As with all production, the process of manufacturing follows a general rule of supply and demand. The manufacturing business follows basic business rules. The manufacturer plans the entire process. The manufacturer should decide well before starting, the line of supply and marketing strategies.
The manufacturer must identify the market where the finished goods can be sold. The marketing line, which is the stockist, dealers, and agents should be chosen prior to production. The final cost of the finished goods is determined and the cost should be competitive.
Customer satisfaction is an essential factor, and this should be taken into consideration. The flexibility of changing plans according to demands, keeps the business in competition.
The manufacturing companies need well trained as well as unskilled laborers to bring their plans into reality. Availability of unskilled and skilled employees are necessary for the manufacturers, but this combination is hard to find. This is a major problem for today's modern manufacturing companies.
Three types of manufacturing:
- Traditional Manufacturing
- Lean Manufacturing
- Contract Manufacturing
Lean manufacturing is identifying the cause of waste in production and removing it from the manufacturing system.
Contract manufacturing is helpful in todays market. The manufacturing part of a business is given to another company which is provided with certain guidelines regarding the implementation of the work.