A factory, unlike a company, does not have an independent legal personality, but as a production organization or one of the production organizations of the company (which has sales organizations, employee affairs, etc.) is also under the supervision of an executive management and under a single accounting ), and thus: a company may include one or more or even several independent factories and workshops.
A factory includes physical objects used by a company, such as buildings and machines, permanently located in a place where a set of capital and manpower are used to produce specific goods or services.
The factory manager, with all his power and the scope of his responsibility, is only an executive manager who performs his duties under the supervision of the real decision maker (strategic manager), that is, the company manager. , or a special process of production takes place. such as molding workshop or dyeing workshop.
By nature, workshops do not have independent administrative and financial affairs, and therefore, the responsible management of the workshop has an exclusively technical aspect even more than the executive management of the factory: it is an expert and especially experienced person, but in general every factory and every workshop is a recognized production unit. Their management is to some extent one of the topics of production management
Factories need machines and raw materials to produce their products and cooperate with other factories to meet these needs. Therefore, an interdependent chain of factories is formed, each of which is responsible for meeting the needs of other factories. This interdependent chain can also be called an industry.
A factory can be defined as a place where goods needed by people are made. The factory consists of one or more buildings, in each building there are a number of tools to produce products. Also, a number of people are also present as labor alongside the production machines and are responsible for the management of the machines for the production of products.
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