{"id":17521,"date":"2024-08-19T11:04:45","date_gmt":"2024-08-19T11:04:45","guid":{"rendered":"https:\/\/www.mrpeasy.com\/blog\/?p=17521"},"modified":"2025-10-21T11:52:34","modified_gmt":"2025-10-21T11:52:34","slug":"manufacturing-challenges-consultant-insights","status":"publish","type":"post","link":"https:\/\/www.mrpeasy.com\/blog\/manufacturing-challenges-consultant-insights\/","title":{"rendered":"5 Most Common Small Manufacturing Challenges According to Consultants"},"content":{"rendered":"\n<p>Manufacturing consultants Tim Grant from Business Solution Providers, David Altemir from Altemir Consulting, and Patrick Verryn from Move 2 Cloud share their insights about the most common challenges their small manufacturing clients experience.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2024\/07\/consultants-insights-small-manufacturing-challenges-1024x576.jpg\" alt=\"\" class=\"wp-image-17522\" srcset=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2024\/07\/consultants-insights-small-manufacturing-challenges-1024x576.jpg 1024w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2024\/07\/consultants-insights-small-manufacturing-challenges-300x169.jpg 300w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2024\/07\/consultants-insights-small-manufacturing-challenges-768x432.jpg 768w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2024\/07\/consultants-insights-small-manufacturing-challenges-1536x864.jpg 1536w, https:\/\/www.mrpeasy.com\/blog\/wp-content\/uploads\/2024\/07\/consultants-insights-small-manufacturing-challenges.jpg 1920w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<!--more-->\n\n\n\n<p><em>You can also listen to this article:<\/em><\/p>\n\n\n\n<iframe title=\"5 Most Common Small Manufacturing Challenges According to Consultants\" allowtransparency=\"true\" height=\"150\" width=\"100%\" style=\"border: none; min-width: min(100%, 430px);height:150px;\" scrolling=\"no\" data-name=\"pb-iframe-player\" src=\"https:\/\/www.podbean.com\/player-v2\/?i=edepj-184eabd-pb&#038;from=pb6admin&#038;share=1&#038;download=1&#038;rtl=0&#038;fonts=Arial&#038;skin=1&#038;font-color=&#038;logo_link=episode_page&#038;btn-skin=3\" loading=\"lazy\"><\/iframe>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #343333;color:#343333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #343333;color:#343333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.mrpeasy.com\/blog\/manufacturing-challenges-consultant-insights\/#1_Managing_recipes_and_bills_of_materials_BOMs\" >1. Managing recipes and bills of materials (BOMs)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.mrpeasy.com\/blog\/manufacturing-challenges-consultant-insights\/#2_Inventory_accuracy\" >2. Inventory accuracy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.mrpeasy.com\/blog\/manufacturing-challenges-consultant-insights\/#3_Understanding_their_production_capacity\" >3. Understanding their production capacity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.mrpeasy.com\/blog\/manufacturing-challenges-consultant-insights\/#4_Integrating_business_data\" >4. Integrating business data<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.mrpeasy.com\/blog\/manufacturing-challenges-consultant-insights\/#5_Actual_costing\" >5. Actual costing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.mrpeasy.com\/blog\/manufacturing-challenges-consultant-insights\/#The_solution_manufacturing_resource_planning_software\" >The solution: manufacturing resource planning software<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Managing_recipes_and_bills_of_materials_BOMs\"><\/span>1. Managing recipes and bills of materials (BOMs)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A recurring challenge is managing and understanding BOMs or product recipes, especially when <a href=\"https:\/\/www.mrpeasy.com\/blog\/product-variants\/\" target=\"_blank\" rel=\"noreferrer noopener\">manufacturers deal with products that have multiple variants<\/a>, engineering or recipe changes, or complex assembly processes. This complexity can lead to errors and inefficiencies in production planning and inventory management.<\/p>\n\n\n\n<p>\u201cMany of our clients have gotten stuck when trying to create BOMs,\u201d says Patrick Verryn.<\/p>\n\n\n\n<p>\u201cIt is especially difficult to turn engineering BOMs into manufacturing BOMs, and transferring changes as the design evolves,\u201d David Altemir adds.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Inventory_accuracy\"><\/span>2. Inventory accuracy<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Many small manufacturers struggle with keeping accurate inventory records. This often stems from recordkeeping deficiencies, complex products and processes, or using error-prone manual methods such as spreadsheets. The consultants emphasize the need for strict transactional discipline and robust procedural frameworks to manage inventory effectively. Without these, manufacturers face persistent issues with <a href=\"https:\/\/www.mrpeasy.com\/blog\/inventory-discrepancy\/\" target=\"_blank\" rel=\"noreferrer noopener\">inventory discrepancies<\/a>, which can lead to stockouts, excess inventory, and increased operational costs.<\/p>\n\n\n\n<p>\u201cNot being able to keep accurate inventory is a common issue clients come to me with,\u201d David Altemir states. \u201cThis always proves to be an operational issue within the company, most often a lack of transactional discipline.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Understanding_their_production_capacity\"><\/span>3. Understanding their production capacity<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>According to the consultants, small manufacturers have a hard time figuring out how much they can produce at any given time. This, in turn, leads to customers being promised unrealistic lead times as production bottlenecks start to slow down processes. The ability to dynamically assess <a href=\"https:\/\/www.mrpeasy.com\/blog\/production-capacity\/\" target=\"_blank\" rel=\"noreferrer noopener\">production capacity<\/a> and schedules is crucial for maintaining efficient operations. This requires not only technical solutions but also a strategic overview of production processes to ensure that capacity aligns with demand.<\/p>\n\n\n\n<p>\u201cSpecialized <a href=\"https:\/\/www.mrpeasy.com\/manufacturing-software\/\" target=\"_blank\" rel=\"noreferrer noopener\">manufacturing software<\/a> gives manufacturers an immediate understanding of what can be realistically accomplished within given timelines,\u201d says Tim Grant. \u201cWithout it, small manufacturers will continue to struggle with their production and delivery schedules.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Integrating_business_data\"><\/span>4. Integrating business data<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Integrating various operational functions and eliminating data siloes is essential for businesses that want to scale up efficiently. However, many small businesses are bogged down by legacy systems and bad data. To achieve data integration, they need to implement a system that can consolidate data from various sources, providing a unified and comprehensive view of all operational aspects. This integration, often involving several different applications, is crucial for improving efficiency and responsiveness in manufacturing operations.<\/p>\n\n\n\n<p>\u201cOur clients know how to produce things; they are experts at that,\u201d Tim Grant maintains. \u201cBut they also acknowledge their lack of experience with software, especially when it comes to integrating multiple applications.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_Actual_costing\"><\/span>5. Actual costing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Understanding your actual costs is critical for pricing your products, finding financial sinkholes, and ensuring profitability. The process of actual costing can be very complex, however, as it calls for meticulous tracking of material lot prices, labor costs, and overheads. Maintaining such detailed records in a spreadsheet can soon become unwieldy and error-prone as the volume of data grows. That is why it\u2019s necessary to implement <a href=\"https:\/\/www.mrpeasy.com\/lot-tracking-and-traceability-software\/\" target=\"_blank\" rel=\"noreferrer noopener\">specialized software that can handle lot tracking and actual costing<\/a>.<\/p>\n\n\n\n<p>\u201cOften our customers don\u2019t even realize that actual costing is possible, and due to that, they don\u2019t even ask for it,\u201d David Altemir says. \u201cThat\u2019s understandable because there aren\u2019t many solutions available to small manufacturers that offer actual costing.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_solution_manufacturing_resource_planning_software\"><\/span>The solution: manufacturing resource planning software<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Having completed hundreds of software consultation projects between them, Grant, Altemir, and Verryn have one thing in common: they all recommend MRP software for overcoming the common challenges in small manufacturing. They also share a love for one solution in particular: <a href=\"https:\/\/www.mrpeasy.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">MRPeasy<\/a>.<\/p>\n\n\n\n<p>\u201cMRPeasy is by far the best in terms of ease of use,\u201d Grant says. \u201cMRPeasy also listens to their clients and implementation service providers when it comes to suggestions for improvements in the product. Many software solutions aren\u2019t as responsive.\u201d<\/p>\n\n\n\n<p>\u201cMost other products started with inventory management and then bolted on a manufacturing module,\u201d Verryn says. \u201cMRPeasy was natively built for manufacturing, and while I still occasionally work with other MRP\/ERP systems, MRPeasy is now my \u2018go-to\u2019 product.\u201d<\/p>\n\n\n\n<p>David Altemir adds, \u201cMRPeasy comes with the functionality, ease of use, and affordability small manufacturers need. Plus, it is one of the few systems that offers actual costing.\u201d<\/p>\n\n\n<div class=\"banner-v1\">\n    <div class=\"banner__text\">\n        <div class=\"banner-v1__title\">Overcome your operational challenges with MRPeasy<\/div>\n        <div class=\"banner-v1__desc\">MRPeasy users report a 54% average improvement in the operational efficiency of their manufacturing company and a 39% increase in on-time deliveries.<\/div>\n        <div><a class=\"banner-v1__link\" href=\"https:\/\/www.mrpeasy.com\/sign-up\/\" target=\"_blank\" data-ga-event=\"blog_signup_banner_white\">Try for free<\/a><\/div>\n    <\/div>\n    <div class=\"banner__img\">\n        <img decoding=\"async\" src=\"https:\/\/www.mrpeasy.com\/blog\/wp-content\/themes\/mrpeasy\/assets\/images\/banner.svg\" alt=\"banner\">\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Manufacturing consultants Tim Grant from Business Solution Providers, David Altemir from Altemir Consulting, and Patrick Verryn from Move 2 Cloud share their insights about the most common challenges their small manufacturing clients experience.<\/p>\n","protected":false},"author":7,"featured_media":17522,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[56],"tags":[],"class_list":["post-17521","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>5 Most Common Small Manufacturing Challenges According to Consultants<\/title>\n<meta name=\"description\" content=\"Manufacturing consultants share their insights about the most common challenges their small manufacturing clients experience.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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