Industrial production represents:
- direct and useful result of extracting raw material and material existing in nature;
- result of agricultural and forestry products’ primary processing;
- result of previously processing of industrial products;
- activities for restoring initial technical and qualitative parameters of industrial products (such as: repairing works, maintenance works, etc.).
Industrial production is composed of end products, semi-finished products, and works (services) of industrial nature meant for investments, population consumption, export, productive internal consumption, and other needs of national economy, identified via a code of the PRODMOLD-2013 nomenclature.
End products are considered to be the products which were processed within the enterprise (have passed the whole technological process) and meet the technical standards and conditions set in the contract. In the framework of industrial statistics, products are expressed in quantities and values.
End products may be also manufactured in undertaking, meaning by several executors. Especially, when an enterprise (client) orders production and offers free-of-charge materials to another enterprise, which carries out virtually the production process, and subsequently the later one returns the end product to the client.
To avoid double reporting, the enterprise which virtually carried out the production process and obtained the end product reports the indicator regarding the physical production volume of the respective product (piece, t, m, etc.) and the value of the production process (costs incurred by the producer) in current prices, meaning without the value of client’s materials which were offered free of charge.
In this case, the client who orders the production reports only the value indicator “Sale revenues” (turnover), which will include all the costs afferent to manufacturing the product (integral price), including the cost of raw material, the cost of processing service (for manufacturing the product), which was ordered and paid to the producer, other costs.
Works (services) of industrial nature represent the works performed by the economic units within some cooperation actions, which do not provide for some essential form transformation of the product subject to processing. Only the works which are executed for third parties or those executed for non-industrial sectors of the enterprises are reported.
Industrial works are grouped mainly in:
- industrial works (services) performed over some products (offered to the executor free of charge), which do not modify the form of the product, representing a part (operation) from the technological processes (for instance, painting, gilding, etc.);
- maintenance and repairing works which aim to restore the technical and qualitative parameters of machines and devices.
The following activities similar to industrial processes are not covered in the industrial production, but are included in other activity sectors:
- assembling the built-ups on the site, of the component parts for bridges and water reservoirs, building spaces for storing metal elements, railroads and signaling installation, district heating installations and networks, electrical networks, as well as mining works for quarries’ exploitation, these are included in section F “Constructions”;
- repairing and maintenance of office machines, computers – these are included in class 9511 “Repair of computers and peripheral equipment”;
- repairing domestic appliances and motor vehicles – these are included in activity 952 “Repair of personal and household goods”, as well as in group 452 “Maintenance and repairing motor vehicles” or in class 4540 “Sale, maintenance and repair of motorcycles and related parts and accessories”;
- vulcanization of tires – is included in activity 4520 “Maintenance and repairing of motor vehicles”, excluding the repairing the motor vehicles carried out within specialized (industrial) enterprises, and respectively in activity 4540 “Sale, maintenance and repair of motorcycles and related parts and accessories”;
- bottling and labeling beverages – are included in class 4634 “Wholesale of beverages” if executed as parts of the retail sale-purchasing or in class 8292 “Packing activities” – if executed for fees or on contract basis by a specialized enterprise in the given area.
The following is not included in the industrial production value:
- cost of industrial items and works which do not meet technical standards, conditions, and documentation;
- cost of materials, semi-finished products, and items purchased and resold without being processed by the respective enterprise;
- cost of industrial waste, which represents leavings of initial raw material (parts, chips, etc.) as well as pieces of cloth, etc. If before delivery, the waste is washed, sorted, and packed, the production value includes only the costs of preparing the items for selling, which are performed with own forces;
- cost of own manufactured production, which was subject to lab analyses or sampling surveys, if the production became unusable as a result of such activities.