Manufacturing structure is the way a manufacturing organization is organized and managed to produce goods and services. There are different types of manufacturing structures, depending on the size, scope, and product type of the company. Some common manufacturing structures are:
– Functional structure: This is a traditional structure where the manufacturing activities are grouped by functions, such as engineering, production, quality, and logistics. This structure allows for specialization and efficiency, but may create communication and coordination problems across functions.
– Divisional structure: This is a structure where the manufacturing activities are divided by product lines, markets, or regions. This structure allows for more flexibility and responsiveness to customer needs, but may increase costs and duplication of resources.
– Matrix structure: This is a structure where the manufacturing activities are organized by both functions and divisions, creating a matrix of reporting relationships. This structure allows for better integration and innovation, but may create confusion and conflict among managers and employees.
– Team-based structure: This is a structure where the manufacturing activities are performed by self-managed teams of workers, who have autonomy and accountability for their tasks. This structure allows for more empowerment and motivation, but may require more training and support.
Manufacturing structure is an important aspect of manufacturing strategy, as it affects the performance, quality, and competitiveness of the company. A good manufacturing structure should align with the company’s goals, capabilities, and environment.