As a business person, you’re keenly aware of how every step of the process impacts your business’ long term health. If there are any areas where you can maximize profits, you want to be capitalizing on that. One area that can often be analyzed in an effort to increase productivity and efficiency in manufacturing. Here’s a quick look at ways you can improve your existing manufacturing process in order to improve your business.
Cut Out The Clutter
It may sound overly simplistic, but taking a look at your manufacturing area is a great first step in improving efficiency. If the area is overrun with clutter, it will quickly lead to chaos. There is a direct correlation between mental stress and clutter among employees, and 75% of doctor visits are stress-related. Ensuring that your production area is neat an organized will empower your employees to maximize their time instead of stumbling around obstacles all over their work area, cut down on their stress which will lead to less work time missed. It’s also worth realizing that a cluttered environment is an unsafe environment; there is no need to put people in harm’s way when issues can be resolved with some good housekeeping.
Making A Profit from Your Loss
Any company’s profit and loss report (often called a P&L Statement) has a line on the sheet to reveal “waste.” That is the cost of the material that is leftover at the end of a production cycle or the cost of the items that were manufactured incorrectly. If you’re willing to think outside the box you can often find other companies that are willing to pay a small amount for what you have leftover. They can then use those items in their own production. You may not get the full price out of them, but any liquidation is better than having a total loss.
Cutting Utility Costs
You probably don’t leave every light in your house on and every faucet pouring water full blast around the clock. In the same vein, look for energy-efficient alternatives in your manufacturing process, and don’t forget to turn off pieces of equipment that aren’t in use. Every dollar counts!
Increasing efficiency in manufacturing is a crucial step in stabilizing the long term health of your company.
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