What need to be noted before operating a manufacturing plant

Small workshop is a very popular form of developing business and production now. This form is selected by many enterprises including big enterprises. Because the benefits provided by small workshops are very high and they are very economic for enterprises. Let's explore what helps to run well a manufacturing plant with Kizuna.

10 things need to be implemented before the construction of a manufacturing plant by the enterprises.

Determining the necessary capital and expenses to build a manufacturing plant

The first thing that enterprises must take into account is their financial resources. When starting construction of a small workshop or workshop in any scale, it is necessary to  build a budget plan . In addition, the capital is also needed to pay for many things of enterprises. Some basic costs are such as electricity, water, factory renting, wages, transportation, ... And there are many other costs incurred during the production process.

An enterprise with sufficient capital for operation can deal with many risks. Those enterprises have the ability to escape from difficulties and create momentum for development again. Therefore, investors should carefully calculate this before starting construction of a manufacturing plant . Do not let the shortage of capital happen in the operation process, it will have bad effect to the cash flow of enterprises.

Determine the workplace location (factory) appropriate with the factory construction process

The working location at a manufacturing plant greatly affects the production process. If there is only one small workshop, enterprises need to carefully consider. Where is the production area and where is the warehouse area in the factory? If the arrangement is appropriate, the production process will run more smoothly. At the same time, the process of transporting goods in and out of the workshop is also easier.

Determining the labor force

Depending on the characteristics of the industry, each enterprise needs to find a suitable labor force. If it is a complicated industry, enterprises need to have professional and skilled labor forces. However, the amount to hire this labor force is very high compared to unskilled labor. Therefore, enterprises should have a plan to allocate and use labor resources appropriately. With such things, new enterprises can balance their financials easily.

Determining the machinery structure

Before starting, it should be considered what machines enterprises need for production. The number of needed machines should be calculated to determine which factory to rent. If small machines and few machines are needed, small workshops are the most suitable and economical. These machines need to be appropriately arranged to create a stable and efficient production line.

In addition, there is now high-rise factory model that bring many benefits to investors in Vietnam market. Firstly, it saves cost of workshop renting for enterprises. Because the high-rise model has optimized the industrial land bank. Since then, the price of factory for rent of this model are greatly reduced. Secondly, it creates a model of production lines for enterprises. Investors can rent floors of high-rise factories to form production areas of their enterprises. Thus, it not only creates the linkage between the lines but also optimizes the production process.

Determining the reputable suppliers

It is also important to carefully investigate the supplier information. Suppliers providing quality equipment and materials should be chosen for the operation of the factory. This is essential in the long-term cooperation between enterprises and suppliers. There should be contracts, rules binding both parties. Do not let unfortunate consequences happen to make the operation of manufacturing plant stop.

Analyzing buyers’ needs

There is demand for supply - this is an essential element of a market economy. Enterprises need to do survey and carefully search for the actual needs in the market. You should determine who is the target customer, who is the buyer of the products produced by your company.

Determining the necessary requirements such as electricity, telephone and transportation

Electricity, telephones and equipment used for transportation are also factors that need to be considered by enterprises. You should choose quality factory with timely replaced power sources, IT infrastructure meeting communication needs. The transportation is convenient or not, and whether it is affected to cause the delay in transportation.

Determining the legal requirements such as registration, compliance, etc.

Legal requirement is always a concern as legal issues can determine whether the production plant has right to do business or not, whether it is illegal or not ect,. Enterprises before putting factories into operation need to completing all procedures, complying with laws and regulations.

If the enterprise chooses a factory for rent for its production, a supplier with good support services should be chosen. It is typical as Kizuna - one of the leading service factory supplier in the South - Vietnam. At Kizuna, customers will receive free support for initial legal and accounting procedures. From the procedure of business registration to recruitment, they are all supported by Kizuna. With a professional service team with multi-languages, it is sure to provide all information for investors.

Determining the risks and challenges such as fire, competition, dangerous chemicals, pollution, etc.

To avoid the occurrence of risks during operation, besides being careful, the equipment that is necessary for handling risks should also be ensured. Enterprises should carefully install the comprehensive fire fighting and protection system throughout the factory. Besides, enterprises should install monitoring system to build up the factory security. Since then, enterprises will limit many unfortunate risks occurred.

Determining the needs of expansion 

It needs to clearly define what your business goals are? Is the current business line appropriate or needed an expansion? Then new enterprises can have certain direction for their facilities to achieve the final goal.

Starting construction of a manufacturing plant is a very important job of enterprises. Therefore, enterprises need to think carefully, especially about the above mentioned 10 issues before starting the operation of a factory. Then, enterprises  can optimize the production process, gain higher profits, reduce the possibility of business losses.