How to Improve Manufacturing Efficiency

May 26, 2022
MANTEC

One dictionary definition of efficiency is “the ability to accomplish something with the least possible wasted time and effort.” When applied to a manufacturing setting, efficiency refers to finding ways to produce goods faster, with the lowest consumption of resources. The most efficient manufacturers are often the most productive and profitable.

Why Is Manufacturing Efficiency Important?

Manufacturing efficiency is unique in that it considers all aspects of production. While manufacturing productivity measures the speed at which your team produces, manufacturing efficiency considers additional factors like production costs, processes, risks and losses. The ultimate goal of calculating manufacturing efficiency is to determine how much your business can produce given its current resources and processes. From there, you can find and address areas for improvement. Developing plans that improve manufacturing efficiency leads to improvements in various areas, including:

Manufacturing quality and effectiveness: Focusing on manufacturing efficiency will improve how your staff uses materials and equipment. You’ll find methods to improve the results you accomplish with the same assets.
Production costs: A production efficiency assessment will unveil ways to accomplish tasks or produce results with materials that cost less.
Production waste: Your efficiency assessment will highlight recurring problems or hangups you can plan to resolve.
Employee engagement: Incentivizing manufacturing efficiency is beneficial to your company and staff alike. Your staff will strive to do more out of appreciation for the reward structure you establish.
Market success: Production efficiency improvements lead to product enhancements and financial savings you can pass to the consumer.

Steps for Increasing Manufacturing Efficiency

There are several steps manufacturers can implement to become a more efficient, streamlined operation:

Strategic planning

The strategic planning function entails creating a vision for your company that separates you from your competitors. By gaining an understanding of the “big picture,” strategic planning helps you develop the innovative products, services and solutions your customers want and need to meet their business objectives.

Goalsetting is a crucial element of strategic planning. Goals and the strategies you implement to achieve them provide essential clarity that will help your team reach new heights. The goals you set for manufacturing efficiency should be as specific as possible and include time-bound benchmarks.

Implementing Data

Gathering, interpreting and utilizing data is easier today than ever before. In the pursuit of manufacturing efficiency improvements, collect data on all aspects of a specific task you’d like to optimize to find which ones cause inefficiency. For example, you can plan to improve production speed by timing various internal processes to see which take the longest and which fall short of industry standards. Precise data will help you choose the most relevant focal points.

Reviewing your current workflow

Workflow review should be an ongoing process so you can identify areas that can reduce your operating efficiency. Your review should encompass your workforce, equipment, technology and methodologies and consider all tools and resources that are available to your company.

For example, your workflow review may involve an analysis of your facility’s floor plan. The optimal floor plan will enable your staff to accomplish tasks with as little movement as possible. A workflow review can highlight ways to declutter and rearrange the floor plan in a way that shortens paths between equipment and material.

Updating business processes

A workflow review can point out areas where you need to upgrade outdated or inefficient work processes. Your leadership team can also provide valuable input regarding the more efficient allocation of resources, procedural improvements, better budget management and more.

Shifting toward automation is one of the most common process alterations decision-makers use to optimize resource allocation. Automating repetitive tasks frees employees to focus on specialized duties. Employees accomplish more work at a higher quality level when automated tools handle mundane tasks. Alternatively, cobots can augment your staff to boost speed and efficiency.

Enhancing employee training opportunities

In an era where new technologies are emerging on almost a daily basis, effective workforce training is essential for ensuring your employees stay up-to-date and that they know how to harness the power of technology to the full advantage of your company.

Employee training opportunities empower them to accomplish more while boosting their engagement with your company’s mission. Your staff will have the skills and motivation necessary to reach new manufacturing efficiency benchmarks.

Setting Goals to Achieve as a Team

Since manufacturing efficiency is an all-encompassing metric, improvement requires a company-wide effort. Many of the goals and incentives you establish should emphasize group accomplishments. Employee engagement increases when every staff member feels they have a vital role to play in accomplishing goals, so draft your manufacturing efficiency strategy around teamwork. Your teams will find faster, more effective ways to do more with the assets available to them.

Focusing on organization

In too many cases, manufacturing inefficiencies are the product of poor organizational skills and practices. Ensuring that every area of your operation — from material handling and equipment maintenance to shipping procedures and document management protocols — are well-organized and running smoothly can result in a dramatic reduction in preventable waste. For example, setting schedules and standards for equipment maintenance will optimize the time it takes to maintain machinery while preventing damage that would cause downtime.

Keeping it simple

With all the advanced technology and resources that are available these days, there can be a temptation to try to incorporate more than you need into your manufacturing processes. Too much complexity can lead to confusion and inefficiency. Focusing on mastering simple techniques and applying them consistently will provide better long-term results.

Lean Manufacturing Training From MANTEC Will Improve Your Operating Efficiency

Many companies are turning to lean manufacturing, which is a systematic process for minimizing waste, without sacrificing productivity, to bolster operational efficiency. MANTEC offers comprehensive lean manufacturing certification programs in PA that will allow your team to master this innovative management philosophy and apply it effectively. We utilize the latest lean manufacturing resources to provide top-notch training that will have a positive impact on your small- or medium-sized company’s bottom line.