How to Plan for Manufacturing Industries


Manufacturing businesses typically import raw materials and convert them into products that are passed down the chain to later manufacture as parts or to wholesalers & retailers as fully finished products for sale to consumers.

Despite the huge range of products they manufacture, they all share a number of processes that 12Faces covers with helpful resources.  Yellow Belt

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Much of the profitably of these businesses is determined by their management of inventory; buying at the right price, stocking the right volumes and so on.

This group brings together some relevant 12Faces tools covering inventory management.

Cost of Over and Under Stocking Recipe: looks at the cost to the business of running out of product and of having too much product.

Optimizing & Streamlining

Profitability also depends on producing their products as sufficiently as possible to survive in a price-sensitive world.

Optimizing / Streamlining menu gives a collection of optimizing tools.

Local Optima Problem Tool discusses the waste that can be introduced by having each production step produce as much as possible.

Theory of Constraints (TOC) points out that no production line can produce faster than its main bottleneck so that is a good place to start.