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Partner in Engineering
Partner in Engineering
In the simplest sense, to define production technology would be to include any machinery that makes creating a tangible physical product possible for a business. To the small business, this means a workshop at the very least, with more elaborate operations making use of machines and assembly lines. Choosing a production scale model within a company’s capital means is important; simpler workshops tend to lead to lower production volume but cost less to assemble, while higher output operations require more complex and costly machines, which are sometimes cost prohibitive.
Formally Production technology refers to all measures and facilities for the industrial production of goods. The basis is the transfer of scientific knowledge into technologically controllable and economically usable production systems. It is usually divided into the three areas of energy technology, production technology and process technology. Development and construction of goods are the first steps in production.
When it comes to investing in production technology, a small business’s focus should be on generating the best dollar return on capital investment within the confines of the company’s reasonable budget. The IRS states that small businesses are a success when they generate profit at least three out of every five years. This general rule means that for the small business person, if it takes more than two years to pay off the initial capital investment in production technology, the businesses likely exceeded its ideal maximum production technology budget. This doesn’t mean that smaller to medium businesses have to abandon advanced production methods entirely; instead, they can adapt some practices from larger-scale industry that suit their own needs and capabilities. For example, small and medium businesses looking to capitalize upon the mass production method of industrial manufacturing can take a page out of Henry Ford’s book and use a simple conveyor belt line along with labor division to simplify and speed up the production process while still using artisan shop-style manually operated tools.