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Raw Materials 8 Items
Description: Raw materials are substances used for primary production or manufacturing of goods. They are also referred to as commodities that are sold in the market for driving industrial processes. They are sold in the factor market because they are part of the industrial production just like industrial factors of production such as capital and labor. Raw materials can be categorized into two large categories. Direct raw materials: These are materials that companies use directly to make the finished products. For example, materials such as metal and wood for creating furniture. Indirect raw materials: Unlike the direct raw materials, indirect raw materials are items that are not part of the final product but are used during the production process. A good example is oil used to run machines in the production line. While your system might be directed at producing food products, the oil used to run the system is also part of the raw material. In industrial mechanics and power transmission systems, the raw materials are largely used for making products such as bearings, nuts, and HVAC systems. Therefore, they include materials such as iron, copper, rare earth elements, and steel. If your system is involved in producing power mechanics related products, it is prudent to get high-quality materials because they will ultimately determine the quality of the final products. It is prudent to ensure the materials are properly tested and quality guaranteed before use. To be sure of getting the best from raw materials, consider only working with top suppliers who have cut a name for high quality. You might also want to check where the supplier sources the raw materials as an added precaution.