How to Improve Efficiency in Manufacturing

Maximizing efficiency is at the core of every business. In manufacturing, it can mean boosting productivity, updating systems, cutting costs and taking other measures to improve throughput and maintain or increase profitability.

Considering that operational costs and the business’s bottom line are in the picture, concerns about how to improve efficiency in manufacturing remain a big part of every facility’s business strategy. To ensure team members operate in line with your efficiency standards, you must develop strategies that support your performance goals.

Introduction to Manufacturing Efficiency

Manufacturing is an extensive process that relies on your capacity to maximize operations and drive profitability in the workplace. Since your level of manufacturing efficiency is tied to profitability, it affects production costs, customer satisfaction and competitive advantage.

Importance of Efficiency in Manufacturing

How you boost efficiency in your manufacturing process will result in tangible benefits in the following areas:

• Production costs: An efficient manufacturing process increases productivity, resulting in smooth operations. While that doesn’t mean there will be no hiccups, it does mean that a facility with high-performing employees and clear operational strategies will cut unnecessary costs. These strategies will facilitate channeling resources like labor, energy and materials toward value-added tasks. When everyone prioritizes spending fewer resources on low-value projects, the facility will see improvement in production costs.
• Customer satisfaction: Efficiency in operations means employees can spend less time dealing with challenges or sourcing information for their next tasks. The strategies in place will provide direction at every stage and delegate duties to ensure increased production rates and improved lead times. When the manufacturing process takes less time, your facility will develop faster delivery times, which results in customer satisfaction. Fluid operations also promote quality by creating more time for quality control measures that support product quality.
• Competitive advantage: Today’s digital age has simplified access to products and increased the speed at which businesses serve consumers. The more consumers prioritize better and faster services, the more pressure there is on manufacturers to leverage available resources and technological developments to stay competitive. Since competitive advantage is crucial to success, maintaining effective processes like ironing out supply chain challenges or identifying and resolving productivity gaps is key to becoming more competitive.

Current Challenges in the Manufacturing Sector

The manufacturing industry faces numerous challenges that impact overall production. While some of these challenges are out of manufacturers’ direct control, such as geopolitical crises, political reforms and climate shifts, many are tied to inefficient processes. Some of the common inefficiencies manufacturers face include:

• Supply chain issues: With increased supply chain disruptions, manufacturers lacking robust supply chain strategies struggle. These issues may involve obtaining raw materials, shipping, demand planning, managing inventory and distribution.
• Outdated systems: In the digital age, manufacturers using outdated systems struggle to remain effective regarding key operations like managing data and automating processes.
• Skilled labor shortage: Skilled labor is crucial in keeping production lines running smoothly. Facilities that lack strategies for hiring or training workers to maintain adequate skills may struggle with productivity.
• Cost management: According to a survey by the National Association of Manufacturers, one of the best ways to improve efficiency in manufacturing is managing costs, as operating costs are among the main challenges manufacturers face.

Strategies to Improve Manufacturing Efficiency

Improving efficiency in your facility requires a comprehensive review of your strategies and a step-by-step process that irons out production systems while maximizing resources. You want to identify areas that consume key resources and evaluate their output.

Here are strategies that can help you work toward improving manufacturing efficiency:

1. Automation Technologies and AI

Artificial intelligence (AI) and automation have resulted in rapid digital transformation. In manufacturing, these technologies are part of the next-level advancement you may want to embrace to keep up with the industry. As automation replaces many tasks that are often completed manually, it speeds up these processes and reduces human error, adding a layer of efficiency that is impossible without technology.

You can automate your systems through robots and by integrating AI-supported software. One of the best examples of AI and robotics in manufacturing is collaborative welding robots that operate alongside human workers to streamline industrial processes.

2. Predictive and Preventive Maintenance

Equipment is a costly and vital component in any manufacturing facility, impacting the manufacturer’s bottom line. Proper maintenance extends equipment life, reduces downtime, decreases repair and operational costs, lowers accident risks, and streamlines operations. While you may be taking measures to ensure proper maintenance, using predictive maintenance techniques will take your efficiency to the next level.

Predictive maintenance software uses can use tools like machine learning to determine the condition of your equipment and predict when potential problems may occur. This information allows your team to take preventive measures and correct the flagged issues.

3. Quality Control and Assurance

Quality control and assurance are processes that keep your plant in line with your product and service expectations and regulatory requirements. Quality control also plays a role in efficiency. Some of the popular techniques you can employ to monitor and maintain quality for improved efficiency include:

• Cause-and-effect diagram
• Control chart
• Check sheet
• Histogram
• Stratification

Quality control and assurance can help you oversee and improve performance and effectiveness throughout the manufacturing process, resulting in higher overall equipment effectiveness.

Effective Inventory and Time Management

Combining inventory management and time management can help improve efficiency on the production floor. Here’s a breakdown of these two considerations:

Inventory Management Techniques

Maintaining overall efficiency in your facility requires a strategy for managing inventory, such as using smart systems for digital inventory tracking. These systems should improve reaction to market changes, allowing you to adjust stock levels and other aspects of the supply chain. Digital solutions like automated inventory management software can streamline the supply chain through capabilities like demand planning, mobile integration and barcode scanning.

These strategies can improve stock efficiency, eliminating overstocks and stockouts. You’ll know when to use bulk quantities to boost cost savings and maintain supply.

Time Management Strategies

Inventory management is closely linked to time management. With efficiency principles like just-in-time inventory management, also known as lean management principles, your plant can strike a fluid balance between production volume and inventory levels, allowing you to free up cash flow and labor. As a result, you improve costs and save time.

In addition, your facility can improve time management during operations by training employees on effective time management. Key components of time management include staying organized, working as a team, communicating clearly and prioritizing value-added tasks.

Contact Meritus Gas Partners for Industry Solutions

Understanding how to improve efficiency in manufacturing can be the key to your facility’s success. Overall, you want to consider automation technologies, predictive systems, quality control and inventory and time management practices to make the most impact.

Given today’s unpredictable industry demands, working with a solution-driven partner can be the tool you need to strengthen your operations and maintain growth. At Meritus Gas Partners, we support our customers with resources and corporate services to help them deliver.

Having access to a reliable manufacturing distributor, whether you need materials processing gases or safety equipment, is a key part of creating a more efficient facility. Learn more about our network of partners and contact us to get started with industry-specific solutions.