Owing to the increasing cost of raw materials, energy and distribution, companies must strive to keep these aspects under control as constant pressures from suppliers to reduce costs or to ensure availability of extra capacity at peak trading times continue. Manufacturers are looking at ways to streamline their existing processes to ensure throughput is always at the optimum. Waste is a significant overhead in the production process. In order to protect and maintain product profitability it is critical for manufacturers to eliminate or significantly reduce waste.
As these fluctuations become increasing difficult to manage, the manufacturing environment becomes strained, overtime requests are placed on the workforce, substandard products are manufactured and manufacturers fail to meet demands from their customers. This results in heavy penalties being placed on manufacturers for late or non-compliant products with poor customer satisfaction
Companies are meeting immediate demands rather than managing demand successfully.
The immediate reaction is to increase capacity. This does not resolve the long term issue and only masks the problem; these temporary measures do not consider long term business goals or provide a stable process that companies require to be successful and profitable. This satisfies demand – but at what cost? Are customer relationships strained? Is your product now substandard? Is your workforce capable of producing your product?
By working with your operations team and stakeholders, EmsPT would be able to help identify and pinpoint where waste occurs, this allows companies to put the relevant corrective measures in place to resolve or reduce waste from the process. Creating new automated operating procedures and successfully implementing them will lead to increases in profit.
Where waste is evident would it help if your operators were given a simple-to-follow process to ensure they act on errors immediately, ensuring the reduction in scrap and re-work? Would it also help if operations staff were able to drill down into real-time information throughout the process enabling them to analyse measured values so they can reduce variance and deliver to customer demand, ensuring your expected profitability?