When you are in the manufacturing business, waste of any kind can be the gross profit (GP) killer that you do not want or need. However, when you are busy with all of the client and supplier accounts, managing your staff, and going about all of the other tasks of running your business, it may be difficult to get the big picture look at your business that you need to identify areas of waste. Get to know some of the ways you can go about improving your manufacturing business efficiency as you move forward with your business and attempt to build and grow a successful manufacturing empire.
Talk to Department Managers and Supervisors
One of the easiest ways to identify waste in your manufacturing process is to speak directly with the managers, supervisors, and staff that are doing the work every day. Sit down with all of your department managers and supervisors on a weekly or monthly basis and discuss areas that they feel could use improvement.
Perhaps the team that unloads and checks supplies is having issues with trucks not showing up on time or the deliveries they receive being incorrect and incomplete. In this case, the waste comes from the suppliers and you may have to renegotiate your contracts or find new suppliers for future orders. Or your assembly line may be slowing down operations due to equipment malfunctions or other issues.
The only way that you are going to know about many of these problems in your leadership position is to foster open communication with the leaders of your departments and to help open the gateway for interdepartmental communications. This simple adjustment to your operations management strategy can eliminate many of the issues that may be dragging down your gross profits.
Work with a Company that Specializes in Business Data Analytics
Another method that you can use to better manage your manufacturing operations and reduce waste is to hire and work with an independent company that specializes in business data analytics. These types of companies will come in and analyze your manufacturing operations at all stages and levels. They will likely use specialized analytics software to track your company's data and then perform an assessment.
This is a form of SaaS (software as a service) in which the company essentially allows your company to subscribe to the analytics software while they are working with you to assess your business for waste and efficiency. You will have access to the data being collected as well as the reports generated from that data so that you too can assess and analyze various areas of your business.
Based on the data collected and observations made with the GP SaaS, the company will then offer you suggestions or recommendations as far as what areas of the actual manufacturing process as well as the business as as whole need to be adjusted and possibly even how you can go about doing so. They will likely offer to change your business software and manage that software for you as well as help you to create a more integrated system for your whole operation.
With these ideas in mind, you can begin to make sure that your manufacturing business runs as efficiently and with as little waste as possible going forward.Share