Production Control – A Practical Guide

Manufacturing is a diverse world with countless product types and levels of complexity. Many products are made simply in a commodified environment where OEM equipment has reached such productivity levels that output is measured in kilograms, linear meters, or some other volumetric measure rather than units. Even within industries, assemblies, subassemblies, and other components and […]

Production Costs – A Simple Guide

There are several ways to classify the costs associated with the production of goods. Production managers rarely need to look away from total manufacturing costs, which consist of direct material costs, direct labor costs, and manufacturing overheads. However, production accountants and business owners often need to see the bigger picture.  Table of Contents Total Manufacturing […]

Production Planning with Excel – Opportunities and Limitations

Excel and other spreadsheet applications have been used for production planning for decades. Even though they are a viable first step solution for micro-companies, a growing business should already look for something more scalable.  Table of Contents Production Planning with Excel – Then and Now Production Planning with Excel – Advantages and Disadvantages Advantages Disadvantages […]

Industrial Machinery SMEs Are Facing a Transformation

Industrial equipment and machinery manufacturers are the cornerstone of the manufacturing industry. Building the technology used to increase efficiency in other businesses, industrial machinery builders have always been at the forefront of industrial innovation. Today, these changes are especially profound. Table of Contents The industry at the center of the transformation Shifting needs New ways […]

What Is Distributed Manufacturing?

In distributed manufacturing, production facilities are scattered throughout an extended geographical area, each one serving their local market, with their work coordinated with the help of cloud-based software. Distributed manufacturing is gradually gaining ground thanks to providing benefits such as shorter lead times and lower distribution costs. Table of Contents What is Distributed Manufacturing? Benefits […]

Product Costing in 7 Easy Steps

Product costing is a necessity not only for accountants but also for managers. Understanding the costs related to manufacturing your products gives you the chance to determine optimal selling prices and take steps toward cost reduction. Here is a simple guide to performing product costing. Table of Contents What is Product Costing? Types of manufacturing […]

Make-to-Order and Assemble-to-Order Manufacturing Workflows

Make-to-order (MTO) and assemble-to-order (ATO) are manufacturing workflows that use the pull system, meaning that production starts when an order comes in. As such, they are mostly used by companies that manufacture customizable products. In this post, we go over their differences, pros and cons, and production management considerations. Table of Contents What is Make-to-Order? […]

Discrete Manufacturing vs. Process Manufacturing

Discrete manufacturing implies producing distinct items that require assembly along a production line, whereas process manufacturing produces goods in bulk, with the raw materials being mixed together in the manufacturing process. In this article, we will explore key differences between the two and look at examples of each.  Table of Contents What is Discrete Manufacturing? […]

Quality Control in Manufacturing – An Introduction

Quality control is the process of fulfilling and checking the conformance to quality standards. There are many different approaches to quality control, but an important part of every one of these is regular inspection of the goods. Besides dedicated QMS software, some ERP/MRP systems offer the required functionality to small businesses. You can also listen […]

Inventory Valuation Methods – Finding the Right Approach

For the financial departments of manufacturing companies, few things are as important as inventory valuation. Due to the effect on the gross profit of a company, choosing the right inventory valuation method is a crucial step in ensuring the financial health of your company. You can also listen to this article: Table of Contents What […]