“Ramp up” is slang in the business community that refers to slowly increasing production and capacity to accommodate an anticipated increase in demand.
Ramp up is slang in the business community that refers to slowly increasing production and capacity to accommodate an anticipated increase in demand. This is often part of a company’s overall business plan, and companies can also adopt a growth strategy in response to changing market conditions. This requires a constant infusion of money and energy to meet non-stop demand. If the company has issues midway through the process, they can create significant confusion in operations.
This term refers to the idea of smoothly going up the incline of a ramp, rather than going up or up. In a scale-up operation, a company will add components slowly over time. The slow growth rate offers room for adjustment. This can leave a margin of error; if a company feels it needs to adjust its practices, for example, it doesn’t need to stop production to adjust the problem. Operations may need to be temporarily reversed, but they will not stop completely.
Companies typically grow as part of a strategy to increase demand for their products and to ensure that goods will be available to fulfill orders. An example can be seen in retail, where manufacturers begin to ramp up production of merchandise as catalogs and representatives begin to reach retailers. Depending on the stores’ orders, the company will be able to ship the products it has already manufactured, and should reach peak production at about the same time as the maximum number of orders from retailers.
This can be a useful growth strategy for a company. Increasing operations carries less risk and the need for sudden investment of large amounts of money tends to be less. Ideally, the funds generated by increased production return to the company and pay the costs associated with increasing capacity. Companies can point to their track record when soliciting loans or investments from venture capitalists and other interested parties. Their steady growth rate can 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 equipment, and take other steps to support the team so they can continue to serve the company as efficiently as possible. A common problem with increasing production can be a production speed that exceeds the capacity of staff, equipment or facilities, creating obstacles until these issues can be resolved. Anticipating pain points and taking steps to address them can increase overall efficiency.