There are multiple ways you can handle your manufacturing floor-level control. To this day, one very commonly used tactic is scheduling timetables through Excel. Which takes time, and resources and, believe it or not, will cost your business money.
Implementing lean manufacturing software means managing your inventory, production processes, and sales orders from one easy-to-use platform. Every little detail in the software has been designed with the precise needs of the growing business in mind.
Master production scheduling
Your master production schedule will inform you what you need to produce, the quantity, the deadlines, everything related to production, and even production lead time. It is crucial to have a master production schedule if you want your business to operate properly. Also, it’s a good habit to instill early as it will help when your business scales up.
Other master production schedule objectives are:
- Making your demand flow smoother
- Keeping your lead-time low
- Standardizing communication across your business
- Helping you to prioritize workloads
- Keeping production stable
- Generating workable plans for your manufacturing orders
- Assisting in making an accurate purchase and transfer orders
You can figure out your master production schedule by a product list, variation sub-lists for each product, and production quantities. The sooner you design your manufacturing production schedule, the quicker you can optimize your business workflow and take advantage of the benefits. You can make this job a lot easier by adopting production scheduling software.
Supply chain management
Supply chain management is simply getting your product from Point A to Point B. A supply chain manager is concerned with designing, planning, executing, controlling, and monitoring the supply chain activities to create net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand, and measuring performance globally. Their other responsibilities include negotiating with suppliers to get materials, shipment of materials as effectively as possible, and getting the product on the store shelves as quickly as possible.
Essentially, they make, source, and dispatch products.
If you’re a small business manufacturer, you’re likely doing this yourself, but at least now you know the term of what you’re doing! However, this could be a role for one or more individuals when your business expands into an empire. We hope you’re still with us because we’ll move on to the next thing you should consider, which will help you ensure you don’t under or overprice yourself.
Cost of goods sold (COGS)
The cost of goods sold (COGS) examines how much it costs your business to sell inventory over a given period of time. However, there’s no set time when a business should make these calculations. The frequency is completely up to you. However, it is essential for you to look into your COGS as it can be used in reporting your business income tax and, most importantly, studying your company’s expenses.
When you are figuring out your COGS, you want to include income and expenses.
Income = The sale income from manufactured goods and the sale income from any resold goods
Expenses = Raw materials and direct labor costs
Your formula should look something like this: