How Can Your Manufacturing Unit be More Productive?
Revenue and productivity are closely tied in the manufacturing sector. Maintaining a high level of manufacturing efficiency is crucial for maintaining competitiveness and influencing costs and profitability. You should do everything you can to gain a competitive advantage. Training Companies in India offer specialized programs that equip manufacturers with the skills to optimize processes and reduce waste.
Let’s first learn how manufacturing productivity is determined before this article explains how to boost manufacturing productivity.
How the manufacturing industry calculates productivity?
The straightforward ratio of output to input is known as manufacturing productivity. The amount of throughput, or quantity, you create in relation to the amount of input is easily calculated. Labor, overtime, capital resources, natural resources, and other expenses are all considered inputs for a manufacturing business. The output is just the number.
You can calculate manufacturing productivity as follows:
The following formula can be used to determine manufacturing productivity:
Productivity in manufacturing = Output / Input
For example, if your company’s employees work 5,000 hours a month to produce $10,000,000 worth of goods, your manufacturing productivity will be:
Production in manufacturing = 10,000,000 / 5,000 hours = $2,000 per hour.
The Need to Increase Manufacturing Productivity Immediately:
Manufacturers are under increased pressure to stay competitive, promote continuous improvement, and pinpoint productivity bottlenecks as a result of rising demand, which is driving them to raise capacity utilization.
Maintain Competitive Edge
In every competitive marketplace, manufacturers frequently struggle with supply chain interruptions. The efficiency of production resources, such as facilities, equipment, workers, materials, and tools, must be maximized despite several uncontrollable circumstances. Optimizing the use of these resources is essential for success in the uncertain environment of today.
Continuous Improvement
It is difficult to pinpoint areas where time losses can be minimized because different waste causes affect output and productivity. Continuous improvement (CI) procedures are used by many manufacturers to find and remove waste and increase performance. Key CI initiatives include methodologies such as Lean, Six Sigma, and Operational Excellence, particularly when bolstered by analytics and digital tools.
The Importance of Digital Change
The basic goal of productivity is to reduce losses, and one of the most obvious indicators of this is lost time. Time losses have an impact on customer happiness, business margins, and production.
Production restrictions immediately limit sales and revenue for manufacturers with limited capacity, which affects customer delivery promises. Reducing time losses can help non-capacity-constrained businesses cut costs associated with payroll, quality, compliance, materials, assets, and energy, which will benefit both expenses and customer satisfaction.
Ten ways to improve productivity
The productivity of manufacturing can be increased in a variety of ways. Even though a lot of these approaches involve long-term organizational adjustments, they have been shown to be successful in raising productivity and reducing expenses.
Employee upskilling
A workforce with skill is a productive one. Knowledgeable workers are less likely to make mistakes, may be flexibly assigned where they are most required, and flourish in a supportive work environment. A dedication to training also aids in staff retention, which lowers the expense and impact of turnover on output.
Provide the right tools
The right tools help employees perform their tasks efficiently and on time.
There’s nothing more counterproductive than being hindered by slow equipment or outdated gear. That goes for both physical machinery and the computer hardware and software you use to track and plan your physical processes.
Having the right tools for the job also increases staff satisfaction, helping to improve your employee retention rate. As a bonus benefit, happy workers are 13% more productive on average according to research from the University of Oxford.
Quality Control
Having methods for assessing quality is crucial for any manufacturing business. This guarantees that the goods satisfy consumer needs. You may ensure that the manufacturing process complies with the necessary regulations by employing quality checks. A variety of quality control techniques, including inspection, testing, and checking, can be applied. The strategies that are most effective for your business and goods should be chosen.
Invest in maintenance
Maintaining an organization’s physical assets—such as buildings, machinery, or plants—helps them last longer, have less downtime, and be more effective and high-quality. Measurable productivity gains will result from an enterprise asset management program that is well-planned and executed.
Examine the workflow.
To find areas where efficiency can be increased, you must review your whole workflow, including all of the steps and processes required to provide a product to the consumer.
Reduce waste
Waste refers to actions that add no value to the product or customer, and though its sources can often be difficult to pinpoint, reducing waste can significantly improve performance on the production floor. By identifying and eliminating waste, manufacturers can enhance productivity and streamline operations.
Improve communication
Increasingly complex production methods and global supply chains can make seamless coordination a challenge. Thorough communication and visibility throughout the process minimizes the risk of mistakes and interruptions.
Minimise production costs
Another way to improve manufacturing productivity is to reduce your total production costs.
Production costs are the costs incurred in manufacturing a product or providing a service. These can include expenses such as raw materials, labour, suppliers, and general overhead – as well as any government taxes and royalties.
Foster workplace culture
A strong people and culture team does wonders for employee productivity.
This starts with hiring people with the right attributes and attitudes, and extends to training, development, and keeping staff morale high. Manufacturing companies with unhappy employees will always struggle with productivity.
Train the People
Manufacturing training programs are essential for companies aiming to improve efficiency, reduce waste, and uphold high standards of quality. Programs like Kaizen, 5S, Quality Management, Lean, and Six Sigma are widely adopted across industries to drive continuous improvement, streamline operations, and build a culture of excellence. Corporate training companies like Kaizen Training Solutions Pvt. Ltd. offer specialized training in these methodologies, empowering employees to drive operational success and implement best practices across all levels of the organization.
Conclusion:
Ultimately, raising worker efficiency and productivity in manufacturing is a significant undertaking. It requires meticulous preparation and ongoing development. Businesses can improve resource usage and streamline processes by implementing lean techniques and new technologies. Long-term productivity increases depend on employee training and the development of a collaborative and innovative culture.
