Project management for manufacturers

the final frontier

Although project management has had some influence on the manufacturing industry; there are opportunities for it to have more. Recent trends in the industry have included an increasing number of partnerships between OEMs (original equipment manufacturers) and their suppliers in an effort to reduce inventories and use capacity management to increase the efficiencies of resources. The reduction of overhead is the final frontier for cost-cutting. ABC (activity-based cost) accounting is part of the next wave of continuous improvement. Its implementation will require strong project managers who are committed to the project management organizational structure; who identify and process more activities as projects and tasks; and who integrate capacity management with ABC accounting into ERP (Enterprise Resource Planning) systems.
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