I. Study the table and think of the Russian equivalents

1. Raw materials	material on which a particular manufacturing process is carried out;
2. Truck	a vehicle for carrying freight on a railway; wagon;
3. Casing	a protective case or cover;
4. Adhesive	a substance used for sticking objects together, such as glue, cement, or paste;
5. Supply	the amount of a commodity that producers are willing and able to offer for sale at a specified price.

II. Make up sentences using the words from the table above

Reading

I. Before reading the text fill in the first two columns of the kwl Chart.

II. Read the text using the dictionary. Pay attention to the words in bold. After reading the text fill in the third column of the kwl Chart. Kwl Chart

Know	Want	Learnt

Classification of industrial goods

Only certain goods classed as ‘industrial’ are directly essential to the manufacturing process. Machinery and raw materials are prime necessities. However, the company could not function without a whole range of other items, although not being integral to the manufacturing process, are still essential to the running of the company. For example, a company need buy office furniture and equipment, stationery materials and cleaning materials which are supplementary to the manufacturing process.

Goods and services required by industry are shown and classified into a number of formal groups: installations, accessories, raw materials, component parts and materials, supplies.

I nstallations. These are expensive and critical purchases like major items of plant and machinery required for the production of a manufacturer’s products. If a company makes a mistake in its choice of office equipment or building maintenance services this can be costly, but it is unlikely to be a threat to the company’s future. However, if a range of machinery is purchased that is subsequently found to be unsuitable, this could affect the entire production base. The purchase of installations should be the result of an extensive search process. Although price is important, it is seldom the single deciding factor. Much emphasis is placed on the quality of sales support and advice and subsequent technical support and after-sales service.

Accessories. Like installations, these are capital items, but they are usually less expensive and depreciated over fewer years. Their purchase is important, but not as critical as for the installation purchase. Accessories include supplementary plant and machinery, office equipment and office furniture. In a transport company fork-lift trucks, warehousing equipment and smaller vehicles would be classified as accessories.

Raw materials. Buying raw materials can account for much of the time and work of the purchasing department. There is a direct relationship between raw material quality and the quality of the company’s own finished product, so quality, consistency of supply, service and price are important. Price is important because such materials are purchased continuously and have a direct and continuous effect on costs. Even in commodity markets, there are often distinctions in quality of service that can affect the speed of processing or the number of machinery breakdowns. Raw material suppliers can do much in terms of differentiation to emphasize the fact that they provide a good service.

C omponent parts and materials.

Supply criteria are similar to those for raw materials, and include replacement and maintenance items for manufacturing machinery. In this sense they are different to ‘accessories’. This category is an important element of purchasing, particularly in assembly plants where purchases range from computer chips to casings, panels, components like car bodies. It also includes products that facilitate the manufacturing process, but which do not form part of the finished product, for example, oils, chemicals, adhesives and packaging materials.

Supplies. These are the ‘convenience goods’ of industrial supply and include such items as office stationery, cleaning materials and goods required for general maintenance and repairs. Purchasing is more routine and undertaken by less senior employees. Most supplies are identical in nature and price is likely to be a major factor in the purchasing decision.