<h5 id="manufacturing">MANUFACTURING</h5> <ul> <li>Manufacturing is a production process that can range from handicrafts to mass production of standardized commodities.</li> <li>It involves the application of power, use of modern machinery, and specialized labor in factory settings.</li> <li>The products of manufacturing can be as simple as toys or as complex as computer components or space vehicles.</li> <li>Manufacturing can be done with or without the use of modern power and machinery.</li> <li>In Third World countries, a significant portion of manufacturing is still done in a very primitive manner.</li> <li>Emphasis in the summarization of manufacturing in these countries is given to less complicated systems of production.</li> </ul> <p>======</p> <h5 id="characteristics-of-modern-large-scale-manufacturing">Characteristics of Modern Large Scale Manufacturing</h5> <ul> <li><strong>Economies of Scale:</strong> This is the cost advantage that businesses obtain due to their scale of operation, with cost per unit generally decreasing with increasing scale.</li> <li><strong>Standardization and Mass Customization:</strong> Modern manufacturing often involves creating standardized products in large quantities, while also offering the ability to customize certain features to meet individual customer needs.</li> <li><strong>Automation and IT Integration:</strong> Advanced automation and IT systems are integral to modern large scale manufacturing, enhancing efficiency, precision, and real-time monitoring and control.</li> <li><strong>Sustainability and Energy Efficiency:</strong> There is a growing emphasis on making manufacturing processes more sustainable and energy efficient, with a focus on waste reduction, recycling, and cleaner technologies.</li> <li><strong>Supply Chain Management:</strong> Efficient management of supply chains is crucial in modern large scale manufacturing, involving coordination with suppliers, logistics providers, and customers to ensure smooth operations and just-in-time delivery.</li> </ul> <p>======</p> <h5 id="specialisation-of-skillsmethods-of-production">Specialisation of Skills/Methods of Production</h5> <ul> <li>The ‘craft’ method of production involves creating a small number of custom-made products, resulting in high costs.</li> <li>Mass production, on the other hand, involves the production of large quantities of standardized parts by workers repeating a single task, which is more cost-effective.</li> <li>The term ‘manufacturing’ refers to the process of transforming raw materials into higher-value finished goods for sale, often using machines.</li> <li>An industry is defined as a geographically located manufacturing unit with its own management system and records.</li> <li>The term ‘manufacturing industry’ is used to differentiate it from other industries such as the ’entertainment industry’ and ’tourism industry’, which are not carried out in factories.</li> </ul> <p>======</p> <h5 id="mechanisation">Mechanisation</h5> <ul> <li>Mechanisation involves the use of gadgets or machines to carry out tasks.</li> <li>Automation is an advanced stage of mechanisation, characterized by the manufacturing process operating without human thinking.</li> <li>Automatic factories, which feature feedback and closed-loop computer control systems, have become commonplace globally.</li> <li>These factories are designed to enable machines to perform tasks that would otherwise require human thinking.</li> <li>The trend towards mechanisation and automation has led to the development of machines that can think and make decisions.</li> </ul> <p>======</p> <h5 id="technological-innovation">Technological Innovation</h5> <ul> <li>Technological innovations are crucial in modern manufacturing.</li> <li>They contribute to quality control in the manufacturing process.</li> <li>These innovations help in eliminating waste and inefficiency.</li> <li>They also play a significant role in combating pollution.</li> <li>The research and development strategy is the primary approach to achieving technological innovations in this context.</li> </ul> <p>======</p> <h5 id="organisational-structure-and-stratification">Organisational Structure and Stratification</h5> <ul> <li>Modern manufacturing is defined by complex machine technology.</li> <li>It also features extreme specialization and division of labor, leading to increased productivity and reduced costs.</li> <li>The industry requires vast capital investment.</li> <li>Large organizations are a common feature in this sector.</li> <li>Executive bureaucracy is also a characteristic of modern manufacturing.</li> </ul> <p>======</p> <h5 id="uneven-geographic-distribution">Uneven Geographic Distribution</h5> <ul> <li>Major concentrations of manufacturing are unevenly distributed, primarily occurring in less than 10% of the world’s land area, due to greater intensity of processes compared to agriculture.</li> <li>The choice of location for large-scale industries is driven by the objective of maximizing profits and reducing costs, with factors influencing industrial locations including: <ul> <li>Access to raw materials and labor</li> <li>Proximity to markets</li> <li>Transportation and infrastructure availability</li> <li>Government policies and incentives</li> </ul> </li> <li>The intensity of manufacturing processes allows for more significant concentrations of industries compared to agriculture, with a smaller area potentially supporting thousands of workers in several large integrated factories.</li> <li>An example from the American corn belt highlights that $2.5 \mathrm{sq} \mathrm{km}$ of land can include about four large farms employing 10-20 workers, supporting 50-100 persons, while also having room for multiple large-scale manufacturing facilities.</li> </ul> <p>======</p> <h5 id="access-to-market">Access to Market</h5> <ul> <li>The location of industries is significantly influenced by the existence of a market for manufactured goods.</li> <li>A market is defined as people with a demand for goods and the purchasing power to purchase them.</li> <li>Remote areas with few inhabitants offer small markets due to low purchasing power, while developed regions like Europe, North America, Japan, and Australia provide large markets due to high purchasing power.</li> <li>Densely populated regions in South and South-east Asia also offer large markets.</li> <li>Certain industries, such as aircraft manufacturing and the arms industry, have global markets.</li> </ul> <p>======</p> <h5 id="access-to-raw-material">Access to Raw Material</h5> <ul> <li>Industries tend to use raw materials that are inexpensive and easy to transport.</li> <li>Industries dealing with heavy, bulk, and non-value adding materials (like ores) are usually situated near their raw material sources, such as steel, sugar, and cement industries.</li> <li>The perishability of a product can significantly influence its industry’s location near the raw material source.</li> <li>Agro-processing and dairy industries are often located close to their farm produce and milk supplies, respectively.</li> <li>This strategic positioning allows for reduced costs and ensures the freshness of the final product.</li> </ul> <p>======</p> <h5 id="access-to-labour-supply">Access to Labour Supply</h5> <ul> <li>Labor supply is a significant factor in the decision-making process of industry location.</li> <li>Certain manufacturing sectors continue to require skilled labor.</li> <li>However, increasing mechanization, automation, and flexibility in industrial processes are reducing the industry’s dependence on labor.</li> <li>Mechanization and automation have led to the substitution of labor with technology.</li> <li>This shift is primarily driven by the benefits of increased efficiency and productivity, which outweigh the costs of labor in many industries.</li> </ul> <p>======</p> <h5 id="access-to-sources-of-energy">Access to Sources of Energy</h5> <ul> <li>Industries that require significant power are typically situated near energy sources.</li> <li>Coal was the primary energy source in the past, but now hydroelectricity and petroleum also play crucial roles in many industries.</li> <li>The aluminium industry is an example of a power-intensive industry located near energy sources.</li> <li>The choice of energy source can vary based on availability and industry needs.</li> <li>Modern industries often use a mix of energy sources to meet their power requirements.</li> </ul> <p>======</p> <h5 id="access-to-transportation-and-communication-facilities">Access to Transportation and Communication Facilities</h5> <ul> <li>Efficient transport facilities are crucial for industries, affecting the location and cost of industrial units.</li> <li>Developed transport systems, as seen in Western Europe and Eastern North America, contribute to the concentration of industries in these regions.</li> <li>Modern industries are closely linked with transportation systems; advancements in transportation lead to integrated economic growth and specialized regional manufacturing.</li> <li>Effective communication is essential for industries to manage and exchange information.</li> <li>The development and improvement of transport and communication facilities contribute to industrial growth and regional specialization.</li> </ul> <p>======</p> <h5 id="government-policy">Government Policy</h5> <ul> <li>Government policies often include “regional policies” to encourage balanced economic development.</li> <li>These policies involve establishing industries in specific regions.</li> <li>The goal of these policies is to promote regional balance in economic growth.</li> <li>By setting up industries in certain areas, governments aim to stimulate development and economic activity.</li> <li>This, in turn, can lead to more equitable distribution of wealth and opportunities across different regions.</li> </ul> <p>======</p> <h5 id="access-to-agglomeration-economies-links-between-industries">Access to Agglomeration Economies/ Links between Industries</h5> <ul> <li>Agglomeration economies refer to the benefits that industries experience from being near a leading industry and other industries.</li> <li>These benefits stem from the linkages that exist between different industries and contribute to determining industrial location.</li> <li>Footloose industries are not dependent on specific raw materials and can be located in a wide variety of places.</li> <li>The primary location factor for footloose industries is accessibility by road network.</li> <li>Footloose industries typically produce in small quantities, employ a small labor force, and are not polluting.</li> </ul> <p>======</p> <h5 id="classification-of-manufacturing-industries">Classification of Manufacturing Industries</h5> <ul> <li>Manufacturing industries can be classified based on their size into: small-scale, medium-scale, and large-scale industries.</li> <li>Based on inputs or raw materials, they can be categorized into three classes: resource-based industries, labor-intensive industries, and capital-intensive industries.</li> <li>Classification by output or products includes: consumer goods industries, capital goods industries, and intermediate goods industries.</li> <li>Another classification is according to ownership, which includes: public sector industries, private sector industries, and joint sector industries.</li> <li>It is important to note that these classifications are not mutually exclusive, and a single industry can fall into multiple categories.</li> </ul> <p>======</p> <h5 id="industries-based-on-size">Industries based on Size</h5> <ul> <li>The size of an industry can be determined by the amount of capital invested, number of workers employed, and volume of production.</li> <li>Based on size, industries can be classified into three categories:</li> </ul> <ol> <li>Household or cottage industries: These are small-scale industries that operate in homes or cottages, using basic tools and equipment.</li> <li>Small-scale industries: These industries have a moderate level of capital investment, technology, and manpower.</li> <li>Large-scale industries: These industries have a high level of capital investment, advanced technology, and a large number of workers.</li> </ol> <ul> <li>The classification of industries based on size helps in understanding the distribution of economic activities, the level of employment, and the contribution of different industries to the GDP.</li> <li>The government policies and regulations for each industry category vary based on their size, with the primary objective of promoting balanced growth and development.</li> </ul> <p>======</p> <h5 id="household-industries-or-cottage-manufacturing">HOUSEHOLD INDUSTRIES OR COTTAGE MANUFACTURING</h5> <ul> <li>Household industries, also known as cottage manufacturing, are the smallest manufacturing units.</li> <li>Artisans use local raw materials and simple tools to produce everyday goods in their homes, often with the help of family members or part-time labor.</li> <li>Finished products may be for household consumption, local markets, or barter; capital and transportation have minimal influence due to low commercial significance.</li> <li>Common products from this sector include foodstuffs, fabrics, mats, containers, tools, furniture, shoes, figurines, jewelry, and various articles made from locally sourced materials like wood, leather, clay, stones, bamboo, and metals.</li> <li>Examples include pottery and brickmaking, as well as weaving baskets or other items from locally sourced bamboo or wood.</li> </ul> <p>======</p> <h5 id="small-scale-manufacturing">Small Scale Manufacturing</h5> <ul> <li>Small scale manufacturing is a type of production that takes place in a workshop outside the producer’s home, using local raw materials, simple power-driven machines, and semi-skilled labor.</li> <li>It is differentiated from household industries and provides employment and raises local purchasing power.</li> <li>Countries like India, China, Indonesia, and Brazil have developed labor-intensive small scale manufacturing to provide employment to their population.</li> <li>This type of manufacturing uses local raw materials and simple power-driven machines.</li> <li>Small scale manufacturing provides employment and raises local purchasing power, contributing to the economy.</li> </ul> <p>======</p> <h5 id="large-scale-manufacturing">Large Scale Manufacturing</h5> <ul> <li>Large scale manufacturing is a type of manufacturing that involves a large market, various raw materials, enormous energy, specialized workers, advanced technology, assembly-line mass production, and large capital.</li> <li>It developed in the last 200 years in the United Kingdom, north-eastern USA, and Europe, and has now diffused to almost all over the world.</li> <li>The world’s major industrial regions can be grouped under two broad types: traditional large-scale industrial regions, which are thickly clustered in a few more developed countries, and high-technology large scale industrial regions, which have diffused to less developed countries.</li> <li>Large scale manufacturing is characterized by passenger car assembly plants, such as those in Japan, as shown in Fig. 5.4.</li> <li>The Fig. 5.4 shows the passenger car assembly hires at a plant of the Motor Company in Japan.</li> </ul> <p>======</p> <h5 id="industries-based-on-inputsraw-materials">Industries based on Inputs/Raw Materials</h5> <ul> <li>The industries can be classified into five types based on raw materials: agro-based, mineral-based, chemical-based, forest-based, and animal-based.</li> <li>Agro-based industries involve processing raw materials from fields and farms into finished products, including food processing, sugar, pickles, fruits juices, beverages, spices, oils, fats, and textiles.</li> <li>Mineral-based industries use minerals as raw materials, with some using ferrous metallic minerals like iron for industries such as iron and steel, and others using non-ferrous metallic minerals like aluminum and copper. Non-metallic minerals are also used in industries like cement and pottery.</li> <li>Chemical-based industries use natural chemical minerals, with mineral-oil (petroleum) used in the petrochemical industry, and salts, sulphur, and potash industries using natural minerals. Other examples include synthetic fibre and plastic industries.</li> <li>Forest-based industries use major and minor products obtained from forests as raw materials, including timber for furniture, wood, bamboo, and grass for paper industries, and lac for lac industries.</li> <li>Animal-based industries use raw materials obtained from animals, including leather for the leather industry, wool for woollen textiles, and ivory from elephant tusks.</li> </ul> <p>======</p> <h5 id="industries-based-on-outputproduct">Industries Based On Output/Product</h5> <ul> <li>The text discusses two types of industries: basic and consumer goods industries.</li> <li>Basic industries are those whose products are used as raw materials to make other goods. An example given is the iron/steel industry, which makes machines for the textile industry.</li> <li>Consumer goods industries, also known as non-basic industries, produce goods that are consumed directly by users. Examples include breads, biscuits, tea, soaps, toiletries, paper, and televisions.</li> <li>The text highlights the link between basic and consumer goods industries, using the example of iron/steel being used to make machines for the textile industry, which in turn produces clothes for consumers.</li> <li>No equations or formulae are provided in the text.</li> <li>Examples and solutions are also not provided in the text.</li> </ul> <p>======</p> <h5 id="industries-based-on-ownership">INDUSTRIES BASED ON OWNERSHIP</h5> <ul> <li>Public Sector Industries are owned and managed by the government.</li> <li>Private Sector Industries are owned by individual investors and managed by private organizations.</li> <li>Joint Sector Industries are managed by joint stock companies or can be a collaboration between private and public sectors.</li> <li>Public Sector Industries were common in India and socialist countries, while Private Sector Industries are more common in capitalist countries.</li> <li>Mixed economies have both Public and Private Sector enterprises.</li> </ul> <p>======</p> <h5 id="concept-of-high-technology-industry">Concept of High Technology Industry</h5> <ul> <li>High technology industry involves the application of intensive research and development (R&D) efforts.</li> <li>It is characterized by a large share of professional (white collar) workers and fewer production (blue collar) workers.</li> <li>The use of advanced technology such as robotics, computer-aided design (CAD) and manufacturing, electronic controls, and new chemical and pharmaceutical products is prevalent.</li> <li>The industrial landscape of high-tech industries is marked by low, modern, dispersed, office-plant-lab buildings, and planned business parks for high-tech start-ups.</li> <li>High-tech industries that are regionally concentrated, self-sustained, and highly specialized are called technopolies, examples of which are Silicon Valley and Silicon Forest.</li> </ul> <p>======</p>