With ever-shifting economic conditions and constantly evolving technologies, it’s more important than ever for construction companies to have a strong manufacturing strategy, says James Humphreys, specialist at Katana ERP manufacturing
The reality is that very few manufacturing businesses will be successful without a solid strategy in place.
But why are strategies for manufacturing important? How have they evolved, and what manufacturing strategies are easy for companies to implement?
What is a manufacturing strategy?
A manufacturing strategy has been previously defined as “a long-range plan to use the resources of the manufacturing system to support the business strategy and, in turn, meet the business objectives.”
Nowadays, they are often intertwined with a company’s digital strategy, with the tactical management of production and technology at the heart of everything a company achieves.
As was noted by Gündüz Ulusoy back in 2003, formulating a marketing strategy requires making three strategic choices in three key areas: Competitive priorities, manufacturing objectives, and action plans.
Competitive priorities include choices on:
- Quality levels
- Reliability
- Design change
- Deliveries
- New products
Manufacturing objectives involve decision-making on:
- Unit costs
- Market share
- Profitability
- Product development time
And action plans include making decisions about:
- Production
- Energy saving
- Employee empowerment
- Staff training
Once these decisions have been made and a company’s priorities have been identified, an overarching marketing strategy can be formulated.
Why is a manufacturing strategy important?
A manufacturing strategy is the backbone of how a business operates when you break it down. To ensure your manufacturing strategy is aligned with the overall business strategy, it must be focused on:
- maximising quality
- minimising costs
- avoiding wastage
- improving flexibility
All the while being motivated by more lofty goals such as increasing market share and profitability.
Strategies for marketing ensure that a company avoids inefficiencies, optimizes production, and ultimately reaches the goals it is aiming for.
As Steve Lam, senior vice president of Patheon’s Biologics Business, states, whether you are processing medicines, clothing, beauty products, or the latest tech-gadgets, “considering your manufacturing strategy early on in development pays dividends down the line.”
Easy strategies that companies can implement
When choosing a new manufacturing strategy, it’s important to remember it’s not a case of a one-size-fits-all approach but rather finding one that is relevant for your business.
Just because a manufacturing strategy is world-class for some doesn’t mean it will be for others. Be sure to strategize with intent and ensure that your manufacturing strategy gives your company the competitive edge it needs in an increasingly competitive environment. Start by articulating your competitive advantage and then build your strategy around it.
Every decision, from the machinery you use to the automation system you choose, needs to take you one step closer to maximizing that competitive advantage.
So, what are some manufacturing strategy examples that you could implement?
1. Adopt technology
It is crucial to have an agile IT function that can respond flexibly to your business’s demands. Identifying which technologies are applicable and useful to your manufacturing processes is often the first building block in a sturdy manufacturing strategy. Is there a service or app out there that you have not yet considered?
2. Shrink your costs and production waste
This is a no-brainer. If your business has holes in its manufacturing processes that let money flow out of them, then this part of your manufacturing strategy must be robust. Production times, processes, and product quality are things that cannot be compromised on.
3. Stock inventory
Adopting the principles of lean inventory saves you a fortune and gives you a serious competitive edge. Having a better understanding of your stock levels and responding to your customer’s needs more intuitively could result in huge improvements for your business.
4. Look to the future
Industry 4.0 is just the latest in many changes in the industrial and manufacturing world. Do your research and ensure your manufacturing strategies are robust yet flexible enough so you can pivot if you need to.
Designing strategies for success
Strategies for manufacturing are essential to keep a business moving. The most successful businesses over time have been the ones that have chosen strategies that support their long-term ambitions.
Innovative software, visibility, and control are often the backbones of any successful manufacturing strategy, but how you implement these must be unique to your business.
The key is to be smart about it — be sure to identify the manufacturing strategies that fit your business model right now and will help you to stay ahead of the competition in the future.
Evaluating and measuring your success every step of the way will ensure that you can provide your customers with the products they need before they even know they need them!
