What Is Continuous Process Manufacturing?

What Is Continuous Process Manufacturing? thumbnail
What Is Continuous Process Manufacturing?

Each manufacturing company attempts to develop a production process that allows it to maximize resources. Starting and stopping operations can become costly for a company because each disruption typically results in fewer finished goods. The purpose of a continuous production system is the alleviation of such stoppages.

  1. Defined

    • A continuous process manufacturing system allows a constant flow of raw materials into the company's production system. Process manufacturing works best for companies producing large batches of homogenous goods. Examples include pharmaceutical drugs, soft drinks or candy.

    Function

    • Continuous process manufacturing will typically have several processes linked together in the production system. Processes may break down raw materials, refine materials into higher quality goods, or test goods for the proper mix and packaging. Each process allows for materials to flow through the system without interruption.

    Benefits

    • Companies that employ a continuous process manufacturing system often rely on process costing, which is easier to use than other costing methods. Process costing focuses on tracking costs by each production process and creating an average per-unit cost based on this information.

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  • Photo Credit Felipe Dupouy/Lifesize/Getty Images

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