Setting up a factory is certainly not easy, and it takes considerable effort and planning to ensure it runs smoothly from the start. Particularly for businesses that are just starting and may not have the experience and knowledge required to handle such a complex process, it is essential to involve factory setup consultants who can provide expert assistance and seamless guidance. A factory set up with careful planning and executed seamlessly can bring many benefits, including its ability to operate more efficiently, at reduced costs, and in compliance with government regulations.
One way that factory setup can be achieved is by renting an industrial factory in Singapore from a JTC factory, amongst other JTC factory rentals. This factory type is provided by the Jurong Town Corporation or JTC. This means that investors can rent a space for their company. JTC provides different types of industrial spaces for rent, with essential utilities and other amenities, such as production plants, airport cargo terminals, warehouses and marine industry facilities. Other types of JTC factories for rent can also be found if needed, but the secret to successful factory setup still relies on the right location, the value of factory setup consultants, ensuring the company is regulation-compliant and licensed, applying sound factory design and layout, and, of course, having a proper workforce plan and management.
Choosing the Right Location
Choosing the right location to establish your factory can be tough, as many factors must be considered when narrowing down your business. A few things need to be considered, such as proximity to suppliers and transportation hubs, since a strategic location can help you streamline your supply chain and reduce transport costs. Furthermore, the location should be accessible to potential customers if you aim for a successful business.
When looking for JTC factory rental options, you’ll find that renting a JTC factory is perhaps the best option for setting up your enterprise. JTC is a statutory board managed by the Ministry of Trade and Industry that provides industrial land for sale or JTC factory for rent opportunities for business sectors spanning food processing and manufacturing, clean technology, logistics, and many more. Consider a JTC factory for rent if you’re looking to get fast-track entry for your business, as JTC provides well-connected and highly developed infrastructure, modern estate amenities, and a supportive business environment.
Engaging Factory Setup Consultants
There is no doubt that employing factory setup consultants when opening a factory can be helpful. They can provide you with a wide range of services relating to all the steps of your factory project from conception to the end. Factory setup consultants can assess your project’s feasibility from your organisation’s point of view. They can evaluate the market demand and other factors to ensure the project makes sense. Furthermore, they can help you evaluate different location sites before deciding. Sometimes, many projects will be overly ambitious in setting up a factory because their idea might not suit the market demands, which they could identify if they used setup consultants in the decision-making process.
Working with the experts will help you avoid costly errors, save time, speed up setup and manage risks, among other benefits. Consultants know the ins and outs of established rules and regulations and will guide you through obtaining permits and licences. They are also skilled project managers. They will ensure the setup runs smoothly, meets all intended milestones, and keeps within agreed costs. If you are looking for factory setup consultants, pick the best ones. Look for firms with a track record of achievement, hands-on industry experience, and an understanding of Singapore’s business environment dynamics.
Regulatory Compliance and Licensing
It’s essential to successfully navigate the regulatory landscape to establish your business without penalties or delays upon licence approval. Singapore’s legislative and regulatory framework is well-developed for industries, and knowledge and understanding of the respective agencies are required. The Economic Development Board (EDB) promotes and facilitates investment in Singapore. The Building and Construction Authority (BCA) regulates the built environment, including factory buildings. At the same time, the National Environment Agency (NEA) formulates and implements policies relating to environmental matters such as pollution control and waste management.
You must interact with these agencies to acquire the permits and licences required to conduct your factory business. Typically, the application processes will ask you to submit one or more of the following: an environmental impact assessment; a building plan; a certificate of fire safety; a signboard; and the required rates, fees and taxes to be collected from you. Make sure you allocate enough time for yourself and/or your organisation to run through these applications and complete these applications to a satisfactory standard.
If you comply, you will avoid penalties. Besides avoiding undesirable penalties, compliance with regulations also gives you a welcome signal that you are running a factory (or business) that follows the ‘rules’ – your factory will be better able to operate without any police roadblocks, unhappy neighbours, and your trucks will likely be permitted to ply the road, without fear of impounding.
Factory Design and Layout
A good layout leads to better workflow and lower material handling costs. It can also boost efficiency through faster production cycles, less spillover or wasted resources, and improved workers’ safety. There are several aspects to consider about a good factory layout – the sequence of operations for raw materials, the layout of major equipment, storage needs, and overall worker safety. Careful consideration of how you arrange each of these elements can reduce the number of movements needed for both the materials going through production as well as the workers themselves.
An efficient factory layout provides several advantages for your business. Designing the floor plan to guide material flow will increase productivity and reduce operational costs. An optimal layout also improves worker safety by avoiding hazardous areas, properly spacing between equipment, and ensuring a safe work environment. Different strategies for an efficient factory design include a linear flow pattern for serial processes, modular workstations to be mobile, and free pathways for material handling equipment. Some other strategies can be used in vertical areas for storage, considering workers’ ergonomics for comfort and planning future possibilities for expansion or changes in production requirements.
Workforce Planning and Management
It’s essential to establish your staffing requirements before production begins. Minimise disappointments and disruptions by determining your staffing requirements based on production volume, relevant skills and shift patterns. This involves job analysis, job descriptions and an organisational chart. After establishing requirements, develop a recruitment plan that can attract the right talent. For instance, utilise online job portals, participate in job fairs and collaborate with local colleges or universities. The recruitment process should be streamlined by developing robust hiring mechanisms such as screening, probation and offer letters. Moreover, aligned training programs should equip the workforce with the skills and knowledge for their roles.
Develop good workforce management practices – besides overseeing staffing and work schedules – including ensuring employees know all the labour laws, such as working hours, overtime pay rates, and leave entitlements in Singapore. Ultimately, the goodwill of the employees can help drive your factory forward. Facilitate an open environment for communication, keep employees informed of the company’s direction, celebrate milestones, recognise employees’ achievements, and offer continued development and advancement. Organise regular feedback sessions with staff, and address their concerns openly and respectfully.
Conclusion
Setting up a factory means planning and executing many details, ranging from site selection, licence application and facility design to equipment purchase, factory design and management of employees. As illustrated in this article, the complexities of the factory setup process can be mitigated with proper strategies. Moreover, with the help of professionals well-versed in the foreign business landscape, a foreign manufacturer can navigate this entire process and successfully set up a manufacturing operation in Singapore. At JF Strategic, our factory setup consultants facilitate your business’ growth in Singapore’s dynamic and thriving manufacturing landscape. As a team of factory setup consultants based in Singapore, we are familiar with Singapore’s regulations and policies for foreign businesses and can guide you through every step of the factory setup journey. From site selection to licence application and equipment purchase, contact JF Strategic today for assistance.
