When you hear the machinery running, the workers filling product orders, and the smell of food packaged for commercial businesses, you know that life is good in the consumer packaged goods industry. So when the time comes to consider expansion by adding a new production line, everything seems to be falling into place perfectly.
Yet before steamrolling ahead with this new production line plan, there are several key aspects to take into consideration. Check these five things off your list to ascertain the best course of action for your CPG company.
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1: Space and Location
100_1612.jpgIt's simple to think that available space can easily hold another production line until you start considering all the equipment and manpower that has to fit into the area. Effectively mapping out the area for processes and machinery while allowing workers to move around the floor productively without impacting existing production becomes paramount.
Yet space isn't the only thing that can impact the success of your new production line. Location of new facilities can make or break your business. If most of your customers are far away or your facility is not easily reached, shipping and transportation costs can be a deterrent for new business. So your location must be ideal for companies wooing customers.
2: Existing Production Schedules
Adding a new production line must fit perfectly into existing production schedules so there are no problems with machinery downtime, worker availability, and product quality. You have to evaluate existing schedules and ensure your operational schedule can handle the new packaging system without affecting other production lines meeting the needs of existing customers.
3: Equipment Usage
With another production line in place, packaging equipment usage can increase exponentially. CPG companies may consider innovative packaging technologies with machines that feature quick, tool-free changeover. These flexible machines cut down on the amount of equipment that needs to be purchased and allow you greater control to effectively use available floor space. Vertical form fill seal machines allow for a much smaller footprint, allowing your packaging to occur vertically to conserve valuable square footage.
4: Meeting Regulatory Compliance
New federal regulations are placing a spotlight on food safety standards. Your new production line needs to take into consideration the types of food products you will be adding to your lineup and whether you can meet regulatory compliance while maintaining quality and keeping production costs low.
budget-review.jpgBudget will often become the most important aspect in deciding whether to add a new production line. You have to consider operational costs, machinery maintenance, product waste management, and related expenses to decide if growing your production lines can lead to favorable and sustainable profits for your company.
Adding new production lines is not an overnight decision. You have to seek packaging solutions that provide the best return on investment, including innovative packaging solutions that allow for flexibility. Working with packaging machine experts like Viking Masek can allow you to discover turn-key solutions that are perfect for your operation.
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