Guide

The ultimate guide to using

technology to improve

manufacturing processes
Introduction

According to the National Association of Manufacturers, manufacturing has one of the largest

sectoral multipliers, with every $1.00 spent contributing $2.69 to the U.S. economy.

But manufacturing does more than drive economic growth; it’s a catalyst for societal and

technological advancement. It has significantly elevated our quality of life by creating products

that enhance productivity, comfort, and convenience while driving the development of

technologies like robotics, additive manufacturing, and the Internet of Things (IoT).

That said, manufacturing (like any other industry) faces challenges, such as rising labor costs and

increased globalization. However, with the right strategies and knowledge, these can be overcome.  

This guide empowers you with everything you need to navigate manufacturing, from its definition

to how you can harness technology to improve your manufacturing processes.

The ultimate guide to using technology to improve manufacturing processes 2

Table of Contents

01 02 03

What are

What are
some key

What is the types of manufacturing

manufacturing? manufacturing? concepts?

04 05 06

What What challenges

What does the technologies

is the

manufacturing are used in manufacturing

process look like? manufacturing? industry facing?

The ultimate guide to using technology to improve manufacturing processes 3

01 What is manufacturing?

Manufacturing, in simple terms, is the process of making things. It involves taking raw materials,

like wood or metal, and using tools and machines to transform them into a finished product, like a

chair or a car.

It can vary in complexity, from the simple task of creating a TV cabinet to the intricate processes

involved in producing wine or beer. It can also differ in scale, from a small-scale operation

producing a limited number of units to a large one producing thousands of units at a time.

Given the extent to which manufacturing can vary, it’s unsurprising that many types of

manufacturing exist across industries like electronics, automotive, food, textiles, and aerospace.

The ultimate guide to using technology to improve manufacturing processes 4

02 What are the types of manufacturing?

Here are the six common types of manufacturing that differ by processes, production scale, and

product nature.

Mass production Batch manufacturing

Mass production—synonymous with the Batch manufacturing produces moderate

automotive industry—involves the large- or limited quantities of identical products

scale production of standardized products in specific batches to meet demand. Each

using assembly lines and specialized batch goes through specific production

machinery. The goal is to achieve steps before proceeding to the next. An

economies of scale (the average cost per example includes a bakery producing

unit decreases as output increases). batches of bread to meet demand.

Discrete manufacturing Continuous manufacturing

Discrete manufacturing produces a single Continuous manufacturing is the

—usually highly customizable—product at uninterrupted (24/7) manufacturing

a time. An example is the production of process involving automation. It’s common

medical implants. It’s characterized by in the chemical and oil refining industries

complex assembly processes that require and offers various advantages, like cost

highly skilled labor and often lead to longer savings and shorter production cycles.

lead times.

Lean manufacturing
Job shop manufacturing
Lean manufacturing focuses on

Job shop manufacturing is a type of maximizing value and efficiency while

custom manufacturing where products are minimizing waste. For example, the Toyota

made based on specific customer Production System (TPS) uses lean

requirements. It’s suitable for products with manufacturing techniques like just-in-time

a low to medium production volume but a (JIT) production, continuous improvement,

high degree of customization. and worker empowerment to streamline

processes and reduce waste.

Okay, now that we’ve covered the different types of manufacturing, we will introduce some

fundamental manufacturing concepts before examining the manufacturing process itself.

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03 What are some key manufacturing concepts?

Here are six fundamental manufacturing concepts that you are likely to use on a daily basis in

your business. These concepts will manifest themselves in different ways during manufacturing.

Manufacturing cost Bill of materials (BOM)

Manufacturing cost influences every step A BOM is a comprehensive list of
of the manufacturing process. It is the total components, parts, and materials needed

cost incurred in the process of to manufacture a product. It usually

manufacturing a product, including : includes quantities and even assembly

Direct materials, e.g., purchasing cost. O

instructions. B Ms are designed to

Direct labor, such as wages or salaries streamline the manufacturing process and

of employees directly involved in the ensure consistency in finished products.

manufacturing process.

Manufacturing overhead, which is the

indirect costs in manufacturing a

’
product that aren t attributable to a
Inventory management
specific product, like indirect labor, rent,

depreciation, and utilities. Inventory management is the process of

Other miscellaneous costs, like waste controlling the flow of components,

disposal and regulatory compliance. materials, and finished products in a

manufacturing facility to maintain stock

levels, meet demand, and minimize

inventory carrying costs. It includes

ordering, counting, storing, and tracking

Manufacturing lead time
inventory. Businesses typically use

Manufacturing lead time is the time it inventory management software (IMS) to

takes to manufacture a product, from simplify and optimize their inventory

initiating the production process to when management.

the product is ready for shipping. It

includes all processing and handling

activities within a manufacturing facility.

Supply chain management

Supply chain management is the process

of coordinating the flow of goods and

Quality control
information through the supply chain from

Quality control refers to practices and supplier to wholesaler to consumer. It

processes that ensure products meet includes everything from procurement and

specific quality standards, like inspecting production to inventory and risk

and testing designs. management.

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 04 What does the manufacturing
process look like?
The manufacturing process is multifaceted and involves seven main steps.

Planning Design

Decide what product to With the aid of engineers,

manufacture, choose the conceptualize the product,

materials, set production goals, create detailed specifications,

create a development timeline, and potentially develop a

and allocate resources. prototype to validate the design.

Production
Procurement and assembly

Vet suitable suppliers before Transform materials and

buying materials and components into a finished

components from them. product through fabrication

and assembly.

Packaging and
Quality control distribution

Inspect and test the product Package the finished product

at each assembly stage to for storage, transport, and sale
meet quality standards. and then ship it to customers

and distribution centers.

Maintenance
Each step includes or excludes labor and
Conduct ongoing machinery
automation, requires different machinery, and varies
and equipment maintenance
in complexity. We’ll examine each step next with an
to sustain an efficient
example of an automotive manufacturer wanting to
manufacturing process.
introduce a new electric SUV.

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 Step 1: Planning

Decide what product to create, choose the materials (choice is influenced by cost), set production

goals, establish a development timeline, and allocate resources.

An automotive manufacturer wanting to create an electric SUV will likely

Set specific goals for the vehicle, such as the range it can achieve on a single charge and the

safety features it will include.

Create a detailed development and production timeline.

Break down all tasks required to manufacture the vehicle into specific milestones. These tasks

will include design, engineering, procurement, and testing.

Allocate resources, including investments in research and development, and hire skilled

technicians and engineers.

Step 2: Design

Engineers conceptualize the product, create detailed specifications, and may create a prototype to

validate the design—all while paying close attention to the BOM.

Electric car engineers create detailed specifications for the exterior and interior features,

performance capabilities, and safety standards. They may also build a prototype electric SUV to

ensure the design meets the desired functionality before mass production.

Step 3: Procurement

Vet suitable suppliers before buying materials and components by considering quality and cost.

Use an inventory management system to order and maintain optimal material and component

levels for meeting production and assembly targets. 

The automotive manufacturer will source various components, including lithium-ion batteries,

electric motors, and chassis components.

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 Step 4: Production and assembly

Fabrication and assembly transform materials and components into a finished product. The BOM

guides production and assembly, and the manufacturing lead time helps plan and schedule

production activities.

Various tasks will be completed during the production and assembly of the electric SUV, including

welding together chassis components, installing the drive train, and assembling the interior

components.

Step 5: Quality control

Inspect and test the product at each assembly stage to meet quality standards.

Inspectors must conduct rigorous inspections and tests to ensure the vehicle is safe and reliable

and performs as required. Quality control may involve:

Checking the strength of seam welds.

Conducting road tests.

Testing the internal software and systems.

Step 6: Packaging and distribution

Package the finished product for storage, transport, and sale. The shipment is prepared for safe

and secure delivery via trucks or planes and shipped to the customer and distribution centers. 

The electric SUV will be safely loaded and secured onto a truck or shipping container for delivery to

a dealership. Protection covers and foam padding may be used to protect the vehicle during

transport.

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 Step 7: Maintenance

The manufacturing process does not end once the product is shipped. Conduct ongoing

machinery and equipment maintenance to ensure the process continues to run smoothly.

For an electric car manufacturer, this means inspecting and servicing production machinery,

calibrating assembly line robots, and servicing other machinery to ensure a consistent, high-

quality manufacturing process and prevent product recalls.

With an understanding of the manufacturing process, let’s examine some of the modern

technologies used to optimize and enhance processes.

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05 What technologies are used in manufacturing?

Manufacturing is a broad field encompassing many industries and processes, so there is no

shortage of technology used in it. Manufacturers use these technologies to overcome the

industry’s biggest challenges. 

Here are the seven most common technologies used in manufacturing:

Manufacturing platforms Additive manufacturing

(3D printing)
Comprehensive digital systems designed to

optimize various aspects of your 3D printing lets manufacturers produce

manufacturing operations, from complex geometries and customized parts

production planning and inventory directly from digital designs.

management to manufacturing

compliance and work order management.

These platforms include manufacturing

execution systems (MESs), production

Internet of Things (IoT)
software, and all-in-one manufacturing and

inventory optimization solutions. IoT sensors and devices are physically

integrated or installed into equipment to

monitor and gather data on processes like

machine performance.

Automation and Robotics

Automated machinery and robots (e.g.,

automated guided vehicles) handle

Big Data and Artificial
materials, assemble products, and maintain
Intelligence (AI):
quality and safety throughout the

manufacturing process. Algorithms analyze large volumes of

manufacturing data from various sources,

such as IoT sensors and production

databases, to identify patterns and

improve processes.
Computer-Aided Design (CAD)

Software that creates, models, and

visualizes product designs.

Augmented Reality (AR)

and Virtual Reality (VR)

Workers use AR and VR technology for

training, simulation, and visualization.

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 06 What challenges is the

manufacturing industry facing?

The manufacturing industry is not immune to challenges. Here are eight of the most common ones

and ways to overcome them.

Challenges Solution

Implement automation and robotics

Raising labor costs Invest in workforce training to improve productivity

Implement lean manufacturing principles to increase efficiency

Partner with educational institutions to create training programs

Skills gap Offer competitive compensation packages to attract top talent

Become the employer of choice that offers a great culture and perks

Conduct ongoing market research

Changing customer
Adopt flexible manufacturing processes
preferences
Develop agile supply chains

Innovate and use technology to improve processe

Globalization
Work with international partners to access new markets

Proactively monitor regulatory changes

Implement a robust compliance management system

Government regulation
Use serial and lot number tracking to locate specific parts in the

case of recalls

Form a dedicated team to monitor technological advancements

Technological changes Develop a strategic technology roadmap

Create a culture of innovation

Diversify supply chain sources

Resource availability
Invest in sustainable resource management practices

Select software that prioritizes security

Cybersecurity risks Implement robust security measures

Offer cybersecurity training for employees

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 Rising labor costs

Manufacturers in the U.S. and globally continue to face rising labor costs, eroding profit margins

and threatening their very survival.

The solution

Implement automation and robotics to reduce the reliance on labor.

Invest in workforce training to boost productivity.

Implement lean manufacturing principles to increase efficiency, minimize waste, & reduce costs.

Skills gap

Manufacturers often struggle to find and retain skilled workers for highly technical jobs like

engineering and programming.

The solution

Partner with educational institutions, like local technical colleges, to develop training programs

that address skills gaps in the workforce.

Offer competitive compensation packages to attract top talent, including performance-based

bonuses and opportunities for career advancement.

Cultivate a workplace culture and provide perks that position your company as the employer of

choice in your industry.

Changing customer preferences

Consumer preferences constantly change, requiring manufacturers to adapt quickly to meet

market trends and expectations or risk falling behind.

The solution

Conduct ongoing market research to stay ahead of the curve.

Adopt flexible manufacturing processes to adjust production schedules in response to changing

demand.

Deliver agile supply chains that can adapt to changing market conditions.

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 Globalization

Globalization has increased competition and pressured domestic manufacturers to innovate and

optimize manufacturing processes.

The solution

Use technology to improve manufacturing processes. For example, a manufacturer can invest in

inventory management software that uses sales data analytics to help forecast demand and

optimize inventory levels.

Work with international partners to access new markets.

Government regulations

Manufacturers must comply with regulations, such as environmental, safety, and labor laws, which

add an extra layer of complexity and cost to the manufacturing process.

The solution

Proactively monitor regulatory changes to ensure compliance with the latest requirements.

Implement a robust compliance management system to stay abreast of government regulations

and remain compliant. This system should include written policies and procedures outlining

compliance requirements, monitoring and oversight measures to track compliance, and software

that’s a powerful ally in your compliance efforts. This software can help you manage compliance

tasks like recordkeeping, tracking, analysis, reporting, and task automation.

When a government body issues a product recall, you will be ready. Simply look up where affected

materials were used by tracking their serial and/or lot numbers. A barcode scanner and an

advanced inventory management system will save you days of tedious work hunting down

individual items in your warehouse and elsewhere.

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 Technological changes

While technology presents itself as a solution to many challenges, it can be hard to keep up with

its rapid advancements.

The solution

Form a dedicated team that’s responsible for monitoring technological changes.

Develop a strategic technology roadmap that prioritizes investments in technology with the most

significant benefit.

Implement pilot projects to test innovations.

Create a culture of innovation that encourages employees to engage with the innovation process.

Resource availability

Supply chain disruptions and environmental concerns can constrict access to resources

manufacturers rely heavily on, such as raw materials and labor.

The solution

Diversify supply chain sources by developing strategic partnerships with multiple suppliers.

Invest in sustainable resource management practices to minimize waste. For example, a food

processing company could invest in IoT sensors and data analytics to track energy consumption

and waste generation in real time. They could then analyze this data to identify inefficiencies and

ways to minimize waste and energy inefficiency.

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 Cybersecurity risks

As manufacturing becomes increasingly digitized and automated, the risk of cybersecurity threats,

like data breaches and ransomware attacks, increases.

The solution

Implement robust security measures, such as encryption to ensure data is securely transmitted

and access controls to restrict access to sensitive information based on user roles and

permissions.

Offer cybersecurity training so employees are more aware of risks and less likely to compromise

themselves.

Select software solutions that prioritize security and adhere to industry best practices for

security.

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Simplify your manufacturing processes today

Manufacturing is crucial in driving economic growth and technological advancement. However, as

noted earlier, it faces challenges like any other industry.

The key to overcoming these challenges and streamlining your manufacturing processes is

implementing the right solutions and investing in the appropriate technology.  

An integrated manufacturing management platform like Fishbowl Manufacturing is one such

important technology. Not only does it centralize and enhance other technologies, making it a

crucial step toward modernizing your manufacturing, but it also offers comprehensive material

handling management, production tracking, and capacity projection from a single platform in real

time.

Fishbowl Manufacturing integrates with SolidWorks to transform designs into real products. It also

integrates with numerous shippers, merchant services, eCommerce platforms, CRMs, accounting

solutions, and more to help you optimize just about every aspect of your manufacturing business. 

With Fishbowl Manufacturing and its many integrations, you get MRP-level functionality at a

fraction of the cost of MRPs.

Book a demo today and discover

how Fishbowl can simplify your

manufacturing processes.

Book a demo

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