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Chapter 9
Business operations of a manufacturing organisation

1. OPERATIONS OF A MANUFACTURING COMPANY

In this section you will learn about the actual operations of a manufacturing
company. The section includes a discussion of key processes of a manufacturing
company. The explanation is supported by examples from companies in different
industries.
1.1 The Transformation Process
Every organization—whether it produces goods or provides services—focuses on
furnishing customers with quality products. Technological advancements, ongoing
competition, and consumer expectations force companies to take the overall
manufacturing process seriously, integrate with other key functions such as sales
and marketing, finance and accounting, procurement, human resources, legal, etc.
However, the key objective remains the same: to produce and deliver quality
products at a competitive price in a timely manner. The competition also forces
manufacturers to innovate and improve the process by superior automation,
enhanced quality-control techniques, and efficient supply-chain management.

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Thus, to compete with other organizations, a company must convert resources

(materials, labor, money, information) into goods or services as efficiently as
possible. Managing this conversion process is the role of operations
management. They are the people charged with managing and supervising the
conversion process. They control significant part of a firm’s assets, including
inventories, wages, and benefits. They also work closely with other major
divisions of the firm, such as marketing, finance, accounting, and human
resources, to ensure that the firm produces its goods profitably and satisfies its
customers. Marketing personnel help them decide which products to make.
Accounting and human resources help them face the challenge of combining
people and resources to produce high-quality goods on time and at reasonable
cost. Operations management is also involved in the development and design of
goods and determine what production processes will be most effective.

The upper-level manager who directs this transformation process is called an

operations manager. The operations of a manufacturing company, then,
consists of all the activities involved in transforming a product idea into a
finished product, as well as those involved in planning and controlling the
systems that produce finished goods. In other words, operations managers
manage the process that transforms the inputs into the outputs. Figure below
"The Transformation Process" illustrates this traditional function of operations
management.

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1.2 Objectives of operation management in Manufacturing

All manufacturers set out to perform the same basic function: to transform
resources into finished goods. To perform this function in today’s business
environment, manufacturers must continually strive to improve operational
efficiency.
They must adjust their production processes with the following objectives in
mind:
• to focus on quality,
• to minimize the costs of materials and labor, and
• to eliminate all costs that add no value to the finished product.

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Making the decisions involved in the effort to attain these goals is the job of the
operations manager. That person’s responsibilities can be grouped as follows:

• Procurement & purchasing. Before production begins, a company must plan

the sourcing of materials and inputs that are required for making a finished
product.
• Purchasing is a small subset of the broader procurement function. This
process includes activities like ordering, expediting, receiving, and fulfilling
payment.

Making the decisions involved in the effort to attain these goals is the job of the
operations manager. That person’s responsibilities can be grouped as follows:

• Procurement & purchasing. Before production begins, a company must plan

the sourcing of materials and inputs that are required for making a finished
product.

• Production planning. During production planning, managers determine how

and when the goods will be produced, where the production will take place,
and how the manufacturing facilities will be laid out. This includes to
determine site locations and obtain the necessary resources. Overall, four
important decisions are made in production planning (i) type of production
process, (ii) site selection, (iii) facility layout, and (iv) resource planning.

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Production control. Once the production process is under way, managers

must continually schedule and monitor the individual activities that make up
that process. They must be open to feedback and respond to make
adjustments where needed. At this stage, they also oversee the purchasing of
raw materials and the handling of inventories, and ensure controlling the
costs.
Three key scheduling tools are:
▪ Gantt charts.
▪ Critical path method (CPM)
▪ Program evaluation and review technique (PERT).

Quality control. Finally, the operations manager is directly involved in placing

various controls to ensure that goods are being produced according to specific
criteria and that quality standards are adhered to. It takes more than just
inspecting goods at the end of the assembly line to ensure quality control,
however. Quality control requires a company-wide dedication to managing and
working in a way that builds excellence into every facet of operations.
Key techniques include
▪ Total quality management (TQM).
▪ Six sigma.
▪ ISO 9000 and
▪ ISO 14000 are the industry standards to ensure the existence of sound
quality procedures.

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Continuous Development. At the end, finding more efficient methods of

producing the products is imperative to remain competitive in the
marketplace.

Production planning is one of the most important part of operations

management. It allows the business to consider competitive environment and
its own strategic goals to find the best production methods. Good production
planning has to balance goals that may conflict, such as providing high-quality
service while keeping operating costs low, or keeping profits high while
maintaining adequate inventories of finished products. Sometimes
accomplishing all these goals is difficult. Following are some of the key
decision points in the production planning.

Planning Phases: Production planning involves three phases.

Long-term planning has a time frame of three to five years. It focuses on
which goods to produce, how many to produce, and where they should be
produced.
Medium-term planning decisions cover about two years. They concern the
layout of factory or service facilities, where and how to obtain the resources
needed for production, and labor issues.
Short-term planning, within a one-year time frame, converts these broader
goals into specific production plans and materials management strategies.

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Types of Production Process: Another discussion point in production planning

is what type of production process to be adopted. In general, there are three
types of production process:
▪ Mass production
▪ Mass-customization
▪ Customization.
In mass-production, manufacturing many identical goods at once, is the common theme.
Many products are made sequentially. Breads, and soft drinks are the common examples.

Production

Mass-customization Customization

Goods are produced using mass- Goods are procuced at a time

production techniques, but only according to the specific needs
up to a point. At that point, the or wants of individual customers.
product is custom-tailored to the Unlike mass customization, each
needs or desires of individual product or service produced is
customers. unique.

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Production

Mass-customization Customization
Dell computers is a common example. ▪ Building individual houses is a
American Leather, a Dallas-based common example.
furniture manufacturer, which uses mass- ▪ Another example is a print shop
customization to produce couches and which may handle a variety of
chairs to customer specifications within projects, including newsletters,
30 days. The basic frames in the furniture brochures, stationery, and reports.
are the same, but automated cutting ▪ A manufacturing firm that produces
machinery precuts the color and type of goods in response to customer
leather ordered by each customer. Using orders is called a job shop.
mass-production techniques, they are
then added to each frame.

Dell computers is a common example. Another example is American Leather, a

Dallas-based furniture manufacturer, which uses mass-customization to produce
couches and chairs to customer specifications within 30 days. The basic frames
in the furniture are the same, but automated cutting machinery precuts the
color and type of leather ordered by each customer. Using mass-production
techniques, they are then added to each frame.

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In customization, the firm produces goods one at a time according to the

specific needs or wants of individual customers. Unlike mass customization,
each product or service produced is unique.
Building individual houses is a common example.
Another example is a print shop which may handle a variety of projects,
including newsletters, brochures, stationery, and reports. Each print job varies
in quantity, type of printing process, binding, color of ink, and type of paper. A
manufacturing firm that produces goods in response to customer orders is
called a job shop.
In addition, the manufacturing process can be divided into two types: (i)
process manufacturing, where the basic inputs are converted into one or more
outputs, like wheat is converted into flour, and (ii) assembly manufacturing,
where the basic inputs, are either combined to create the output or
transformed into the output. An airplane, for example, is created by
assembling thousands of parts.

Customization, In addition, the manufacturing process can be divided into two

types:
(i) Process manufacturing, where the basic inputs are converted into one or
more outputs, like wheat is converted into flour, and
(ii) Assembly manufacturing, where the basic inputs, are either combined to
create the output or transformed into the output. An airplane, for
example, is created by assembling thousands of parts.

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Production
Timing

Intermittent
Continuous process
process
A continuous process uses long In an intermittent process, short
production runs that may last days, production runs are used to make batches
weeks, or months without of different products. Machines are shut
equipment shutdowns. This is best down to change them to make different
for high-volume, low-variety products at different times.
products with standardized parts, This process is best for low-volume, high-
such as nails, glass, and paper. variety products such as those produced
by mass customization or customization.
Job shops are examples of firms using an
intermittent process.

4) Location: Another major decision is about where to locate the manufacturing

facility. The facility’s location affects operating and shipping costs and, ultimately,
the price of the product or service and the company’s ability to compete.
Mistakes made at this stage can be expensive, because moving a production
facility once production begins is difficult and costly. Firms must weigh several
factors to make the right decision such as:
• Access to production resources / inputs: This includes materials, parts and
equipment, and human resources.
• Marketing: This includes proximity to customers and competitirs.
• Manufacturing base / zone: This include industrial zones where many other
manufacturing units are already based. t provides an easy access to human
resources and other required inputs. Some special zones also provide tax
breaks.

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5) Layout: The goal is to determine the most efficient and effective design for
the production process. A manufacturer might opt for a U-shaped production
line, for example, rather than a long, straight one, to allow products and
workers to move more quickly from one area to another. Main types of facility
layouts are process, product (or assembly-line), fixed position, and cellular
manufacturing. Workers are positioned according to the selected layout.

6) The process layout is a facility arrangement in which work flows according to

the production process. All workers performing similar tasks are grouped together,
and products pass from one workstation to another. The process layout is best for
firms that produce small numbers of a wide variety of products, typically using
general-purpose machines that can be changed rapidly to new operations for
different product designs. For example, a manufacturer of custom machinery
would use a process layout.
The product (or assembly-line) layout is a facility arrangement for products that
require a continuous or repetitive production process. When large quantities of a
product must be processed on an ongoing basis, the workstations or departments
are arranged in a line with products moving along the line. Automobile and
appliance manufacturers, as well as food-processing plants, usually use a product
layout.

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The fixed-position layout is a facility arrangement in which the product stays in

one place and workers and machinery move to it as needed. Some products
cannot be put on an assembly line or moved about in a plant. A fixed-position
layout lets the product stay in one place while workers and machinery move to it
as needed. Products that are impossible to move—ships, airplanes, and
construction projects—are typically produced using a fixed-position layout.

7) Resource Planning and Supply Chain Management: Resource planning begins

by specifying which raw materials, parts, and components will be required, and
when, to produce finished goods. To determine the amount of each item needed,
the expected quantity of finished goods must be forecast. Resource planning
include key decisions like make-or-buy, outsourcing, and inventory management.
In addition, supply-chain management focuses on smoothing transitions along the
supply chain, with the ultimate goal of satisfying customers with quality products
and services. A critical element of effective supply-chain management is to
develop tight bonds with suppliers. This may mean reducing the number of
suppliers used and asking them to offer more services or better prices in return for
an ongoing relationship.
8) Information Systems: Resource planning leads to another important decision
which is selecting the type of information systems to control the flow of resources
and inventory. Some of the key systems in use are: Material requirement planning
(MRP), Manufacturing resource planning II (MRPII), Enterprise resource planning
(ERP).

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1.3 Management of a manufacturing facility

Organization is the key to operating a successful and efficient manufacturing
business. Each person in the company must be aware of his role within the
organization and must be mindful of the chain of command. Just like in any
organization, the structure is visually represented through organization charts.
An organization chart shows the chain of command of the company and the
proper flow of responsibility within the manufacturing set up which is essential
for the company to run in an efficient manner.

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Types of human resource in a manufacturing set-up

Executive Management
Executive management is the top of the organization.
An executive manager may be a person with the title of Chief Executive Officer,
Chief Operating Officer, President or other similar title.
An executive manager has the ultimate responsibility of choosing a
manufacturing strategy, just like choosing the primary direction of all other
departments, and is also ultimately responsible for the outcomes of that
strategy. A wise executive manager will seek input and feedback from relevant
and technical managers when devising a manufacturing strategy.

Manufacturing or Production Manager

The manufacturing or production manager of an organization is the leader of
the production workers and supervisors in the production facility. Most
production managers report directly to the executive manager, where he is
given his directives for managing the production process.
A wise production manager will seek input and feedback from his production
line supervisors and production employees regarding the effectiveness of the
production strategy. The production manager usually reports the successes or
failures of the predetermined manufacturing strategy to the executive manager.

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Production Line Supervisors

Production line supervisors are the liaison between the production workers and
the production manager. Although the production manager is responsible for the
entire manufacturing facility, the production line supervisor is responsible for only
the production, or assembly, line where he is stationed. A production line
supervisor may be responsible for multiple assembly lines within a certain
production line. It is essential for the production manager to relay the
manufacturing strategy given to him to the production line supervisors that report
to him. CEO / President Head of Finance Manager Accounting Manager Inventory
Control Manager Financial Planning Head of Operations Manager Human
Resources Manager Production-A Manager Production-B Head of Marketing
Manager Sales Manager Distribution Manager Customer Service

Production Workers
The production worker is at the bottom of the manufacturing organizational
chart. However, the production worker is one of the most important pieces to
the manufacturing strategy set forth by executive management. The production
worker, when trained properly and given the proper tools needed to complete
his job efficiently, can be the reason for the success or failure of the
manufacturing strategy. Production workers report to the production line
supervisor.

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2. A TYPICAL STRUCTURE OF A MANUFACTURING COMPANY

2.1 The Organization Structure
The structuring or organizing process is generally accomplished by three primary
decisions:
1. Division of labor: determining job duties and responsibilities
2. Departmentalization: grouping jobs together
3. Delegation: assigning authority and responsibilities

An organizational structure describes the relationships of resources within a

company. It begins with people but also includes materials, money, and
information.

Division of Labour
Division of Labour means that the main process of production is split up into
many simple parts and each part is taken by different workers who are
specialized in the production of that specific part.
Different workers perform different parts of production on the basis of their
specialization. The result is that goods come to the final shape with the co-
operation of many workers. For example – in a large-scale readymade garment
factory, one person cut the fabric, the second person stiches it with machines,
the third buttons, the fourth perform folding and packing, etc.
Adam Smith (1723–1790), an economist, was the first person to introduce the
concept of division of labour in his famous book The Wealth of Nations in 1776.
He illustrated the way goods or services are produced when divided into a
number of tasks that are performed by different workers, instead of all the tasks
being done by the same person.

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Key advantages of division of labour in a manufacturing concern are:

▪ Increased efficiency
▪ Improvement in quality
▪ Utilisation of specialised skills and talents of workers
▪ Economies of scale
▪ Faster training of workers
Disadvantages of division of labour
▪ Boredom (dullness)
▪ Lack of creativity
▪ Redundancy due to new technology
▪ Lack of responsibility and interdependence

Departmentalization
Manufacturing companies typically use traditional structures for organizing
their resources. These almost always involve departmentalization so that
similar tasks can be grouped together. Traditional structures are quite rigid,
grouping employees by one or more of the following criteria:
▪ Function
▪ Products
▪ Processes
▪ Customers
▪ Regions

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Two other types of business structures are contemporary and team structures.
These are more flexible than traditional structures, allowing management to
move employees as needed to respond to dynamic working environments.
Project-based companies, like software companies and service companies, for
example, would often benefit from these more-flexible types of structures.

A typical manufacturing company department structure would, for the sake of

example, consist of a few core departments and some support functions. A vice
president would oversee each of these divisions and report to the company
president, who is responsible for all three divisions and is normally at the top of
a manufacturing company organizational chart.

Functional Departmentalization
Functional departmentalization bases the departments on the primary
functions conducted by the company.
Functions could include
▪ Manufacturing,
▪ Engineering,
▪ Legal,
▪ Finance,
▪ Human resources,
▪ Sales and marketing.

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Product Departmentalization
Product departmentalization divides company resources based on the products
being manufactured.
A good example of product departmentalization is witnessed in an automobile manufacturing
company. In such a company, we generally see departments like a two-wheeler department,
three-wheeler department, four-wheeler department, heavy motors department.

Process Departmentalization
Process departmentalization divides departments based on the work being
done.

Best example of process departmentalization can be seen in a textile mill where we may
have a spinning department, weaving department, dyeing department, printing
department, etc. Here, inside a textile mill, all activities, which are directly or indirectly
related with spinning are grouped together to make a spinning department.

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Customer Departmentalization
Customer departmentalization usually involves different units based on the
type of customers being served.

Customer Departmentalization
In customer departmentalization, departments are separated from each other based on the
types or groups of customers to be handled or dealt with.
For example, customers can be classified under types such as, international or foreign
customers, inland or domestic customers, bulk purchasing or wholesale customers, retail
customers, etc.

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Customer Departmentalization
For example, one manufacturing unit would be catering to products being sold
to industrial consumers and another manufacturing unit would be churning out
products for household consumers.
Another example is for a lubricants manufacturing company where a specific
manufacturing facility would be making lubricants for large scale machinery
and another would be making specialized products for cars and other
automotive.
Marketing could be further divided into different marketing efforts, such as
online marketing and retailer relations. Sales departments are often divided
into units based on internal and external sales forces or different types of
clients or customers.

Geographic Departmentalization
When a manufacturer has more than one location, it's often advantageous
to divide the company by region. How this is done depends on the size of the
company and the work being done in each location. At one end of the
spectrum, a large manufacturer with independent operations in different
countries, like an auto manufacturer, could have separate companies in each
country. A smaller company may have a plant manager at each location,
each reporting to the VP of operations.

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Geographic Departmentalization
When a manufacturer has more than one location, it's often advantageous to
divide the company by region. How this is done depends on the size of the
company and the work being done in each location. At one end of the spectrum,
a large manufacturer with independent operations in different countries, like an
auto manufacturer, could have separate companies in each country. A smaller
company may have a plant manager at each location, each reporting to the VP
of operations.
Ford Motor Company, for example, has three global divisions: Americas, Asia-
Pacific, Europe, Middle East and Africa. An executive VP is in charge of each of
these divisions. These are in addition to the company's functional groups, which
operate at a global level.

Delegation
If all organisational activities, strategic and routine, could be managed by the
top executives, the need for a formal organisational structure with functional
departments, staffed with people of different calibre, carrying out different
activities would not have arisen. Since it is not possible, because of physical
and mental limitations, for one person to perform all activities with respect to
all functional areas, it becomes necessary that he gives part of his workload
to subordinates along with commensurate authority to carry out the assigned
task. This concept is called delegation.
Delegation is a process the manager uses in distributing work to the
subordinates.

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2.2 Combining Business Structures For exceptionally large manufacturers, it

doesn't make much sense to limit the company's organization structure to just
one model.
For example, Procter & Gamble's "four pillars" refer to four departmentalization
models, which it uses at the same time.
1. First Pillar: Global business units organize the company by its product lines,
such as baby products, beauty products, fabric and home care, etc.
2. Second Pillar: Selling and marketing operations groups are arranged with the
geographical model for North America, Latin America, North America, Latin
America, Asia-Pacific, Europe, China, India, the Middle East and Africa.
3. Third Pillar: Global business services division also uses a geographic model to
support its other business units in areas like accounting, information
technology, payroll and facilities management.
4. Fourth Pillar: Corporate functions, using the functional model, provides the
company with resources such as human resources, legal, marketing, research
and development and business development.

5. Fifth Pillar: Global business services division also uses a geographic model to
support its other business units in areas like accounting, information technology,
payroll and facilities managemen
2.3 Choosing an Organizational Structure
A small manufacturing unit with a limited workforce may be able to work
efficiently as a functional structure. However, when the company grows, when
more products are added to production facilities and when a second or third plant
is needed, the questions surrounding organizational structure become much more
complex.
It is important to align the choices in organizational structure with the company’s
strategies. This involves asking critical questions such as:
• Should manufacturing responsibility be centralized, or should decisions be
made locally to account for regional differences?

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• How can you best ensure technology standards are implemented across all
business units?
• Should units like engineering, asset management and maintenance be
integrated into manufacturing or separated from it?
• How much responsibility will plant managers have?
• How will responsibility be organized below the plant manager?
Overall, a manufacturing business functions best when its facilities, technologies,
and policies are integrated with recognized priorities of corporate strategy.
That’s how a manufacturing business gain efficiency by improving its operations
and productivity.
The manufacturing organizational structure also needs to be consistent with the
corporate priorities. However, simplicity of design is the main element, which in
turn requires to have a balance between two extreme structures such as either a
product- or a process-focused form of organization. The proper selection of an
optimal organization structure can smooth a company’s growth by lending
stability and efficiency to its operations.

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3. KEY DEPARTMENTS OF A MANUFACTURING COMPANY

A typical manufacturing company like any other business organisation may
consist of the following main departments or functions:
• Production
• Research and Development (R&D)
• Purchasing
• Marketing and Sales
• Human Resource Management
• Accounting and Finance.
Production The Production function undertakes the activities necessary to
provide the organisation’s products or services. Its main responsibilities are:
• production planning and scheduling
• control and supervision of the production workforce
• managing product quality (including process control and monitoring)
• maintenance of plant and equipment

• control of inventory
• deciding the best production methods and factory layout.
• Close collaboration will usually be necessary between Production and
various other functions within the organisation, for example:
• Research and Development, concerning the implications of product design
for production methods and cost
• Marketing, concerning desired product functionality, appearance, quality,
durability and so on
• Finance, concerning the availability of funds for purchase of new equipment
and maintaining the optimal inventory levels.
• Human Resource Management, concerning staff motivation implications of
job design and production methods.

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The Research and Development function

The Research and Development (R&D) function is concerned with developing
new products or processes and improving existing products/processes. R&D
activities must be closely coordinated with the organisation’s marketing activities
to ensure that the organisation is providing exactly what its customers want in
the most efficient, effective and economical way.

Purchasing
The Purchasing department is responsible for purchase and sourcing of all raw
material and other resources used in the production. The primary responsibility
of the Purchase department is to find and acquire the most suitable material at
the most optimum price in alignment with the overall objectives of the company
and the production department.

Marketing & Sales

Once any product or service is ready to consumed by the end users, it is important
to communicate to the target audience about them and the company. In its formal
usage, marketing serves as the umbrella function that manages advertising,
promotions, public relations and sales. Marketing functions include research and
development, pricing, distribution, customer service, sales and communications.
In its narrowest form, a sales department advises the marketing department
based on its feedback with customers and focuses on customer contact to drive
sales. The marketing department tells the sales staff what to emphasize and what
sales tools to be used.

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Human Resource Management

HR is a key pillar to the success of manufacturing industries, because to ensure
your business can overcome the challenges threatening the industry, you need to
make sure you have a skilled workforce.
Human resource management in the manufacturing industries is often concerned
with payroll, administrative work and mediating between the management and
the workers. Mostly, the manufacturing companies lean on the HRD function in
times of labor unrest and strikes.

Accounting and Finance

The Accounting and Finance function of a manufacturing company is concerned
with the following:
• Financial record keeping of transactions involving monetary inflows or
outflows.
• Preparing financial statements (the income statement, balance sheet and
cash flow statement) for reporting to stakeholders such as shareholders. The
financial statements are also the starting point for calculating any tax due on
business profits.
• Payroll administration for paying wages and salaries and maintaining
appropriate income tax and insurance records.
• Preparing management accounting information and analysis to help
managers to plan, control and make production decisions.

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4. MANUFACTURING AND OPERATIONS MANAGEMENT

A manufacturing company is involved in design, development and production of
goods from raw materials for sale to distributors or retailers.
Manufacturing operations management refers to the ongoing process of
monitoring and improving production processes. Typically, manufacturing
management centers on optimizing efficiency to produce the best quality
products at the lowest possible prices.
Manufacturing operations management involves the tools and methods to
optimise production. This includes managing business resources such as people,
technology, equipment, and other resources that improve the efficiency and
productivity of the manufacturer.
Manufacturing operations management ensures that the physical equipment and
the user interface of a business work harmoniously for the benefit of the
company. A manufacturing system provides a platform where human and
automated activities are blended in real-time.

Benefits of a Manufacturing Operations Management include:

Giving your company a competitive advantage
Managing your business operations gives you the ability to deal with important
internal and external factors. Some of the key internal factors include intellectual
capital, operating policies, and average attrition rates. The external factors to
improve competitiveness are political (e.g., new legislation), economic (e.g.,
inflation), social (e.g., change in fashion or taste). A business can does not control
external factors, but rather try to exploit them in its own favour.
Increasing your profitability
When the operations are running smoothly, managers will have more time to
generate new ideas and apply them to increase company sales. When you have an
experienced manager, the monitoring of your revenue and expenses becomes
easier. In the long run, your overall income increases. When your business
profitability is well managed, it becomes easier to compete and grow.

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Increased efficiency and product quality

Operations management gives you the opportunity to increase the efficiency of
the way you manufacture goods. You are also able to improve the way your raw
materials are stored. The advantage of this is that you can minimise damage
and, hence, minimise losses.
Manufacturing operations management includes making use of useful tools
such as warehouse management software, production software, defect-
trackers, and process re-engineering programs. All these tools assist in
increasing the efficiency of your facility

Ensures you comply with government regulations

By managing your business operations, each head of the department in your
company takes the responsibility to ensure that all tasks performed under him
are done in a lawful manner. This protects your company from potential
government fines and severe regulatory decisions.

Increased customer satisfaction

Meet customer expectations by deploying a quality management program to
help maintain high standards while ensuring efficiency. When customer
expectations are met, satisfaction level can increase, which can also lead to
better retention and increased referrals.

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Helps in waste reduction

Another benefit of employing manufacturing operations management is the
application of manufacturing systems that aid in reducing waste production.
Often these systems will have an inventory management function to help control
inventory and consequently reduces the potential of production issues due to
the lack of stock. Investing in these types of management system helps reduce
inventory space and improve accuracy.

Increased teamwork
Manufacturing operations management requires different departments to work
together to produce quality products. This helps improve business productivity
and meet the expectations of your customers.
Ensure that you employ innovative technology to help your company achieve its
set goals and objectives. You also need to ensure that your system is working by
carrying out regular statistical control methods.

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