Production process: what is it, phases and typology

One of the main tasks of any goods manufacturer is the production process through which those goods are manufactured. This process involves a long list of steps and tasks that must be carried out to deliver a finished product to the customer.

A production process can be described in many different ways, depending on the type and complexity of the product.

This article describes in simple terms what a production process consists of and then discusses the most common types.

Production process explained simply

A production process is defined as the entirety of activities that must be carried out within a company to offer a product or service. It encompasses all procedures by which a resource, an idea, or a raw material is transformed into a final product offered to the consumer by a company.

An example of a production process in a shoe factory would be any task required to transform the raw materials (fabric, leather, plastic) into a finished product that can be placed in a physical or virtual department store or offered to intermediaries for marketing.

Goals of the production process

Besides obtaining a finished product that is offered on the market, the production process has the following objectives:

• Improve the company’s competitiveness
• Ensuring medium- and long-term continuity
• Increase profits
• Satisfying the demand for products and services
• Develop added value for existing products
• Update the company’s product catalog and market by identifying obsolete or sold-out products.

Phases of the production process

When defining a company’s production process, one generally turns to its phases. This is a first approach to the phases of the process in a typical company.

1. Work planning

It is obvious that a production process requires a certain degree of planning, due to the complexity of the product to be manufactured or the service to be provided and the number of people involved.

Several things are determined during this planning phase. For example, what kind of products will be manufactured, how much raw material is required, how much it will cost, and how much labor is needed.

A product prototype is then designed to support the definition of subsequent phases and to assess its feasibility. This evaluation includes factors such as complexity, price, required production time, material and personnel requirements, etc.

In the case of a service, other things are defined, such as what is offered and where, how, at what price and in what steps the service is provided, etc.

2. Workflow

A workflow is defined by specifying the sequence of activities to be followed from beginning to end in the process.

For each phase of the workflow, all small subtasks must be clearly defined.

In a production process for manufacturing shoes, to stick with this example, it is necessary to determine what is done first (e.g., cutting the leather).

This first phase, in turn, must be clearly defined. Who cuts these pieces? Where are the templates? What quality control measures need to be implemented? How are the produced pieces recorded? Is a purchase order generated?

This phase is crucial for answering the question: What is the productivity of this process? A phase of the workflow that requires more resources has lower productivity. This must be taken into account when later trying to improve the production process.

3. Scheduling

Defining time planning involves identifying and determining how much time is needed to complete each phase of the workflow.

Defining this timeline is crucial in order to know how much time is needed for each phase and to allocate appropriate resources.

4. Start of production

Once the phases, workflow and required scheduling have been defined, all that remains is to start the process or “give the start command” to use a term from the industrial sector.

This is where it truly becomes apparent whether the previous phases were effective or whether adjustments to the plan are necessary. For example, if the downtime of certain machines (to change a mold or make an adjustment) was disregarded, this will become clearly evident in this phase.

Types of production processes

As mentioned, the production process of a service provider is not the same as that of an industrial or logistics company. Therefore, the types of processes should be defined in conclusion.

Process-based definition

Depending on the process being carried out, there are two types of production processes:

• Direct productionThis process encompasses primary and secondary production. Primary production is an activity in which something is directly extracted from nature, such as in agriculture or mining. Secondary production is an activity in which added value is created for an existing product, for example, wood for house construction or steel for bridge building.
• Indirect productionActivities where production only generates results based on knowledge or products in the form of services. For example: machine maintenance, healthcare services, consulting services, etc.

Based on the characteristics of the production process

Based on the characteristics of the production process, there are four types:

• Extractive processActivities in which something is directly extracted from nature through production.
• Manufacturing process: the process by which a material is transformed into different types of products.
• Synthetic processSynthetic processes are the process of combining multiple production materials to create a more complex product. They are also often called assembly processes.
• Analytical process: Activities in which a product is separated during production into forms that are increasingly similar to the original.

Based on the production period

Based on the production period, there are two types of processes:

• Intermittent productionProduction that is not continuous. It is generally influenced by seasonal fluctuations, order volume, and several other factors.
• Continuous productionProduction in which multiple plants are used to continuously manufacture products. The product is of only a few types and is produced in large quantities, without influence from season, climate, or duration.

Clearly defining all activities and characteristics is crucial for achieving an efficient production process. Contact us anytime if you would like more information on how you can use the technology of SAP Business One be able to design an efficient production process. können.