Challenges in Manufacturing Industry

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Introduction• Manufacturing Industry

– Strongest segment– Steady growth– 4th Largest in the world– Organized sector

• Various Manufacturing Sectors– Automobile– Chemical– Metal – Textile

• Diversified Manufacturing Business

Manufacturing Industry

Finance Manageme

nt

Costing

Human Resource

Government PoliciesLocation

Technology

Economic Conditions

Challenges in Manufacturing Industry

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Finance and Costing

• Challenges: 1. High quality products at lower costs

2. Working capital requirements

3. Financial viability in competitive market

4. Foreign exchange rates

• Solutions: 1. Effective capital management

2. Input cost minimization

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Human Resource

• Challenges: 1. Unskilled labor

2. Technical engineering talent

3. Communication pattern

4. Labor union

• Solutions: 1. Well defined communication channel

2. Finding and hiring quality people

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Technology

• Challenges: 1. Change in technology

2. High costs incurred due to technological up gradation

3. Lack of technical know how of the employees

• Solutions: 1. Adaptable approach towards upgraded technology

2. Training programs for the employees

3. Selecting the most viable option available

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Other Challenges• Family Conflicts

• Safety Measures

• Government Policies

• Different legal frame work between two nations

• Corruption

• Location

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Summary• Backbone of all the other business sector

• SME’s / FOB’s are highly affected by these challenges

• Consistently progressing sector

• Meet international standards

• Risk factor

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