Indirect manufacturing refers to producing something indirectly, either through the use of another item or producing something to be used as a means of obtaining another item. This can apply to machinery, equipment, services, or producing an item for trade or sale.
Indirect manufacturing is an economic term that refers to the process of producing something indirectly. This can be achieved through the use of another item for the production of the final good, or it can be achieved through the production of something to be used as a means of obtaining another item. In both cases, the item being produced is simply used as a means of producing or sourcing the final item.
An example of indirect manufacturing can be seen in manufacturing one item expressly for the purpose of producing other items. Usually, indirect product is a form of machinery or equipment used to produce other items. For example, a company that manufactures prefab homes might build proprietary equipment that serves as a mold for building a portion of the exterior for prefab homes. In this case, the machine is simply the means used to produce the final product and is consequently a form of indirect production.
Indirect manufacturing is not only limited to machinery or equipment, it can also be applied to services. A particular product may serve as a form of indirect production if its ultimate purpose is to serve as a means to enable the final production of a service. For example, this would apply to a phone that has been specifically manufactured by a company for use by its customer service representatives. In this case, the phone is just a means to the final product, which is customer service.
Another example of indirect production can be seen in the case of producing an item for trade or sale. In such a situation, the item being produced for sale is an indirect means of obtaining other desired items. Such a scenario can be seen in the case of a rice farmer who produces more than enough rice to meet his needs and sells the extra rice to other people in exchange for money which serves as a means of obtaining other necessary items. Where the rice farmer manages to sell some of the rice, the money from that sale can be used as a means of obtaining other items such as clothing, shoes, and fuel. In this case, rice production serves as an indirect form of production.
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