Those in the mixed-mode manufacturing industry know how easy it is to fall behind. During busy times of the year when orders start coming in faster and faster, it can be difficult to maintain production quotas and meet demand without resorting to heavy overtime hours (particularly when dealing with a number of special orders that cannot be taken from inventory). While having more business than you can handle is preferable to not having enough orders, company evaluation procedures often get lost in the shuffle when the race is on to get the next order filled.
Many mixed-mode manufacturers are loath to take any time out of hectic schedules to perform costing or production analyses. Many feel that order volume is the only figure that needs attention. Popular wisdom dictates that when customers want their products, all available resources must be spent on production--any other activity is a waste of time.
While such a theory may seem intuitively correct, there are numerous benefits to taking a step back and having a look at production processes. If you can adjust the way your business functions to increase not only total production but the hourly rate of production, you will have created a more efficient and more profitable company. Charging blindly ahead can often lead to the completion of projects that take a lot of time and don't make your company very much money.
In order to separate valuable jobs from those that drain too many resources in relation to profit margins, evaluate your company using powerful enterprise resource planning (ERP) software designed for the manufacturing industry. Here at Bowen & Groves, we have aided many businesses in the process of producing more product while using less time. To learn more about our M1 ERP software, contact us via phone or e-mail (866-617-6389 or sales@bowen-groves.com).