It’s the Digital Revolution. The adoption and proliferation of digital computers in the late 20th century have led to where we are now: automation devices, Bluetooth, and smartphones in the back pocket of every American.
But with changing times comes changing processes for the sake of operational efficiency. Yet, many manufacturers fall victim to adhering to outdated practices, hindering growth and profitability. This can prove true for smaller manufacturing companies, especially where a whopping 75.3% have fewer than 20 employees.
Join the Alliance: achieve manufacturing strategic planning
Let’s face the facts: it’s time to break free from the “if it ain’t broke, don’t fix it” mindset and explore better, more efficient, and versatile practices to adapt to the changing economy. Here’s how to propel your business forward.
1. Embrace Lean Manufacturing
What is lean manufacturing?
Lean manufacturing is a powerful methodology that eliminates waste and streamlines workflows for manufacturers and beyond. It is closely related to Toyota’s post-war 1950s-1960s original operational model called “The Toyota Way” or the Toyota Production System (TPS), which centers on the two pillars of just-in-time inventory management and automated quality control.
Manufacturers execute this strategy to increase efficiency—to improve the production process, reduce inventory costs and waste, and boost productivity and profit. Operational success relies on regular outputs, high-quality processes, and trustworthy suppliers.
GENEDGE Business Service Director Operational Support, Bert Eades explains, “Lean manufacturing is all about identifying and reducing various forms of waste, like defects and excess inventory. The failure to utilize the creativity and talents of people has long been included as a form of waste, but more recently ineffective interactions between leaders and team members has been identified as another form of waste. Meetings, performance discussions, emails, and even quick hallway conversations are all opportunities to improve performance. These interactions can be standardized by training leaders to follow a process for more effective conversations and to increase their emotional intelligence to better engage employees.”
Why do Lean?
“Lean manufacturing is a philosophy and a set of practices that aim to eliminate waste, improve quality, and increase efficiency in processes. One of the core aspects of lean manufacturing is problem-solving, which involves identifying, analyzing, and resolving issues that affect the performance and value of the product or process.
The benefits of becoming a Lean Manufacturing Plant have been well-documented. The fact that lead time can be reduced, and throughput can be increased by focusing on eliminating wastes is the essential benefit in becoming Lean.” GENEDGE Business Service Director, Operations Joe Stark.
How can my business adopt Lean Manufacturing?
Begin by reviewing your existing processes and involve your frontline workers in recognizing areas of improvement. Enact changes and closely monitor the direct correlation to efficiency. Focus on activities that add value, limit risk, standardize processes, ensure compliance, and benefit the overall customer experience. Now, you’re off to a great start.
2. Leverage Lean Manufacturing Tools
To successfully implement lean manufacturing, choosing the right tools is essential. These tools help organize thoughts, identify issues, and effectuate your plan. Here are some staples:
- The “Why-Why Analysis” technique: to uncover the root of the problem.
- Ishikawa Diagram (Fishbone diagram): to perform comprehensive problem examination.
- Affinity Diagram: to sort and organize data.
- Failure Modes and Effects Analysis (FMEA): to catch issues in their early stages.
- 5S Dashboard: to promote workspace organization using the five S’s: Seiri (tidiness), Seiton (orderliness), Seiso (cleanliness), Seiketsu (standardization), and Shitsuke (discipline).
- PDCA Cycle (Plan-Do-Check-Act): to ensure continuous improvement.
3. Launch the Six Sigma Approach
Six Sigma or Lean Six Sigma is another valuable concept for minimizing process variation and enhancing customer satisfaction. It follows the DMAIC model: Define, Measure, Analyze, Improve, and Control.
Through workflow standardization and defect abolition, manufacturers can achieve major efficiency gains.
How? Well, Six Sigma relies on statistical analysis to drive data-driven decision-making. Taking advantage of modern data systems guarantees precision, as well as boundless improvement and optimization.
4. Implement Kanban Boards
Visualizing workflows is essential for spotting inefficiencies in how you normally do things. Kanban boards paint a clear picture of your current processes, enabling you to break them down into stages (and ultimately isolate bottlenecks).
Key for visual learners, this agile project management tool helps limit works-in-progress (WIPs) and maximizes production flow. Its WIP limits set maximum thresholds for tasks at each stage, preventing overloading and verifying completion before starting new activities. Kanban and WIP limits work harmoniously to drive faster completion and smoother workflow.
Kanban boards use cards, columns, and continuous improvement to support technology and manufacturing teams commit to a suitable amount of work—and excel!
5. Empower Your Workforce
Last but certainly not least, efficiency improvement efforts should involve your entire workforce. After all, a thriving manufacturing company depends on its workers to innovate, compete, and grow.
To perform manufacturing workforce development, engage your employees by seeking (and listening to) their input, ideas, and feedback on process improvements. Undoubtedly, their frontline experience and unique insight are invaluable for pinpointing inefficient areas.
It’s worth noting that 97% of employees state that when they feel valued by their employer, it heightens their confidence and motivates them to perform better. Relevant to manufacturers, a confident workforce also contributes to 50% higher employee productivity, 106% more energy at work, and 13% fewer sick days.
Foster a culture of unstoppable growth, encourage collaboration, and offer training opportunities to progress their skills further.
“Process” is the most important component in strategic execution—and efficiency, too.
A good manufacturing operation starts with its processes. We’re talking inventory management, materials requirement planning (MRP), supply chain management, sales management, and production cost management to deliver exceptional goods to customers.
GENEDGE training and coaching tools help your team achieve breakthrough customer satisfaction, operating results, and ultimate profit.
With these specific strategies in mind, manufacturers can overcome their biggest roadblocks and unlock operational efficiency.
Discover our most popular manufacturing operations support services and advanced manufacturing consulting, or contact your regional growth manager to tailor a customized solution best for you.
