Inefficient layout of production flow costs businesses millions each year. Your business may not lose millions, but you may lose money without recognizing it. The term production flow in this context goes beyond a manufacturing line. It includes all business processes: accounts payables, accounts receivables, sales & marketing, supply chains, and even management.
Possible Bottlenecks in Your Operations
Inefficient processing flows increase the time needed to get things done. Bottlenecks created through poor process flow slow down results. Several factors lead to inefficient flow:
- Paperwork sitting in an in-or-out box for 2-3 days impacts cash flow and more
- Paperwork or manufacturing flows that do not follow straight line flow or that crisscross the manufacturing floor
- Production in various countries with customs and tariff costs or delays
- Small problems in your warehouse can delay shipping your product by 1-4 days
Business Knowledge Source suggests how to simplify and streamline manufacturing operations:
- Identify where your production falls down through slower or faster workers
- Ensure your employees perform at peak performance by training them effectively
- Eliminate or consolidate any complicated or unnecessary steps in the process
- Keep things organized. Give workers 10 minute breaks to clean their work area
- Hire a consultant to help you identify and implement additional improvements
- Purchase Enterprise Resource Planning (ERP) software to monitor your processes
- Implement processing models: LEAN Processing, Agile, KANBAN Pull production or others
- Move workstations closer together to reduce transport between countries, buildings, etc.
- Eliminate slow workers or increase their speed with the right equipment or training
- Use a RACI analysis to evaluate people overloaded with responsibility, accountability, consulting, or information, then reassign functions based on improving processes
- Evaluate the countries in which you work and connect with brokers or economic development groups who specialize in imports, exports, and offshore manufacturing
- Join user groups, your local manufacturers or other professional associations
Join me on Thursday when we focus how to improve your operation by reducing bottlenecks
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