Manufacturing businesses produce wealth by adding value to raw materials. Steel becomes automobile, aluminum becomes jet planes, rubber becomes tires, plastic becomes everything from trinkets to heavy engineering products, and so on. The essence of manufacturing is transforming materials into saleable products, including intermediate products needed by other manufacturers.
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Tools and labor were the original inputs for manufacture. Crafts are prime examples of such a manufacturing process. Manufacturing became more complex when it incorporated scientific knowledge and engineering, and produced a vast range of sophisticated products.
As labor costs increased in developed countries, manufacturing began to move to lower cost developing countries. Another factor that contributed to such movement was the polluting effect of most manufacturing activities. Hazardous wastes, global warming and occupational diseases degrade the quality of life.
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Developed countries are allowing pollution causing manufacturing activity to move to the developing countries, and turning their focus to emerging technologies such as nanotechnology, biotechnology, information technology, cognitive sciences and robotics.
It is good if you keep this overall trend in mind if you plan to set up a manufacturing business.
Assembly line manufacturing cut costs of production dramatically. However, it made work in assembly plants a meaningless routine for workers.
Modern practices such as lean manufacturing, just-in-time manufacturing, flexible manufacturing and other concepts have been developed to handle both costs and the rapidly changing markets. Automating processes and use of robots minimize the need for expensive labor.
Manufacturers in developed countries are also resorting to the strategy of moving their production facilities to lower cost developing countries or outsourcing manufacturing processes, in full or in part.
The cost reduction attempts outlined above are dictated by marketing compulsions. As an industry becomes increasingly competitive, tactics like cutting prices through lower cost production become critical for individual businesses.
The concepts such as just-in-time manufacturing and flexible manufacturing also enhance marketing effectiveness. These practices help manufacturing businesses avoid expensive inventories of unsold stocks. They seek to minimize the impact of a major problem for manufacturing businesses - the need for dedicated and specialized equipment and facilities.
Focusing on contract works/manufacture is one way to attend to the problem. These kinds of businesses undertake production only against firm orders, and hence unsold inventories do not accumulate. Government encourages farming out contracts to smaller businesses, either directly or indirectly through incentives to large contractors (who give subcontracts to small businesses).
Local manufacturing businesses might also have advantages for defense and infrastructure contracts, either because of strategic considerations or because of the heavy transport costs involved.
Manufacturing businesses cover a wide range of activities, each with its own unique characteristics. However, in general, the factors mentioned above point to key success factors. Cost control and effective marketing by adopting appropriate strategies are the key factors for traditional manufacturing businesses.
Focusing on innovative technologies like biotechnology is another alternative. Yet another option is to utilize resources that are unique to a locality to produce products that can be marketed widely. Competition from low-cost producers can be handled through such strategies.
Whatever strategy is adopted, it is important to develop a business model, business plan, marketing strategy and organize needed funding and facilities.
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This book provides an in-depth study of the creative and manufacturing processes behind 50 contemporary domestic design objects. Chosen from all around the world, they span furniture, lighting, tableware, textiles, and other products. Featuring the work of both long-established and emerging designers, each product is selected for its significant use of new technology, unorthodox or complex production process, use of innovative materials (or traditional materials adapted in new and unexpected ways) and, in some cases, for the creative concept behind it.
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