How to improve productivity in manufacturing
Many business are seeking ways to improve productivity in manufacturing, but very few actually achieve it.
So what is the big secret?
For modern businesses, the key to boosting productivity is often found in small improvements to processes that add up to significant gains in output – effectively greater gains through reductions in wasted time and materials.
One way a manufacturing company can improve productivity is through investing in ERP.
An ERP system provides a streamlined approach to your business processes, automating routine tasks, providing you with data that informs decision-making and freeing up precious staff time that was once being wasted on admin or repetitive form-filling.
The key to improving productivity is to work smarter, as opposed to harder. Once you put your ERP system to use (making your processes work for you rather than the other way around) you can begin to benefit from improved business efficiencies. In doing so, you’ll find that your staff have more time to spend on the tasks that make profit, as opposed to chasing orders or putting out fires.
The main objective of an ERP system for manufacturers should be to streamline business processes, minimise complexity, and ultimately, boost productivity.
Here are four ways that ERP can help manufacturers be more productive.
The cloud and productivity
While on-premise ERP solutions still have a place, many businesses are now moving to the cloud when looking for an ERP product.
This benefits appear obvious: small or mid-size manufacturers can use the cloud to get a fully functioning ERP system without relying on expensive IT personnel to operate and maintain it. Instead, a company can keep one or two IT staff on payroll and outsource much of the troubleshooting and upkeep to their ERP provider.
Cloud provides a major boost to productivity because it is fast to implement and can be used almost right-away.
Those who are fortunate enough to undergo rapid business growth can also rest assured that cloud systems are scalable and can be integrated with other systems with relative ease.
Finally, cloud-based ERP offers the chance for you and your staff to access information and processes remotely – a significant plus-point in the face of post-pandemic work environments.
Most businesses aim to streamline their processes in order to boost productivity. But what does this look like in practice with ERP?
The first step is to evaluate your current processes to identify waste and inefficiencies. For this, you’ll need to look at areas as wide-ranging as personnel, equipment, workflows supply chains, inventory levels and more.
Wherever you encounter confusion or bottlenecks, there is room for improvement.
Once you find the problem and understand it, ERP can help iron out the flaws and point you towards a more efficient way of doing things. From automating processes to better visibility of stock levels, your new system can help you streamline processes that no longer work for you.
Improve Inventory Management
Inventory management is an age old challenge to manufacturers. Excess inventory results in waste in the form of stock that is either depreciating in value or holding money that could be used elsewhere. Low inventory levels, however, lead to longer lead times and reduced customer satisfaction.
What to do about this?
Thankfully your ERP system can provide you with data relating to stock levels that can then be used to improve decision making. You can use your software to automate reordering or set up alerts that let staff know when stock levels are too high. The choice is ours but the benefits to productivity are endless.
Boost profits through improved productivity in manufacturing
While improved lead-times, streamlined processes, optimised stock levels and cloud-based systems offer significant boosts to productivity, there is the less easily quantified freeing up of time and resources that can be reinvested in producing, hiring new staff, investing in equipment and more. In this sense, your ERP system will pay you back twice over if you allow it the time to boost your productivity.
Want to use ERP to improve productivity for your manufacturing business? Learn more by contacting one of our ERP experts today here.