According to the National Association of Manufacturers, manufacturing has one of the largest sectoral multipliers, with every $1.00 spent contributing $2.69 to the U.S. economy.
But manufacturing does more than drive economic growth; it elevates our quality of life by producing products that enhance productivity and comfort while driving the development of technologies like robotics and the Internet of Things (IoT).
That said, manufacturing faces challenges, such as rising labor costs and increased globalization. However, with the right strategies and knowledge, these can be overcome.
This post will give you the knowledge and strategies to navigate manufacturing, from its definition to how to harness technology to improve your manufacturing processes.
What is manufacturing?
Manufacturing is the process of creating products from raw materials using tools and machines. It can range from simple tasks like making furniture to complex processes like producing beer and can differ in scale from small to large operations. This diversity results in many types of manufacturing.
What are the types of manufacturing?
Here are five common types of manufacturing:
- Mass production is the large-scale production of standardized products using assembly lines and specialized machinery.
- Batch manufacturing produces moderate or limited quantities of identical products in specific batches to meet demand. Each batch goes through specific production steps before proceeding to the next.
- Discrete manufacturing produces a single—usually highly customizable—product at a time. An example is the production of medical implants. It’s characterized by complex assembly processes that require highly skilled labor and often lead to longer lead times.
- Job shop manufacturing involves making products based on specific customer requirements. It’s suitable for products with a low to medium production volume but a high degree of customization.
- Lean manufacturing focuses on maximizing value and efficiency while minimizing waste. For example, the Toyota Production System (TPS) uses lean manufacturing techniques like just-in-time production and continuous improvement to streamline processes and reduce waste.
Okay, now that we’ve covered the different types of manufacturing, we introduce some fundamental manufacturing concepts before examining the manufacturing process itself.
What are some key manufacturing concepts?
Here are five fundamental manufacturing concepts for those wanting to learn more about manufacturing.
- Manufacturing cost is the total cost incurred in producing a product, including direct materials, direct labor, manufacturing overheads, and other miscellaneous costs.
- A bill of materials (BOM) is a comprehensive list of components, parts, and materials needed to manufacture a product.
- Manufacturing lead time is the time it takes to manufacture a product, from initiating the production process to when the product is ready for shipping.
- Inventory management is the process of controlling the flow of components, materials, and finished products in a manufacturing facility to maintain stock levels, meet demand, and minimize inventory carrying costs.
- Quality control refers to the practices and processes that ensure products meet specific quality standards, such as inspecting and testing designs.
So, what exactly does the manufacturing process look like?
The manufacturing process is multifaceted and involves seven key steps. Each step includes or excludes labor and automation, requires different machinery, and varies in complexity.
Step 1: Planning
Decide what product to create, choose the material, set production goals, create a development timeline, and allocate resources.
Step 2: Design
Engineers conceptualize the product, create detailed specifications, and may create a prototype to validate the design—all while paying close attention to the BOM.
Step 3: Procurement
Vet suitable suppliers before buying materials and components by considering quality and cost. Use an inventory management system to order and maintain optimal material and component levels to meet production targets.
Step 4: Production and assembly
Fabrication and assembly transform materials and components into a final product. The BOM guides production and assembly, and manufacturing lead time helps plan and schedule production activities.
Step 5: Quality control
Inspect and test the product at each assembly stage to meet quality standards.
Step 6: Packaging and distribution
Package the finished product for storage, transport, and sale. The shipment is prepared for safe and secure delivery via trucks or planes and shipped to the customer and distribution centers.
Step 7: Maintenance
Conduct ongoing machinery and equipment maintenance to ensure the process continues to run smoothly.
Now that you understand the manufacturing process, let’s examine some of the modern technologies used to optimize and enhance processes.
What technologies are used in manufacturing?
Manufacturing is a broad field encompassing many industries and processes, so there is no shortage of technology. Here are five common technologies used in manufacturing:
- Manufacturing platforms: Comprehensive digital platform designed to optimize various aspects of your manufacturing operations, from production planning and inventory management to manufacturing compliance and work order management.
- Automation and Robotics: Automated machinery and robots handle materials, assemble products, and maintain quality and safety throughout the manufacturing process.
- Computer-Aided Design (CAD): Software that creates, models, and visualizes product designs.
- Additive manufacturing (3D printing): 3D printing lets manufacturers produce complex geometries and customized parts from digital designs.
- Internet of Things (IoT): IoT sensors and devices are physically integrated or installed into equipment to monitor and gather data on processes like machine performance.
Manufacturers use these technologies to overcome the industry’s biggest challenges.
What challenges is the manufacturing industry facing?
Like any other industry, the manufacturing industry has its challenges. Here are six of the most common ones and ways to overcome them.
Rising labor costs
Manufacturers continue to face rising labor costs, eroding profit margins and threatening their very survival.
The solution:
- Implement automation and robotics to reduce the reliance on labor.
- Invest in workforce training to boost productivity.
Skills gap
Manufacturers often struggle to find and retain skilled workers for highly technical jobs like engineering.
The solution:
- Partner with educational institutions like local technical colleges to develop training programs to address skills gaps.
- Offer competitive compensation packages to attract top talent, including performance-based bonuses and opportunities for career advancement.
Globalization
Globalization has increased competition and pressured domestic manufacturers to innovate and optimize manufacturing processes.
The solution:
- Use technology to improve manufacturing processes. For example, a manufacturer can invest in inventory management software to help forecast demand and optimize inventory levels.
- Work with international partners to access new markets.
Government regulations
Manufacturers must comply with regulations, such as environmental, safety, and labor laws, which adds an extra layer of complexity and cost to the manufacturing process.
The solution:
- Proactively monitor regulatory changes to ensure compliance with the latest requirements.
- Implement a compliance management system to stay compliant and abreast of government regulations. This system should include written policies and procedures outlining compliance requirements and software to support your compliance efforts.
Technological changes
While technology presents itself as a solution to many challenges, it can be hard to keep up with its rapid advancements.
The solution:
- Establish a dedicated team that’s responsible for monitoring technological changes.
- Develop a strategic technology roadmap that prioritizes investments in technology with the most significant benefit.
Resource availability
Supply chain disruptions and environmental concerns can constrict access to resources manufacturers depend on.
The solution:
- Diversify supply chain sources by developing strategic partnerships with multiple suppliers.
- Invest in sustainable resource management practices to minimize waste. For example, a food processing company could invest in IoT sensors to track energy consumption and waste generation in real-time.
Simplify your manufacturing processes today
Manufacturing is crucial in driving economic growth and technological advancement. However, it faces challenges like any other industry. The key to overcoming these challenges is implementing the right solutions and investing in the appropriate technology.
An integrated manufacturing management platform like Fishbowl Manufacturing can help. Not only does it centralize and enhance other technologies, but it also offers comprehensive material handling management, production tracking, and capacity projection from a single platform in real time.
Book a demo today and discover how Fishbowl can simplify your manufacturing processes.