One of the most significant units of any enterprise is production department, because its work and optimal business processes of this area provide the success of the whole company. Very often management activities are confined to the monitoring of continuous supply of raw materials in order to provide uninterrupted operation of divisions and well-timed production of goods for sale. That’s why it is very important to build an appropriate facility structure of production unit.
What is a facility structure of the production unit?
The process of production is a complex of procedures which have various functional assignments (basic, auxiliary and serving) which are united in order to produce goods. Consequently, there’s a need in distinguishing of divisions providing general technological cycles and those which have auxiliary significance. It’s necessary to define their structure and forms of connections between basic, auxiliary and serving production units. When such improvements as business process optimization, automation or re-engineering are needed, this distinct structure can help managers to define problems of production operation.
Production unit is a production division which differs from other divisions by its organizational independence and consists of several technological areas and units of attendance which fulfill only their specific functions. It is the basic function for industrial companies. Not very large companies can work without production units, but in this case, it is necessary for such enterprises to define specific production areas. Consolidated management of these divisions is usually provided at big factories.
Where does organization of facility structure of the production unit starts?
First, it is necessary to define the composition and relationships of company divisions which depend on company type. Facility structure of the production unit can be:
- Subject-oriented (mass market products or high turnover items)
- Technology-oriented (exclusive or serial goods)
When organizing the production it is necessary to define the structure of the production unit. First of all, you need to decide what areas and divisions will be in the production unit.
If there’s a plan to produce mass market products or high turnover items, the subject-oriented structure will be appropriate. This way you will be able to implement a direct flow production line, to arrange an optimal scheme of operations and to optimize business processes of production if needed.
Production units of medium size production are better to be structured in a way of sections.
If you are interested in enlarging of effectiveness of your company, the process approach is a perfect method. Optimization of business processes in all divisions of the enterprise including production units can bring significant results. And if you have a consistent and properly functioning structure of the production unit, optimization of business processes won’t be a problem for you.