Why does your manufacturing business need Production Management?

BusinessCategory
6 min read
Charu Mitra Dubey

It is expected that India will become a global manufacturing hub by 2030. But here is a problem – Indian manufacturers face more complaints and fulfillment delays than their global competitors. Why? Poor Production Management system, or in fact, no system.

Production is the heart of any manufacturing business.

No finished goods could be produced without production, and there would be nothing to sell.

That's why a Production Management process is essential for any manufacturing business.

What is Production Management?

Production Management, also known as manufacturing operations management, revolves around planning and organizing your manufacturing process. It aims to find:

  • Right quality
  • Right quantity
  • Right time
  • Right cost

So the ultimate objective of manufacturing operations management is to improve your manufacturing efficiency in accordance with current capacity.

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Tips to improve your company's manufacturing process

The goal of Production Management is to cut down on waste and improve efficiency. Both will contribute to making your company strong enough to thrive for years to come. Here are six steps you can use to improve your processes.

1.     Find out the hurdles

Man drawing a production process on a window

As per the theory of constraint, there must be something that is preventing you from achieving your goals.

The first thing that you need to do is to find out the issues in your workflow.

To start with, analyze the employees involved, the technology used, and the production process, including the communication process and resource allocation.

To find the bottlenecks in your workflow, you can try value mapping. It's one of the features of the lean manufacturing system. And use those insights to make the necessary changes.

2.    Modify the process

Once you get the idea about the obstacles, discuss them with the project managers and start the development plan. The plan can include anything like:

  • Using new technology
  • Hiring more employees
  • Getting better-quality raw material

Lastly, create a plan, execute it, and refine the process until it yields the best possible results.

Related: How to create a technology roadmap

3.    Train employees

The manufacturing industry is fast paced, as technology plays a crucial part in it. Now technology evolves more than any other industry and demands manufacturing businesses to update their tech.

However, just updating the tech isn't the end goal.

Closeup of a femail worker examining a motherboard

You also need to train your employees regularly to help them use the latest tech.

Therefore, the management system should have a proper process to train the employees.

4.    Invest in technology

In a manufacturing business, the performance of the employees is highly dependent on the performance of the tech involved. After all, machines are used in every step of the manufacturing process.

Also, if there's any software that can improve the process, make sure you use that too, as it can help your employees save time and boost their productivity.

5.    Schedule regular maintenance

While machines can improve productivity, they can also stop the entire workflow if not working properly. And that's why you need to schedule routine maintenance.

Hire someone who knows how to operate the machines and troubleshoot if there's an issue. However, the best idea here is to appoint someone just to check the machines regularly.

6.    Improve collaboration

Collaboration is essential for any business. It allows the company to achieve its goals, which is, of course, an improved system of production, with minimum waste and conflict.

Get the team to collaborate more often so that none will get confused about what they're supposed to do.

Benefits of having a strong manufacturing process

While there are many benefits of having a Production Management system, let's discuss the top ones.

Right raw materials

While there are multiple options available for raw materials, a strong manufacturing team gets the best products for production. They choose the best ones based on costs, quality, availability, etc.

The optimal materials are not necessarily the highest-quality or lowest price but the best-suited production needs.

Moreover, a solid manufacturing department is able to find dependable suppliers who offer materials as per their expectations.

Related: Sourcing products for your business

Production process

Lab worker adding something to a petri dish

Organizing and managing the production process is the most crucial job of a manufacturing operations management team. The team has to create a process and decide:

  • How many workers are necessary?
  • Which equipment needs to be used
  • What process will yield the best results to meet the customer demands

Also, the team has to streamline the process so that it takes the least time, is cost-effective, and maintains quality.

Customer satisfaction

With proper Production Management, a business can manufacture high-quality products while keeping the costs low and delivering timely.

This simple strategy can help any business attract new customers and build a loyal customer base. This, in turn, helps in selling more products and gaining profits.

Investor confidence

Effective Production Management means profits, and profits mean success. Now when a company becomes successful, it contributes to investor confidence. So if a company needs investment, it should have a Production Management system in place.

Boost employees' morale

Higher profitability can lead to better remuneration, job stability, and a good work environment. Moreover, with a system, none will be confused about th

Colourful drawing of a factory with a truck beside it

eir responsibilities. So this will improve productivity and boost employees' morale.

Finest suppliers

Every manufacturing business depends on suppliers to get the raw materials.

The best suppliers prefer working with companies that have good financial positions.

The company and the suppliers will have a long-lasting relationship only if they're satisfied with each other.

Outperform competitors with manufacturing operations management

The Indian manufacturing industry is more labor-intensive than tech driven. While these are cost-effective practices, they hamper the entire production system and lead to low-quality products and fulfillment delays.

With a good Production Management team and system, it would be easier to adapt to new tech, cut costs, and produce better goods in less time.