Peak Efficiency: How to Streamline Your Manufacturing Processes

If you work at or own a manufacturing business, then you likely already know how important efficiency is in your line of work. But if you’re struggling to streamline your manufacturing processes, this guide should help you out.

Solutions for streamlining efficiency have been all the rage the last decade. But are they really helping?

The fact is, productivity has only increased by about 1% to 2% during this time of tech and streamlining solutions.

We all know how important efficiency is when it comes to saving money in your business… So how can you ensure you’re implementing manufacturing processes that work to create efficiency?

We’ve got you covered. Here’s everything you need to know to streamline your processes.

1. Cut the Paper Trail Fluff

Companies think they need all the things when it comes to their manufacturing processes. But the reality is, simple is better.

The more simple your manufacturing processes are, the easier it is to hone-in on bottlenecks and relieve them.

But how do you cut the excess and scale it back to the important bits?

The first step is to look at where your company is still on paper. Then ask yourself which of those records is important… And which ones are just piling up in your filing cabinets.

Some of these records may be necessary for you to keep legally. The next step would be how you could get those records digital.

Be conscientious about the paper trail, too. Ask each person who touches a record:

• What information did they add to the report?
• Why was that information necessary?
• Is the paperwork important to that person performing their job? How?

Once these questions are answered, ask yourself how you can eliminate or reduce paper trails.

For example, if someone’s response to questions regarding paperwork is “Because it’s always been done that way”, then you have an area of your processes that’ll need to be looked at.

For the leftover paperwork, create a document management system. Create a system for your manufacturing processes that allows information to be easily stored and accessed.

2. Get Ready to Scale Up or Down

Everything you do in your manufacturing processes needs to have the future growth of your company in mind. Ask yourself if you got one hundred new customers tomorrow, could your processes handle it?

Here are the ways to prepare to streamline your manufacturing processes for growth:

Think Big

What do you plan to do with the companies growth over the next year? Five years? Ten years?

Any current processes you have that aren’t in alignment with these goals need to be replaced.

This includes everything from your client onboarding to your suppliers.

Be Personal in Your Business

Do your customers know why your company got started? Your mission?

Consider streamlining your manufacturing processes in a way that features your company’s unique story. This is what will help you stand out from the competition long-term…

In a way that’s also sustainable for your business.

Remove Yourself from the Equation

Your goal is to work on your business. Not in your business.

As the leader and visionary of your company and its direction, you need to get clear on what activities you should be prioritizing.

Make sure you have manufacturing processes that help you manage, network, and continue your business development.

This means being the boss and not an employee in your company. Get laser focused on the tasks you should be performing each day and only vary from them if it helps you closer to big picture end goals.

3. Embrace Technology

Did you know 75% of Americans believe they don’t have access to the latest efficiency-boosting technology?

That’s because a lot of companies are either:

1. Not embracing technology
2. Not implementing the right technology

So how do you find the best technology to improve your manufacturing processes?

There is a lot of options to choose from… On the market, there’s everything from an ERP manufacturing software solution to the latest in smart manufacturing tools. You can find out more about one of the coolest manufacturing tech tools.

Here’s what you need to do to ensure you make the best tech decisions for your business:

Consider Capabilities

You must think about three things when choosing your technology in terms of capabilities.

• What you need now
• What you’ll need in the future
• What you don’t need

Don’t get blinded by bells and whistles. You’ll want to think about capability from a practical standpoint. Ask yourself: “Will this improve efficiency and can it handle the company’s growth?”

Many salesmen will distract with bells and whistles to try and get companies on board with their technology. But you likely don’t need everything the tech has to offer.

Consider the things you don’t need. Find a simple solution that only provides functions you’re going to use.

Think About Your Team

This is called considering ‘utility’. The utility is how your technology fits into your manufacturing processes workflow.

What will employees do to interact with this technology? How will the workflow look? Who will use the output?

These are important to consider so you don’t purchase a technology and end up with it collecting dust.

Consider Components and Consumables

Sometimes companies choose the cheapest tech option… Only to discover the replacement parts or machines consumables cost an arm and a leg.

Don’t fall victim to this same issue. Ask manufacturers for the details about the operating costs of any tech and equipment you choose for your manufacturing processes.

Get Feedback

Tech can look great on paper but not be as great in reality. You’ll need to implement a system for employee feedback to ensure the tech you’re implementing is improving manufacturing processes.

After training, implementation, and a period of execution where your employees get into the flow of using the tech ask for their opinion.

Ask them:

1. Has this tech helped you do your job better? How?
2. What would you change about the tech if you could?

This can ensure you are optimizing your manufacturing processes for success with technology.

No one will be able to give better insights than the people using the systems.

4. Improve KPI Tracking

The fact is, only 4% of companies measure and manage their documented processes.

But the reality is you can’t streamline your efficiency and manufacturing processes without analytics.

For example, it’s hard to improve customer service without call tracking and call analytics. The analytics allow you to see where there’s room for improvement. Then implement a strategy, whether it’s a new training program or technology.

The best way to use KPIs to garner valuable, actionable insights is to create a KPI dashboard.

In order to do this, you’ll want to take these steps:

1. Establish your goals and objectives. Every metric you track should be tied to this goal in terms of efficiency, cost, or revenue.
2. Identify the critical success factors for your goals and objectives. These are activities an individual, organization, or department will need to focus on to be successful.
3. Pinpoint the KPIs that will help you track your critical success factors.
4. Collect measurements in a comprehensive dashboard that everyone who needs to can access.
5. Take measurements from the KPIs that provide actionable insights into performance.

For example, here is a breakdown of each of these steps in action.

Objective: Increase efficiency.

Critical Success Factor: Increase production time by 15% over the first quarter.

Key Performance Indicator: Product manufacturing time.

Metric: Average product manufacturing time current quarter compared to the previous quarter calendar date.

Measure:

• Time from ordering to production start
• Production speed during each phase
• Duration of inactivity at any point during production

It will take time to look at your processes this in-depth. But the payoff is a KPI dashboard that allows you to accurately measure performance.

And even more important, every metric you take the time to track will provide you with actionable insights to improve efficiency in your manufacturing processes.

5. Simplify

The simplification of your manufacturing processes will be an ever-evolving process. It needs to take place at every stage and be kept in mind at all times.

The key is to eliminate any non-value add activities. One at a time, target each part of your systems that are either:

• Redundant
• Hindering progress towards end goals
• Creating inefficiency

This will require using a critical eye while measuring performance. Start in the areas of your business that will be easiest to review. Then work your way through more complex systems from there.

Even small changes can make a big difference when it comes to productivity. So don’t write off the little things… They’ll all add up in the end.

Conclusion: Benefits of Streamlined Manufacturing Processes

Where are you going to start when it comes to streamlining your manufacturing processes?

The benefits of taking the necessary steps to improve manufacturing processes are huge. They include:

• Better financial performance. Eliminating unnecessary steps in your systems means the wages you pay your employees can be better allocated to efficient activities.
• Faster response time. A streamlined business is also more adaptable and flexible. And in today’s day and age, customers also expect a quick turnaround time.
• Optimized resource management. Once you’ve streamlined to minimize bottlenecks, you can get rid of excess inventory and avoid redundant supply orders.
• Increased competitiveness. By improving efficiency, you’re prepared to adapt to a changing market and therefore increase your competitive edge.

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