Old-fashioned equipment and approaches to production process don’t allow enterprises to extend a product range and to improve the quality of products. At the same time, the market is constantly growing and some companies don’t have enough capacity to correspond requirements of customers. All this suggests thinking about modernization of the main production unit.
Prioritized objectives of modernization of the main production unit
Having made a decision about modernization of the main production unit, company management should define main strategic objectives of this process. As well as other kinds of business process optimization, the process of modernization needs to have distinct aims. They can be:
- Profit enlargement due to production volume growth and more effective implementation;
- Extending of a product range due to new opportunities of production;
- Providing of independence of a company from external factors (for example, tariffs for services of partner companies);
- Enlargement of effectiveness of production;
- Renewing of production funds and implementation of flexible technologies of production.
Defining of strategic objectives of modernization also depends on special character of production.
Reconstruction of production equipment
Reconstruction of production equipment usually takes time and a lot of money. Most companies make a decision to modernize the main production unit using various financial investments. Very often it is loans. However, production business process optimization based on modernization helps to enlarge effectiveness and profitability of an enterprise in a way all these investments are compensated. As a result, production expenses can be reduced up to 20%.
Modernization and optimization of business processes of production
Modernization of the main production unit should be also accompanied with optimization of business processes of production and with activities directed to improvement of management effectiveness and the system of sales.
Such kind of business process optimization as transferring of certain procedures to outsourcing is one more useful and effective way which can be followed by modernization of the main production unit.
Results of modernization of the main production unit
One of the main results of modernization is the opportunity to diversify a product portfolio which allows a company to get more profits. Besides, after modernization of production and optimization of business processes a company get free production capacities which can be used as a testing site for new kinds of products.
Thanks to modernization of the main production unit, a company can survive in conditions of economic crisis. And such things as lowering of consumer demands, lowering of production profitability, stiffening of tax burden won’t hurt a company to maintain leading positions on the market.