Home decoration products are created to meet human needs. Usually, home decoration products are produced by companies engaged in industry and manufacturing. To produce this house decoration product, producers need ingredients. The types of materials used in the production process are divided into two, namely raw materials, half-raw ingredients & auxiliary materials. All three are the biggest resources needed for the continuity of the production process. Without both, production activities might be hampered.
What is the difference between raw materials and auxiliary materials?
Understanding of Raw Materials
Raw materials are the main raw materials needed to make goods produced / home decoration. These raw materials will then be processed through certain processes to be used as home decoration products, both finished and semi-finished goods are then sold to meet human needs.
- How do you get raw goods? Raw goods can be obtained in various ways, depending on what ingredients are needed. Examples of raw materials for home decoration such as seashells for making table decorations. If the raw material is available in abundance in nature, it can be obtained directly in nature. While the main ingredients (raw materials) that are not available in the area of the production process are carried out, it can be imported from outside the city or even abroad. Of course this will make production costs more expensive which impact on the selling price of home decoration items produced. There are also raw materials that must be processed first and can only be used for production, for example iron ore.
- For its own type, raw materials are divided into two properties, namely direct and indirect. Direct raw material is material that will be part of the goods produced, while indirect raw materials are materials that play a role in making production goods, but their appearance is not immediately visible on the goods produced. An example of this is making tablecloths. The direct material in making this tablecloth is cloth, while the example of indirect material is yarn for sewing and buttoning as tablecloth accessories.
Understanding Helper Material
- Just like the previous material, auxiliary materials are also materials needed for the production process, but are only used to increase efficiency. The difference with indirect material is that if indirect materials are not available, the production process can be disrupted. Whereas if the auxiliary material is not available, the process of producing goods can still be done. But this usually causes a decrease in the quality of goods.
- Fundamental Differences in Raw Materials and Helper Materials
- From the example above we can see that the need for raw materials is greater. Without this main ingredient, the production process cannot be done. Whereas without auxiliary materials, the production process can still be continued but with the possibility of decreasing efficiency. Regarding the portion itself, of course the main ingredients (raw materials) have a larger portion, especially the direct ones. While the auxiliary material has a very small portion, even its use can be removed or replaced with other ingredients. For example in making tablecloths. If there is no cloth, what will be processed?
Because raw materials have the dominant portion in their use, even more prices are incurred. If the price of this material rises, it will affect the selling price of the goods produced. In contrast to the price of auxiliary materials, although the price increases, the impact of the increase is not so significant on the selling price of the goods produced.