An industry is the production of goods or related services within an economy. The major source of revenue of a group or company is the indicator of its relevant industry; when a large group has multiple sources of revenue generation, it is considered to be working in different industries. Manufacturing industry became a key sector of production and labour in European and North American countries during the Industrial Revolution, upsetting previous mercantile and feudal economies; this came through many successive rapid advances in technology, such as the production of steel and coal. Following the Industrial Revolution a third of the economic output comes from manufacturing industries. Many developed countries and many developing/semi-developed countries depend on manufacturing industry. Slavery, the practice of utilizing forced labor to produce goods and services, has occurred since antiquity throughout the world as a means of low-cost production, it produces goods for which profit depends on economies of scale those for which labor was simple and easy to supervise.
International law has declared slavery illegal. Guilds, associations of artisans and merchants, oversee the production and distribution of a particular good. Guilds have their roots in the Roman Empire as collegia Membership in these early guilds was voluntary; the Roman collegia did not survive the fall of Rome. In the early middle ages, guilds once again began to emerge in Europe, reaching a degree of maturity by the beginning of the 14th century. While few guilds remain today, some modern labor structures resemble those of traditional guilds. Other guilds, such as the SAG-AFTRA act as trade unions rather than as classical guilds. Professor Sheilagh Ogilvie claims that guilds negatively affected quality and innovation in areas that they were present; the industrial revolution saw the development and popularization of mechanized means of production as a replacement for hand production. The industrial revolution played a role in the abolition of slavery in North America; the Industrial Revolution led to the development of factories for large-scale production with consequent changes in society.
The factories were steam-powered, but transitioned to electricity once an electrical grid was developed. The mechanized assembly line was introduced to assemble parts in a repeatable fashion, with individual workers performing specific steps during the process; this led to significant increases in efficiency. Automation was used to replace human operators; this process has accelerated with the development of the robot. Certain manufacturing industries have gone into a decline due to various economic factors, including the development of replacement technology or the loss of competitive advantage. An example of the former is the decline in carriage manufacturing when the automobile was mass-produced. A recent trend has been the migration of prosperous, industrialized nations towards a post-industrial society; this is manifested by an increase in the service sector at the expense of manufacturing, the development of an information-based economy, the so-called informational revolution. In a post-industrial society, manufacturers relocate to more profitable locations through a process of off-shoring.
Measurements of manufacturing industries outputs and economic effect are not stable. Traditionally, success has been measured in the number of jobs created; the reduced number of employees in the manufacturing sector has been assumed to result from a decline in the competitiveness of the sector, or the introduction of the lean manufacturing process. Related to this change is the upgrading of the quality of the product being manufactured. While it is possible to produce a low-technology product with low-skill labour, the ability to manufacture high-technology products well is dependent on a skilled staff. An industrial society is a society driven by the use of technology to enable mass production, supporting a large population with a high capacity for division of labour. Today, industry is an important part of nations. A government must have some kind of industrial policy, regulating industrial placement, industrial pollution and industrial labour. In an industrial society, industry employs a major part of the population.
This occurs in the manufacturing sector. A labour union is an organization of workers who have banded together to achieve common goals in key areas such as wages and other working conditions; the trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with employers. This movement first rose among industrial workers; the Industrial Revolution changed warfare, with mass-produced weaponry and supplies, machine-powered transportation, the total war concept and weapons of mass destruction. Early instances of industrial warfare were the Crimean War and the American Civil War, but its full potential showed during the world wars. See military-industrial complex, arms industries, military industry and modern warfare. Industries portal Industry information North American Industry Classification System North American Product Classification System Outline of industry Standard Industrial Classification Krahn, Harvey J. and Graham S. Lowe.
Work and Canadian Society. Second ed. Scarborough, Ont.: Nelson Canada, 1993. Xii, 430 pp. ISBN 0-17-603540-0 Media related to Industries at Wikimedia Commons Quotations related to industry at Wikiquote
Production is a process of combining various material inputs and immaterial inputs in order to make something for consumption. It is the act of creating an output, a good or service which has value and contributes to the utility of individuals. Economic well-being is created in a production process, meaning all economic activities that aim directly or indirectly to satisfy human wants and needs; the degree to which the needs are satisfied is accepted as a measure of economic well-being. In production there are two features, they are improving quality-price-ratio of goods and services and increasing incomes from growing and more efficient market production. The most important forms of production are: market production public production household productionIn order to understand the origin of economic well-being, we must understand these three production processes. All of them produce commodities which contribute to well-being of individuals; the satisfaction of needs originates from the use of the commodities.
The need satisfaction increases when the quality-price-ratio of the commodities improves and more satisfaction is achieved at less cost. Improving the quality-price-ratio of commodities is to a producer an essential way to improve the competitiveness of products but this kind of gains distributed to customers cannot be measured with production data. Improving the competitiveness of products means to the producer lower product prices and therefore losses in incomes which are to compensated with the growth of sales volume. Economic well-being increases due to the growth of incomes that are gained from the growing and more efficient market production. Market production is the only production form which distributes incomes to stakeholders. Public production and household production are financed by the incomes generated in market production, thus market production has a double role in creating well-being, i.e. the role of producing goods and services and the role of creating income. Because of this double role market production is the “primus motor” of economic well-being and therefore here under review.
In principle there are two main activities in an economy and consumption. There are two kinds of actors and consumers. Well-being is made possible by efficient production and by the interaction between producers and consumers. In the interaction, consumers can be identified in two roles. Consumers can be both customers of the suppliers to the producers; the customers’ well-being arises from the commodities they are buying and the suppliers’ well-being is related to the income they receive as compensation for the production inputs they have delivered to the producers. Stakeholders of production are persons, groups or organizations with an interest in a producing company. Economic well-being originates in efficient production and it is distributed through the interaction between the company’s stakeholders; the stakeholders of companies are economic actors. Based on the similarities of their interests, stakeholders can be classified into three groups in order to differentiate their interests and mutual relations.
The three groups are. The interests of these stakeholders and their relations to companies are described below. Our purpose is to establish a framework for further analysis. Customers The customers of a company are consumers, other market producers or producers in the public sector; each of them has their individual production functions. Due to competition, the price-quality-ratios of commodities tend to improve and this brings the benefits of better productivity to customers. Customers get more for less. In households and the public sector this means. For this reason the productivity of customers can increase over time though their incomes remain unchanged. Suppliers The suppliers of companies are producers of materials, energy and services, they all have their individual production functions. The changes in prices or qualities of supplied commodities have an effect on both actors’ production functions. We come to the conclusion that the production functions of the company and its suppliers are in a state of continuous change.
Producer community The incomes are generated for those participating in production, i.e. the labour force and owners. These stakeholders are referred to here as producer communities or, in shorter form, as producers; the producer communities have a common interest in maximizing their incomes. These parties that contribute to production receive increased incomes from the growing and developing production; the well-being gained through commodities stems from the price-quality relations of the commodities. Due to competition and development in the market, the price-quality relations of commodities tend to improve over time; the quality of a commodity goes up and the price goes down over time. This development favourably affects the production functions of customers. Customers get more for less. Consumer customers get more satisfaction at less cost; this type of well-being generation can only be calculated from the production data. The situation is presented in this study; the producer community earns income as compensation for the inputs they have delivered to the production.
When the production grows and becomes more efficient, the income tends to increase. In production this brings about an increased ability to pay salaries and profits; the growth of production and impr
A wage is monetary compensation paid by an employer to an employee in exchange for work done. Payment may be calculated as a fixed amount for each task completed, or at an hourly or daily rate, or based on an measured quantity of work done. Wages are part of the expenses. Payment by wage contrasts with salaried work, in which the employer pays an arranged amount at steady intervals regardless of hours worked, with commission which conditions pay on individual performance, with compensation based on the performance of the company as a whole. Waged employees may receive tips or gratuity paid directly by clients and employee benefits which are non-monetary forms of compensation. Since wage labour is the predominant form of work, the term "wage" sometimes refers to all forms of employee compensation. Wage labour involves the exchange of money for time spent at work; as Moses I. Finley lays out the issue in The Ancient Economy: The idea of wage-labour requires two difficult conceptual steps. First it requires the abstraction of a man's labour from both his person and the product of his work.
When one purchases an object from an independent craftsman... one has not bought his labour but the object, which he had produced in his own time and under his own conditions of work. But when one hires labour, one purchases an abstraction, labour-power, which the purchaser uses at a time and under conditions which he, the purchaser, not the "owner" of the labour-power, determines. Second, the wage labour system requires the establishment of a method of measuring the labour one has purchased, for purposes of payment by introducing a second abstraction, namely labour-time; the wage is the monetary measure corresponding to the standard units of working time. The earliest such unit of time, still used, is the day of work; the invention of clocks coincided with the elaborating of subdivisions of time for work, of which the hour became the most common, underlying the concept of an hourly wage. Wages were paid in the Middle Kingdom of ancient Egypt, ancient Greece, ancient Rome. Depending on the structure and traditions of different economies around the world, wage rates will be influenced by market forces and tradition.
Market forces are more dominant in the United States, while tradition, social structure and seniority play a greater role in Japan. In countries where market forces set wage rates, studies show that there are still differences in remuneration for work based on sex and race. For example, according to the U. S. Bureau of Labor Statistics, in 2007 women of all races made 80% of the median wage of their male counterparts; this is due to the supply and demand for women in the market because of family obligations. White men made about 84% the wage of Asian men, black men 64%; these are overall averages and are not adjusted for the type and quality of work done. Seventy-five million workers earned hourly wages in the United States in 2012, making up 59% of employees. In the United States, wages for most workers are set by market forces, or else by collective bargaining, where a labor union negotiates on the workers' behalf; the Fair Labor Standards Act establishes a minimum wage at the federal level that all states must abide by, among other provisions.
Fourteen states and a number of cities have set their own minimum wage rates that are higher than the federal level. For certain federal or state government contacts, employers must pay the so-called prevailing wage as determined according to the Davis-Bacon Act or its state equivalent. Activists have undertaken to promote the idea of a living wage rate which account for living expenses and other basic necessities, setting the living wage rate much higher than current minimum wage laws require; the minimum wage rate is there to protect the well being of the working class. For purposes of federal income tax withholding, 26 U. S. C. § 3401 defines the term "wages" for chapter 24 of the Internal Revenue Code: "For purposes of this chapter, the term “wages” means all remuneration for services performed by an employee for his employer, including the cash value of all remuneration paid in any medium other than cash. Political science: Labour power Proletarian Working class Wage slavery Galbraith, James Kenneth.
Created Unequal: the Crisis in American Pay, in series, Twentieth Century Fund Book. New York: Free Press, 1998. ISBN 0-684-84988-7 Lebergott, Stanley. "Wages and Working Conditions". In David R. Henderson. Concise Encyclopedia of Economics. Library of Economics and Liberty. OCLC 317650570, 50016270, 163149563 U. S. Bureau of Labor Statistics Wealth of Nations – click Chapter 8 Understanding Capitalism Part III: Wages and Labor Markets – Critical of capitalism U. S. Department of Labor: Minimum Wage Laws – Different laws by State Average U. S. farm and non-farm wage LaborFair Resources – Link to Fair Labor Practices The Truth Behind Wages in Mining – How Wages are measured and Current Standards for Mining Professionals Database Central Europe – Data on average wages in Central Europe and in Emerging Markets Salary and wages data collecti
A car is a wheeled motor vehicle used for transportation. Most definitions of car say they run on roads, seat one to eight people, have four tires, transport people rather than goods. Cars came into global use during the 20th century, developed economies depend on them; the year 1886 is regarded as the birth year of the modern car when German inventor Karl Benz patented his Benz Patent-Motorwagen. Cars became available in the early 20th century. One of the first cars accessible to the masses was the 1908 Model T, an American car manufactured by the Ford Motor Company. Cars were adopted in the US, where they replaced animal-drawn carriages and carts, but took much longer to be accepted in Western Europe and other parts of the world. Cars have controls for driving, passenger comfort, safety, controlling a variety of lights. Over the decades, additional features and controls have been added to vehicles, making them progressively more complex; these include rear reversing cameras, air conditioning, navigation systems, in-car entertainment.
Most cars in use in the 2010s are propelled by an internal combustion engine, fueled by the combustion of fossil fuels. Electric cars, which were invented early in the history of the car, began to become commercially available in 2008. There are benefits to car use; the costs include acquiring the vehicle, interest payments and maintenance, depreciation, driving time, parking fees and insurance. The costs to society include maintaining roads, land use, road congestion, air pollution, public health, health care, disposing of the vehicle at the end of its life. Road traffic accidents are the largest cause of injury-related deaths worldwide; the benefits include on-demand transportation, mobility and convenience. The societal benefits include economic benefits, such as job and wealth creation from the automotive industry, transportation provision, societal well-being from leisure and travel opportunities, revenue generation from the taxes. People's ability to move flexibly from place to place has far-reaching implications for the nature of societies.
There are around 1 billion cars in use worldwide. The numbers are increasing especially in China and other newly industrialized countries; the word car is believed to originate from the Latin word carrus or carrum, or the Middle English word carre. In turn, these originated from the Gaulish word karros, it referred to any wheeled horse-drawn vehicle, such as a cart, carriage, or wagon. "Motor car" is attested from 1895, is the usual formal name for cars in British English. "Autocar" is a variant, attested from 1895, but, now considered archaic. It means "self-propelled car"; the term "horseless carriage" was used by some to refer to the first cars at the time that they were being built, is attested from 1895. The word "automobile" is a classical compound derived from the Ancient Greek word autós, meaning "self", the Latin word mobilis, meaning "movable", it entered the English language from French, was first adopted by the Automobile Club of Great Britain in 1897. Over time, the word "automobile" fell out of favour in Britain, was replaced by "motor car".
"Automobile" remains chiefly North American as a formal or commercial term. An abbreviated form, "auto", was a common way to refer to cars in English, but is now considered old-fashioned; the word is still common as an adjective in American English in compound formations like "auto industry" and "auto mechanic". In Dutch and German, two languages related to English, the abbreviated form "auto" / "Auto", as well as the formal full version "automobiel" / "Automobil" are still used — in either the short form is the most regular word for "car"; the first working steam-powered vehicle was designed — and quite built — by Ferdinand Verbiest, a Flemish member of a Jesuit mission in China around 1672. It was a 65-cm-long scale-model toy for the Chinese Emperor, unable to carry a driver or a passenger, it is not known with certainty if Verbiest's model was built or run. Nicolas-Joseph Cugnot is credited with building the first full-scale, self-propelled mechanical vehicle or car in about 1769, he constructed two steam tractors for the French Army, one of, preserved in the French National Conservatory of Arts and Crafts.
His inventions were, handicapped by problems with water supply and maintaining steam pressure. In 1801, Richard Trevithick built and demonstrated his Puffing Devil road locomotive, believed by many to be the first demonstration of a steam-powered road vehicle, it was unable to maintain sufficient steam pressure for long periods and was of little practical use. The development of external combustion engines is detailed as part of the history of the car but treated separately from the development of true cars. A variety of steam-powered road vehicles were used during the first part of the 19th century, including steam cars, steam buses and steam rollers. Sentiment against them led to the Locomotive Acts of 1865. In 1807, Nicéphore Niépce and his brother Claude created what was the world's first internal combustion engine, but they chose to install it in a boat on the river Saone in France. Coincidentally, in 1807 the Swiss inventor François Isaac de Rivaz designed his own'de Rivaz internal combustion engine' and used it to develop the world's first vehicle to be powered by such an engine.
Manufacturing is the production of products for use or sale using labour and machines, tools and biological processing, or formulation. The term may refer to a range of human activity, from handicraft to high tech, but is most applied to industrial design, in which raw materials are transformed into finished goods on a large scale; such finished goods may be sold to other manufacturers for the production of other, more complex products, such as aircraft, household appliances, sports equipment or automobiles, or sold to wholesalers, who in turn sell them to retailers, who sell them to end users and consumers. Manufacturing engineering or manufacturing process are the steps through which raw materials are transformed into a final product; the manufacturing process begins with the product design, materials specification from which the product is made. These materials are modified through manufacturing processes to become the required part. Modern manufacturing includes all intermediate processes required in the production and integration of a product's components.
Some industries, such as semiconductor and steel manufacturers use the term fabrication instead. The manufacturing sector is connected with engineering and industrial design. Examples of major manufacturers in North America include General Motors Corporation, General Electric, Procter & Gamble, General Dynamics, Boeing and Precision Castparts. Examples in Europe include Volkswagen Siemens, FCA and Michelin. Examples in Asia include Toyota, Panasonic, LG, Samsung and Tata Motors. In its earliest form, manufacturing was carried out by a single skilled artisan with assistants. Training was by apprenticeship. In much of the pre-industrial world, the guild system protected the privileges and trade secrets of urban artisans. Before the Industrial Revolution, most manufacturing occurred in rural areas, where household-based manufacturing served as a supplemental subsistence strategy to agriculture. Entrepreneurs organized a number of manufacturing households into a single enterprise through the putting-out system.
Toll manufacturing is an arrangement whereby a first firm with specialized equipment processes raw materials or semi-finished goods for a second firm. Manufacturing Engineering Agile manufacturing American system of manufacturing British factory system of manufacturing Craft or guild system Fabrication Flexible manufacturing Just-in-time manufacturing Lean manufacturing Mass customization – 3D printing, design-your-own web sites for sneakers, fast fashion Mass production Ownership Packaging and labeling Prefabrication Putting-out system Rapid manufacturing Reconfigurable manufacturing system Soviet collectivism in manufacturing History of numerical control Emerging technologies have provided some new growth in advanced manufacturing employment opportunities in the Manufacturing Belt in the United States. Manufacturing provides important material support for national infrastructure and for national defense. On the other hand, most manufacturing may involve significant environmental costs; the clean-up costs of hazardous waste, for example, may outweigh the benefits of a product that creates it.
Hazardous materials may expose workers to health risks. These costs are now well known and there is effort to address them by improving efficiency, reducing waste, using industrial symbiosis, eliminating harmful chemicals; the negative costs of manufacturing can be addressed legally. Developed countries regulate manufacturing activity with environmental laws. Across the globe, manufacturers can be subject to regulations and pollution taxes to offset the environmental costs of manufacturing activities. Labor unions and craft guilds have played a historic role in the negotiation of worker rights and wages. Environment laws and labor protections that are available in developed nations may not be available in the third world. Tort law and product liability impose additional costs on manufacturing; these are significant dynamics in the ongoing process, occurring over the last few decades, of manufacture-based industries relocating operations to "developing-world" economies where the costs of production are lower than in "developed-world" economies.
Manufacturing has unique health and safety challenges and has been recognized by the National Institute for Occupational Safety and Health as a priority industry sector in the National Occupational Research Agenda to identify and provide intervention strategies regarding occupational health and safety issues. Surveys and analyses of trends and issues in manufacturing and investment around the world focus on such things as: The nature and sources of the considerable variations that occur cross-nationally in levels of manufacturing and wider industrial-economic growth. In addition to general overviews, researchers have examined the features and factors affecting particular key aspects of manufacturing development, they have compared production and investment in a range of Western and non-Western countries and presented case studies of growth and performance in important individual industries and market-economic sectors. On June 26, 2009, Jeff Immelt, the CEO of General Electric, called for the United States to increase its manufacturing base employment to 20% of the workforce, commenting that the U.
S. has outsourced too much in some areas and can no longer rely on the financial sector and consumer spending to drive demand. Further, while U. S. manufacturing performs well compared to the rest of the U. S. economy, research shows that it performs poorly compared to manufacturing in other high-wage countries. A total of 3.2 million – one in six U. S. manuf
A warehouse is a building for storing goods. Warehouses are used by manufacturers, exporters, transport businesses, etc, they are large plain buildings in industrial parks on the outskirts of cities, towns or villages. They have loading docks to load and unload goods from trucks. Sometimes warehouses are designed for the loading and unloading of goods directly from railways, airports, or seaports, they have cranes and forklifts for moving goods, which are placed on ISO standard pallets loaded into pallet racks. Stored goods can include any raw materials, packing materials, spare parts, components, or finished goods associated with agriculture and production. In India, a warehouse may be referred to as a godown. A warehouse can be defined functionally as a building in which to store bulk produce or goods for commercial purposes; the built form of warehouse structures throughout time depends on many contexts: materials, technologies and cultures. In this sense, the warehouse postdates the need for communal or state-based mass storage of surplus food.
Prehistoric civilizations relied on family- or community-owned storage pits, or ‘palace’ storerooms, such as at Knossos, to protect surplus food. The archaeologist Colin Renfrew argued that gathering and storing agricultural surpluses in Bronze Age Minoan ‘palaces’ was a critical ingredient in the formation of proto-state power; the need for warehouses developed in societies in which trade reached a critical mass requiring storage at some point in the exchange process. This was evident in ancient Rome, where the horreum became a standard building form; the most studied examples are in the port city that served Rome. The Horrea Galbae, a warehouse complex on the road towards Ostia, demonstrates that these buildings could be substantial by modern standards. Galba’s horrea complex contained 140 rooms on the ground floor alone, covering an area of some 225,000 square feet; as a point of reference, less than half of U. S. warehouses today are larger than 100,000 square feet. The need for a warehouse implies having quantities of goods too big to be stored in a domestic storeroom.
But as attested by legislation concerning the levy of duties, some medieval merchants across Europe kept goods in their large household storerooms on the ground floor or cellars. An example is the Fondaco dei Tedeschi, the substantial quarters of German traders in Venice, which combined a dwelling, warehouse and quarters for travellers. From the middle ages on, dedicated warehouses were constructed around ports and other commercial hubs to facilitate large-scale trade; the warehouses of the trading port Bryggen in Bergen, demonstrate characteristic European gabled timber forms dating from the late middle ages, though what remains today was rebuilt in the same traditional style following great fires in 1702 and 1955. During the industrial revolution, the function of warehouses became more specialised. Always a building of function, in the past few decades warehouses have adapted to standardisation, technological innovation and changes in supply chain methods; the mass production of goods launched by the industrial revolution of the 18th and 19th centuries fuelled the development of larger and more specialised warehouses located close to transport hubs on canals, at railways and portside.
Specialisation of tasks is characteristic of the factory system, which developed in British textile mills and potteries in the mid-late 1700s. Factory processes speeded up deskilled labour, bringing new profits to capital investment. Warehouses fulfill a range of commercial functions besides simple storage, exemplified by Manchester’s cotton warehouses and Australian wool stores: receiving and despatching goods; the utilitarian architecture of warehouses responded fast to emerging technologies. Before and into the nineteenth century, the basic European warehouse was built of load-bearing masonry walls or heavy-framed timber with a suitable external cladding. Inside, heavy timber posts supported timber beams and joists for the upper levels more than four to five stories high. A gabled roof was conventional, with a gate in the gable facing the street, rail lines or port for a crane to hoist goods into the window-gates on each floor below. Convenient access for road transport was built-in via large doors on the ground floor.
If not in a separate building and display spaces were located on the ground or first floor. Technological innovations of the early 19th century changed the shape of warehouses and the work performed inside them: cast iron columns and moulded steel posts. All were adopted and were in common use by the middle of the 19th century. 1. Strong, slender cast iron columns began to replace masonry piers or timber posts to carry levels above the ground floor; as modern steel framing developed in the late 19th century, its strength and constructability enabled the first skyscrapers. Steel girders replaced timber beams, increasing the span of internal bays in the warehouse.2. The saw-tooth roof brought natural light to the top story of the warehouse, it transformed the shape of the warehouse, from the traditional peaked hip or gable to an flat roof form, hidden behind a parapet. Warehouse buildings now became horizontal. Inside the top floor, the vertical glazed pane of each saw-tooth enabled natural lighting over displayed goods, improving buyer inspection.3.
Hoists and cranes
Batch production is a technique used in manufacturing, in which the object in question is created stage by stage over a series of workstations, different batches of products are made. Together with job production and mass production it is one of the three main production methods. Batch production is most common in bakeries and in the manufacture of sports shoes, pharmaceutical ingredients, purifying water, inks and adhesives. In the manufacture of inks and paints, a technique called. A colour-run is where one manufactures the lightest colour first, such as light yellow followed by the next darker colour such as orange red and so on until reaching black and starts over again. There are several advantages of batch production; as shown in the example, batch production can be useful for small businesses that cannot afford to run continuous production lines. If a retailer buys a batch of a product that does not sell the producer can cease production without having to sustain huge losses. Batch production is useful for a factory that makes seasonal items, products for which it is difficult to forecast demand, a trial run for production, or products that have a high profit margin.
Batch production has some drawbacks. There are inefficiencies associated with batch production as equipment must be stopped, re-configured, its output tested before the next batch can be produced. Idle time between batches is known as downtime; the time between consecutive batches is known as cycle time. Cycle time variation is a Lean Manufacturing metric. Continuous production is used for products. For example, a certain car model has the same body shape and therefore, many of the same model cars can be made at the same time without stopping, decreasing manufacturing cost. Batch processing Lot number