Manufacturing productivity is essential to the success of a business and how a company sends out its products to consumers. Some businesses struggle to increase manufacturing productivity or wonder what factors contribute to their stagnance. At Inergroup Insourcing Solutions, we work to improve labor management in Irving, TX, and offer businesses opportunities and strategic planning for better manufacturing productivity.
Manufacturing productivity lets companies predict their future revenues based on the patterns they have followed. It also tells a business what they may need to work on or improve to increase manufacturing productivity. Companies can then pay higher wages, lower the prices of their products, exhibit better market performance, and turn an increased profit, so improving manufacturing productivity is a good investment.
What Are Inputs and Outputs?
Inputs are the combined resources that produce outputs, such as expertise, money, time, information, people, and energy.
Outputs are the goods and services that a person, organization, machine, or factory makes in a specific timeframe.
Essential Inputs to Manufacturing Productivity
Supply chains involve shifting raw materials into manufactured goods, and the manufacturer then transfers goods to a consumer or retailer. A business achieves higher productivity when the same inputs equal more outputs or the same outputs equal fewer inputs.
Several essential inputs affect manufacturing productivity, including:
- Human capital refers to the people with the education, experience, information, and training necessary to make a business’s manufactured goods.
- Physical capital is the equipment, machinery, or physical structures used to make goods and services.
- Natural resources are renewable (ex. solar power) and nonrenewable (like minerals or oil) inputs made by nature.
- Technological knowledge is public and proprietary (company-specific) information that combine to make a company produce goods.
How to Achieve Higher Productivity & Efficiency
Businesses in all areas always look for ways to improve efficiency and productivity. Increased productivity is when a workforce puts out more high-quality products in the same amount of time before the improvement. Increased efficiency occurs when a business produces outputs without wasting materials, money, or time, hopefully creating as much as possible.
How can a company achieve higher productivity levels?
1. Audit and Improve Your Manufacturing Equipment as Necessary
Businesses should assess the quality of their equipment and see if anything about them might be slowing their workers down. For example, old or outdated equipment can negatively affect manufacturing productivity, and some machines might need repairs. In this case, a complete overhaul to more current models may be necessary.
Additionally, your company might need more machines than you currently have and operate without as many tools as it should. This upgrading process can also involve adding new production lines to use the added machinery. You might need to obtain more equipment as product demands grow.
2. Improve or Offer Additional Training Opportunities
More training opportunities can help workers perform better, and additional programs could increase productivity or boost morale. Businesses can adjust their training over time, especially after a few years, to stay up-to-date and effective. This also means that new workers will start with a good foundation.
3. Increase and Analyze Performance Reviews
Scheduling frequent performance reviews is a fantastic way to assess and review the work of employees and the business as a whole. It allows companies to identify where specific workers may require assistance, if common patterns among workers are present, or if they need to hire more employees. More reviews award a business more information and context to improve manufacturing productivity.
4. Assess Your Equipment Utilization Rate
Equipment utilization rate is how much time your business uses its manufacturing equipment throughout the day. A review could indicate the need for scheduling or shift changes and more or less time spent on the machinery.
5. Contact a Manufacturing Productivity Professional
At Inergroup Insourcing Solutions, we can help your business and find ways you can make changes for increased manufacturing productivity. We can factor in all business components to determine the reason for your productivity rate. We can help improve yours with a specific and personalized solution based on years of experience and research.
Improve Manufacturing Productivity with Inergroup Insourcing Solutions
Inergroup Insourcing Solutions is a high-end organization assisting businesses with their accounts, projects, and labor management. We also help improve quality assurance, solution designs, and manufacturing processes and determine research-based and logical solutions to increase productivity.
We operate out of Irving, TX, and can help businesses in the area find solutions to improving manufacturing productivity in all industries. Learn about Inergroups’ project management services, and call us at 972-914-0753 for more information.