“Ramp up” is jargon in the business community that refers to the slow increase in production and the ability to accommodate an anticipated increase in demand.
Ramp up is jargon in the business community that refers to the slow increase in production and the ability to accommodate an anticipated increase in demand. This is often part of a company’s overall business plan, and companies may also adopt a growth strategy in response to changing market conditions. This requires a constant infusion of money and energy to meet continuous demand. If the company runs into problems midway through the process, they can create significant chaos in operations.
This term refers to the idea of gently going up the slope of a ramp, rather than going up or up. In a scale-up operation, a company will add components slowly over time. The slow rate of growth offers room for adjustment. This can leave a margin of error; if a company feels that it needs to adjust its practices, for example, it does not need to stop production to adjust the problem. Operations may need to be temporarily reversed, but will not stop completely.
Companies often grow as part of a strategy to increase demand for their products and ensure that goods will be available to fill orders. An example can be seen in retail, where manufacturers begin to ramp up production of merchandise as catalogs and representatives begin to trickle down to retailers. Depending on the orders from the stores, the company will be able to ship the products it has already manufactured and should reach maximum production around the same time as the maximum number of orders from the retailers.
This can be a useful growth strategy for a company. Increasing trades carry less risk and the need for sudden large-money investments tends to be less. Ideally, the funds generated by the increased production go back to the company and pay for the costs associated with the increased capacity. Companies can point to their track record when applying for loans or investments from venture capitalists and other interested parties. Their steady growth rate may be evidence that they have the ability to keep growing over time.
People in a company with a growth strategy will have to periodically adjust their efforts to meet new needs. As the company achieves specific goals, it can increase compensation, add employees, upgrade the team, and take other steps to support the team so it can continue to serve the company as efficiently as possible. A common problem with increased production can be a production rate that exceeds the capacity of personnel, equipment or facilities, creating obstacles until these problems can be resolved. Anticipating pain points and taking steps to address them can increase overall efficiency.