Streamlining your manufacturing process can help to save time, save money and help to minimize operational discrepancies. If you are looking for ways to optimize the manufacturing process for your product or factory business, read on for 10 invaluable tips.
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1. Consider Asset Finance
The most cost effective way to replace or upgrade your machinery and equipment is to lease. This relieves the pressures on your business cash flow and gives you a monthly repayment plan. If you want top of the range equipment but can’t put out a large cash outlay, asset finance could help. Find out more about asset finance on Gov.uk.
2. Implement Factory Auditing
If you are using factories overseas, factory auditing is essential to ensure that the best practices are in place. Factory auditing will help you reduce production discrepancies and ensure that things are being done ethically.
3. Improve Supplier Relationships
Suppliers are here to serve your needs but if you don’t have a good relationship with suppliers, you could be left without the materials/supplies you need to manage a smooth production. Always pay invoices on time and strive for the best possible communication.
4. Work Flow Management
Establishing and managing workflow for your manufacturing process is crucial. This means understanding the people, processes and technology required to keep things running.
5. Value Stream Mapping
Value stream mapping is the charting and planning of each stage of your manufacturing process, including materials and key data. The task of doing this is both simple and free; done using charts and diagrams, you can quickly provide a visual for your team. Find out more from ValueStreamGuru.com.
6. Provide Training for Operations Managers
Your operations team sits at the heart of everything that your business does. Without an operations team, your day to day processes would not be in place. Being an Operations Manager requires many skills including people management, stress management, negotiation skills and technical knowledge. So be sure to provide the best possible training.
7. Consider Virtualization
Moving your business network over to the cloud could help you streamline operations by reducing downtime and making it easier for team members to share data. The cloud also makes it easier (and more cost effective) for organisations to share the use of essential computer applications (eg: Software-as-a-Service).
8. Consider Used Equipment and Machinery
If you don’t want to apply for asset finance for equipment leases, choosing used equipment suppliers could be the most affordable solution. Get second hand machinery in top condition and don’t worry about extortionate interest payments.
9. Invest in Capital
The best brands of machinery and machinery parts may cost a fraction more, but the benefits will outweigh the costs. Sometimes the best way to save money is to spend money; choose a reliable brand to ensure that you don’t experience any equipment failures further down the line (such as Clarence Jones Machinery).
10. Reduce Labor and Material Costs
It sounds simple but this really is the quickest way of making cost savings in manufacturing. Two of the biggest costs are labor and materials. So cut back in these areas and you will see a dramatic difference to your cash flow and balance sheet.