PRODUCTIVE CIRCUIT: PHASES, EXAMPLES OF PRODUCTIVE CIRCUIT - CULTURE VOCABULARY - 2024

The productive circuit is the succession of activities of a business that lead to the processing of goods. It goes from obtaining raw materials to the finished product for the consumer. That is, it represents the steps necessary to bring the product from its original state to the customer.

Therefore, it is a system formed by an organization with its suppliers to develop and market a product to the consumer. This system consists of various people, activities and entities that each contribute to the development of each phase.

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There are many different links in this circuit, with special characteristics that require a lot of skill and also experience. The production circuit is developed by companies in order to reduce their costs and remain competitive in the business environment.

The management of the production circuit is a crucial process, because if it is carried out effectively it results in lower overhead costs and a faster production cycle, thus increasing profitability.

Phases

A production circuit consists of successive phases through which the materials undergo some type of transformation or change, until thus constituting a finished product with its respective distribution in the market.

This corresponds to a series of design, manufacturing and distribution operations, executed by different units interconnected as a circuit, involving a set of human, physical and technological resources.

Each phase adds value to the production circuit. Therefore, this is also called the value added chain. The phases are connected by means of a set of transactions.

The production circuit ranges from the extraction and manufacturing process of the raw material to its final consumption.

These phases are interdependent and have numerous links with each other and with other industrial sectors.

- Primary phase

It refers to obtaining the natural resource necessary to manufacture the product. In this phase, the resources are extracted to acquire the raw material.

This material is transferred to factories, in the case of secondary products, or directly to consumer markets, in case of being primary products.

Raw material supplier

It represents an essential link in the productive circuit. Forming an appropriate association with suitable policies and terms helps to develop a good relationship with suppliers, as well as being beneficial for the parties involved.

- Secondary phase

Corresponds to the manufacture and transportation of the product. The raw material is transformed to get a specific product.

Maker

After obtaining the correct raw material, the company must make a careful decision about the manufacture of the product.

Not only demand for the product, but also required technologies and other important decisions must be carefully managed.

- Tertiary phase

Marketing and distribution is involved here. The scope of the production circuit can be local, national or international.

Dealers

Retail and wholesale stores can be found. They are one of the most important links between the production company and the clients.

Client

It is the most important entity and also the final link in the circuit. A company must identify its customers and ensure that the product they manufacture is what is really required.

Examples of productive circuit

- Wheat flour

This productive circuit is wide. It begins with the sowing of wheat seeds and ends when the finished product reaches businesses or homes for consumption.

Primary phase

Here it should be taken into account that strong wheat is used to produce flour to produce large volume products, preservation qualities and good texture of the crumb, in addition to having a large amount of proteins.

On the other hand, common wheat produces flour to obtain only small loaves with open and thick crumbs, as well as a minimum content of protein.

Therefore, this flour is not suitable for use in baking, but for pastry making and making cookies.

Secondary phase

In the mills the grain is cleaned and separated to later pass it through the milling. In this way the grain is reduced and strained.

Then additives are added to improve the quality and later it is packaged, already transformed into flour.

Tertiary phase

Wheat flour can be marketed in the national market and also in the international market through export.

- Cotton

This productive circuit is long in time. It requires multiple financial and human resources, as well as great care.

Sown

During the spring the land to be sown is cleaned. Special digging equipment is used for planting. The machine digs a furrow in each row, places the seed, covers it and also stores the remnants in its upper part.

Cotton bud

When the soil is suitable, the seedlings sprout quickly, usually six days after sowing.

During three weeks the shoots grow and flowers are born, falling three days later. As the flower falls, a pod develops.

This envelope bears fruit in a period of between sixty and eighty days. In this period cotton appears.

Leaf removal

It is in this phase that the cotton is stripped. To do this, the plant is sprayed with a chemical.

Harvest

To reduce costs, the harvest is carried out with machines. One machine replaces fifty workers.

Storage

In this process the cotton is agglomerated into blocks containing about fourteen lumps. Each block is cleaned, pressed and labeled for later storage.

Manufacturing

These packages are transported to industrial areas. In textile companies they are transformed into yarns and fabrics that are used to make different articles.

- milk

This production circuit involves maximum prevention, as well as care to achieve products suitable for consumption, demanding specialized labor.

Milking the cow

The worker must check that the cow is totally healthy and the infrastructure has perfect hygiene conditions, otherwise the milk will be contaminated after it has been extracted.

If the process is technological, automatic milkers are used, passing the extracted milk through aluminum tubes that take it to thermal tanks that preserve the temperature. A filter absorbs the impurities.

Industrial process

Here the transformation of the milked milk into fluid milk happens. The milk is pasteurized, thus eliminating bacteria in this process.

Analyzes are carried out to check the proportion of proteins and fats it contains, the temperature, the presence of preservatives or non-permitted pathogenic bacteria.

Then the milk is packaged for liquid consumption and another portion is used to make products such as cream, yogurt or cheese.

Commercialization

Dairy products are dispatched to the corresponding distribution centers and from there to warehouses, shops, supermarkets and shops in order to be sold to final consumers.

Themes of interest

Yerba mate productive circuit.

Productive milk circuit.

Production circuit of soybeans.

Productive bread circuit.

Cotton production circuit.

Productive wine circuit.

Sugar production circuit.

References

1. Igi Global (2019). What is Production Chain. Taken from: igi-global.com.
2. Productive circuit (2019). Productive circuit, definition, example, stages and links. Taken from: Circuitoproductado.com.ar.
3. Will Kenton (2019). Supply Chain. Investopedia. Taken from: investopedia.com.
4. Productive circuit (2019). Productive circuit of wheat flour. Taken from:circuitproductive.com.ar.
5. Productive circuit (2019). Cotton production circuit. Taken from: Circuitoproductado.com.ar.
6. Productive circuit (2019). Productive milk circuit. Taken from: Circuitoproductado.com.ar.