Growing a Manufacturing Business Print

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More capacity and more products.

WHAT CONSTRAINS GROWTH

Demand Capacity at the bottleneck Working capital Skilled people Power

WHY DEMAND COMES FIRST

Capacity without demand is the most expensive mistake in manufacturing.

WHAT TO ESTABLISH BEFORE INVESTING

That you are actually selling everything you can make.

WHAT FULLY UTILISED MEANS

Running your realistic capacity, most available hours.

WHAT TO DO BEFORE BUYING EQUIPMENT

Improve utilisation, yield and downtime.

WHY

They add capacity at no capital cost, frequently substantially.

WHAT ADDITIONAL SHIFTS PROVIDE

More output from the same equipment.

WHY THAT IS THE CHEAPEST EXPANSION

Fixed costs spread across more units immediately.

WHAT TO ESTABLISH

Whether the workforce, supervision and maintenance support it.

WHAT NEW EQUIPMENT REQUIRES

Capital Installation and commissioning time Training Possibly premises and power upgrades

WHAT TO PLAN FOR

A commissioning period producing little.

WHAT ADDING PRODUCTS REQUIRES

Development Possibly registration Setup and changeover impact Market development

WHAT TO ESTABLISH

Whether the new product shares process and materials.

WHY

Shared inputs and setup make it far cheaper to add.

WHAT TO MEASURE AS YOU GROW

Cost per unit Quality Downtime Cash cycle

WHAT TO WATCH

Quality falling as volume rises.

WHAT TO PROTECT

Consistency, which is what buyers actually pay for.


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