Production is .. Production. Finished products

At the core of the economy of each country are industrial enterprises that produce products or provide services. The number of products produced by the enterprise is an indicator for assessing the effectiveness of the firm, the industry and even the whole national economy.

What is products

Products are the result of the enterprise's activity, represented by a set of ready-made material products and services.

The goods produced by the enterprise are an important indicator. Thus, the output characterizes the efficiency of the enterprise and the productivity of labor. Also on the volume of goods can draw conclusions about the production capacity and equipment level. The information obtained allows us to identify the problems that arise at different stages of production, assess the potential and reserves.

Thus, the product is the result of the work of the firm and can be expressed in different forms.

Forms of products

The enterprise's products can take two forms:

• The goods - parts, finished products, semi-finished products and other types of product, the dimensions and volumes of which can be expressed in natural measuring units.
• Services - works aimed at improving the useful qualities of the product (for example, painting) or restoring lost properties (repair). Services of an industrial nature are connected with the increase in the consumer value of products created earlier: grinding, installation, adjustment works, etc.

Intangible form of production in recent years is gaining special popularity. Depending on the nature of the work performed, market and non-market services are distinguished.

Market services include:

• Settlement products of banks and other financial institutions that collect, transfer and distribute monetary resources;
• Non-banking services - wholesale and retail trade, repair, communications, rental, rent, laundry and dry cleaning services, education, catering, hairdressing, legal advice, etc.

Non-market services include costs that are covered by funds from the state budget or voluntary contributions (services of government agencies, public organizations, etc.).

Types of products

In modern production , these types of product are distinguished:

1. The main products are a specific type of product for which manufacturing was organized.
2. By-product - in some industries, technological capabilities allow creating, along with the main products, another product with its own set of useful properties. For example, the production of a cake at a creamery.
3. Conjugate products are a product created from the same raw material as the main products, but by a different technology.
4. Production wastes - during processing they lost their useful properties and can not be used for production.
5. Marriage is the products of an enterprise that is unfit for use and further production. The level of marriage is an important indicator on the basis of which it is possible to judge the efficiency of production and the degree of technical and technological development. The lower this indicator, the higher the productivity of the enterprise.

Classification by degree of readiness

All products produced by the degree of readiness are divided into the following groups:

1. Incomplete production is a product that has only gone through the initial stages of processing and has an unfinished presentation. Also in this category are finished products that have gone through all production processes, but have not yet been issued by waybill and have not arrived at the warehouse.
2. Semi-finished products are parts and products that have passed all technological operations in one shop, but are subject to processing in other production operations. The semi-finished product is subject to special verification for suitability, after which it is documented.
3. Finished products are goods that have undergone a full cycle of processing and all production processes of the enterprise. It is checked for suitability for operation and after that comes to the warehouse of the finished product or delivered to the customer. Finished products are produced in the main production. Quite often in factories, there are subsidiary workshops that manufacture products that accompany the main product. For example, packaging containers, storage tanks, etc.

Evaluation of product quality

All manufactured products must be certified before they get on store shelves. Certification of products is a procedure, the purpose of which is to confirm the compliance of goods with the requirements established by legislation. First of all it concerns the quality and safety criteria.

In the world practice, product certification is carried out by various methods of confirming an object to specified requirements. If the products meet the criteria by the results of the inspection, the enterprise receives a certificate of conformity. It is issued by independent organizations accredited by state ministries and departments.

Goals of certification

The certification procedure is carried out for the following purposes:

• Protection of the consumer from an unscrupulous manufacturer;
• Control of the safety of goods for human health and life, its property and environment;
• Checking the compliance of the product quality level with the indicators declared by the manufacturer;
• Increase of product competitiveness;
• Export promotion and participation in international trade.

Certification can be compulsory or voluntary. Mandatory verification is a state control of quality and safety indicators that products must meet. It is important to consider all existing manufacturers, as well as those enterprises that are only planning to do manufacturing. The purpose of such certification is to provide proof of the conformity of the goods to state standards.

Voluntary certification can be carried out at the request of the enterprise on contractual terms between the applicant and the body performing the examination.

Features of formation of the price for production

After production, the enterprise must calculate the price for which it will sell the product. The price is the monetary equivalent of the value of the commodity. It includes all types of production costs, taxes and payments to the budget, as well as the amount of net income that the enterprise expects to receive.

The price of production can vary with changing production conditions. Thus, an increase in the volume of goods leads to a decrease in the replacement costs per unit of output. A decrease in costs affects the value of the goods. Well, if the enterprise purchased new equipment and improved the technological process, this is likely to lead to an increase in the price of manufactured products.