A typical manufacturing company department structure would, for the sake of example, consist of three departments: finance, operations and marketing. It has five different departments for retail operations, manufacturing and sourcing, logistics, operations and product design. This is typically only done within the operations division. Traditional structures are quite rigid, grouping employees by one or more of the following criteria: Two other types of business structures are contemporary and team structures. However it can mean that there is departmental rivalry. We work with children with autism and I'm analyzing all the different departments in the company. How will responsibility be organized below the plant manager. When a manufacturer has more than one location, it's often advantageous to divide the company by region. The president or CEO is at the top, and the workers are at the bottom with various vice presidents, directors, managers and supervisors sprinkled in between. Here are 5 often overlooked types of departments in a company’s organizational structure and how they function together to bring a product to market… 1. How much responsibility will plant managers have? If you are just starting out with a small manufacturing plant and a couple dozen employees, a functional structure may be sufficient. For example, an appliance manufacturer could have a production manager for small appliances and another for large appliances. This example uses functional departmentalization, which bases the departments on the primary functions conducted by the company. However, when the company grows, when more products are added to production facilities and when a second or third plant is needed, the questions surrounding organization become much more complex. This typically allows companies to move faster in increasingly global markets while ensuring standards are met across the company regardless of location. … Research and Development: These are the engineering types who are typically hired for their technical skills. Should units like engineering, asset management and maintenance be integrated into manufacturing or separated from it? Some degree of responsibility and autonomy needs to be given to manufacturing operations, and other business units need to support those operations to keep the plant operating. This level of hierarchy of manufacturing company consists of various professionals as follows: Board of directors; President; Vice president; Chief executive officer; Chief Finance Officer; Chief Operations Officer; Chief manufacturing Officer The company makes diesel engines for the locomotive industry. Copyright 2020 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Reviewed by: Jayne Thompson, LL.B., LL.M. Second Pillar: Selling and market operations groups are arranged with the geographical model for North America, Latin America, Asia-Pacific, Europe, China, India, the Middle East and Africa. Basically a manufacturing company has two types of departments: 1. Customer departmentalization usually involves only the parts of the company that interact with customers rather than where products are manufactured. How this is done depends on the size of the company and the work being done in each location. This department is comparatively new addition in apparel industry. They show their latest product development (designs) to the … The marketing department in a garment company is responsible for marketing products made by the factory, finding new customers, and bringing more and more orders for the company. For example, Ethan Allen Interiors, a furniture manufacturer, uses the functional model. The organizational structure needs to ensure that responsibility is given to the right people without causing information bottlenecks, duplicating efforts or wasting resources. However, each company can use a combination of five different methods for organizing its resources. A well-designed structure should have defined lines of authority, channels for the flow of information and a means of control. ITT, a technology manufacturer for the transportation, industrial and oil and gas industries, uses four product divisions: Process departmentalization divides departments based on the work being done. Most manufacturers today still use a traditional structure. Here is a list of ten departments that can find in a large company or business. Who are these people and what are they doing. In some companies each of these roles is a separate department; other companies might combine Production and Quality Control or Marketing and Sales, for example. First Pillar: Global business units organize the company by its product lines, such as baby products, beauty products, fabric and home care, etc. A smaller company may have a plant manager at each location, each reporting to the VP of operations. Hello Everyone! It begins with people but also includes materials, money and information. In an ideal world, your product would work perfectly all the time. Marketing could be further divided into different marketing efforts, such as online marketing and retailer relations. The service department. Should manufacturing responsibility be centralized, or should decisions be made locally to account for regional differences? Faso remanufactures its own previously built engines that need to be overhauled after several years of use. The most common service departments are: 1. ‹ Who are these people and what are they doing? Customize the manufacturing org chart example to fit your company management. marketing department, accounts department and so on. Production. Boston Consulting Group recommends aligning your choices in organizational structure with your company's strategies. Who Are These Guys? At one end of the spectrum, a large manufacturer with independent operations in different countries, like an auto manufacturer, could have separate companies in each country. BC Campus: Building Organizational Structures, Boston Consulting Group: The High-Performance Manufacturing Organization, Panmore Institute: Ford Motor Company’s Organizational Structure Analysis, Forbes: The 5 Types Of Organizational Structures: Part 1, The Hierarchy, Division of labor: determining job duties and responsibilities, Departmentalization: grouping jobs together, Delegation: assigning authority and responsibilities, Industrial Process: includes pumps, valves, and wastewater treatment equipment, Control Technologies: includes motion control and vibration isolation products, Motion Technologies: includes shock absorbers and brake pads, Interconnect Solutions: includes connectors for several different markets. From a layperson's perspective, an organizational diagram for a manufacturing company may seem like an easy read. Sales departments are often compartmentalized between inside and outside sales forces or between different types of clients, like having a separate manager and staff for key accounts. For those deciding on the layout, however, creating a structure is no easy feat, particularly for a company that manufactures products. Ford Motor Company, for example, has three global divisions: Americas, Asia-Pacific, Europe, Middle East and Africa. A business is normally organised by its functions, e.g. For example, in a furniture manufacturing company, lumber cutting and treatment, furniture assembly and finishing could each be divided into separate departments with managers for each department or a supervisor for each department reporting to the operations manager. No spam or third-parties and you can unsubscribe at any time. He is currently the owner of Mad Hat Labs, a web design and media consultancy business. An executive VP is in charge of each of these divisions.