It's well-known time is money. The greater the efficiency you can ensure in a short period, the more profitable your manufacturing business (or for that matter, any business) will be in the long term. Most manufacturers clearly understand this basic principle. However, many companies in the sector face various problems in enhancing their efficiency.
Manufacturers need to overcome various challenges internal to their business and deal with market uncertainty at both the regional and international levels. Many large manufacturing companies operate at different locations with multiple business units. They also need to work with channel partners spread over different regions. This could result in problems pertaining to communication and coordination, which could impact their productivity, and eventually, their bottom line.
In this post, we'll look at 4 key problems faced by firms in the manufacturing sector and find out how they can be resolved.
4 Critical Productivity Challenges Faced by Manufacturers
1. Inefficient Processes that Result in Wastage of Resources
It's no secret that poorly designed processes are a significant hindrance to workplace efficiency. Many manufacturing companies suffer from ineffective processes and lack a clear continuous improvement strategy. This can have an adverse effect on their productivity.
2. Poor Management of Time
A business manager once remarked the success of a company is the function of its ability to manage its time. Many manufacturing firms suffer from time management issues. This has a profound negative impact on their operational efficiency.
3. No Clear Organizational Communication
Several companies in the manufacturing industry have complex organizational structures, which make effective communication difficult. This impacts their ability to convey the intended messages to their personnel and, at times, leads to ambiguity. No wonder, these organizations suffer from low levels of productivity.
4. Inadequate Training Leads to Low-efficiency Levels
Most manufacturing organizations don’t focus on training their employees on their processes, and this badly affects their performance. Several managers in the manufacturing sector believe personnel can acquire required skills on the job but this notion is flawed. The supervisors and senior team members of poorly trained workers spend a lot of time assisting the latter; as a result, productivity takes a severe beating.
How Manufacturers Can Overcome These Productivity Challenges
Manufacturers need to focus on the following aspects to resolve problems with their productivity and meet their revenue goals.
Review Processes from Time to Time
Business needs evolve constantly, and organizational processes must enable companies meet the needs. Manufacturers need to review their processes at regular intervals to identify lacunae and take appropriate steps to improve them. Ask the following questions before making changes to an existing process.
What is the time consumed by the process? Can it be completed faster? If so, how?
What are the tools needed by personnel to complete the process successfully? How much do they cost?
What can be done to complete the process at a lower cost?
It’s advisable to embark on a process upgrade only when it results in a substantial financial benefit.
Upgrade Tools and Technologies Periodically
Manufacturers need to begin their technology up-gradation initiatives by thoroughly analyzing business procedures and how a new technology could affect them. They need to identify the right technological tools that will enable them to come up with business plan effectively and manage their inventories and workflows seamlessly. For instance, manufacturing companies can use Salesforce to plan their production with high efficacy, ensure hassle-free coordination with channel partners and streamline their customer service process.
Integrate Disparate Systems to Improve Productivity
Often, employees of manufacturing firms spend considerable time switching between various systems to perform different tasks. This affects their performance adversely; a study reveals switching systems to perform multiple tasks could reduce productivity by as much as 40%. This problem is more pronounced with companies which have acquired other organizations. Employees of these firms need to deal with multiple systems at the backend. The problems with disparate systems can be reduced by integrating them. Here’s an interesting success story that explains how Solunus helped a company eliminate the need for multiple systems, using Salesforce.
Impart Comprehensive Training to Your People
Training employees is a continuous activity. Certain training programs are mandatory in the manufacturing sector, such as trainings imparted on the use of Personal Protective Equipment (PPE). Organizations in this sector also need to train their staff on their business processes thoroughly. The companies must make sure to update the knowledge and skills of their people on a regular basis. It’s advisable to create a repository of required information and enable seamless access to it.
As you can see, manufacturers can enhance their productivity considerably, by focusing properly on the aspects discussed above. At Solunus, we work with manufacturing firms to empower them to make the best use of cutting-edge Salesforce applications to boost their operational efficiency and maximize their profits. Our rich experience in delivering top-notch solutions to various manufacturing firms coupled with our strong emphasis on comprehending the unique needs of each of our clients helps us create the best value.
Hope you liked this post. How do you overcome productivity challenges and meet the goals of your manufacturing business. We’d love to know.
What You Can Expect by Partnering with Solunus
70% Increase in Work Order Processing Efficiencies.
60% Reduction in Manual Processing of Tasks.
360° View of Operational and Sales Data.
90% of Customer Complaints Are Resolved on the First Contact.
47% Increase in Productivity of Service Reps.
Solunus is a dedicated Salesforce partner organization, headquartered in Dallas, Texas. Our unrelenting focus on comprehending the unique needs of our clients coupled with our unrivaled expertise of the Salesforce platform enables us to deliver the perfect solutions that create the best value for manufacturing firms.