18 Ways to Improve the Manufacturing Process

Manufacturing surrounds us all. No matter what line of work you are in, manufacturers lend a hand in making it run, from a runner’s shoes to a consultant’s laptop computer. Large manufacturers have made tremendous progress in recent years toward improving their processes, and that progress has been a main contributor to growing prosperity and quality of life in developed economies. Now, many of the techniques they pioneered are available to small and medium-sized manufacturers, too.

This article takes a deep dive into 18 different tactics that manufacturing industry professionals and supply chain managers can use to improve manufacturing processes in ways that reduce waste and streamline processes while improving efficiency and raising profitability.

What Is the Manufacturing Process?

The manufacturing process encompasses all the steps a company uses to turn raw materials into finished goods. It customarily begins with the design of a product and carries through the selection of materials, fabrication of parts, assembly and quality-control checks. The number of steps in any particular manufacturing process varies by industry, product type, available equipment, innovation and the company’s resources, to name only a few influential factors.

Key Takeaways

• Streamlining a manufacturing process workflow benefits a business in ways that go beyond the bottom line.
• Reducing waste is about more than simply using less material. It can also mean streamlining workflows, minimizing downtime and improving overall process efficiency.
• Making those who do the actual work part of the improvement process establishes a collaborative culture on the factory floor, creating a more engaged workforce.
• Automation of manufacturing processes creates more time for other business needs.

Benefits of Manufacturing Process Optimization

An optimized manufacturing process helps the company’s bottom line in multiple ways. It streamlines operations, reduces waste and can boost product quality, all while improving an organization’s ability to respond to changes in the business environment or in customer demands.

• Increased efficiency and productivity: Streamlining manufacturing processes by identifying and eliminating bottlenecks, implementing lean principles and optimizing workflows can significantly boost efficiency and productivity. The increased efficiency enables higher manufacturing output and faster time to market for new products, which makes it possible for companies to meet customer demand more effectively while maintaining their competitive edge..
• Reduced production costs: One of the main aims of optimizing the manufacturing process is, ultimately, to reduce waste in all its forms, including material, time and money (in the form of working capital). Repairing inefficiencies in manufacturing processes — such as by reducing scrap and rework, improving inventory management and eliminating unnecessary steps — can lead to less downtime for employees and equipment, as well as less material used, helping to cut down on costs and increase profitability. Small savings may seem insignificant, but, cumulatively, many instances of small savings can add up to a major reduction in production cost.
• Higher-quality products: The product, of course, is the key to a successful business — the better it is for the customer, the more prosperous the business should be. And optimizing manufacturing processes leads directly to higher-quality products by reducing variations and minimizing defects while increasing reliability and durability. Techniques such as Six Sigma, Total Quality Management (TQM) and continuous improvement help to identify and address the root causes of quality issues.
• Enhanced customer satisfaction: Delivering high-quality products consistently is a key driver of customer satisfaction. By optimizing manufacturing, companies can ensure that their products meet customer expectations and are delivered on time. And better customer satisfaction, in turn, translates into increased customer retention and positive word of mouth.
• Greater flexibility and responsiveness: Optimized manufacturing also means that companies can respond more quickly to changes in customer preferences or the larger economy. Flexible manufacturing techniques, such as modular product designs and agile methodologies, allow manufacturers to quickly adapt to new product variations and/or scale production up or down based on demand. In most cases, it also enables companies to adopt new technologies more easily and to overcome unplanned setbacks.

The Benefits of Manufacturing Process Optimization

18 Ways to Improve the Manufacturing Process

The journey to an improved manufacturing process can take different paths depending on an organization’s goal or goals. For some, it could be about a more efficient system that cuts manufacturing time. Others may concentrate entirely on cost cutting. Still others may be looking to maximize automation through technologies like machine learning and Internet of Things (IoT). Regardless of how a company defines “improvement” in its processes, there are best practices to help you achieve the goal.

1. Use value engineering and design for manufacturability (DFM): The concept of value engineering is to analyze a product (or service) and figure out how to offer the same product at lower cost. The process looks at ways to produce that product more efficiently, effectively or safely, thus offering more value to the customer. DFM focuses on reducing production costs and improving a product’s manufacturability during the product’s design phase. It involves determining the ideal materials, creation methods and workflows to achieve the dual goals of high quality and low cost.
2. Recycle scraps and optimize material use: Finding ways to use less material to produce a product makes it less costly and reduces the amount of manufacturing waste in the forms of leftover or discarded raw materials. Depending on the type of material, any scraps that still result can be repurposed or sold to cut back on the manufacturing operation’s net cost. For example, many restaurants sell their used cooking oil and grease to companies that then use it to create renewable fuels.
3. Cross-train employees on multiple processes: Keeping employees up to speed on the newest technologies for their work is a good step toward efficiency, as is training/upskilling employees to know how to fill in for one another. The more people involved in the manufacturing process who know how to perform the tasks occurring at various parts in the workflow, the more they can help each other. Also, it reduces downtime if an employee can cover for another who must take personal time. As employees build up their skill sets through training and certifications, tracking that training produces a record that can help a manufacturing organization redeploy workers quickly and flexibly when such needs arise.
4. Promote understanding of the end-to-end process: This goes hand in hand with cross-training. By developing the team’s knowledge at multiple points in the workflow, everyone gains a better understanding of the process from start to finish. This not only makes employees better able to fill in for multiple roles but also breeds a greater overall knowledge of how their roles fit into the bigger picture, which builds more engagement in their work.
5. Assign values to materials, labor and equipment usage: Assigning dollar values (or points) to all segments of the manufacturing process can give business managers a clearer sense of where to focus improvement efforts to gain the best returns. It provides a quantitative basis for comparing different improvement initiatives. Whether assigning dollars or points, it’s important to consider the full range of value at each step, including material costs, employee hours and equipment use.
6. Keep workspaces organized: How many times has your morning coffee wound up where it didn’t belong as you searched for something you needed in the moment? Better organized workspaces improve manufacturing process efficiency and reduce the risk of accidents by keeping tools and materials easily accessible, thus minimizing errors caused by using incorrect items. Use labels to clearly identify where things go and organize them in a way that makes the most sense for production — for example, keeping them close to where they need to be used.
7. Standardize tasks with checklists: One straightforward way to boost manufacturing efficiency is to create a checklist of tasks that everyone working in that particular area must follow. It leaves no room for doubt or interpretation. Display it prominently in the workplace as a visual reminder to follow each step on the checklist. It’s an easy and quick boost for efficiency.
8. Adopt cellular manufacturing and 5S methodology: Both of these concepts are born out of what’s called lean manufacturing, a concept that seeks to maximize production while, at the same time, minimizing waste. Cellular manufacturing aims to group similar processes together to help improve production efficiency. Workspaces are divided into “cells” with specific sets of tasks. Implementing a cellular structure breaks down the manufacturing process into a series of steps, which helps when analyzing the workflow for inefficiencies.
   
   

   The 5S methodology, brought to prominence by Toyota, focuses on organization of the parts, people and processes in order to maximize productivity. The five “S” steps are:

   • Sort: Separate the necessary tools and items from those that can be eliminated.
   • Set in order: Put the remaining items in the proper order for production.
   • Shine: Clean all equipment thoroughly to reduce any equipment issues or product defects that could be caused by debris.
   • Standardize: Document all steps in the first three Ses as standard operating procedure.
   • Sustain: Maintain this approach day after day, product after product, and train all new employees to adhere to it.
9. Engage in Kaizen for ongoing optimization: Rooted in Japanese philosophy, Kaizen is the idea underlying continuous improvement. In this instance, that means small, incremental changes that add up over time to significant and long-lasting improvement of the manufacturing process. Basically, think of it as little tweaks to the system here and there that accumulate, rather than a wholesale, big-picture overhaul. While big “reengineering” shifts can be costly, time-consuming and full of risk from unexpected issues that may arise, Kaizen lets you test out plans to reduce waste (in time, material or staffing, for example) and test them out on a smaller sample size before expanding a plan on a wider scale.
10. Incorporate automation, IoT and data analytics: Advanced technology can be a manufacturer’s best friend. If you can define and repeat a manufacturing process, there’s a good chance there’s a way to automate that process. Automation can reduce the time you spend managing processes, as well as the time products spend in production. An enterprise resource planning (ERP) system from a vendor that knows your industry should be able to automate manufacturing processes, order processing and inventory management, as well as report generation and vendor messaging — and do it all while providing real-time insights through analysis of integrated data from across the business. This approach becomes particularly beneficial as a business grows and generates more and more data. Automated analysis of large and growing business data can help manufacturing organizations pinpoint issues, make corrections and track their effectiveness much more quickly than manual methods can accomplish. Using IoT devices and data can simplify complex tracking and tracing processes. Such applications offer increased visibility and insights by capturing sensor data from connected devices using smart manufacturing.
11. Schedule preventive maintenance to avoid disruptions: Those “Our system will be down for routine maintenance” emails that come periodically exist for a reason. Keep your manufacturing equipment running smoothly and efficiently to ensure long-lasting use and to avoid unnecessary costs incurred by early replacements. A proactive approach can lengthen the useful life of manufacturing equipment.
12. Analyze and reward superior suppliers: When reviewing supplier performance, always keep a realistic sense of what’s doable in their current environment. Every business will have different criteria for what constitutes a superior supplier, but the most common and important ones are quality, cost, delivery and flexibility. Once you determine your key performance indicators in this area and identify your top suppliers, find ways to keep the partnership advantageous to them beyond the transactional part of the relationship. Some examples that have been used by manufacturing companies include inviting suppliers to collaborate with internal teams on process improvement initiatives or joint product development; offering preferred supplier status, which gives them first crack at new opportunities, higher volume or longer-term contracts; and simple public recognition, such as supplier awards or joint case studies.
13. Foster relationships with customer-focused suppliers: Developing a strong relationship with suppliers can only help a manufacturing business. Customer-first suppliers tend to respond quickly when things go awry and are more willing to correct any issues that arise. And, by going beyond the transactional elements, you can learn about what’s important to each other’s businesses. Suppliers can inform their customers of pending price changes, material shortages and upcoming product reveals. Customers also can keep their suppliers up to date on their wish lists and any anticipated time-sensitive needs.
14. Solicit and implement feedback for improvements: Who knows what’s working or not working better than those doing the work? Ask employees for their feedback on the existing process, as well as potential changes being considered. It boosts employees’ engagement in the process and the company as a whole, which can increase job satisfaction. Once a change is made, follow up with those who suggested it to discuss the success of the new workflow.
15. Use Six Sigma, Lean Six Sigma and TQM for quality and efficiency: The Six Sigma approach to improving manufacturing processes aims to improve quality by eliminating defects and reducing variability within the goods produced. The idea is that increased manufacturing performance combined with decreased variation leads to fewer product defects, which, in turn, generates a higher profit margin. The goal with a Lean Six Sigma approach to process improvement includes decreasing product variation, but it emphasizes reducing waste and increasing manufacturing turnover time. With TQM, the emphasis is on product quality — mainly, by making it everyone’s responsibility, instead of just that of a quality-control group. With a larger group taking ownership of product quality, product improvement should be a natural byproduct. TQM looks for optimal processes, as opposed to reduction of waste and defects.
16. Explore agile methodology for adaptable management: This approach to project management divides a project into several smaller phases that the organization can tackle in small teams. Those concentrations of engaged employees can then cycle through the project’s stages of planning, executing and, then, evaluating the process in place. The iterative nature of the agile approach supports continual improvement and the ability to adapt quickly to process changes.
17. Identify and implement automation opportunities: Harnessing technology is integral to improving the manufacturing process, whether that’s through the latest machinery on the assembly line or more advanced software to manage it all. It’s crucial, therefore, to embrace opportunities to automate business processes; it frees up time to perform other vital business tasks and can reduce overall costs. That could mean a new way to speed up the invoicing process, or perhaps it’s acquiring a new machine that can generate twice as much product in half the time because it reduces the amount of repetition in an existing process.
18. Use ERP for better collaboration and supply chain visibility: The purpose of supply chain visibility is to gather better information about supply chain operations to assist with improving efficiency, reducing risk, increasing customer satisfaction and boosting profits. Appropriate supply chain management technology, either as part of or integrated with an ERP system, can track items as they go from supplier to manufacturer to consumer. Access to this data in real time helps companies manage levels of raw materials, work in process and finished goods inventory, avoiding manufacturing bottlenecks.

Improve Your Manufacturing Processes With NetSuite

Manufacturing companies often struggle with disparate systems, limited visibility and manual processes that hinder their ability to optimize operations. NetSuite for Manufacturing is part of a cloud-based ERP system that offers real-time visibility into all aspects of the business, helping to streamline operations and improve efficiency. Instant access to inventory levels can help companies avoid stockouts or overruns and provide visibility into delivery status, thus optimizing the entire production schedule from start to finish. NetSuite software offers the power and flexibility needed for manufacturing companies to expand and evolve without needing to overhaul their IT. Manufacturing processes often involve repetitive tasks, and NetSuite can automate many of them, from supply chain management to accounting, freeing up time for other essential projects.

Continuous improvement is the linchpin of many manufacturing companies’ process improvement initiatives, especially for small and medium-sized manufacturers that can ill afford the cost and risk of a big overhaul. But, as this article details, there are myriad strategies and tactics companies can use to generate that continuous improvement. And efficiency can take many forms, from streamlining workflows to leveraging technology and fostering innovation. Regularly assessing the impact of changes and identifying new areas for improvement are both key to any continuous improvement effort. The right technology infrastructure, one that can collect and analyze manufacturing data in real time, integrate with other business systems and automate repetitive processes, is similarly crucial.

Improve Manufacturing Process FAQ

How can we improve the quality of manufacturing process?

The customary goal for improving any manufacturing process is to do more with less. That can mean streamlining workflow from 12 to eight steps; implementing lean manufacturing concepts, such as 5S methodology; or adopting Kaizen for continuous improvement. Another way to improve manufacturing processes is for everyone on the factory line to understand each other’s roles and offer suggestions on improvements, automation or when to perform preventive maintenance, to name a few.

What are 4 ways to improve production?

Improved production leads to less down time and a greater opportunity to grow the business financially. Four ways to do that are:

• Finding and eliminating bottlenecks.
• Minimizing waste, which may include raw materials, time spent on the line or the number of employees needed for certain tasks.
• Using advanced technology and automating processes wherever possible.
• Standardizing operating procedures so that everyone does things the same way, every time.

What are the 4 areas of process improvement?

The voyage toward an improved manufacturing process focuses on the following “4 Ps”:

1. Product: Enhancing the product in terms of quality, reliability and/or features to better fit customers’ needs and wants.
2. Process: Streamlining the workflow, reducing waste and correcting inefficiencies where they appear.
3. People: Investing in advancing employees’ skills and knowledge to make staff more capable and instill a greater pride in their work. Training and listening to feedback should be core components of this investment.
4. Plant: Upgrading equipment, using more automation and/or robotics and installing the latest software to refine planning, production and payments.

How can manufacturing processes be more efficient?

Multiple strategies exist to bring a more efficient workflow to manufacturing businesses. Which one makes the most sense for your business will vary, based on your industry and resources. But certain core concepts can be universally applied, including reducing waste, automating processes, leveraging technology, building incrementally on small changes and engaging with all stakeholders up and down the corporate structure to find innovative ideas for process improvement.