Business process in a Manufacturing Company

Manufacturing companies play an important role in the Indonesian economy. The company contributes to a large income to the country either through taxes or other contracts. Because of its size, the company engaged in manufacturing also has a large absorption of labor, that will lead to reduce unemployment.

Manufacturing itself has a different meaning than production, production itself has a broader meaning, namely the process of processing raw materials into a product such as gas, liquid or solid. While manufacturing is the process of processing raw materials into a product in solid form.

Manufacturing is a term refer to the process of converting raw materials, components, or parts into finished goods that meet customer expectations or specifications. This term can be used for human activities, from handicrafts to high-tech production.

Manufacturing companies in every work or operational activity have a basic reference and standard used by employees, usually, the standard reference is called SOP (Standard Operating Procedure).

Those are some general understandings of manufacturing, but  in a manufacturing company there are several lines or business processes. Here are some business process in manufacturing companies :

Procurement process

This is a business process related to the procurement of goods and other needs in helping business sustainable. Not only materials or raw materials, but also includes spare parts, medical devices, cleaning equipment, building needs, employee needs, carpentry tools, and other materials and components. This process requires completeness as well as efficiency and effectiveness in the selection of these items.

In Out Inventory

Considering the business processes that process raw materials into ready-to-use products, there will automatically be many goods or materials entering and leaving the company. In Out Inventory is a business process that handles the entry and exit of these items, the key is control of goods flow.

Production process

The function of the production process is processing raw materials into finished goods and can be sold to consumers. In reality, there is wider division depend on the needs of the industry. For example, PPIC (Production Planning and Inventory Control) divisions and also QC (Quality Control).

Sales and Marketing

The function of this division is to make sales and marketing to get a profit. For example, the costs of marketing such as promotion costs, transportation costs, warehouse rental fees, employee salary costs when employees are conducting product promotions.

Administration and General

This division is responsible for determining policies, directives, and supervision so that ongoing activities are more effective and efficient. For example, in this department, there are several costs such as accounting fees, employee costs, employee salary costs and others.

Accounting and Finance

Accounting and finance ensure that the finances of a business entity are healthy and able to meet production needs, as well as control over debt. In addition, an accounting, in particular, has an obligation to regulate taxes that must be paid by the factory to the government.

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