MANUFACTURING COMPANIES: CHARACTERISTICS AND ORGANIZATION CHART - ECONOMY - 2025

Manufacturing companies are any business that uses components, parts, or raw materials to obtain a finished product. These finished products can be sold directly to consumers or to other manufacturing companies, who use them to make a different product.

Manufacturing companies in today's world are typically made up of machines, robots, computers, and people, who work in a specific way to create a product.

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Manufacturing companies frequently use an assembly line, which is a process in which a product is assembled in sequence from one workstation to the next.

By moving the product forward on an assembly line, the finished product can be put together faster, with less manual labor. It is important to note that some industries refer to the manufacturing process as fabrication.

Manufacturing companies encompass both small plants that make only one piece of certain machinery, as well as giants automakers like Ford and GM.

characteristics

When you think of manufacturing companies, a giant concrete plant with smokestacks spewing pollution may come to mind. However, that is not the typical manufacturing facility of today, or the future.

In recent decades, the way things are manufactured has been changing, and our perception of these companies must also change. In fact, manufacturing is undergoing some of its biggest changes in a hundred years.

With the introduction of modern tools like 3D printing and various forms of automation, manufacturing has become more agile, cleaner, and more efficient. These manufacturing companies have several key characteristics in common.

Collaborative tools

Today's manufacturing companies must commit to their partners and customers. They should seek collaboration in product development as well as process improvement. Sharing concepts is the way forward for manufacturers.

Specialized approach

Many of today's successful manufacturing companies are very focused on making a small set of products to perfection. Establishing a niche market has proven to be successful.

Driven by data

There is no guesswork in current manufacturing. Data is king. Every aspect of the manufacturing process is analyzed to perfect it.

Automated

More and more plants of manufacturing companies are based on automation. Production systems and processes should have minimal downtime and not waste resources, be it equipment or people.

Highly efficient

Lean manufacturing means simplified processes and increased productivity. To remain competitive and profitable in a global economy, manufacturing companies automate processes and operate with minimal waste.

Customer focused

No matter the country or type of industry, today's customer expects highly personalized products and shopping experiences tailored to individual needs.

Professional, experienced management

The experienced and professional management has an intimate knowledge of the dynamics and players of the industry. You know how to identify, hire, and promote capable subordinates, as well as when to delegate and when to take over.

High-quality management is also forward-looking and seeks to optimally balance resources between current production needs and future process innovation and product improvement.

Fair compensation and benefits

Almost all successful manufacturing companies have reasonably generous wage and benefit policies.

This leads to higher employee job satisfaction, which in turn leads to a happier and more productive work environment.

High employee satisfaction and low staff turnover

Successful manufacturing companies also tend to have high employee satisfaction rates as well as low employee turnover.

This is also related to a pleasant and productive work environment and a feeling of value as an employee.

Comprehensive training programs

Comprehensive training not only helps employees do their jobs better, it also leads to higher overall productivity and improves employee motivation.

Open information flow and innovation

A company culture that emphasizes the flow of open information between departments and between management and employees is typical of successful manufacturing companies.

Innovation develops from an open information flow culture, where management can address solutions from all angles.

Organization chart

The hierarchy of the manufacturing company clearly defines the roles and responsibilities of the various professionals in the organization.

The organization chart for each manufacturing company will certainly not be the same, due to the different departments and personnel required for the different functions.

The basic organizational structure of a manufacturing company follows the traditional hierarchical organizational structure, which consists of a board of directors, a chief executive officer, a director of operations, department heads, and then employees.

The key functionality of the organization chart of a manufacturing company includes the production, purchasing, marketing, technical, accounting, human resources, and customer service departments.

The image below contains the organization chart and program assignments for a manufacturing company.

In the manufacturing industry, quality is of great importance and therefore the hierarchy of the manufacturing company develops. Thus, the hierarchy in any organization commonly defines what professionals do, who they report to, and who reports to them.

The hierarchy of manufacturing companies starts from the highest level, then that middle level, and finally the operating level.

Top-level hierarchy

This is the highest authority in the hierarchy of the manufacturing company and plays the main role in the control and supervision of the entire business. They are responsible for deciding the objectives and strategies for the manufacturing company.

They make the policies and make the main decisions in the right direction of the manufacturing company. These officials have more conceptual skills compared to technical skills. They have a clear understanding of this competitive world and therefore develop the policies.

Mid-level hierarchy

These professionals are accountable to higher-level officials for the operation of their department.

They execute and implement the policies given by the higher level. They coordinate with lower-level employees and explain policies to them. In addition, they encourage lower-level managers for the improvement of the manufacturing company.

Operational level hierarchy

They are responsible for both the quantity and the quality of production. They assign the tasks to the workers and supervise them to get good results.

Their duty also includes maintaining good relationships and discipline in the organization. They motivate their subordinates and help them with the best solution.

References

1. Heather Skyler (2018). The Key Characteristics of Manufacturing. Bizfluent. Taken from: bizfluent.com.
2. Study (2018). What is a Manufacturing Business? - Definition & Examples. Taken from: study.com.
3. Clayton Browne (2018). The Top Five Attributes for Successful Manufacturing Companies. Small Business - Chron. Taken from: smallbusiness.chron.com.
4. Edraw (2018). Manufacturing Organizational Charts. Taken from: edrawsoft.com.
5. Hierarchy Structure (2018). Hierarchy of Manufacturing Company. Taken from: hierarchystructure.com.