How to Choose the Best Production Process For Your Business

From small to large businesses, each one has a process.

Companies that make products don’t go about it in a scattered manner. Be it smartphone manufacturers or a small furniture shop, every single manufacturing company has a production process.

Companies use a manufacturing execution system (MES) to handle production. The MES also integrates with product lifecycle management (PLM) and enterprise asset management (EAM) software.

Businesses might have many manufacturing processes according to their goals, production numbers, technology tools, or software systems.

Importance of the production process

Production is crucial to manufacturing. Therefore, having an organized and efficient production process is important. Because of the production process: 

• Goods are created: Without the production process, no goods would be created, meaning there would be nothing to sell to customers. 
• Production is more efficient: The process ensures that all components, from parts and manufacturing to production and fulfillment, are as streamlined as possible.
• Lead time is shorter: Since production processes promote efficiency, they help minimize the overall time that passes between an order being placed and delivered. 

What goes into a production decision?

From quantity to timing, production managers have to make big decisions that impact the efficiency of product creation. 

Quantity

A production manager needs to review the order number for the product to determine exactly how much to produce and the production method to follow. This is a continuous process; you must follow the mass production method if you need to build certain products. You will have to opt for different production processes if you aim to manufacture unique products at once.

Production method

Some products or materials may require intricate design or production to provide personalized features for a customer’s order. As a result, a production manager must decide if mass production or other manufacturing methods are the best choices. You can also develop a strategy to use a non-automated process, which takes longer for designers to create.

Technology

The proper production process also depends on the technology you have at your disposal. For example, if there’s a large number of orders and you don’t have the right equipment, you’d be unable to mass produce them. This is why ensuring that you have the right technology to track, sort, and build the products is vital.

Input combinations

The input combinations include the workforce and the capital requirements for manufacturing. Before you consider the number of products to manufacture and the method you want to use to build them, you need to ensure that the costs and payments are fair. This ensures you get your due share of the profits.

Production involves converting input to output. Inputs can be natural resources, raw materials, human resources, and money, while outputs are the final products.

Manufacturing companies usually have a clear idea about their output. A car company like Hyundai has its sights set on a car as its output, while its inputs would be metal, laborers, paint, and wheels.

On the other hand, service companies have various definitions of their inputs and outputs. A hospital, for example, uses the skills of its nurses and doctors to save human lives and provide a wide range of healthcare services for its patients.

Production timing

Production timing is another factor to consider during the production process. Continuous processes use long production cycles that could last for a long time. Long production cycles are ideal for high volume and low variety products like screws or light coils.

The stages of the production process

There are four stages to the production process: planning, routing, scheduling, and dispatching. Each stage plays a critical part in the overall production process. 

Planning

You have to have a pre-production plan during the production process to ensure that there’s no deviation from existing goals. This makes it more likely that workers stay on task during manufacturing.

The planning process involves figuring out the details of your products, estimating production costs, finding the raw materials, building the assembly line, budgeting for the cost of production, and hiring the necessary workforce to complete production. 

Routing

This stage aims to understand how the activities need to happen. For example, a furniture piece flow process could include gathering raw material, forming, polishing, finishing, and quality control before it gets distributed. Setting the flow right during this stage minimizes hiccups in the supply chain.

Scheduling

Scheduling considers the hours a laborer works and the span of each flow. To make this happen, a master schedule gets created, which can then be divided into smaller, more detailed plans.

Dispatching

Order dispatching is a post-production process that happens after scheduling. In this process, the company determines when shipping needs to happen. It’s highly influenced by the results from the previous stages, from gathering the raw materials to production flow and production time.

Production process example

To understand the whole operation, here is an example of the production process for an automobile. 

Research shows that an auto manufacturer’s target audience is becoming increasingly sustainable and desires more eco-friendly vehicles. During the planning stage, the manufacturer’s product development team designs a new sedan that is more environmentally friendly than older models.

In the routing stage, the assembly line is created, and any equipment or tools needed are purchased, such as conveyor belts and welding robots. Materials are then sourced for the production of the vehicle, including steel, rubber, aluminum, and plastic.

It's decided that the initial batch of cars will be completed in 12 months. Detailed plans are created to ensure production can meet this deadline. When scheduling, a date is set for production to begin based on these plans. The manufacturer ensures that all equipment, labor, and materials are secured by this date. 

Different types of production processes

The type of manufacturing process your business adopts will vary depending on your requirements. Read on to see if any of these seem right for your company.

Direct production

This production type can be split into primary and secondary production. The former is a natural production activity, including agriculture, mining, or forestry. Secondary production involves activities that add value to existing items. This could be wood to make houses, steel to support a building, or tar to make a road. 

Indirect production

Indirect production involves activities that provide results from expertise or products in the form of services, like healthcare, consulting, or cosmetology. 

Mass production

Mass production requires repeat production of the same items in a job shop. Workers get divided into various workstations that multiple people use simultaneously. Each one represents a particular production process. Several components of the product are made simultaneously, making this a very efficient and productive process for a manufacturing company.

Craft production

Craft production usually doesn’t involve automation. It’s used for products that require care and attention to detail before delivering a finished good. Many companies use this method when a product is specifically made-to-order, and there needs to be extra attention to colors, shapes, patterns, or the overall design.

Batch production

Companies use this production method when there needs to be several groups or batches of items. Workers typically branch off and work in sections to complete the different parts of sets. Batch production is similar to a mass production process, but instead of manufacturing one product repeatedly, batch production builds several and separates them into various types or categories, known as batches.

Job production

Companies follow the job production process while creating products that have low demand. This means they have the time to create one product at a time by splitting into different groups to work on various product components.

Since the demand is low, workers sometimes alternate between building products in the mass production process, focusing on product designs, and completing them before returning to other tasks. 

Service production

Service production automates customer service. Companies can provide clients with specialized services. One example of service production is technical support. Customers experiencing issues with a company’s products on the technical side can contact support executives to receive guidance on its usage and troubleshooting.

Mass customization

Mass customization helps craft products that are highly unique and exactly as per the customer’s requirements. The customer has the option to select the customization parameters. This applies to clothing or accessory items requiring high levels of customization.

Creating the best-finished product

Whether you follow a just-in-time method or mass production, you must choose one that works best for your business. It’s all about the timing and the input combinations you choose to get the best output.

Now it's time to take control of your product's full lifespan. Learn how to efficiently and effectively get your product to your customer with product lifecycle management.