It is vital that small manufacturing business must be managed by sound policies. Because policies guide the actions you’ll take in every aspect of your operation, you’ll find it overriding importance to set your basic policies carefully and clearly before you take action. The first policy you should set states that you’ll husband your funds with care, making every dollar pay off.
Whether you buy, build or lease a plant for your purpose, you’ll want to take into account the features of the location: zoning restrictions; availability of labor, electric power, gas, and water supplies; and local taxes. If you build a plant, use materials that are easy to maintain. Make sure the design is flexible to provide for growth and that it’s aesthetically pleasing.
The over-all plan layout should support the smoothest and most efficient flow of material and process possible. The layout should permit the shortest possible paths for moving material and the most direct routing through the steps in manufacturing process.
As you take on new production tasks you’ll find that your workforce will acquire the new skills needed on a learning curve. The cost of production will come down gradually as learning takes hold. One rule of thumb you’ll find applicable to production says that every time you double your production quantity your direct labor cost will decrease to 60 to 80 percent of its former amount.
If your business is seasonal you can take care of peak loads by: building to inventory; stimulating sales through special campaigns in the off season; increasing working hours during peak periods and decreasing them during slack periods or keeping a small steady workforce and farming out work during peak periods. You can use any or all the tactics singly or in combination.
You’ll want o build up your own
digital printing shop for example; your shop should be capable of handling your unique needs. Many of the more conventional requirements aside from the machines needed for your print postcards include electroplating, dynamic balancing and casting can be done for you by outside sources. You should never permit your model shop to be used only for innovative model building purposes. And whatever you do in developing a new product be sure it fits your resources. And whatever you do in project should fit your equipment, know-how, and pocketbook. Be careful to design your new product so it can be manufactured readily and economically. And above all it must perform as you claim it will.