A simple business architecture for a manufacturing company would involve several key components, including organizational structure, processes, technology infrastructure and data management.
Here is an example of how such a framework could be defined:
Organizational Structure:
The manufacturing company can have a hierarchical structure with the CEO at the top, followed by department heads for production, supply chain, finance, marketing and sales. Each department would have its own team members responsible for specific tasks within their domain.
The organizational structure of a manufacturing company can vary depending on the size and scope of its operations. However, here is an example of how it could be designed:
- CEO: The Chief Executive Officer (CEO) would head the organization and be responsible for overall strategy, vision and direction.
- Department Heads: There would be department heads for key areas such as production, supply chain management, finance, marketing and sales. Each department head would have a team of managers and staff members reporting to them.
- Production Department: The production department would be responsible for designing and developing products, planning and scheduling production runs, maintaining equipment and ensuring quality control standards are met.
- Supply Chain Management: This department would manage procurement of raw materials, inventory management, logistics and transportation.
- Finance Department: The finance department would be responsible for financial planning, budgeting, accounting, tax compliance and financial reporting.
- Marketing and Sales Department: This department would focus on market research, product marketing, advertising, promotions, sales forecasting and customer service.
Each department would have its own set of processes, technology infrastructure and data management requirements to support their specific functions within the organization.
A Mission Statement is a document that describes a company’s purpose, values and goals so it can guide its actions and decisions. For a Manufacturing Business, the Mission Statement could be “To provide high-quality products at competitive prices while creating value for shareholders, employees and society”. Additionally, it helps them to align their strategies with stakeholders’ expectations and manage their resources in a more focused way.
Processes:
The processes involved in a manufacturing company include product design and development, procurement of raw materials, production planning and scheduling, quality control, inventory management, order fulfillment, customer service and after-sales support. These processes need to be well defined, documented and followed by all team members to ensure smooth operations.
The processes involved in a manufacturing company can vary depending on the type of products being produced and the scale of operations. However, here are some examples of key processes that could be included:
- Product Design and Development: This process involves conceptualizing new product ideas, creating prototypes, testing them for functionality and performance, and refining the design based on feedback from customers or market research.
- Procurement: Once a product has been designed and developed, the next step is to procure raw materials required for production. This involves sourcing suppliers, negotiating contracts, managing inventory levels and ensuring timely delivery of materials.
- Production Planning and Scheduling: After raw materials have been procured, the production process needs to be planned and scheduled. This involves determining the most efficient way to produce each product, setting up production lines or machines, assigning workers to specific tasks, and ensuring that all safety protocols are followed.
- Quality Control: Throughout the production process, quality control measures need to be in place to ensure that products meet established standards for performance, durability and reliability. This could involve regular inspections of raw materials, in-process checks during production, and final inspection before shipment.
- Inventory Management: Once products have been produced, they need to be stored until they are ready to be shipped to customers. Inventory management involves tracking inventory levels, managing warehouse operations, and ensuring that stock is not over or understocked.
- Order Fulfillment: When orders come in from customers, the order fulfillment process needs to ensure that products are picked, packaged and shipped out on time. This involves coordinating with suppliers if additional raw materials are required, assigning workers to specific tasks, and ensuring that all logistics and transportation arrangements are made.
- Customer Service: After a product has been delivered to the customer, there may be follow-up service or support requirements. This could involve responding to customer inquiries or complaints, providing technical assistance, offering warranties or guarantees, and conducting after-sales surveys to gather feedback on the customer experience.
Value Streams are the sequences of activities or tasks that a product goes through during its life cycle, from raw material extraction until it reaches the end consumer. Here is an example list of some common value streams in manufacturing companies:
- Raw Material Extraction and Processing – this stream includes all operations related to extracting and processing raw materials into usable forms for production (e.g mining, refining or milling).
- Manufacturing Operations- This is the core of any production process where the product is actually made through various stages like machining, welding, painting or assembly.
- Quality Control and Testing – During this stream, quality control specialists check that all products meet the required standards before they are shipped to customers.
- Logistics and Distribution- This value stream encompasses all operations related to transportation of finished goods from the factory to distribution centers or retail stores until it reaches the end consumer.
- Customer Service Support – After sales, this stream includes activities like answering customer inquiries, managing returns or complaints and providing technical assistance.
A Capability Maturity Model (CMM) is a framework that helps companies to manage their software development processes in a more efficient, effective and compliant way. It allows them to have all the information they need about their capabilities (like people, tools or methods), where it’s happening (in different stages of process improvement) and which steps must be followed to obtain a higher maturity level that helps them to reduce risks, costs or time-to-market.
CMM usually includes modules like Process & Product Engineering, Organizational Project Management or Quality Assurance that help managers to manage their software development processes in a more integrated way
Technology Infrastructure:
The manufacturing company would require an IT infrastructure that supports the various processes involved in production. This could include software for product design and development, enterprise resource planning (ERP) systems for managing supply chain, procurement and inventory, customer relationship management (CRM) tools to manage sales and marketing, and analytics platforms to track performance metrics.
The technology infrastructure of a manufacturing company would include software applications and hardware systems that support key processes within the organization. Here are some examples of what could be included:
- Product Design Software: This type of software allows designers to create 3D models, simulate product performance, test different materials or configurations, and collaborate with other team members in real-time.
- ERP Systems: Enterprise Resource Planning (ERP) systems are used to manage supply chain operations, procurement, inventory management, production planning and scheduling, finance and accounting, and human resources. These systems help streamline processes, reduce errors and improve overall efficiency.
- CRM Tools: Customer Relationship Management (CRM) tools are used to manage sales and marketing operations. This could include customer data management, lead generation, campaign tracking, customer service support and analytics for measuring performance metrics.
- Analytics Platforms: Data analysis platforms can be used to track key performance indicators such as production output, inventory turnover rates, customer satisfaction scores or profit margins. These tools help managers make data-driven decisions based on real-time insights into organizational performance.
- Manufacturing Execution Systems (MES): MES systems are used to manage and track production processes in real-time. This could include tracking work orders, monitoring machine utilization rates, or managing quality control checks during production.
- Internet of Things (IoT) Devices: IoT devices such as sensors or RFID tags can be used to monitor equipment performance, track inventory levels, or detect potential safety hazards on the factory floor. These devices help improve operational efficiency and reduce downtime due to maintenance or repairs.
Overall, a manufacturing company would require an IT infrastructure that supports key processes such as product design and development, supply chain management, production planning and scheduling, customer service and after-sales support. This could include software applications for specific functions, hardware systems to manage data storage and processing, and analytics platforms to track performance metrics and drive decision making.
Assets are resources owned by a company like buildings, machines or vehicles that have value and can be used to generate revenue.
- Fixed Assets are long-term investments like land, buildings or machinery that cannot be easily converted into cash.
- Intangible Assets are resources without physical form like patents, trademarks or customer relationships that also have value but are harder to evaluate.
- Service Assets are resources used by a company to provide services like people, tools or vehicles that help them to generate revenue.
All these assets must be managed in a more efficient way so they can contribute to the company’s success and create value for shareholders.
Enterprise Resource Planning (ERP) is an integrated software solution that helps companies to manage their core processes like finance, accounting, sales, customer service or manufacturing in a more efficient and effective way. It allows them to have all the information they need in one place so they can make better decisions faster and reduce errors or delays.
For a Manufacturing Business, ERP helps managers to know what resources are needed for producing their goods (like raw materials, components or machines), where and when they should be used (in different stages of production) and which steps must be followed to obtain a finished good (like quality control or packaging). Additionally, it allows them to have all the information about sales, customers or suppliers in one place so they can manage their relationships better and make their operations more agile.
Customer Relationship Management (CRM) is an integrated software solution that helps companies to manage their customer relationships better so they can increase loyalty, satisfaction and retention. It allows them to have all the information they need about customers (like contact data, interactions or preferences), where it’s happening (in different stages of relationship management) and which steps must be followed to obtain a stronger bond with them. Additionally, it helps them to manage their sales or service processes in a more customer-centric way so they can provide better experiences.
CRM usually includes modules like Sales Force Automation, Customer Service & Support, Marketing Campaign Management or Social Media Monitoring that help managers to plan, execute and control their customer relationships in a more integrated way.
Analytics Platforms are software solutions that helps companies to analyze their data in a more efficient, effective and predictive way so they can make better decisions faster. It allows them to have all the information they need about their business (like financial results, customer interactions or supply chain performance), where it’s happening (in different stages of operation) and which steps must be followed to obtain insights that help them to improve. Additionally, it helps them to manage their Big Data in a more structured way so they can extract value from it.
Analytics Platforms usually includes modules like Predictive Analytics, Text Mining or Network Analysis that help managers to analyze their data in a more advanced way.
Manufacturing Execution System (MES) is a software solution that helps companies to execute or control their manufacturing processes in a more efficient, effective and compliant way. It allows them to have all the information they need about production (like routings, work instructions or BOMs), where it’s happening (in different stages of production) and which steps must be followed to obtain a finished good (like quality control or packaging). Additionally, it helps them to manage their resources better (like machines, tools or workers) so they can reduce downtime or waste.
MES usually includes modules like Production Scheduling & Control, Shop Floor Data Collection, Quality Management, Maintenance Management or Performance Analysis that help managers to plan, execute and control their manufacturing processes in a more integrated way.
Internet of Things (IoT) Devices are physical objects that have sensors, actuators or connectivity so they can interact with their environment. For a Manufacturing Business, IoT Devices could be used to monitor machines’ performance, control production processes or track goods in transit. Additionally, it helps them to manage their supply chain more efficiently and reduce costs.
IoT Devices usually includes modules like RFID Readers, Temperature Sensors or Vibration Actuators that help managers to interact with their environment in a more connected way.
In a manufacturing company, it’s common to have both in-house production facilities as well as outsourcing certain processes to external vendors or partners.
- Insourced items could include the actual production machinery and equipment, raw materials or components that are sourced locally or within the country of operation. It is also possible for some companies to have their research and development facilities in-house as well.
- Outsourced items may consist of subcontracting certain parts of the manufacturing process such as painting, plating or assembly operations to external vendors with expertise in those specific areas. Another example could be outsourcing the disposal or recycling of waste materials generated during production. Additionally, some companies might decide to outsource their customer service support functions like call centers or technical assistance hotlines to third-party providers that have experience and knowledge in these fields.
Data Management:
The manufacturing company would generate a large amount of data through its various processes. This data needs to be collected, stored, analyzed and used for decision-making purposes. A robust data management system should be put in place that includes tools for data collection, storage, analysis, visualization and reporting.
In summary, the business architecture for a manufacturing company would involve an organizational structure with clear roles and responsibilities, well-defined processes to ensure smooth operations, a technology infrastructure to support these processes, and a robust data management system to track performance metrics and drive decision making.
The data management system of a manufacturing company would involve collecting, storing, analyzing and reporting on key metrics related to organizational performance. Here are some examples of what could be included:
- Production Metrics: This could include data on production output rates, machine utilization levels, inventory turnover times or quality control scores. These metrics help managers identify areas for improvement in the production process and track progress over time.
- Financial Metrics: Key financial indicators such as revenue growth, profit margins, cash flow statements or balance sheets would be important to track. This data helps finance teams make informed decisions about budgeting, investments or cost management strategies.
- Customer Data: Collecting customer data such as purchase history, demographics or feedback scores can help marketing and sales teams identify trends in buying behavior, tailor promotions or improve the overall customer experience.
- Supply Chain Metrics: Key supply chain metrics could include supplier performance ratings, lead times for raw materials delivery, inventory turnover rates or transportation costs. These data points help procurement teams identify potential cost savings opportunities or optimize sourcing strategies.
- Employee Data: Collecting employee data such as attendance records, training completion certificates or performance evaluations can help human resources teams track workforce productivity levels, identify skill gaps or implement targeted development programs.
Overall, a robust data management system would involve collecting and storing key metrics related to organizational performance, analyzing this data using analytics platforms, and reporting on insights gained from these analyses. This information helps managers make informed decisions about resource allocation, investment priorities or process improvement initiatives.
The Business Architectural Model is a tool used by companies to represent graphically how their business processes will look like when they’re optimized or automated. It usually includes flowcharts, BPMs (Business Process Maps) or swimlanes that help managers to know what steps must be followed, which resources are involved and where bottlenecks or inefficiencies could be found so they can improve their operations.
The Business Data Model is a tool used by companies to represent graphically how their information is being managed during the different stages of its life cycle. It usually includes ERDs (Entity-Relationship Diagrams), DFDs (Data Flow Diagrams) or data dictionaries that help managers to know what data they have, where it’s stored and which relationships must exist between them so they can use it correctly and consistently.
The Investment Model is a tool used by companies to forecast their future performance based on historical data and assumptions about different variables that could affect the outcome.
It usually includes three main statements: Income, Balance Sheet and Cash Flows.
- The Income Statement shows how much revenue the company will generate during a certain period of time (usually monthly or annually), what are the costs associated with generating that income and therefore what is the Net Income or Profit obtained. This statement allows managers to see if they are operating at a profit or loss and by how much.
- The Balance Sheet shows the company’s assets, liabilities and equity at a certain point in time. It helps to know the company’s financial position by detailing what resources it has available to operate (like cash, accounts receivable, inventory or fixed assets) and what are its obligations or debts (like loans payables or taxes).
- The Cash Flow Statement shows how money is flowing in and out of the company during a certain period. It helps managers to know if they have enough cash to cover their expenses, investments or returns to shareholders. This statement can be divided into three sections: Operating Activities (which show how much cash is used or generated by normal business operations), Investing Activities (which detail the acquisition and disposal of long-term assets) and Financing Activities (which show transactions related with owners’ equity or debt).
By combining all this information, managers can perform different financial ratios and analysis to support their decision making process.
The Manufacturing Production Model is a tool used by companies to represent graphically how their products are being made during the different stages of their life cycle. It usually includes flowcharts, BOMs (Bill of Materials), routings or work instructions that help managers to know what resources are needed, where and when they should be used and which steps must be followed to obtain a finished good.