Basic glossary of industrial contract manufacturing

There are many ways to define industrial manufacturing.

We like to define it, very briefly, as a set of operations that, with the addition of various types of resources (such as data, people, technologies and procedures), transform or modify raw materials into goods and value-added products.

Industrial manufacturing can be conceptually managed in two ways:

  • You can manufacture for the warehouse, in order to always have a stock of products available for sale;
  • You can manufacture for order fulfilment, where orders can be further distinguished in single order or repetitive order

Production can also be unitary, batched or continuous and, specifically in our sector, the assembly methods can either be: fixed workstation, production islands or production transfer (which can be timed, continuous or without restrictions).

  • Fixed workstation: Suitable for mounting large and heavy objects. The object remains fixed in the station and the necessary equipment, labor and components converge there.
  • Production Island: It represents a manufacturing system by departments or islands usually made up of different machines, suitable for carrying out specific processes.
  • Transfer Production: It represents the natural evolution of the historical assembly line and foresees a transfer of inputs and semi-finished products that can be cadenced, continuous or without restrictions. The workstations are arranged in sequence and connected to each other by means of a transport system that - at predetermined intervals - transports a component from one station to the next. Production rhythms are high and each specific assembly stage has dedicated equipment.

Once the main glossary of industrial production has been defined, it’s important to remember the beginning of any industrial manufacturing project shall begin with the definition of five key parameters:

  • What to produce, information necessary for analysis and definition of production and all auxiliary activities
  • When to produce, essential detail not only for the definition of lead time but also for guaranteeing compliance with agreed delivery dates.
  • How to produce, in order to identify the most appropriate assembly method in order to guarantee efficiency and timely delivery
  • How much to produce, in order to define the optimal batch size, whether single or repetitive.

Finally, in order to carry out optimal manufacturing management, it is necessary to promptly organize three aspects: organizational, technological and business.

  • Organizational aspects: They imply the definition of the centers of responsibility and the coordination, the structuring or the restructuring of the teams that contribute to the entire production process.
  • Technological aspects: They allow specific production allocation according to criteria of process efficiency, equipment efficiency and availability of resources.
  • Management aspects: They involve handling the production - or a particular production order - based on the role production plays in the development of the company and the balance between costs and revenue.

For more information on manufacturing processes, we invite you to periodically visit our blog.

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