Introduction Congratulations on growing your retail business! The next step in your journey is to manufacture your own products. This tutorial will guide you through setting up factories, sourcing raw materials, and managing production technology to maximize efficiency and profits.

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1. Understanding the Manufacturing Process

Before setting up your factory, it is crucial to understand how manufacturing works in Capitalism Lab. Unlike purchasing products from suppliers and reselling them, manufacturing allows you to control the quality, production cost, and supply chain of your goods.

Key Aspects of Manufacturing:

• Raw Materials: The quality of materials determines half of the final product’s quality.
• Production Technology: Determines the remaining 50% of product quality.
• Factory Layout: Requires properly linked units to function efficiently.

Exploring Product Possibilities

• Timber can be used to produce furniture products such as beds and chairs.
• Each product requires a specific amount of raw materials (e.g., 120 lbs of Timber for one bed).
• Different raw materials have varying influence on quality (e.g., Timber contributes 40% to a chair’s quality, while cotton and linen each contribute 10%).

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2. Setting Up a Factory

Step 1: Build a Factory

• Click the Build Icon > Select Factory.
• Choose a rural location to minimize land costs.

Step 2: Factory Layout Configuration

A factory requires three essential units:

1. Purchasing Unit – Buys raw materials.
2. Manufacturing Unit – Processes raw materials into finished products.
3. Sales Unit – Sells finished products to stores or corporations.

How to Configure the Layout Grid

• Top-left space: Build a Purchasing Unit.
• Right of Purchasing Unit: Build a Manufacturing Unit.
• Right of Manufacturing Unit: Build a Sales Unit.
• Connect the units to establish the workflow.

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3. Procuring Raw Materials

Step 1: Selecting a Supplier

• Click the Purchasing Unit.
• Select Link to open the supplier interface.
• Use the Product Filter to find Timber.
• Choose a high-quality supplier.

Step 2: Managing Production

• Once Timber arrives, the Manufacturing Unit begins production.
• Finished products are sent to the Sales Unit for distribution.

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4. Enhancing Product Quality

Raw Material Influence on Quality

• 50% of product quality comes from raw materials.
• Higher-quality suppliers improve final product quality.

Production Technology Influence on Quality

• 50% of quality is affected by production technology.
• Investing in R&D Centers improves manufacturing efficiency.

Tip: Setting up Research & Development (R&D) centers early helps create advanced production technology for long-term quality improvements.

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5. Expanding Your Business

Selling Products in Your Own Stores

• Other corporations may purchase your goods, but building your own retail stores ensures higher margins.
• Construct supermarkets or furniture stores to sell beds, chairs, and other manufactured goods.

Scaling Up Operations

• Build additional factories to expand production lines.
• Invest in new product categories to diversify revenue streams.
• Optimize factory locations to reduce logistics costs.

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6. Achieving Business Success

To complete your business objectives, you must:

1. Reach an annual revenue of $30 million.
2. Generate an annual profit of $3 million.

Key Strategies for Reaching These Goals:

• Continuously improve production technology through R&D investments.
• Monitor product demand and adjust prices accordingly.
• Expand into multiple cities to increase market reach.
• Keep operational costs low by optimizing logistics and sourcing high-quality raw materials.

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Final Thoughts

With careful factory setup, strategic material sourcing, and continuous research, you can dominate the manufacturing industry in Capitalism Lab.

Stay tuned for more tutorials on advanced production management and market expansion strategies!