What kind of operation you are running.
WHAT MANUFACTURING IS
Converting inputs into products of greater value, repeatedly.
WHAT FORMS EXIST
Food and beverage production Consumer goods Building materials Plastics and packaging Furniture and fittings Chemicals and cleaning products Assembly of imported components Contract manufacturing for other brands
WHAT DETERMINES PROFITABILITY
Cost per unit produced Capacity utilisation Yield and waste Quality and rework Downtime Whether you can sell what you make
WHY THAT LAST POINT BELONGS FIRST
Manufacturing capacity without demand is the most expensive mistake available.
WHAT TO ESTABLISH BEFORE ANYTHING
That there is a market, at a price that covers your cost.
WHAT MOST SMALL MANUFACTURERS DO NOT KNOW
True cost per unit at their actual volume.
WHY AT ACTUAL VOLUME
Fixed costs spread across few units produce a high unit cost, and pricing from theoretical capacity loses money.
WHAT DISTINGUISHES MANUFACTURING FROM TRADING
Capital is committed in equipment Costs continue whether you produce or not Quality problems are yours Regulation is heavier
WHAT THAT MEANS
Volume is not optional; it is what makes the arithmetic work.
WHAT TO TREAT THIS CATEGORY AS
Operational guidance, with technical, safety and regulatory matters verified locally.
