Changes in the world’s economic system mean that more and more factories are coming back home. We’re seeing a decline in offshoring, and an increase in firms doing work on home soil.
Unfortunately, it’s been a long time since the economy was geared in this direction. And, for that reason, many of the lessons of the past relating to efficiency have been lost.
If you run a manufacturing facility (or you’re planning on setting one up) and you feel a little rusty, this post is for you. In it, we describe some of the ways that you can improve efficiency and dominate your industry.
Get Your Employees On Your Site
Manufacturing productivity improvements start with employee engagement. If you can successfully leverage your team, you can achieve just about anything.
The trick here is to allow decisions to be made up and down the employee hierarchy. Sometimes, executives and senior managers will monopolize decision-making, making broad brush strokes, without taking advantage of knowledge further down in the organizational chart.
Don’t be one of these firms. Instead, consult with the people on the ground and ask them what it is that they think might improve productivity. Often they have great micro ideas to complement your larger scale plans.
Nail Down Your Supply Base
Manufacturing efficiency depends considerably on your supply base. Take a close look at your suppliers and ask yourself whether they have the capacity to routinely meet your needs. If possible, set up a reward scheme where you incentivize them to send you higher quality products and materials. Also, offer a bonus scheme for vendors who supply you with the goods that you need on time. Otherwise, suppliers might leave you waiting.
Manage Equipment Failures
Factory equipment will inevitably fail. It’s not a question of “if,” but “when.”
As such, it helps to have proactive maintenance systems in place ahead of time. This way, if there is a problem, you can deal with it quickly.
Not that there are many types of maintenance management. Some manufacturing facilities will benefit most from preventative maintenance. Here, you don’t wait for equipment to fail. Instead, you replace worn out parts when they are 90 percent of the way through their useful life.
Other factories operate condition-based maintenance. Here, they regularly inspect the condition of machinery and then, if necessary, swap out parts. Unlike preventative maintenance, it doesn’t follow a strict schedule set out by the manufacturer. Rather, it relies on your in-house assessment of equipment condition.
There’s also predictive maintenance. This is slightly different again. Here, you use sensors to try to determine when parts require maintenance, and then only spring into action when they do.
Standardize Work
All factories have their own approach to making products. However, this can actually reduce productivity and lead to waste, particularly if you operate different methods across each facility you own.
Don’t go down this path. Instead, standardize work so that everyone follows the same process.
This conversion may take many weeks to complete. However, once done, it can be a great way to maximize efficiency and compare production metrics across factories.
Quantify Your Work
If you run a factory, it’s critical to quantify everything you can. You want to convert everything you do into dollar amounts so you can figure out if your strategies are working or not.
Remember, it is notoriously difficult for manufacturing facilities to turn a profit. Everything has to be lean and efficient. There’s no room for error.
If you can put a number on everything that you do, you’ll find it considerably easier to see whether you are making progress. You’ll also have better oversight over workers and be able to offer training to those requiring improvement.
Avoid Waste Material
Generally speaking, factories are really bad at avoiding material waste. Off-cuts are often 50 percent or more of the total volumes ordered, particularly when it comes to sheet meal.
Where possible:
- Recycle scraps, either yourself, or by sending it to a third party
- Use all available material from any sheet or bulk items you feed into your production process
- Choose designs that use less material
Organize Your Factor Better
Lastly, it’s a good idea to organize your factory as best you can.
Look at your factory floor and ask yourself whether it’s a mess. Check whether tools are easy to find or if people are stepping over each other to get the items that they need.
It should be easy for employees to find all the tools, materials and instructions they need. Everything should have a home.
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