What is the benchmark for profit margins in the manufacturing industry? A thorough explanation of the factors causing decline and points for improvement.
Four specific measures for improving revenue and steps for enhancing efficiency.
A guidebook for improving profits in the make-to-order manufacturing industry, featuring techniques for reducing lead time, standardizing design, enhancing information sharing, and improving production management!
The manufacturing industry is said to be a low-revenue sector. Even if operating profit is in the black, a low revenue state can lead to various negative effects, such as losing the opportunity for growth or falling into price competition for products. If revenue improvement can be achieved, it is also possible to create a stable growth environment and a corporate culture with a high willingness to take on challenges. So, what should custom order manufacturing companies focus on? This document introduces four measures to improve revenue in the manufacturing industry.
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Chapter 1 Reducing Lead Time Three Barriers Between Departments That Extend Lead Time What Are the Improvement Measures to Shorten Lead Time? Chapter 2 Standardization of Design Reasons for Standardizing Design and Reasons for Lack of Progress How to Share Knowledge Information and Reduce Time Chapter 3 Centralized Management of Information and Real-Time Sharing Information Disparities and Sharing Delays Between Departments Create Waste Ideally, a Centralized Management System Should Be Implemented Company-Wide, Not Just by Department Chapter 4 Visualization of People, Goods, and Money Through Production Management Why Is Production Management Difficult? Revising Business Flows Through the Implementation of a Production Management System
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【Purpose and Benefits of Implementation】 Improvement of Productivity and Resolution of Bottlenecks: Visualizing the progress and operational status of processes reduces waiting times and setup losses. Elimination of Dependency on Individuals and Technology Succession: Standardizing and digitizing the know-how of veterans to establish a system where even less experienced workers can perform uniform tasks. Realization of Preventive Maintenance: Implementing maintenance plans based on operational data to prevent line stoppages due to unexpected equipment troubles. Improvement of 5S and Flow in the Workplace: Digitizing the movement of people and items to create a factory layout that eliminates waste in searching and moving. 【Examples of Improvements and Achievements】 Case 1 (Automotive Parts): Digital standardization of assembly process work procedures. Smooth technology succession to younger employees, reducing setup time by 35%. Case 2 (Precision Machining): Thorough implementation of preventive maintenance through visualization of equipment operation. Reducing unexpected equipment stoppages by 80% and achieving stable production. Case 3 (Metal Processing): Transitioning from paper daily report management to a production management system. Real-time "visualization" in the workplace reduces indirect work hours by 40 hours per month.
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Continuing to stay close to our customers, we have built up business knowledge and empathy to understand their challenges. By handling a wide range of operations in a one-stop manner, including system design, development, operation, hardware and software proposals and sales, and network construction, we remain a partner that supports the creation of "valuable systems," sometimes in a collaborative manner and sometimes in a leading role. Our company changed its name on April 1, 2025. (Former company name: Daiko Electronic Communication Co., Ltd.) The data and presentation materials published are from the time of the announcement.
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