Manufacturing is defined as the process which changes the raw material into finished product. Manufacturing is done with the help of machines and plants in well organized factories. Trained labour force and engineers work in these factories. The finished product is more costly than the raw material from which it is made.
Features of Manufacturing:
- Mechanized Factory System
- Value Added
- Reduction in Bulk
(1). Mechanized Factory System:
In present, modern era, large-scale manufacturing requires large industrial units fitted with machines. This system is the gift of the Industrial revolution. Now all the developed countries have well-established industrial units where trained manpower works under factory rules and regulation. Modern factory system has replaced the ancient cottage industry system to a large extent.
(2). Value Added:
The manufacturing process converts the raw materials into finished products. The goods manufactured by factories are more costly than the raw materials used. Thus the difference between the value of the finished product and the cost of raw material is the value added in its production.
(3). Reduction in Bulk (Size):
Another feature of the manufacturing is that it reduces the bulk of raw materials very much. For example, a large quantity of iron ore is consumed to manufacture a comparatively small quantity of iron or steel.