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Manufacturing Operating Strategies

9) Distinguish yourself from the competition. One of your primary goals as a manu­facturer is to create a unique identity for yourself in the marketplace. Cus­tomers must recognize that what your company makes is different and more bene­ficial to them than your competitor's products. Oth­erwise, they will never have a reason for buying from you.

10) Endeavor to operate at maximum efficiency. It has been estimated that at least eight out of ten small factories

operate well below their optimum ca­pability. This is clue chiefly to the fad that as long as the operation is profit­able, the factory manager is usually quite content. This feeling of complacency is further aug­mented by managerial igno­rance. Handicapped by the lack of a more sophisticated level of knowledge, many managers don't even realize things could be better, let alone how much better, or how they could go about making things better.

It is thus essential forallmanufacturing operators and managers to continually strive to in­crease operating efficiency and reduce overhead by developing a better more efficient deployment and use of all company resources including: capital machinery, human resources, materi­als. and production methods.

It is also important to continually analyze other factors that con­tribute to manufacturing Ineffi­ciency such as: machine op­erators who aren't well trained, inadequately maintained or ob­solete equipment, improper costing practices, lack of famili­arity with budgeting techniques, and untidy purchasing practices.

 

11) Improve customer feedback mechanisms. Many manufac­turers have been able to im­prove their products and consequently increase their market share by inviting feedback from their end users. This feedback is obtained using techniques such as 800 telephone lines, e-mail support services and warranty surveys.

 

12) Innovate or suffo­cate. Can you look at a product and envision a new use for it? Can you look at an old produc­tion method and envi­sion a way to improve it? Are you able to see new needs and conse­quently new products to meet those needs?

To excel In the manufacturing industry you must become a master at innova­tion. in fact, it has been estimated that as much as one-third to one-half of all manufacturer's profits are generated by products less than five year old. It has also been estimated that nearly half of all new jobs created in the last several decades have been the re­sult of industrial innovation.

 

13) Join a flexible manufac­turing network. A flexible manufacturing network is a network of small firms that work together, pool their expertise, and, instead of competing, complement each other in order to com­pete in a larger global mar­kets. Having created high employment and economic success. they have also proved that they reduce the weakness of a small business and build on their strengths. To take networking several steps further, these shared-support associa­tions also provide their members with numerous needed services - account­ing, payroll, marketing, purchasing. transportation, daycare and even edu­cational facilities in local technical schools. Alone, no member could afford the variety or the quality of these services.



 

14)Keep your product offerings spe­cialized. Small highly specialized manufacturing companies employ skilled workers, but pay them well above industry averages in return for higher productivity. They do not try to compete in the manufacturing of tradi­tionally mass-produced items, but spe­cialize in technical products that are more competition-proof. Their highly trained labor force can utilize advanced technologies. By concentrating on very narrow areas, these firms usu­ally produce top quality parts and components, or finished products with top ratings in their category.

 

15)Make good purchasing de­cisions. Purchasing equipment and raw materials for a small manufacturing firm, and converting them into finished goods, represents a large portion of Its total operating expenses. In fact. the cost of goods sold for a small manu­facturing firm may be in excess of 75 percent of total sales. In light of this information, the important of intelligent purchasing should be clear to every small business owner.

 

16) Start developing new products during the decline stage of a product's life cycle. a product has a life cycle similar to the life cycle of a business. This life cycle can be broken down into the following six stages:


Date: 2015-12-24; view: 632


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