sdrfvaer
Cart   |   Print Page   |   Sign In   |   Join Today!
Articles from our Partners
Blog Home All Blogs
Search all posts for:   

 

View all (101) posts »
 

How Manufacturers Can Better Optimize Costs by Improving Processes

Posted By Administration, Thursday, August 29, 2019

For any business, maximizing efficiency and minimizing waste should be an ongoing concern. It doesn’t matter how long you have been in business or what exactly it is that you do – you should never be thinking “that’s enough” when it comes to your optimization. Instead, you should always be on the lookout for ways of improving your existing processes and optimizing your costs.

By focusing on the right processes, manufacturers can transform their approach to even the most mundane day-to-day tasks in a way that dramatically cuts costs and enhances efficiency. There are 3 key areas that manufacturers should be focusing on, and these are where the biggest savings will be.

Audit Your Processes and Workflows

Before you can begin to think about optimizing your existing processes, it is important that you have a firm grasp of precisely what they are and how they work. You can’t do anything useful in terms of optimizing your processes without knowing what these processes consist of.

There are a number of ways that you can go about performing these audits, and they should be simple to do for the most part. It is a good idea to have all your business processes, especially those that are carried out by frontline staff, formally recorded and available to workers. If you already have these to hand, they will make auditing your processes much easier. If you don’t currently have this stuff written down, this is the perfect excuse to do so.

Streamline and Standardize Your Hiring Practices

Many businesses massively underrate the potential benefits that come with a tightly-controlled hiring process. By screening applicants to prioritize specific characteristics and abilities, you can cultivate a workforce of individuals who possess whatever skills you most require.

If you can introduce clear guidelines for hiring new workers and ensure that everyone involved in the hiring process is adhering to them so you can optimize the proficiency of your production line. For example, if you ensure new hires have a certain amount of experience in manufacturing already, they are less likely to run into problems that they cannot solve for themselves.

BOM & Cost Optimization

The bill of materials refers to the cost of the raw materials that you need to make each unit of your product. As a business grows, its financial and production capabilities expand. This added capacity enables you to work with economies at scale that were previously impossible. The cost of producing your products can change dramatically according to how and where they are manufactured.

If you want to keep these costs as low as you can from the very beginning, you need to design your products with the final BOM at the forefront of your mind. Companies like Upverter can help you to optimize your bom cost and identify other opportunities to optimize your production processes.

Businesses are more than just a collection of individual processes, but it can be very helpful to temporarily reduce your business to its processes when you are looking to optimize them. For larger and more complex businesses, you will need to take into account the ways that different processes overlap and impact one another. And, don’t make this a one-off occurrence – put process optimization at the heart of your strategy going forward.

This post has not been tagged.

Permalink | Comments (0)
 
Community Search
Sign In


Calendar

9/23/2019 » 9/26/2019
3RD Shared Services & Outsourcing Week Autumn

9/23/2019 » 9/25/2019
Business Analysis Conference Europe 2019

9/25/2019 » 9/27/2019
VA Benefits Conference

careersrenew
joinwebsite how to
sponsorship