The first manufacturing unit was adopted in Britain at the very beginning of the industrial revolution, in the late 18 century. This revolution later escalated around the world.
But what exactly does the term “manufacturing” implies?
The manufacturing process is a journey of raw materials getting transformed into a final product. We wish it was as short and simple as the description. But actually, it requires a lot of tasks, implementation and management care by various skilled professionals.
In the earliest era, there were no heavy machinery, high-tech gadgets or factory units for mass production of products. It was all in the hands of a skilled individual.
With the developing human race, the technology took a massive pace in its progression. Now it was not possible for a skilled individual to meet the increasing demand for such a huge mass.
This massive increase in demand triggered the need for invention of a production unit, or we can say a manufacturing unit.
At present there are number of manufacturing units of various industries in different countries, and this number just keeps on increasing.
According to the survey conducted by the world bank in 2018, country that tops the chart by the total value of manufacturing is China, followed by the United States and Japan. India secures a 6th place in this chart with a few differences.
It’s quite a task to manage a manufacturing company, especially when the company has more than one production unit. Also the level of complication increases in parallel with the increase in units.
Factors challenging the manufacturing industry
There are various challenges that a manufacturing industry comes across during the entire workflow.
Let us learn about those challenges through the following topics:
1. Production and planning.
This department is the backbone and largest section of the industry comprising of numerous warehouses or inventories, along with a number of workers and team leaders.
The job of this department is to set targets and rules for each and every segment of the production. It also includes monitoring the quality and quantity of manufactured products. Every process has to be carried out promptly, as per the set rules to meet the required target.
One absolutely cannot afford to make mistakes in the process, as it will result in huge loss to the organization.
There is much more to the production and planning department that meets our eye. It constitutes various other sections that needs to work in harmony for a seamless experience.
The purchasing department has the duty to assure availability of all the materials, components and types of equipment that will be required for the production process.
The major issue faced by the purchasing department is delay in stock arrival and material quality.
This is indeed a major problem of the production process, as the delay in the arrival of materials cause a delay in the production line and similarly, bad quality of the material will directly affect the quality of the product manufactured.
For managing such hassle, system capable of serving complete management solution needs to be adopted. It should be able to provide real-time data for entire workflow, thereby allowing you to take quick and effective decisions.
The core responsibility of the inventory department is stocking up all the necessary tools, spares, raw materials and types of equipment required to service the manufacturing process.
The stocks in the inventory always fluctuates, especially when there is an unreliable source. Requirement to move goods and raw materials from one inventory to another arises due to this reason. So, it becomes very important to keep track of delivery and complete details of the shipment.
To manage such situation you need to have an automated system, that not only reminds you of the stock that needs to be replenished but also provide details of the delivery of goods, if it needs to be transported from one inventory to another.
4. Accounting and finance.
Transaction across a company increases in parallel with the growth of the company. So, as the organization starts to grow the accounts team starts to feel the immense pressure of handling bills, invoices, and other financial matters.
Maintaining data on the funds spent by the company and funds remaining with the company is a part of job for the accounts department.
Budget approval for any expenses required by the company goes through the accounts team, as maintaining company’s finance is the core responsibility of the team.
A system capable of handling bills, invoices improves the time management of the team and saves much efforts that can be directed towards other important aspects of the organization.
How ERP implements change in the manufacturing industry?
Managing a manufacturing business is way more complicated than it seems. You should be aware of every minute detail and aspects of your organization for a smoother workflow.
A cloud ERP system has capabilities of managing every corner of your inbound procedure with total ease and simplicity.
Chiefex is one such powerful and smooth management system, that understands the requirements of the organization and provides a 360-degree solution for the same.
This exceptional technology reduces complexities, enabling manufacturers to keep operating efficiently at peak level by implementing automation to the organization.
Designed for manufacturers, chiefex is capable of meeting all their needs.
Solutions chiefex implements to your organization:
1. Contact management.
2. Lead management.
3. Production management.
4. Order management.
5. Supply chain management.
6. Inventory management.
7. Sleek marketing.
8. Sales and purchase management.
9. Automation in accounts and finance.
10. All-in-one application.
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