Manufacturing efficiency involves manufacturing the correct amount of items with consistent quality, all while minimizing equipment malfunctions, scrap and downtime as much as feasible. With these aims in mind, businesses are increasingly turning to Digital Manufacturing Operating Systems (DMOS) to improve their productivity and create items with higher speed and precision. These workflow-based systems offer manufacturers with all the information they need to efficiently manage deviations, job-related duties, continuous improvement procedures and knowledge-sharing activities, leading to an overall more efficient operation.
Here are some of the ways DMOS platforms like 4Industry may help you achieve higher production efficiency:
Five Stages for Improving Manufacturing Cycle Efficiency
Manufacturing cycle efficiency occurs well before a widget is created, and continues after manufacturing as well.
It’s vital for firms to take into consideration all components of this timetable in order to produce a product that assures a competitive cycle time.
Each part of the product lifecycle — from invention, design, and development through testing and, finally, production — must be reviewed in order to reduce waste from the whole process.
Below is a condensed version of the complete article on boosting cycle efficiency.
Efficiency is Broader than Productivity
Efficiency takes into consideration more than merely input and output by the numbers. Efficiency covers factors like quality and effectiveness of work and might suffer when production is overly-prioritized.
Instead, defining efficiency objectives helps producers concentrate on the larger picture and aspires to perform things right, not simply productively. Focusing on efficiency involves employing resources as ideally as possible and maintaining a high quality of work, minimizing risk and decreasing potential losses.
That is not to imply production should be abandoned for the sake of efficiency. If you can’t satisfy demand, then you still have unhappy consumers (or would-be customers) and, unless you’re actively utilizing scarcity techniques to your advantage, you lose out on a lot of potential business and related income.
Prevent issues before they emerge
We’ve all heard the expression, “Prevention is better than cure,” and this surely applies to manufacturing efficiency. Within manufacturing, this refers largely to preventative maintenance of your machinery and associated equipment, saving you lots of money in the longer run.
Why is Efficiency Important for Manufacturers?
Improving production efficiency in manufacturing is a major element of the industry. Leveraging lean techniques to bring down the costs of manufacturing while preserving quality and improving throughput are a continual challenge. However, with a philosophy of continual development, manufacturers see this more as an opportunity than a problem.
After all, manufacturers can only be so efficient, and as long as they are beating their competitors, they are winning. However, when new technology comes that allows them to utilize data to make better, quicker choices, there will be a rising tide of what is recognized as “standard” throughout the industry. For example, despite the number of employees working in industry dropping, production has risen.
How does this assist you?
From a financial viewpoint, the primary benefits of manufacturing efficiency include:
- increased quality
- greater revenue
- higher productivity
Optimal production efficiency also implies that you’re creating your items at the lowest feasible cost price. In addition, manufacturing efficiency works hand in hand with minimal resource wastage – time, money, energy, raw resources. Often, the phrase is also employed as part of the lean concept, which stresses continual improvement of processes and value generation.
Calculate Your Standard Output
Standard output might be something you take from your own historical data or from an industry benchmark which you could discover in a report. In this approach, you may evaluate yourself against your prior performance, a competition, or the industry as a whole.
Combined, these two figures can give you your manufacturing efficiency which can be used to create KPIs in conjunction with other metrics of efficiency.
Continuing with the example above, let’s assume a rival, who you would want to measure yourself against, is able to manufacture 55 widgets at a cost of $100.
- Competitor’s Actual Output: $100 of Costs / 55 Widgets = $1.82 per Widget
- Your Standard Output = $2 per Widget / $1.82 Per Widget = 1.0989
1.0989 implies that it costs you about ten percent (9.98 percent ) more to create a widget than it does for your rival. Based on these measures, you are roughly 10 percent less efficient than the competition you are benchmarking against.
Disorganized teams frequently operate inefficiently. Organize and standardize as many procedures as possible across the board. The easiest method to achieve this is to simplify communication between staff and departments.
If your workers have to read through screen after screen of SMSs, emails, or applications, or sift through reams of hard-copy documents before they can start work, then production efficiency is likely to suffer. Appoint single points of contact to coordinate information flows.
Standardizing work procedures also ensures that your workers know exactly what is expected of them.