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Thesis
CHAPTER I
THE PROBLEM

Introduction
Over the past centuries, men’s activities have become more and more complex.Activities were integrated together to improve the quality of life. Every part of the processes was modernized to provide high quality products. Manufacturing is a process of producing goods for use or sale with the use of resources. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale. Such finished goods may be used for manufacturing other complex products which then will be sold to the end users – the "consumers".In its earliest form, manufacturing was usually carried out by a single skilled artisan with assistants. Training was by apprenticeship. In much of the pre-industrial world the guild system protected the privileges and trade secrets of urban artisans.Before the Industrial Revolution, most manufacturing occurred in rural areas, where household-based manufacturing served as a supplemental subsistence strategy to agriculture (and continues to do so in places). Entrepreneurs organized a number of manufacturing households into a single enterprise through the putting-out system.Toll manufacturing is an arrangement whereby a first firm with specialized equipment processes raw materials or semi-finished goods for a second firm. Manufacturing is essential to allindustries.These include oil, food, tobacco, cutlery and all the other product-oriented industries wherein processing of raw materials is vital for the continuous operation of the business. In 2009, oil industries in the Philippines produced a total of 101.7mega tons, 222.0 mega tons were produced by the food industries, and the tobacco Industries manufactured 27.4 mega tons.While oil, food, and tobacco industries are big ones, cutlery industry is not. Cutlery Industry is a backyard industry developed by skilled cutlery craftsmen.

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