Manufacturing Trade Articles

Software & Hardware

Businesses in manufacturing not only generate consumer products, but a hefty portion of the nations economy as well. This one industry accounts for 11 percent of all employment throughout the country, according to the U.S. Department of Labor.

Regardless, as more and more vendors outsource manufacturing overseas, those in the field continue to restructure their business strategy to stay ahead of the game.

One facet consistently holds true in the highly-competitive commercial market: Shoppers gravitate toward quality products. Companies in the manufacturing industry must live up to consumer expectations, while also meeting distributor demands in a timely fashion.

For this reason, todays manufacturers rely on various computer programs to manage nearly every phase of product development.

Many software companies offer pricing programs designed to help manufacturers establish operation costs based on volume, item, client and more. In addition, this software usually features templates for contract design, customer price lists and promotions. Some packages even allow price comparison across product groups, allowing the manufacturer to identify the most profitable items to develop.

Material programs help manufacturers determine what supplies to purchase, how much to buy, and what material vendor best suits a particular project. Moreover, this software usually identifies production requirements and the timeframe of manufacturing supply orders.

Resource programs help manufacturers get the most out of workers, materials and more. More specifically, this software aims to decrease downtime by better organizing the scheduling of work centers, machines, tools, and labor.

Shop floor control programs record production data directly from the site of operation through the use of bar codes, shop terminals, and touch screen technologies. In any manufacturing enterprise, being able to view what is happening on the factory floor is crucial to managing business operations.

Simulation and modeling programs allow manufacturers to coordinate equipment layout on the floor, workflow process, and resource allocation before ever starting a particular job.

The Whole Shebang
Since many manufacturers take on multiple projects at one time, most find it vital to keep a running record of where each job stands in the production process. Some software companies offer manufacturing execution suites geared toward managing the operation from start to finish. These packages provide real-time reports, data and analysis as the shop floor accomplishes volume goals. Other features usually included in manufacturing execution suites are:

• Work in progress (WIP) monitors every step in the production cycle to boost productivity and quality product yield on the floor. This technology relies on barcodes or serial numbers, which are scanned at each assembly point to provide product traceability. As a result, management can oversee the work flow and receive real-time data on delays, bottlenecks and damaged products.
  
  
• Production scheduling generates development sequences, analyzes the impact of schedule changes, and provides realistic delivery dates based on volume and project complexity. Ultimately, this feature aims to reduce cycle times and inventory, while increasing resource utilization.
  
  
• Flexible routing provides solutions that let the manufacturer better adapt to abrupt changes in production demands. This feature essentially routes all inventory receiving, assembly, quality control and product inventory operations throughout the whole development process.
  
  
• Production control offers up invaluable information on inventory levels, assembly, and quality control so the manufacturer is always prepared for the next phase.
  
  
• An electronic traveler basically is a Web-based, paperless production order that circulates from one workstation computer to the next. It requires each operator to sign off when employees finish a work phase, ensuring the product is ready to proceed. Most electronic travelers store a timeline showing each step of an items production.
• Equipment modules manage the availability and work capacity of each piece of factory machinery.
  
  
• Engineering analysis identifies more efficient methods of production and determines if current yield meets defined parameters.
  
  

Device Advice
An RFID (Radio Frequency Identification) tags and scanner offer another convenient solution for material tracking. The tags, which are attached to product parts, pallets, packaging, etc. provide work-in-progress data when scanned by the reader. In addition, most scanners are designed small, so they can be mounted or used portably. These devices interact with workstation monitors to post project vitals, which can also be printed.

Durability truly counts when it comes to equipment used on the manufacturing room floor. Knowing this, hardware companies offer a wide range of wireless mobile computers designed specifically to withstand the toughness of the industry. These up-and-coming tools of the trade often provide the same functions as their PDA counterparts, but are much less fragile. Many provide real-time data on lot runs, as well as voice and written communication with all areas of the operation. More advanced versions usually include a scanner and imager for product tracking. These devices offer a perfect PC solution for managers and employees who spend most of their workdays in a harsh, rugged environment.

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Sales & Marketing [top]

Experienced manufacturers understand a strong marketing strategy plays an essential role in keeping assembly lines moving. As with any business, those in the manufacturing field constantly look for new opportunities to acquire and retain clients.

With many small to midsize operations losing customers to cheaper foreign outfits, todays manufacturers must employ savvy sales techniques to build client base.

A good number rely on industrial & manufacturing marketing firms to guide them to success. These practices usually provide a range of services to help manufacturers reach further into the marketplace. Services tend to include:

• Customer analysis. During this process, the marketing firm measures the depth of the manufacturers business base over several years. It charts incoming and outgoing business. In fact, they often record client inquiries, quotation records, etc. The firm then categorizes each business by specific industry. In the end, the firm uses the data to show the manufacturer the most lucrative market, as well as the segment they serve most. Likewise, the collected info helps pinpoint weaker market sectors, not to mention unexplored areas.

• Target company generation. During this process, marketing firms rely on industry insiders to generate a list of leads and profile each company. The firm usually pursues businesses with similar demands as the manufacturers key client segment.

• Target company qualifying. During this procedure, the marketing firm creates a series of qualifying questions designed to get vital info from target clients. These questionnaires sometimes ask retailers what they look for in the way of production time, price by volume, capabilities, schedule flexibility, etc. In the end, the firm presents the findings to the manufacturer, helping them to pursue the most desirable companies based on their newfound knowledge.

• Competitor analysis. Many prosperous companies do not only keep track of their own business moves, but the competitions as well. For this reason, certain marketing firms provide competitor analysis. This procedure studies and reveals the competitions ownership structure, years in operation, location of production facilities, main products and services, target markets and segments, distribution agents used, range of distribution, trade shows attended, trade publication advertising, reported financial information, Web site performance, marketing message, current financial condition, staff size, and more.

Still, while these marketing firms offer a lengthy menu of modern sales approaches, some manufacturers prefer to stick with the classic fail-safes. Promotional materials like mailed pamphlets and brochures allow operations to tout their services, latest equipment, factory capabilities, company history and prices. Advertising agencies usually design such sales literature, and even keep an ongoing data base of contact info for former and potential clients. Even more, most advertising firms record follow-ups and leads stemming from the mailings.

Sealing the Deal Online
Manufacturers can not ignore the Internets overwhelming popularity, and its worldwide influence on big business decisions. Retailers routinely log on to the Web in search of companies to produce their items. An easy-to-navigate, detailed Web site can perform as well as a globe-trotting sales person. Some manufacturers working for larger retailers use their sites to relay product information to distributors. Features like a product locator let vendors view the items currently in stock or scheduled to roll out of the shop room floor.

In addition, sites usually let visitors enter their zip code to find the closest wholesaler that recently received a particular product shipment.

Manufacturing companies specializing in the production of one part of a larger product -- such as automobile components -- sometimes provide online catalogues through their Web sites. This allows other operations to seek out the products needed, view pricing, availability, and time schedule. But even more convenient, the virtual catalogue makes ordering quick and stress free. Some manufacturers even utilize their Web sites to handle all project logistics - from the ordering and scheduling procedure to the invoice and receipt process.

Other manufacturers use their sites to establish electronic marketing campaigns, sending frequent promotional materials and new product lists to registrants.

Yet still, many Web solution companies use high-tech marketing approaches when designing sites for manufacturers. These include virtual tours of the factory floor, audio testimonials, streaming video of the production process, etc.

Seeing Firsthand
Nothing quite showcases a manufacturers capabilities like a shop floor tour, according to many industry experts. While this approach commonly attracts the general public to a plant, it also helps draw interested vendors. Nonetheless, an in-house tour serves as a low-cost way to brand a manufacturers name within the business community. Many companies in the field offer free guided walkthroughs. They use this time to educate visitors about their services, display the assembly process and tout their latest equipment.

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Customer Service [top]

The manufacturers of yesteryear often sited affordable pricing and quick time-to-market as reasons vendors stayed loyal to one operation. Over the decades, however, competition in the industry stiffened, and these once beneficial perks morphed into customer expectation. Now, businesses in the manufacturing industry seek up-and-coming ways to keep clients satisfied.

Reaching Out
At this point, its no secret that the advent of the Internet led manufacturers to revisit their approach to customer relations. Today, clients need not visit the factory to experience the operation. Instead, the factory comes to the client with a mere click of the mouse key.

Web-based customer relations techniques continue to become more elaborate with each passing day.

Some production operations now even let the client see everything taking place on the shop room floor. Network cameras and IP (Internet protocol) video systems are Web-based tools for showing off a product run as it occurs. Aside from granting customers remote access to the factory operation, some manufacturers have incorporated these systems in their sales departments. Clients can talk face to face with a representative about any problems or concerns. Such a solution opens the lines of communication, allowing customers to view exactly where the manufacturing process stands - no matter their location in the world. In turn, this reduces the risk of error, getting products to the shelves faster and cheaper. A number of networking solution companies sell this service.

Certain industrial equipment manufacturers -- particularly in the energy industry -- offer customer witness displays on their Web sites. This feature lets clients participate in a real-time test of machinery without actually visiting the factory site. During the procedure, a window on the Web site shows an animated graphic of the product at work, providing real-time updates and statistics on the performance. Clients can compare the simulation data to the functionality of their purchased product(s).

Other manufacturers utilize their Web sites to provide clients with packaging information, online user guides, replacement part catalogues, and e-tools to aid the customer in purchase decisions. Almost all manufacturers dedicate a portion of their Web site for Frequently Asked Questions (FAQ) for immediate answers to common questions. Many Web sites also allow customers to register to become a preferred customer to receive special promotions, updates and notifications of new products.

Getting Personal
Despite technological solutions designed to enhance the quality of customer service, many businesses in the industry choose to stick to traditional methods. Manufacturers agents, also known as manufacturers representatives, still serve as the main relations tool at a number of operations. In a nut shell, these professionally-trained PR specialists provide the client with immediate assistance on questions and concerns through every step of the sales process and beyond.

In fact, modern laptops and high-speed Internet connections make the agents job more efficient today, allowing them to answer technical and non-technical questions faster - from almost anywhere.

Representatives also advise clients on methods to reduce costs of product development while increasing sales on that particular item.

In addition, manufacturers rely on their agents to generate and oversee distributor orders, as well as resolve any problems or complaints about merchandise.

Clearly, the job involves quite a bit of demand. Manufacturers agents spend much of their time traveling to meet with prospective and current distributors to discuss how certain products can benefit their business. In many cases, the agent visits clients one-on-one to show samples or catalogs, as well as clients of prices and availability.

Aside from stirring up leads, these representatives often help clients install new equipment produced by the manufacturer. Frequently, agents must train a clients employees how to use a specific product.

Manufacturers who produce consumer goods often send agents to help clients set up merchandise displays and advertise.

Tools of the Trade
No matter the business, irked clients commonly find themselves running in circles when searching for help from management. Recognizing this as a problem, some manufacturers have set up online issue resolution services to make agents more accessible. Usually accessed via the companys Web site, this measure lets clients with product woes use their computer to track down assistance. Some features popular with online issue resolution include: single-point contact for all issues (no bouncing around from one representative to the next); digital tracking from the moment the complaint is issued to the point it is resolved; and a time guarantee,ensuring the agent will handle the situation within a reasonable period. In most cases, the user must possess a login ID number to access this feature. Nonetheless, some setups even allow the user to create and track warranty claims over the Internet.

Keeping Customers in the Loop
The timeliness of an orders completion acts as the most important element in molding good manufacturer/client relations. For this reason, certain operations provide clients with mapping before work on a product even starts. Basically, the manufacturer gives the customer a detailed chart, explaining nearly every step of the product run - outlining vitals about time and materials. Some manufacturers go the extra mile and hold weekly production meetings to examine how the order is progressing. After the meeting, manufacturers fax or e-mail the current order status to the client.

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Staffing & Employment [top]

What type of manufacturing business do you have or want? – Wood furniture? Specialty sporting equipment? Rebuilt compressors for automobile air conditioning units? Custom clothing? Custom pet products like unique scratch posts, or heated/air conditioned doghouses? Water saving devices? Unique energy saving devices (e.g., solar panel battery re-charger)? Specialty kitchen implements? The list could go on and on. Most people who start a small manufacturing business are either well-trained, experts on the product type they are producing or they are following a dream. For the subject matter/product experts, many family run, larger business that exist today started as someone’s “bright idea” or a better way to build or construct something. Innovators, engineers, scientists, do-it-yourselfers are the people who typically start small manufacturing businesses that grow into something much larger over time. Sporting goods products are an excellent example of this category—think about the skate board, surf board, the snow board, wind surfing, etc. The people who started these businesses were the innovators who became the subject matter experts because they were using the equipment, and they were passionate about what they were doing. Their passion also helped their marketing effort because they were well known by a “following” who wanted to imitate what they were doing in their emerging “sport.”

Then there are those people who have had a “change-of-heart”, sometimes of their own volition, sometimes as the result of forces beyond their control (retirement, aging/health issues, business failures, bad economic conditions, you name it). People who fit into this category often take a hobby they have dabbled at or a mental passion they have thought about for a long time and turn it into a small manufacturing business. Examples of this evolutionary process might include the retired person making custom bird houses or whirly gigs; a stay-at-home parent who decided to dabble in women’s support undergarments and came-up with a whole new product line; or, the person who sat in a uniquely configured/designed beach chair in a Central American country, modified the designed to “modernize” it and sold the chairs on-line rather than going back to a job that was no longer fulfilling and too rife with “politics” and ”favoritism”.

Another possibility which the author considers “risky” is becoming a specialty parts supplier to a major industry (think automotive or computer). Sometimes entrepreneurial thinkers come-up with a new design and/or a way to manufacture that “difficult-to-make” component part for which a major company needs a reliable, steady stream of parts. This can be a “home run” but the imitators around the world will eventually figure out what you have done and reverse engineer your component and because of their more favorable labor, regulatory and government support/subsidy environment, undercut your pricing and you’ll be out of business.

The point in listing a number of the business possibilities/markets is that each one will have its own personality which will begin to define the numbers of and types of people resources you will need to make a go of your new, small manufacturing business. As an aside, depending on the nature of your work and whether you employ workers directly, you will need several types of business insurance. Consider getting general liability insurance as well as vehicle and property insurance. This will protect you against claims for personal injury and property damage, and cover the costs of legal proceedings. Most States also require businesses to carry specific insurance, such as workers' compensation, unemployment and state disability insurance. And, you will probably want your small manufacturing business to be a stand-alone legal entity to protect your personal assets.

In all likelihood, if you have chosen to be a small manufacturing business, you are the product/subject matter expert in the technology and techniques required to produce the products you sell. So, as you add staff to your “company”, you will be the “process teacher”, the “quality control/subject matter expert” and the time-in-motion ‘industrial engineer’” who is responsible for what is produced. Unless you are making something that requires a high level of expertise (i.e., assembly or very tight tolerance electronic components), when demand for your product(s) exceeds your capacity to personally produce them, you will need to hire people to work with/for you, (at least on a temporary basis). The things to look for in filling these human asset needs are: ability to learn quickly, reliability/dependability (on-time and not absent), ability to do the manual work as well as possibly some of the skilled work that needs to get done.

If you are NOT the subject matter expert, and are instead the financier, accountant, marketer, grant writer, etc., then you will have to recruit or develop someone with the technical expertise your chosen business requires. For instance, if you want to become the “top dog” in design of easy “do-it-yourself” solar panels for making hot water, your marketing contributions may be the key to success of your small business and not the hands-on work of assembling the components to “make” your product. In other words, you are the “idea” person and that’s what you most enjoy doing. There are many local trade schools that specialize in teaching “manufacturing/assembly” related skills and knowledge which will probably have students or graduates with the talent, knowledge and skill-sets your business will need. A quick internet search on “trade schools near ‘____’ (fill-in the geography or zip code)” will give you a great starter list and each institution’s website will regal you with the latest cutting edge training being provided to students in unique, new areas. Will you need help answering the phone, taking orders, answering general questions, dealing with billing issues? If so, consider hiring someone you know who may need a little extra work on the side in addition to the job they already have (which provides benefits), or perhaps it is your spouse who would like to be of assistance. Also, a consideration is to call a local high school or college in order to hire someone into more of a co-op position that for which they may gain some college credit.

To meet your employment needs, particularly in today’s environment, it is probably best to minimize the number of full-time “employees” on your payroll. Not only do you have a number of tax obligations (social security, Medicare, unemployment, etc.), but legislation requiring paid benefits continues to place the burden of things like medical insurance, paid days off for sick leave, paid holidays, etc., squarely on the backs even small business owners. Part-time and temporary workers are a smart way to go.

How do you find the talent you need? With today’s social media, using your private list of key contacts by simply letting them know you have a specific need for an employee or part-time/project specific person will probably satisfy your talent needs faster than you can imagine. If you use your search engine to query “employment agencies near {zip code}” not only will you get names of a variety of hiring agencies (aka “headhunters”) who can relatively quickly provide you with suitable candidates (either “permanent” or temporary) at a reasonable cost, but you will also see a number of boards on which you may post your “opening” at virtually no cost. If you use this tool, be prepared for an avalanche of candidates—the point being, be selective.

This introduction has given you several suggestions. If you need more ideas, please refer to the Human Resource. This information provides ideas on where and how to recruit the talent you need.

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Billing & Accounts Receivable [top]

The United States Census Bureau reports that new orders for manufactured durable goods in March 2007 increased a whopping $7.1 billion to $214.9 billion, representing a 3.4 percent edge over February’s numbers. A robust economic indicator from a national perspective, certainly; but the fact remains that many small to midsize manufacturing firms continue to struggle with getting their share of this bounty in a timely, consistent fashion.

According to industry analysts, several factors play into this phenomenon - in particular, lackluster invoicing and collection systems, which in turn, choke cash flow and weaken accounts receivable columns.

On a positive note, the same experts are quick to point out that strategies for bolstering and stabilizing cash flow do exist. The key lies in paying close attention to the basics as they apply to the invoicing process - from sending the bills to posting the payments.

The nuts and bolts of billing
Research shows that time and again, owners of small- to medium-size manufacturing struggle with getting customers to pay up - on time or indeed, at all. While no single method can solve this problem in every case, a number of tactics can pre-empt delinquent situations.

• Extend credit carefully. In the case of large or costly orders, all customers should complete a credit application, including reference information. If possible, it’s a good idea for manufacturers to ask owners of small or fledgling businesses to personally guarantee their orders. This strategy increases likelihood of payment when the customer is in financial straights, because personal property is at risk.
• Bill before delivery. Employing proactive invoicing methods can ensure that a portion of money owned will find its way into the cash flow cycle, even before the final shipment of goods: When the fabrication of a product requires a large upfront investment from the manufacturer (steel parts for farm tractors, for instance), milestone billing allows the factory owner to invoice his for a portion of the total sale upon ordering parts or completing an operational phase.

Progress billing, a routine practice in the aerospace industry, enables the manufacturer to invoice costs on a regular basis as they are incurred. In a sense, the customer finances the inventory, thus providing sufficient working capital to maintain a consistent cash flow.

While more prevalent in the construction industry, sub-line-item billing can apply to very large or complex products that must be manufactured in sections. Invoices go out upon completion of each component.

• Establish clear payment guidelines upfront. Experts concur that it’s critical to set minimum payments, discounts, due dates and penalties in contract form. The idea is to have a legally sound document in place if an account becomes delinquent.
• Don’t give customers reasons not to pay. Common sense dictates that satisfied clients are more likely to fulfill their obligations. For this reason, the business owner must take affirmative action when problems come up with production or delivery. Keeping in touch with clients during lengthy manufacturing cycles; reporting progress (or lack of it); readily admitting problems and proposing solutions, just may assure full payment.

Tuning up receivables
By definition, an accounts receivable system includes money due or anticipated from all clients for goods or service billed on credit. On a balance sheet, the total entered appears as an asset.

That said, a system is only as accurate as the person maintaining it. When payment tracking is off, or figures don’t reconcile with the general ledger or bank statements, the resulting faulty records can impede cash flow, or even undermine a company’s financial soundness.

Experts suggest a number of tactics for getting the accounts receivable column where it should be. Here are a few:

• Age all receivables. This simply means examining the records to ascertain how long an invoice has remained unpaid. Research indicates that business owners who allow accounts to fall 90 or more days delinquent will garner less than 50 percent of them. Begin collection procedures on the largest amounts first in order to bolster cash flow most quickly.
• Keep accurate balances. Make a habit of check accounts receivable records against financial documents, such as invoices.
• Bill regularly. The posting of receipts in a timely manner is well nigh impossible when a customer doesn’t pay up because he got the bill late. Establish a cycle where invoices go out the same day every month, with amounts and due dates clearly stated.
• Create reports. By documenting and analyzing accounts receivable activity, business owners will find it easier to monitor customer payment records, as well as get a handle on credit-limit standing.
• Promptly post all paid bills. Once again, this gives the business owner a clear picture of who is sending checks and when they are coming in.
• Reconcile all financial records. The accounts receivable page should match or dovetail with general ledgers, sub-ledgers and other financial statements. A number of inexpensive software packages - some designed specifically for manufacturing firms - are useful tools for completing this task, as well as most others that involve accounts receivable functions.

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Vendor Relations & Purchasing [top]

With any manufacturing operation, the chain of incoming supply truly dictates the speed of the assembly line. All the more reason the purchasing procedure must work as a well-oiled machine. For this reason, most manufacturing professionals seek material vendors capable of fast turn-around time and flexible delivery. It’s a common practice for today’s manufactures to utilize a supplier evaluation process before signing any purchasing contracts. This method to size up suppliers usually involves several steps to gage capabilities.

First and foremost, the manufacturer wants to look at the vendor’s technology competence to ensure they possess the proper tools to even handle the job. Second, the manufacturer should see if the vendor suits their procurement strategy. Third, always check the vendor’s financial stability, as this is a major liability. Fourth, manufacturers must carefully review the supplier’s delivery lead times. This aspect of their performance is just as important as the cost of services. The cheapest materials are worth even less if their not delivered to the manufacturer on schedule. Essentially, lost time is lost money. Next, manufacturers should talk with the vendor about their delivery flexibility. A supplier that’s willing to help out a loyal client and offer Just-In-Time (JIT) delivery is all the more valuable.

Finally, shop around for prices before making any final decisions. As mentioned earlier, paying a bit more for quality and reliability could save the manufacturer big bucks later on down the road.

Many businesses in the manufacturing world realize that molding good vendor relations is a two-way street. As a result, a number of operations list their supplier expectations on their Web sites. This allows vendors vying for the work to see exactly what the manufacturer demands of them - basically pulling no surprises. These online sections usually include info about product and services purchased by the manufacturer, background on any programs - like supplier diversity, a list of current suppliers, a procurement calendar, contacts and more. Some manufacturers even include online supplier registration forms.

While technology like the Web definitely helps keep vendor relations open, a number of manufacturers still rely on the traditional methods to build rapport with their suppliers. For instance, simply offering up feedback to the vendor about their performance goes a long way. But even before receiving that first shipment of materials, the manufacturer should team up with the vendor and jointly establish standard operating procedures. This includes outlining standards for workmanship, quality and inspection. Industry insiders even recommend manufacturers chip in and help their suppliers bolster their quality improvement programs. By playing a proactive role now, manufacturers likely will benefit in the future.

Last but not least, manufactures need to be considerate of the vendor’s schedule as well. They should try to stay consistent in their order volume and scheduling.

PC solutions that lead to a smoother supply chain
For decades, manufacturers have struggled to map out ways to cut down on material waste and get the most out of their purchases. After much agitation, many have thrown their drawing boards to the side and invested in software to resolve the problem. IT companies offer programs designed to anticipate, shape and respond quickly and efficiently to production demand. These applications often track market analytics; mold and database optimized supply networks for enhanced resiliency, and offer solutions to reduce the risk of waste and overspending. While this software can cost upwards of a few hundred dollars, it ultimately can save manufacturers thousands.

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Manufacturing Insurance [top]

The day-to-day procedures at a manufacturing plant pose many risks alone. Factor in all of the potential hazards that arise the minute a product leaves the floor, and it's no wonder industry pundits urge a heavily-insured operation. The obvious dangers revolve around workers and machinery. But how about those related to the consumer? Federal laws protect the public from injury and loss due to faulty products - and rightly so. In a perfect world, errors would not occur. Unfortunately, that's not the case. Therefore, those in the production business need to carefully choose coverage that guards against the gamut of possible lawsuits. Aside from acquiring the standard coverages like liability insurance (pays for legal cost/damages if an employer is found liable for an employee's work-related injury or illness) and worker's compensation, manufacturers need to consider other equally important options.

Product Liability Insurance: These plans safeguard a manufacturer in claims related to the merchandise they produce and sell. It covers liability that stems from injuries and losses caused by a defect in the product or its malfunction. Known sometimes as Products-Completed Operations Coverage, Property Liability Insurance tends to apply whether a consumer, user or bystander files the claim.

Environmental Liability Insurance

So many manufacturing operations handle an array of materials during assembly - some of which could pose an environmental threat if not managed properly. Depending on the end-product; chemicals, combustibles and other highly flammable components might be used during production. Environmental Liability Insurance protects against claims that could arise if one of these components harms the environment. First and foremost, these policies cover financial losses that result from pollution occurring on the site of the manufacturing operation. In addition, it tends to also cover related liabilities resulting from damages to property or harm to people off site. Since manufacturers constantly must expand their operation with consumer demand, it's not unusual for businesses in the industry to purchase and sell property. Most Environmental Liability Insurance plans even protect the policy holder against unforeseen environmental issues that may surface down the road. This applies whether the problem occurs on the property they sell or buy.

Property Insurance: A number of insurance companies now offer commercial property coverage designed specifically with the manufacturing industry in mind. Inside the plant, so much rides on every piece of equipment functioning perfectly at all times. One down machine could lead to a massive loss in money. Imagine the impact of even wider spread problems. For this reason, certain policy providers have tailored plans to accommodate those in manufacturing. Some available features include:

• Equipment breakdown coverage: Should a piece of machinery stop working, causing a partial or complete stoppage in production, the insurance provider will reimburse the manufacturer for the related loss of income.
• Computer coverage: Considering that today's manufacturing industry runs largely on computerized systems, this option makes perfect sense for those in the business. Under this plan, the insurance provider usually will cover losses to hardware, electronic storage and other computer equipment. This feature not only protects against the basics - fire, windstorm and explosion, but tends to also guard against hackers, viruses and a number of other computer dangers.
• Off-site power failure: Some policy providers even offer an option that covers the loss of income accrued when a power outage forces production to come to a grinding halt. Should the back-up lights come on and the assembly line stop running, no need to worry with this option in place.
• Off-premise property coverage: In certain situations, a manufacturer might send products or product parts to another business for particular services - finishing, painting, detailing, etc. This option covers losses to the policy holder's property that occur at other locations, even if that site's is not stated on the policy.
• Transportation coverage / Ocean marine coverage: Property damage risks are not only confined to the manufacturing plant. In fact, transporting the end-product often presents the biggest dangers - particularly if it's a long-distance delivery. Therefore, most insurance companies offer a range of different transportation policies. One of the more commonly used options is Ocean Marine. This covers property/cargo en route. Despite the nautical sounding name, these policies typically cover losses that occur to cargo at any point during the transit process. This includes while it's in storage at an off-site warehouse, traveling with sales agents, at another processing center, etc. Essentially, it is protected the minute it leaves the factory to the moment it reaches its final destination.
• Personal Property coverage for patterns, dies and molds: It's not uncommon for a manufacturing operation to house patterns, dies or molds that belong to the developing company. These pieces can be covered under most Property Insurance plans to protect the manufacturer if they are damaged or stolen while in the plant.

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Manufacturing Communication [top]

The time it takes a manufacturer to get a product to the marketplace often determines its success. Clearly, it's vital to get merchandise off of the assembly line and onto store shelves before a competitor comes along and steals the consumer spotlight. State-of-the-art communication systems represent one way to increase turnaround time and reduce cost.

Everyone's Connected: Streamlining the Manufacturing Process

Through Unified Communication Solutions (UC), today's manufactures continue to shake up how they perform every-day tasks like plant floor monitoring, reviewing production status with a client, data sharing and more. UC solutions - usually sold by a network management provider - integrate all forms of a manufacturer's communication systems by using VoIP (Voice Over Internet Protocol) technology. This means a firm's current PBX (private branch exchange - telephone network often used in offices), computers, mobile devices, faxes, Internet can all be linked together. Some of the benefits of a unified system include:

• Click to call: By simply selecting a contact in an e-mail address book, the user can immediately call a person from their desktop or portable laptop.
• Review digital data via phone: On the road and away from the plant? Using any phone, dial in and listen to your e-mail messages and digital calendar.
• Digital data sharing: Expecting a production order, but don't want to hover over the fax machine waiting for the incoming message? UC solution packages allow users to view faxes via e-mail, not to mention listen to voice mails as well. These messages can be forwarded to others in seconds.
• View operation in real-time: With a few clicks of the keyboard, an operation manager can use any device with WiFi capabilities to view exactly what's taking place on the production floor.
• Instantly coordinate a video conference call by simply selecting the participants' names from a contact list.
• Simultaneously discuss and present data - such as a product run's logistics - over the computer. Ideal for meetings on-the-fly with clients or other employees in different departments and distant offices.

Customer Relationship Management Builds Bond Between Client & Manufacturer

Distributors and product developers regularly contact manufacturing operations, requesting order status, turn-around time, material changes and other key data. Responding to these customers quickly and efficiently usually means the difference between a smooth run and client frustration. There are quite a few Customer Relationship Management (CRM) solutions brimming with functions for enhancing communications. Software providers continue to tweak CRM systems, specifically zoning in on the demands of the manufacturing industry. Basically, CRM solutions are designed to store all important data about a client/product run in one, easy to access location. This allows customer support agents to assist the client much faster and with confidence the information is correct. Moreover, sales representatives in the field can view all of a client's vitals using any device with Internet access.

Some features of a strong CRM solution include:

• Order tracking allows the manufacturer to quickly view all details about the status of an individual product purchase, outlining its path from placement to delivery.
• Customer feedback databanks let the manufacturer review and organize client complaints, compliments and suggestions.
• Fast access to a client's purchase history. This capability allows sales teams to form strategies based on past order patterns.
• Warning reports when client feedback trends in certain areas.
• Proven survey templates, which highlight the most routinely asked questions and requested information.
• Stores and updates potential client communications.

Some CRM solutions include online interfaces that let the client actually access project-related data from a computer, laptop or any other device with Web capabilities. By logging in, the customer can view details about the product run, unit count, delivery time, etc. As where past manufacturers relied on the phone and a call center for transmitting such details, today's operations have become much more user friendly by incorporating Internet technology.

Global Positioning Systems Put Manufacturers & Clients On Same Wavelength

Cell phone providers have tapped into the power of GPS technology to help manufacturers keep customers in the loop on every phase of the production process. Using their mobile phones, PDAs, smart phones and other devices, field representatives can instantly access important project data while away from headquarters. Not only does this allow representatives to answer a customer's job-critical questions faster, but GPS-based services also let them plug in project changes and inventory orders at a moment's notice. Some wireless models equipped with GPS even come with electronic signature capture, which allows clients to sign their name and approve delivery, product changes as well as reorders on the spot. Back at the production plant, GPS services allow management to track all of the business's field members and distribution vehicles.

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