The Habits of Effective Manufacturing Companies

What makes one company better than another? Why do some companies appear to have their act together while others seem to struggle from day one? The reasons one company might succeed while others fail have little to do with who sits around the corporate table but a whole lot to do with successful habits. In this article, we’ll review the habits that produce effective manufacturing companies.

Habit #1 – They Serve A Purpose Along With Setting Goals

Businesses that aim for success are much better equipped for it when they’ve developed a business plan or framework. The business plan begins with a mission statement. The mission statement details the guiding principles of the company, and it’s in the mission statement that a company defines its purpose. This framework or plan should go on to outline everything germane to the life of the business, from short- and long-term goals to plans on how to reach and maintain those goals. The business plan can be as detailed or as high-level as fits within the parameters of your business, but it must be a document that can be visited regularly to monitor progress. Your business plan is your map forward—as much as possible, you want to anticipate bumps, twists, and turns so that you’ll be prepared.

Businesses with a clearly defined purpose that serve their community or customer base have a slightly different mindset than a company focused only on profits. Plus, companies with a purpose tend to be far more successful than those that don’t.

Habit #2 – They Use Processes And Follow Good Practices (GxP)

Companies can either be process-driven or they can “wing it” and spontaneously respond to market or supply chain changes. While some industries are, in fact, largely driven by innovation, which in turn drives progress and success, improvisation may be their preferred method of getting from one point in the assembly line to another. But that will also impact quality, service, and many other factors. According to Dickson, with a process in place that focuses on good practices and the standards required to meet and stay at an acceptable level, there is a consistency that quickly becomes apparent to employees, clients and customers.

Businesses that utilize the structure of GxP are far more successful than those that do not use a set of standards that define their processes and the quality of the products they produce. GxP also builds trust between manufacturers and consumers and leads to loyalty.

Habit #3 – They Continue To Update Their Products

Sure, every manufacturing company that has gone into the business did so to sell a product. Often as a start-up, that may translate to a single item or two. In some cases, a small or restricted product line is a blueprint for success, but other companies do better with a larger line of products to manufacture, market, and sell, using economies of scale to keep costs low. Regardless of the product scope, however, it’s a clear warning sign when sales go stagnant after a few months or years as the products being manufactured are the same as they were the first day they were produced.

Businesses that keep abreast of market changes and tailor product upgrades to consumer needs often see an increase in revenue. That is because their stock changes and they are no longer selling the “same old thing” as they did when they launched.

Habit #4 – They Treat Their Employees Differently

The Golden Rule—treat people as you’d like to be treated—applies to the people who work for a company. If you treat your employees well, they will produce results for your company. Each person working for you is something more than just another payroll number. Companies that put the effort into getting to know their staff and providing incentives, perks, and extras, experience many benefits in return. Happy employees tend to stay working for a company they like being part of and that recognizes their contributions.

Businesses that put effort into creating a sense of a family or team culture within the walls of the building are often more successful than those that don’t. By engaging with the people you have working for you, you learn what makes them happy to be on the job.

Habit #5 – They Communicate More, Producing Transparency

You would think this would be a given – communicating within the business organization – but for some reason, some companies get so caught up in the business of doing business that communication slips off of the radar. It should actually be the other way around because, without clear and regular communication, misunderstandings can develop. Those “information gaps” lead to challenges of accountability. Communication issues and information gaps are problems common to companies of all sizes and can be easily remedied.

Businesses that engage with staff, clients, customers, and suppliers with an ongoing stream of communication are more successful than those that don’t. Communication opens the doors to accountability and keeps them open.

Why Are They Called Habits?

A habit is something we do regularly. Sometimes those habits are bad for us, like smoking or something else that has a high level of risk. Other habits are good for us once we determine that they can help us succeed. In the business world, successful manufacturing companies have adopted good habits that benefit all parties concerned, and this is what leads to success.

In Conclusion

You can’t go too far in any kind of business without some form of guidance. This typically comes in your business plan. Within that business plan are simple points that keep the company on track. The habits listed above are examples of these. When you communicate more, treat your staff well, continue to upgrade your products, follow good practices and are in business to serve a purpose along with reaching goals, you have the framework and blueprint for success. Failing to implement habits to assist with pushing your manufacturing company forward will have the opposite effect – it becomes a blueprint for failure. Start with your business plan, implement these successful habits, and your company will aim for success rather than failure.