Top 5 of 2023 – No. 5: Understanding the Basics of the Business of Manufacturing

Join us as we look back at OEM's most popular articles of 2023. No.5 looks at how learning how money flows through an organization is important to a successful career in the industry.

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Modern manufacturing is a knowledge business. It is not the dark, dirty, and dangerous environment of yesteryear that many still perceive it to be. Today’s factory floors are shiny, sanitary, and safe. And in this knowledge-based environment, manufacturers are looking for people who use creativity and insight to improve processes. But that kind of business acumen only comes with understanding the bottom line.

Recognizing how money flows through a manufacturing company is important to a successful career in the industry—regardless of position or title.  “From getting an order to designing a product to getting it through the process of planning, production, packaging, distribution, and delivering it to the customer, it’s important to understand the fundamentals of how product flows through the supply chain,” said Robert Hersh, a partner in Grant Thornton’s east region business advisory services, who is also the national managing principal of the manufacturing industry practice.

Grant Thornton is an audit, tax, and advisory professional service for a wide variety of industries which includes manufacturing. Even with in-depth knowledge of manufacturing, Hersh has established an internal program for all of the company’s own professionals in the manufacturing practice to go through 17 to 20 hours of fundamental manufacturing training, outlining how money flows through the entire process from the supply chain to the factory.Hersh Robert370x200bwRobert Hersh is a partner in Grant Thornton's east region Business Advisory Service practice and the national managing principal of the manufacturing industry.

According to Hersh, it’s a good exercise for any manufacturing organization, because even high-level executives who have been in the industry for a long time can learn something. Whether you’re a machine operator or a CEO, the most important quality a person can have in manufacturing today is intellectual curiosity.