Setting up a new factory or production plant takes planning. You need to organize it in such a way that will let you churn out units at a high quality and low price.
But how, exactly, are you supposed to do that? In this post, we find out. Here’s your ultimate factory or production plant setup checklist.
Plan Your Machinery
Factories are just empty shells without machinery. So before you even settle on a building size or design, you’ll need to think carefully about how much equipment you’ll actually need and where you’ll put it.
It is critical to get this step right. If you don’t work out what you need, you’ll wind up with either too much or too little space. Plan for both the amount of machinery you’ll need now, and what you’re likely to require in the future. Look for opportunities to outsource as much of the processing as you can to third-parties to make planning easier.
Consider The Setup Cost
Before you begin construction work, you’ll also want to consider the setup cost. Most factories require six or seven figures to get started – an outlay you’ll need to cover with future production.
Look for ways you can reduce these costs before you commit. You can try:
- Implementing automatic lighting and LEDs to reduce energy usage
- Prospecting multiple building companies for the best quotes
- Refitting an existing factory to meet your specifications
Choose A Smart Location
The location of your factory is arguably more important than the equipment. Brands who locate close to transport links or in low-wage areas overseas tend to have the highest profit margins.
Factories rarely work as intended first time around. Instead, it takes a while to iron out problems.
Don’t rush into production. Instead, take time to test all your lines and make sure they’re ready to operate at 100 percent. Set aside some additional investment so that you alway have money available to make ad hoc improvements to your processes.
Ensure that you perform structural inspections too if you just built a new factory. These will check that your buildings are fully self-supporting and are not likely to fail at any point in the future.
Track Market Demand
Successful factories usually appear right at the moment when the market demands the products they produce. For this reason, track the market diligently. Make sure that you’re able to meet its needs while also planning for the future. Don’t get into an industry with a declining market. All this will do is saddle you with debt and costly retooling projects.
Bring Together An Agile Team
Lastly, manufacturing businesses need to bring together agile teams. Only companies with the right personnel can succeed in this industry.
Evaluate the capabilities of each person you employ and how they will fit into the larger mission. Ensure that you bring in people who have the necessary experience in their given areas. Provide training programs in-house so that you can build your own talent instead of buying it from outside at high cost.