6 Common Manufacturing Mistakes To Avoid

Pivot International  |   April 25, 2017

Being an entrepreneur in any business field is tough, but trying to do so in the manufacturing industry can be even tougher.

There are so many moving parts and pieces in any manufacturing process that the slightest mistake at any point in the process can seriously damage your chances for success. Every entrepreneur makes mistakes, but there are some errors that simply must be avoided in order for your endeavor to succeed.

This isn’t meant to discourage anyone who wants to become a manufacturing entrepreneur, simply to warn them about some costly mistakes that can be avoided. Here are some of the biggest ones to watch out for.

1. Avoiding Improvements To The Process If Things Are Going Well

It’s more important to plan for the future than to rely on the present, and if there are any pressing changes that should be made to your process, whether it’s in the areas of supply chain or warehousing or security, those changes need to be made immediately.

Just because you’re experiencing a financially fruitful period doesn’t mean your process is perfect, and that prosperity could end at any moment if something breaks down, literally or figuratively.

2. Losing Track Of The Big Picture

If you DO decide to make improvements within your manufacturing process, make sure you take a look at every step instead of concentrating on one area. It doesn’t do much good to strengthen one part of a foundation and leave the rest of it weak, right?

Every area of your production process should be examined closely for possible improvements. As long as you’re upgrading, why not do as much upgrading as possible?

3. Focusing On Production Rate Over Customer Satisfaction

What’s the point in producing a lot of your product if customers aren’t happy with it? Just because something CAN be done quickly doesn’t mean it SHOULD be done quickly.

Work on manufacturing the best product possible, not the most of a product you can make.

4. Overbuying Materials

It might seem like a better-safe-than-sorry idea to buy more materials than you need, especially if the price is right. But remember, these materials are going to need to be warehoused if you don’t need them right away.

What if the economy takes a downturn while you’re holding on to all these materials, waiting to use them in your manufacturing process? Now you’re potentially stuck in financially precarious situations on two fronts: Sales and storage.

Why risk the headache and hassle on extra materials?

5. Inflexibility

Forecasting and budgeting are vital parts of running a business, particularly one that sells products to other businesses or consumers. But relying too heavily on a set budget or a particular forecast can be risky. It can also lead to unpleasant surprises when the unexpected occurs.

Make sure to keep some flexibility in your operating budget, and it’s probably not a good idea to put all your faith into an optimistic (or pessimistic) forecast.

Remember: The future can’t be controlled, it can only be predicted. Sometimes the outcome isn’t going to be what you think, so be ready to change plans if need be.

6. Not Asking For Help

This applies particularly to new manufacturing entrepreneurs, but even an experienced and successful business person can fall prey to the fear of asking for help.

Perhaps it’s human nature for someone to be unwilling to seek help from an outside party, but in some situations, without an objective, fresh set of eyes on your financial or managerial or production situation, a company can be overwhelmed by internal issues.

Remember, every person needs help every now and then, so why wouldn’t a manufacturing business have the same issues?

Don’t be afraid or reluctant to seek help from your business peers or from people trained to step in and diagnose a problem. It’s easy when you’re inside a company to develop tunnel vision, and finding the right people to help you can be crucial.