Differentiating Business Processes

Let’s take a look at the six key processes that play a pivotal role in industrial manufacturing.

These processes are Sourcing and Procurement, Product Development, Manufacturing, Supply Chain, Sales and Marketing, Installation and Service. It's critical to understand that these processes do not operate in isolation but are interconnected, working together to ensure the smooth operation of industrial manufacturing companies.

The procurement process of an industrial manufacturing machine involves several key steps:​​

1. Define Requirements and Specifications: A Procurement Specialist finds out machine’s requirements and specifications, such as raw materials or components.​
2. Evaluate Suppliers: Next, they shift their focus towards identifying and evaluating potential suppliers, looking into attributes like reputation, quality, sustainability, and cost.
3. Request Quote and Negotiate: Once potential suppliers are selected, requests for quotation (or RFQ) from selected suppliers are made. The terms are then negotiated and the contract with the supplier is finalized.
4. Issue Purchase Order: Following this, the Procurement Specialist creates a purchase order including the agreed terms and provides it to the chosen suppliers.
5. Monitor Delivery: The Procurement Specialist then monitors the delivery of the purchased items, ensuring timely execution.
6. Inspect Delivery Quality: Once the products are delivered, the Procurement Specialist conducts thorough quality inspections. The goal here is to ensure that the products comply with the specified standards and requirements.
7. Compare Supplier Invoice and Purchase Order: The supplier invoices are then cross-checked against the initial purchase order. This ensures accuracy before processing payments to the vendor.
8. Assess Supplier Performance: Finally, the Procurement Specialist evaluates supplier performance, taking into account factors such as delivery, reliability, quality of goods, and adherence to contractual obligations.

The product development process is divided among three teams, Research and Development (R&D), Design, and Engineering.

• Research and Development: This process is integral to enhancing product performance and driving industry advancements. From exploring advanced technologies to developing innovative solutions, the R&D process is all about advancements and innovations. It delves into new materials and manufacturing procedures to improve efficiency, quality, and sustainability.
• Design: This process translates customer requirements and market insights into practical product designs. Design teams consider factors such as functionality, ergonomics, and manufacturability, customizing designs to meet customer needs while ensuring efficient production and assembly.
• Engineering: In contrast to the design process, the "Engineering" process focuses on the technical implementation and development of products. Through design and optimization of manufacturing processes, detailed engineering specifications are created. Moreover, this process supervises production operations to guarantee the efficient and reliable manufacturing of high-performing products.

Selling an industrial machine involves many factors to consider. The magnitude, intricacy, and hefty price tag stretch the sales cycle, necessitating potential customers to invest time in careful evaluation, feasibility studies, and financial scrutiny. However, these factors can vary depending on the size of the machine being sold.

Large machines often command global exposure, prompting collaborations with international partners to expand globally. On the contrary, for medium and small machines, the sales process is quicker. It emphasizes benefits like soaring productivity, enhanced efficiency, and curtailed operational costs.

Once the product development phase is complete, the manufacturing process kicks off with the creation of detailed production plans. It encompasses procurement, production planning, manufacturing, packaging, warehousing, logistics, installation, and after-sales support.

• Create Individual Components: The first step is the fabrication of individual components. Machinists and technicians use various machining techniques, such as milling, turning, and drilling, to shape and form the raw materials into the required components.​
• Assembly: Next, the components move to the assembly stage. Assembly technicians follow instructions and assembly diagrams to integrate the components into the machine's framework.
• Electrical Wiring: Electrical and electronic subsystems are integrated into the machine during the wiring and electrical assembly stage. Technicians carefully connect wires, cables, and electronic components, following electrical schematics and guidelines to ensure proper functioning.
• Testing and Quality Control: Once the machine's mechanical and electrical systems are assembled, it undergoes rigorous testing and validation. Testing may include performance testing, stress testing, functional testing, and safety testing to ensure that the machine meets all specifications and regulatory requirements.​

  If any issues or discrepancies are identified during testing, adjustments or modifications are made accordingly.

• Painting and Finishing: Following successful testing, the machine enters the final stages of manufacturing. This includes cleaning, finishing, and painting the machine to give it a polished appearance and protect it from corrosion.​

Effective supply chain management involves coordinating these processes, optimizing resources, managing relationships with suppliers and partners, and ensuring timely delivery to meet customer demands.

Supply chain management in industrial manufacturing merges various interconnected processes to ensure smooth operations and efficient delivery. It spans procurement, production planning, manufacturing, packaging, warehousing, logistics, installation, and after-service support.

Effective supply chain management involves coordinating these processes, optimizing resources, managing relationships with suppliers and partners, and ensuring timely delivery to meet customer demands.

Installation and Service consists of setting up and maintaining the industrial machine at the client's site. It encompass activities such as site preparation, machinery assembly and configuration, performance testing, user training, maintenance and repair, and ongoing technical support.

1. Site Assessment and Preparation: The installation process begins with a thorough assessment of the site, evaluating infrastructure requirements and making any necessary modifications. Skilled technicians then assemble and configure the machinery, ensuring precise alignment and calibration
2. Machinery Assembly and Preparation: This process translates customer requirements and market insights into practical product designs. Design teams consider factors such as functionality, ergonomics, and manufacturability, customizing designs to meet customer needs while ensuring efficient production and assembly.
3. Performance Testing: This is a critical step where the machinery undergo machinery and system tests to check their overall performance and effectiveness.
4. User Training: After successful installation and testing of machinery, comprehensive user training is provided. This training includes making users familiar with operating procedures, safety instructions, and troubleshooting techniques. The aim is to ensure that users are capable and comfortable with operating the machinery, and that they can detect and solve minor issues independently.
5. Maintenance and Servicing: Once installed, regular maintenance and servicing ensure optimal operation and minimize downtime. In this process, software solutions play a crucial role, providing real-time monitoring, remote diagnostics, and predictive maintenance capabilities.
6. Ongoing Technical Support: Lastly, ongoing technical support is provided to customers. This includes addressing any issues or queries that arise, offering remote assistance, providing on-site support when necessary, and ensuring the availability of spare parts for timely replacements.

• Key business processes in industrial manufacturing include Sourcing and Procurement, Product Development, Manufacturing, Supply Chain, Sales and Marketing, and Installation and Service.
• Each of these processes is interconnected, with each stage from procurement to customer support playing a critical role in the overall value chain.
• The sales process for industrial machinery requires strategic considerations including in-depth understanding of customer needs, efficient product development, and dedicated post-sales support.