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May, June 1998

INVENTORS' DIGEST

Plan, Direct and Control the Mass-Production of your Product

Mayor of the Village

Adapting a popular book title, it has been said, "it takes a village to bring a new product to market", and most company structures will verify that. Their "village" consists of market research people to assure a product is needed and will be well received by consumers; research & development (R&D) people to design the product, and to make certain it will work correctly; marketing people to assure the product is represented properly and thoroughly; sales people to sell and distribute the item to as many consumers as possible; finance people to control the cost, profit, and cash flow of the venture; operations people to locate the proper manufacturers, negotiate the price, and make certain the product is mass-produced correctly and on time.

Acting as an R&D department, you have just designed a great new consumer product. It is, truly, the best item ever invented. All of your closest friends and confidants concur it will be a best seller. Now you need it duplicated-- 1000, 5000, or 100,000 times. This seems simple enough; there are many manufactures out there who are capable--just read their ads. But how you choose the right one? Acting now as the "operations department", how can you be certain the manufacturer you choose will mass-produce your product to your expectations?

The first and most important step in assuring your product is manufactured correctly is to finalize exactly "what" you need. Be certain your product is completely developed, and all of the details written down with (at least) a rough dimensional drawing. Once the "what" is finalized, it will be easy to find manufacturers to assist you with "how" it should be mass-produced.

The details should include:

    1. The product itself: components, finishes, etc. Remember that a picture or a physical sample is more effective than words in conveying your needs. Look for similar colors, finishes, or textures in existing product, so you can "show" the manufacturer what you are trying to accomplish. Of course, a finished prototype is always preferable, but remember to make at least 2, allowing you and the manufacturer to discuss the details via phone, fax or e-mail.
    2. Packaging: inner carton, outer (shipping) carton: Be certain to consider how many unit cartons should be packed in the shipping carton. Be aware of weight, OSHA rulings, or specific requirements of your customer.
    3. Labeling (unit and inner carton and outer carton): Again, there might be laws, regulations, or customer requirements to be considered.
    4. Product functions, intended use, guarantee: (e.g.: do you plan to guarantee this product to your consumer? If so, what is the extent of the guarantee?)
    5. Regulatory concerns: Associated with this article (check the local and federal laws, especially regarding children’s items).
    6. Shelf life concerns, if applicable: (will this item "go bad" or deteriorate within a particular time?)
    7. Target consumer, target wholesale cost and target retail price: It is helpful to have a competitive product survey completed at this time.
    8. Quantity: long term and short term.
    9. Distribution channel, storage & shipping: How it will get to the wholesale distributor and / or the customer? Will the product require special storage or shipping conditions (e.g.: refrigeration, low moisture, etc?) This will affect the packaging.
    10. Time frame: When do you need to have the goods completed and in the warehouse?
    11. Financing. What are the terms of payment required by your manufacturer and customer? How will your cash flow be if your customer pays late?
    12. Other products: Your business has a better chance of thriving if you develop a product line consisting of several products, rather than just one product. Once you have identified the target customer and optimal distribution channel, think of other (related) products which can be marketed.

Each of the details listed above affects the price of the goods and the choice of the manufacturer. Having all of the "specifics" finalized will avoid surprises, as well as save time, money, and frustration for you and the potential manufacturers.

The second step is to evaluate whether it would be best to manufacture in the United States, or overseas. The decision is based on:

    1. Labor: Does the item require a lot of labor? Generally speaking, labor is much less offshore than in the United States.
    2. Unique components: Are there specific components which can only be made efficiently in certain places of the world?
    3. Order quantity: Offshore shipments usually require full container (truck) loads which, depending on the size of the item, could be 100,000 units.
    4. Political and economic stability of the country in which you are planning to manufacture your product.
    5. Connections and control: How secure are you with being able to maintain control if the manufacturing facility is located far from you? (E.g.: on the opposite side of the continent, or the opposite of the world.)

The third step is to make a list of questions you will ask the manufacturer. This might include:

    1. References
    2. Customers
    3. Current and former projects
    4. Manufacturing capacity
    5. Production lead time
    6. Minimum order quantities associated with all components

It is always best to visit a manufacturing sight, if at all possible to make certain the "pictures match the words", and to gain a better understanding of the manufacturing process.

The fourth step is to design a quality assurance system. There is a great difference between you creating one prototype in your home, and giving instructions to a factory across the nation or across the world to mass-produce 50,000 pieces of your product. Here are some aspects to consider:

1. Is your product mass-produce-able? If not, how can you amend it so it can be mass-produced without destroying the qualities that make it unique and special?

2. Do you have engineering drawings and final specifications complete?

3. Do you have a final prototype made? If not, the manufacturer might be able to make a prototype for you, if all of the details are finalized.

4. What are the properties of each of the materials you are using?

What problems could occur during production, and how can they be avoided?

5. How will quality be controlled? How and when will the production be supervised and inspected? Remember that you cannot build quality into a product at the end of the production line, it has to be designed into the product, and implemented at every production stage.

There should be a final inspection, and there are outside companies who can handle this for you. However, you are responsible for assuring the plant and the quality control group understands your (reasonable) expectations.

Fifth, work with the manufacturer to devise a system of tracking the production progress. No doubt, you have promised delivery of the goods to your distributor by a certain date. You do not want to learn of problems when it is too late to correct them and still ship on time.

Sixth, remember to ask questions. Ask colleagues and mentors who have manufactured similar products what they learned; ask potential manufacturers what might go wrong, ask potential customers and consumers what they are expecting for the retail price they pay, et cetera.

Last, remember you will become a partner to your manufacturer. You must help them to understand your product, your concerns, and your needs. Communicate thoroughly and encourage their questions.

You must walk with them throughout each step of the production, and understand their processes as well as they understand your product and your customer’s expectations.

Be fair, be practical, be reasonable, and always have respect for you marketing, financial, sales, and manufacturing "partners".

It does "take a village to bring a product to market". As village leader, you must make certain all segments work well together toward the success of your great invention.

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