Strategies for manufacturing: How to plan for the future

A proper strategy is required to guarantee success of a manufacturing business. Without solid strategies for manufacturing, work doesn't fall in proper order. History has it that only a handful of businesses have managed to thrive without any devised strategy. Strategies for manufacturing are important to keep the work on the right track. But why is it important to come up with strategies for manufacturing? What are the strategies for manufacturing? In this article, we will address these questions. Read till the end to get complete knowledge about “Strategies for manufacturing: How to plan for the future”.

Aditya Kumar
Jul 23, 2024    |     7 mins read

Manufacturing Strategy: Definition 

Popular definitions of Manufacturing Strategy are given below.

  • Manufacturing strategy is defined as “a sequence of decisions that, over time, enables a business unit to achieve a desired manufacturing structure, infrastructure, and set of specific capabilities” (Hayes and Wheelwright, 1984).

  • Manufacturing strategy is “a long-range plan to use the resources of the manufacturing system to support the business strategy and, in turn, meet the business objectives. (Cimorelli and Chandler, 1996).  


Gunduz Ulusoyv gave a marketing strategy in 2003. In his strategy, he provided for three key aspects. These were-

  • Manufacturing Objectives

  • Competitive Priorities

  • Action Plans


Manufacturing Objectives-

In Manufacturing objectives, decisions are made regarding the per unit costs. Market share is taken into account in manufacturing objectives. A comprehensive study about profitability of the manufacturing business needs to be done. It has to be determined how much time is required for the product manufacturing process. Gunduz Ulusoyv says that strategies for manufacturing are an extremely important step and setting manufacturing objectives can help maximise the success rate of a business. 


Competitive Priorities-

Choices on the level of quality need to be made while deciding strategies for manufacturing. Reliability is considered. Choices need to be made when there's changes in demand from customers regarding customisation. Decisions need to be made about whether or not to launch new products, keeping in mind whether the business is financially ready to launch new products, whether all the prevailing conditions allow production of new goods etc. Strategies need to be made about how to proceed with the delivery of finished goods to the end consumer. 


Action Plans-

Action plans determine how to go through with the production. Production management is an essential strategy that needs to be predetermined. Production management aims at achieving a smooth and hassle free production process with well organised planning and control of business operations in the manufacturing unit. Through Production Management, a company's production tactics, which requires the use of particular technologies and equipment, and the fulfilment of goals and objectives relating to manufacturing, unit costs, raw materials, quality, fulfilment of customer's demands etc should be implemented successfully. Other than that, how to save energy while not compromising with the speed of production and quality. At the same time, strategies need to be made to empower the workforce in order to bring out their maximum efficiency and increase the level of work in the unit. 


Such strategies for manufacturing enhance the success rate of a business by achieving all the milestones when the strategies are applied efficiently. 


Importance of strategies for manufacturing-

Strategies for manufacturing act as the foundation of any business and effective strategies maximise the guarantee for the success of any business. To ensure  that manufacturing strategy is best suitable to your business, manufacturers must keep a lookout for the following things-

  • enhancing the quality of the products

  • speeding the process of manufacturing in order to avoid any delay

  • providing the best quality while keeping the costs at minimum, in order to be under budget 

  • enhancing inventory management- Through inventory management, manufacturing units or businesses identify, recognize and plan which stock to purchase at the given point of time. Inventory management also deals with the quantities in which the stock needs to be ordered. Keeping this as a regular practice ensures that at any point of time, there's enough stock to fulfil any demands of the customers and avoid running out and shortages. Also, it ensures that there isn't plenty of stock stacked, leading to surplus. No company would want more stock than the sales. So, inventory turnover is recorded to ensure proper balance between stock and sales. An inventory turnover determines how often a stock is disposed of in a given period of time. 

  • ready to adapt to quick changes by attaining flexibility in the work schedule. This would help to deal with any changes or customisations suggested by customers in the middle of the manufacturing process.


Few example of strategies for manufacturing for success of a business-

When a business decides to opt for a manufacturing strategy, they need to keep in mind that not all strategies suit each and every business. Hence, one needs to find the best course of action that would guarantee success for your business.   

Some strategies may be the excellent choice for some businesses, but for others, it may not prove to be fruitful. Hence, a business must carefully analyse what is the needs and requirements of their firm, in what manner they are going to proceed further in the business, which strategies are going to take the firm ahead in the rat's race and what all mistakes they should avoid. 

Let's look at some strategies of manufacturing that you can adopt to make your business blossom in no time.

  • Advance Technology- As the world is advancing, the latest technology has come into picture in the manufacturing arena as well. In such a business where every firm, every company is trying to get ahead of one another, keeping up with each other is extremely important, or else you will be left behind in no time. Hence, businesses need to be aware of the type of technologies needed in order to boost production. For instance, you can take help of Procuzy software to enhance business.

  • Minimising Costs- Naturally, when costs are reduced, the business goes into profit. But how can we reduce cost without compromising on the quality? For this, a firm must keenly look out for any holes in the manufacturing process which is leading to slipping out of the money. Also, inventory management is important to reduce costs. This is because it ensures that there isn't plenty of stock stacked, leading to surplus. No company would want more stock than the sales. This will also help reduce wastage of raw materials and inventory, that ultimately leads to wastage of money.

Determining strategies for manufacturing with Procuzy

Strategies for manufacturing are extremely important in today's competitive world. The best strategies must be thought of and put into use so that no leaf remains unturned in the path of success for the firm. This is where Procuzy comes into picture. Procuzy ERP Software helps businesses determine the best ways to succeed. 

FaQs

Q) Why are strategies important to keep a business running?

A) Strategies for manufacturing enhance the success rate of a business by achieving all the milestones when the strategies are applied efficiently. 

Q) Is there any software that can help firms enhance their businesses?

A) Yes. You must try Procuzy ERP software.