Tag : manufacturing management

Manufacturing Shop

Tips for starting your own CNC machine business

Just like any business, starting your CNC manufacturing shop can be challenging. However, often are the times when CNC machining and CNC automation operators ask themselves whether it is time to start their own machining business or offer their labor to other companies.

If you feel that it is time for you to own your own machine shop, it is best that you do it. Nevertheless, no matter the motivation, it is not always easy to start your own business especially one dealing with us manufacturing products. A manufacturing shop requires a lot of capital and therefore, you need to have a lot of savings and if not, you need to have the credit worthiness to obtain a loan .You need money, resources and most of all you need to find customers which is the most challenging part.

In this article, we take it upon ourselves to educate you on the most essential tips needed to own your CNC manufacturing shop.

Be aware of the risks

Before you get into any business, you need to identify the risks associated. You need to know whether you have what it takes to mitigate those risks or to survive the perils. You probably know of the statistics that most businesses fail in their first year of operation. More so, manufacturing in the US is not such an easy industry to penetrate due to the competition. So, before you venture into this business analyze the risks.

Prepare your business plan

Once you have established the risks, write a business plan and make sure it incorporates all the risks. In your business plan, focus on the factors likely to affect your business such as competition among other threats. Also, plan on your sales and marketing strategies. At the same time, determine the rate in the market so you can know how to price your products.

Start small

Once you have your business plan and everything under control, start small. It is normal to want to have a large shop because you think people are more attracted to businesses that look established. However, it is not advisable to do that since you have no idea how the market is. First, test the market and your team by starting small. Have some few machines and from there build capital.

If need be, first start your business with a used machine before buying a new one. In that way, you will know how to use the tool efficiently before you buy a new one. However, it is not a must you buy a used one especially if you already know how to use the machines. But, don’t rush to expand without understanding the market.

Develop partnerships

When starting a new business, it can be very tricky finding customers. However, that depends whether you are starting from scratch or if you are buying an existing business. If it is an existing business, it is good you learn to maintain the customers and if it is new, learn how to get them. So, it is very important to create connections whether by having your friends help get clients or by partnering with other business. Make sure you have good relationships and nurture them even after your shop expands.

Research shows that the type of manufacturing shop or what you looking to produce plays a major role in obtaining customers. Therefore, you can create partners by targeting segments in your marketplace. For example, develop connections with people who buy your products at a good rate or those who are in most need of your products.

Structure your business

Starting a business can be costly and so, it is expected that you will try to cut cost as much as possible. However, as much as you want to cut cost, remember that you cannot work by yourself. You cannot control sales, control finance and at the same time produce goods. So, structure your business in a way that you have the best team needed to steer a machining shop.

With the above tips, you can relax knowing you are headed for success. All the best as you start your Manufacturing Shop.

Businessman select people icon on virtual screen. HR management concept.

4 Tips to Managers and Prospective Managers of Manufacturing Facilities

Several factors come into play when managing a manufacturing facility. The floor brings together different specialists sometimes from fields that are two worlds apart. For instance, the shipping supervisor gets to interact with the manufacturing specialist while production managers consult the plant manager or even the finishing specialist on matters concerning the manufacturing process. Additionally, it is imortant to note that management involves taking a more radical approach. There are ways of handling hurdles associated with the manufacturing plant. Here are four tips on how to manage a manufacturing plant. If you are planning to go up to the ladder, then understanding these early will set you up for the challenge.

1. Focus on Profits

It is possible that your facility still uses the output as a measure of performance. While this can be good for accounting purposes, it is not a great way of handling workers. Only machines are rated based on the quantity they churn out. Instead of focusing the attention of employees on the number of tons churned out per day, let them understand how their effort contributes to the overall profit.

It is then possible to create a reward program that grows as the profits increase. As a result, the employees, partners, and shareholders can share in the fruits of good labor. If you are planning to be a manager, then start viewing your input in relation to the profits. Figure out how you can do more than add daily output.

2. Annual to Weekly Review

How often do you review your performance or that of your team? Time flies, you are handling more customers, and the staff is changing even faster. The only way to grow is to have short-term goals usually daily goals and review your success weekly. Yearly performance review is an outdated idea that has no place in the 21st-century manufacturing industry management.

As an employee, have your daily targets. If you are working with a team, set these goals and share them with your supervisor. At the end of the week have a sit-down and analyze your performance.

3. Teammates are Not Soul Mates

While teamwork is to be encouraged in the workplace, these people are not to be welded together as a unit. A workforce in a manufacturing facility is not similar to a police task force where people are partners for life. Managers should bring together the best team for the work at hand. They can get to know each other during briefings. However, such a structure requires that personnel allocations decisions be flexible.

As an employee eyeing a managerial post, learn to work in different teams. When faced with a hurdle, find ways of getting help from the person best qualified to help even if they are not part of your team.

4. Process is King

Profit based rewards propagate a focus on the results. The problem with this is that it assumes the role of the process. Only a properly designed process can lead to an excellent performance and product that, in turn, leads to improved profits. A manufacturing manager should recognize employees who excel at how they carry out their operations.

A prospective leader in the manufacturing industry should also learn to improve the efficiency of the part of the process for which they are responsible.

Managing a manufacturing facility requires one to think broadly and creatively. Have a gamer’s mentality; you and your workers should always be aiming higher to an attainable goal. Once achieved, let the reward be tangible and worth the struggle. Above all ensure everyone shares in the victory and fruits.