because production in their business is quite complex, the manufacturing business process requires various long stages.

Activities in the manufacturing business require the use of equipment machines, advanced tenology, and labor that are usually in large quantities. For you to be interested in this business, there are several manufacturing business processes that you need to know about.

In running its business, manufacturing companies have basic references or SOPs as standard operating activities ranging from procurement, production, to sales. The following is an explanation of the manufacturing business process involving various stages:

In the manufacturing business, there is a procurement process or all business activities related to the procurement of goods and operational needs of the company. This procurement process is a very important activity because it is needed to support the sustainability of the manufacturing company's business.

The procurement process includes procurement activities for raw materials, spare parts, carpentry equipment, medical equipment, cleaning equipment, and so on. Manufacturing companies must be able to plan the procurement process in a measured and precise manner in calculation, so that it runs effectively and efficiently.

The next manufacturing business process is out of inventory. This business activity focuses on managing entry and issuing company stocks or supplies. This in-out inventory process is an activity where the company owner manages the flow of goods.

Distribution or transfer of goods from one division to another is one of the processes that will be involved in the process of processing raw materials into finished or ready-to-use products.

The production process is also one of the most important processes in the manufacturing business. The production process is the activity of processing raw materials into finished or ready-to-use products. Products produced are then sold to other companies or consumers.

In the production process, there are many divisions involved ranging from Production Planning, Inventory Control (PPIC), to Quality Control (QC). QC plays a role in ensuring the quality or quality of the product is in accordance with company standards.

The process in manufacturing businesses that also needs to be understood is general administration processes. The administrative and General Affair (GA) Division holds responsibility for this process. At this stage, the division is tasked with ensuring all operational activities of the company can run efficiently and effectively.

The administrative and GA Divisions carry out a number of responsibilities, such as determining policies, directives, and company supervision. In addition, the division also takes care of employee needs ranging from employee administration, Human Resource (HR) duties, and employee salaries. In this process, there are several costs incurred by the company, including accounting costs, employee costs, employee salary costs, and others.

The financial accounting process in the manufacturing business is tasked with ensuring that a business entity has healthy finances and is able to meet production needs. In addition, this division also works to control debt.

The financial accounting division also has the task of projecting profits and expenditures of manufacturing companies. In addition, the accounting and financial division has the obligation to regulate taxes that must be paid by business entities to the government.

The next manufacturing business process is the sales and marketing stages. This division has the task of selling and marketing to make a profit. There are several marketing costs in this process, including promotion costs, transportation costs, employee salary costs, building rental costs, and others.

Such is the review of the manufacturing business process and its stages. Manufacturing business is a large-scale business activity because it involves several stages and operational processes. However, the profits obtained from this business are also very high. Also read the opportunities for heavy equipment rental business.

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