Business Structures and Production Management Essentials

Products and Services Defined

Goods

Goods are all products that have measurable physical characteristics.

Services

Services are intangible and immaterial products.

Economic Sectors of Companies

Primary Sector Companies

These companies are engaged in activities directly related to the land, such as: agriculture, mining, fisheries, and livestock.

Secondary Sector Companies

These are companies that transform, modify, and process raw materials to create the final product.

Tertiary Sector Companies

These companies offer customer services, including:

• Trade
• Transport
• Banking
• Other services

Company Ownership and Legal Forms

Public Company

A public company is managed and directed by government institutions.

Private Company

A private company is managed and directed by a person or group of people.

Legal Forms

According to their characteristics and operation, there are several types of legal entities, such as: single cooperative, limited partnership, and others.

Production Department Organization

The Production Department handles the processing or manufacturing of the product after raw materials have been obtained.

The Technical Office

This area of the company aims to conduct the necessary studies to develop a product and control the entire production process.

Basic Functions of Production

• Design and develop the plans or mechanisms for manufacturing products.
• Set, in accordance with the plans, the most profitable methods for the manufacture of the product.
• Plan the manufacturing process and the order of production.

Manufacturing Section and Process Phases

Manufacturing Section

This is the area of a company where product development takes place. It begins with the receipt of raw materials and ends with the operation of packaging and storage.

The Manufacturing Process

The manufacturing process is the sequence of steps followed to obtain a specific product. It includes three main phases:

1. Receiving raw material or semi-finished product.
2. Packaging.
3. Storage of the finished product.

Quality Control and Product Guarantees

Product Quality Definition

The quality of a product is the set of requirements that must be met to satisfactorily perform the function for which it was created.

Process Diagram

A process diagram is a graphical representation, using standard symbology, which includes various activities and transactions performed in a manufacturing process.

Guarantees

After processing and packaging, products are carefully controlled so that they can be used or consumed by customers with maximum guarantees.

Industrial Waste and Classification

What is Industrial Waste?

Industrial waste refers to the set of objects or substances that are not usable when processing raw materials into products through a transformation or manufacturing process.

Classification of Waste

Industrial waste is typically classified into several categories:

• Biodegradable Waste: These decompose by the action of the sun or by themselves.
• Toxic Waste: These must be kept isolated from other waste and are treated according to their specific characteristics.
• Other Wastes: These can often be recycled or treated in a controlled manner.
• Radioactive Waste: These are among the most dangerous. Currently, these residues are packed in sealed drums which are then placed deep underground or buried in the depths of the sea.