Ownership

The manufacturing business is a multi-level structure.From the owner of a manufacturing business, to the owner of a manufacturing process, machine, or product, there are owners on every level of the manufacturing business.Here are a few different types of owners in the multi-level manufacturing structure and how they are interrelated.

Business Owner

Some manufacturing plants are independent businesses, or they are a branch of a much larger business.Either way there is a business owner.If the owner only owns the plant, then he/she probably runs the plant independently from other companies.The owner will have to contract to do work for companies in need of a manufacturer. Sometimes these contracts create partnerships where the manufacturer agrees to only manufacture products designed by a specific company.

On the other hand, some business owners may find it more economical to simply purchase or create their own manufacturing plant.In this case, the owner of the larger business simply adds to the size of the business by adding the manufacturing plant.The plant will likely only do work for the company owned by the business owner.However, in cases where the plant is not running at full capacity for whatever reason, the business owner may choose to do work for other companies under a contract.

Machine Owner

In some cases, a manufacturer does not have the funds to purchase the expensive machinery necessary for the manufacturing process. When that is the case, the manufacturer may rent or lease equipment from another owner.The owner of the equipment will require a monthly payment and likely a deposit to protect the equipment.This is usually the case where a manufacturing plant is just starting.

Design Owner

In cases where the owner of a manufacturing plant does work on contracts, a designer will likely be the owner of the design being constructed in the plant.For example, if a car company wanted a new car built, but did not have a manufacturing plant, they could contract with a manufacturing company to build the car.The car company would retain ownership of the design for the car.At the same time, the owner of the manufacturing plant and the design could very well be the same company.

Product Ownership

Similar to design owners, a product created in a manufacturing plant is not necessarily owned by the same company that owns the manufacturing plant.Often, the manufacturer agrees to build a product under contract with another company.The contracting company would maintain ownership of the products which are produced in the manufacturing plant.

Granted, companies may be able to work out deals where manufacturers earn more money based on how many products are actually produced, but for the most part manufacturers are simply paid to produce a certain number of specific products for an agreed-upon price.

Ownership in the manufacturing business can be best explained as a multi-level structure.There are owners of actual manufacturing plants, owners of the designs on which product creation is based, owners of the machines in a manufacturing plant, and owners of the products that are actually manufactured.Sometimes theses owners are the same person, while often they are not.Because manufacturing generally consists of multiple steps, it is important to understand this multi-level ownership structure to ensure that ownership is not confused during the complex manufacturing process.