Does the company manage its raw materials and finished goods inventories in an optimal fashion?
As l observed at the start of the chapter, managing raw materials and finished goods is a balancing act. The start-up must have enough of each on hand to enable it to respond flexibly to fluctuations in the order rate but not so much that it feels a financial impact from having excess inventory.
Does the company introduce products into manufacturing rapidly, accompanied by clear product and process specifications?
The best guarantee of a speedy time-to-market is for engineering and manufacturing to function well together from the beginning. Although engineers must understand exactly how their product is built, manufacturing should be responsible for building all the products, including the prototypes.
CONCLUSION
In the case of manufacturing (as with every other dimension of an organization), achieving the highest quality is the most important operating principle. Without quality in every part of the operation, costs will be high, predictability will be nil, and customers will be unhappy.
The health of a start-up's manufacturing dimension will be assured if it follows these eight guiding principles suggested by Matt Sanders:
1. Only build products of the highest possible quality.
2. Only invest in manufacturing if the process is unique and is the essence of the start-up.
3. Examine every make/buy decision.
4. Get to market fast.
5. Use minimal cash.
6. Have only a minimal staff, but hire the critical people.
7. Make sure product cost is predictable and low.
8. Avoid the evil of inventory.