PEKO Precision Products

Assessing the Current and Future Manufacturing Capacity

Posted by Brianna Marchetti on Feb 5, 2019 12:20:29 PM

Many of the customers who have walked through our doors have one simple question in mind: "How will my project fit into the this company, and will they have enough resources to give my project the time that it needs?" The manufacturing capacity of an organization is the "make-it" or "break-it" of a company's ability to sustain and meet the aggressive deadlines within the manufacturing industry.  Having established robust and up-to-date practices ensure that products will make it to the end-user when agreed upon.  

If you're currently in the market for a Contract Manufacturer it may seem daunting to assess a company on their processes to ensure that they are established and in place.  To make this task less intimidating, here's a break-down of what you should be on the lookout for when vetting through companies to manufacture your major mechanical assembly. 

Financial Capabilities

Two men walking through manufacturing floor in the production area

If a company is currently utilizing all of its resources to full capacity, are they at liberty to purchase more equipment, or hire new employees to fulfill your demand?  Or, how can you be confident that they will be able to increase production.  Here at PEKO, we pride ourselves in being a debt-free company.  Free of financial burdens allows us to continue in allocating the proper amount of resources for each project.  As soon as we begin negotiations with a potential customer, our upper management begins to review each process, and will order new machines and hire new people as needed.  This also allows us to maintain production when one of our customers begins to increase their demands for their supply.  Since we're always thinking ahead, we always leave room for more projects.

Equipment & Floor Capacity

One of the easiest ways to assess a CM's manufacturing capacity?  Take a look at their equipment and floor space.  How is your machine going to fit into the picture?  If you're not sure then ask.  While any company can claim to make the available space for you, they should still provide you with a clear picture of how they plan to manage your project while driving the economic success of your business. 

Four large white machine builds on the manufacturing floor with assemblers

If your end goal is to produce 100 plus machines a year, can you be confident that the CM has the capacity to fill your demand?  Do they even have enough equipment and talent to eventually fulfill these needs on top of their current workload?  These are questions you need to ask while you vet Contract Manufacturers.  Here at PEKO, we are constantly working to ensure customers that we can meet their demands.  We do so by making sure we have some of the best minds in the industry, and will purchase more floor space and equipment when needed. 

Supply chain management

A company's throughput needs to be properly managed if you're going to trust them to take your project into the future.  If your company has just created a new machine or major mechanical assembly then you understand how quickly the number of parts adds up on the BOM.  When you're considering a Contract Manufacturer, you need to have the peace of mind that not only can they manage their current customers' needs and projects, but that they can successfully handles yours as well on top of their current tasks.  

Various stages of metal, concave CNC machined parts on pallets

A Contract Manufacturer with a strong supply chain infrastructure will be able to handle the manufacturing of your machine with ease.  This infrastructure needs to be properly managed in order to feed the manufacturing needs of the company.  Problems easily arise in the manufacturing world, between processes and a strong supply chain infrastructure that can quickly solve a problem to have minimal impact on overall throughput will make an impact on your machine's production. 

If you're in the market for a contract manufacturer, checkout our free checklist below for insightful tips on what to look out for during your journey.

Download the CM Checklist

Topics: Contract Manufacturing, Contract Assembly, Manufacturing Capabilities, Purchasing