by Mindy Martell on June 30 th, 2014 in Made In America, Manufacturing. The company would willingly or unwillingly perform cost reduction in order to increase the profits which will be used to invest in other businesses. Increased outward orientation: Foreign based affiliates tend to be more outward oriented. A licensing agreement can be beneficial because both parties get the chance to earn profits. Tweet. Cost of producing one unit or job is higher. By 2008, that number dropped to 10%. Advantage: Less Infrastructure A manufacturer implementing lean production only uses the building space, equipment, tools, supplies and manpower necessary to meet near-term inventory demand from buyers. Requires investment in skills and training Greater job satisfaction – involved in all stages of production. The invention of assembly line production resulted in many different advantages, but there are some significant disadvantages in the method as well. Lean production also has its shortcomings, although the benefits of lean production often outweigh its disadvantages. Advantages and disadvantages of automation. In order to survive in a highly competitive environment or during an economical crisis every company needs to maximize the efficiency of its activity. In addition to creating higher profit margins, this can also result in products that are more affordable and easier to repair. The Pros & Cons of Batch Production Batch production is common in more than just bakeries and small businesses that produce in controlled quantities. Advantages: Disadvantages. E.S.Buffa defines production management as follows: ‘ Production management deals with decision-making related to production processes so that the resulting goods or services are produced according to specifications, in the amount and by the schedule demanded and out of minimum cost’. 5 Advantages to Keeping Production Local. Here are three reasons to … Knowing the benefits of outsourcing will help you decide if this is something that could work for your business. Advantages of Cost Reduction : Profits: The baseline of cost reduction increases in profit margins which is the most sought-after advantage. Product usually high quality. Pros 1. And, yep, there are probably some instances where, when you factor in shipping and duties, the … Thirty years ago, 90% of all garments worn in America were made in the United States. These are the top 10 greatest advantages and benefits it provides. For garment factories and workshops this means a higher utilization rate of the workforce and a strict control of raw material costs. Yep. Advantages Of Outsourcing. Regularly, you can find batch production being utilized by companies that make consistent, measured products such as paint, shoes, ingredients for pharmaceuticals and much more. Production Control System for the Garment Industry. Most of the benefits have to do with a reduction in cost and an increased uniformity of the finished products. It can also be detrimental if a … We all know this one. The advantages and disadvantages of licensing can be managed when due diligence by both parties is performed before agreeing to anything. Lower costs. As multi-nationally based operations themselves, they are often more aware of the opportunities of foreign markets and therefore more likely to seek to … Producer meets individual customer needs. Labour –intensive. Advantages commonly attributed to automation include higher production rates and increased productivity, more efficient use of materials, better product quality, improved safety, shorter workweeks for labour, and reduced factory lead times.Higher output and increased productivity have been two of the biggest reasons in justifying the use of automation. Production Advantages . Top 10 OEE manufacturing benefits that improves your production There are plenty of reasons why OEE is used as a tool for continuous improvement at companies around the world.