The process industry is another major industry around the world. This sector ensures that raw materials are converted to another form by following a series of stages known as processes. In this article, I will explain what you need to know about this industry.
Definition of process industry
Process industry means an industry that changes the form of raw material into finished goods by going through a series of stages. A good example is the petroleum industry.
The process industry converts materials to different forms till the final product is manufactured. It has involved many stages. And these stages may have various bye products. At the end of the process, more than one product is likely made useful.
The petroleum industry is a good example of a process industry. Crude oil is processed through many stages and the end products include and are not limited to petroleum spirit, Kerosene, and Diesel. The bye products from the various stages are used to make other products like the engine oil for cars and other machinery and equipment, among other things.
In the process industry, it is not possible to omit a stage to another stage during production. For example, if the product must pass through four stages, it is not possible to omit stage two to stage four. Each stage in the process must be followed. More so, the end product of one stage is the raw material of the next stage and so on.
Examples of companies in this industry include petroleum, food, beverages, plastics, pharmaceuticals, chemicals, cement, and so on. The process makes use of mixtures of several raw materials. And at the end of the production, the end product(s) cannot be reversed to its first form. This is true with Cement making. Cement is made from limestone. However, cement cannot be reversed to limestone.
Process industry is an industry that changes raw material through a sequence of stages. One stage must be completed before another stage. Unlike assembly firms, the end product cannot be reversed.