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How You Can Save Money Within Your Manufacturing Business

Every business can make savings in its daily operation. It is merely a case of looking at certain key areas and making the necessary adjustments. Of course, it can be hard to see clearly when you are in the thick of it, and having a fresh pair of eyes giving it the once over can help more than you might think.

Simple changes or adjustments can bring big savings, although implementing them will inevitably take time and should not be rushed.

1. Help your employees to become more productive

There are different methods to try when making your employees more productive. However, you need to pick the right one, or at least the right order to implement them.

Addressing your Procedures

The first is to have a close look at your working procedures to see if there is a way of cutting down on time spent without reducing quality or risking additional rework. To help this process along, you will inevitably find it useful to speak to your shop floor employees to see if they have any insight into this matter. You may be surprised at the information that they give you, and this is solely down to the point that they are generally performing the same tasks day in, day out.

Organizing work areas

Another way of increasing your production rates is to organize work areas for the jobs that are to be carried out. Ensure that each workstation has its own tools and equipment and that it is kept smart and organized while ensuring that tools and equipment are kept on the right side for the worker that works at that station. For instance, it is easy to set up assuming that the people that work for you are right-handed, but around 10% of them will be left-handed.

Increase morale

In addition to this, you should endeavor to increase the morale of your employees. Morale plays a major role in how employees perform at work. High morale, for instance, will increase productivity, improve quality standards, reduce absenteeism, and heighten retention numbers. In contrast, low morale can have very negative effects. It is important to add that it takes effort to keep all employees happy, but only one or two unhappy employees can bring the morale level of everyone else crashing down.

2. Introduce different working methods

Invariably, you can save money by having fewer employees at your site. Of course, this does not apply to your manufacturing staff, as they will have to be onsite to perform their job roles. However, your office staff is a different matter.

  • Hybrid: having your office staff working hybrid hours will mean that, if you are well organized, you will only have half of your office workers on site each day. This will cut down on the amount of electricity that is used due to monitors and computers not being used, but will also reduce the amount of electricity and water that is used during breaks.
  • Remote: if you were to offer remote working conditions to your office employees, it would reduce your electricity cost still further as there won’t be anyone working in your office. Of course, there are additional services that you will have to include, such as making sure that your workers are all contactable during working hours should any of your onsite employees require their assistance.

You will also have to increase the level of cybersecurity due to your employees still requiring access to your data banks regardless of where they are working.

3. Invest in quality tooling and materials

Right the way across the board, however, you should invest in quality tooling and materials. For your office employees, this could very well be in the form of specialist software and support. Of course, for your manufacturing employees, it will be in the equipment and tooling that they have to use as well as in the materials that you are expecting them to use.

Using equipment or tooling that is not right for the job at hand will inevitably slow your workers down, so their production rates will lower. However, making them use the incorrect materials will undoubtedly result in rejects, rework, poor quality, and employee frustration, not to mention additional costs in unplanned downtime, equipment, and materials.

For instance, to get a good quality weld, you have to use the right welding machine for the job and the correct welding rods. It is important to keep in mind that when you are welding plastic, for optimum performance, you will also require the right-sized plastic welding rods. Skimping on either of these facts is not going to save you any money at all but will, in fact, cost you money.

Final Thoughts

There are certainly options open to you when it comes to saving money in your manufacturing business. However, purchasing low- or poor-quality equipment and tooling isn’t one of them, nor is opting for low-grade or wrong materials for the work that needs to be done. Following this path will undoubtedly lower your employee’s morale still further, and it will not matter whether you have addressed your processes or organized workstations. Production will still be reduced.

Ajeet Sharma, the founder of Financegab and a well-known name in the field of financial blogging. Blogging since 2017, he has the expertise and excellent knowledge about personal finance. Financegab is all about personal finance which aims to create awareness among people about personal finance and help them to make smart, well-informed financial decisions.


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