Dominant Factors In Manufacturing – Research Paper Example
The paper "Dominant Factors In Manufacturing" is a wonderful example of a management research paper. In the corporate manufacturing world, many factors come into play when it comes to the quality and reliability of the final product. In order for industries to achieve this and at the same time have minimum input and reap out maximum benefits they have to properly and meticulously manipulate these factors to work on their benefit (Larry P. Ritzman, 2003). Once this is done such industries are well able to stay afloat in the market while maintaining a competitive advantage over their rivals. This article will outline the two most dominant factors that affect manufacturing and how they can be positively applied to yield the desired objective. These are Proximity to the firm’s other facilities and Utilities, Taxes, & Real Estate Costs. Location is a key factor in any organization; manufacturing industries especially, have to be strategically placed to reach both its customers and raw materials with ease (Balakrishnan Menon, Jagathy Raj V .P, 2012). Proximity to firms other facilities means the company for one is able to cut costs in areas involving transport and logistics. Readily available raw materials translate to a continuous and affordable production even on high demand an aspect very well demonstrated today by small manufacturing industries that prefer to do their productions from China. Furthermore, if the organization focuses on producing the quality and reliability of the finished product will be unquestionable (Larry P. Ritzman, 2003). On the other hand facilities such as affordable labor and a stable infrastructure boost the ability of an industry to readily reach its market and offer customer friendly products. In this regard, it is very essential for an industry to carefully consider its location. The consumer at the very end of the production lane goes for a quality and affordable commodity and for organizations this is always a tough hurdle to cross (Balakrishnan Menon, Jagathy Raj V .P, 2012). In order to arrive at the final cost, industries have to incorporate all expenses incurred in the line of production where Utilities, Taxes, & Real Estate Costs are at the top of that list. These bills are directly proportional to the cost of the finished product and for this reason, proper management will determine the profit margin for the specific product. Real estate costs normally are fixed but, an organization can negotiate on the best deal depending on their requirements. In the long run, a careful management and a unique approach to the market are required even with the correct understanding of the above factors (Brodd, June 2005). Manufacturing industries should be strategically placed and market themselves properly over and above manipulating these dominant factors if they are to stay afloat.