It costs a lot to maintain large inventories but at the same time no business wants to lose a customer. Miss a deadline and you have lost a customer. This, more than anything else, is responsible for the fast pace of modern manufacturing scene.

Layout

Proper layout is one of the most important ways of increasing production efficiency. As a small manufacturer you need to make optimal use of available space as well as ensure ease of operations. This should actually be decided before you set up the job shop as relocating heavy equipment that has been bolted to the floor can prove to be very expensive. You need to find the best suited layout for your type of manufacturing operation.

Layout primarily refers to positioning of work areas and material handling. A well defined layout in conjunction with a conveyor system can convert batch manufacturing into an automated operation and increase efficiency.

Equipment Care

The second most important way to make production more efficient is to take care of your equipment. Production rates can be increased by making business operations more efficient. However, very few managers realize that production efficiency can be increased without hiring more people or by new equipment. Old machinery may appear to be outdated and slow as compared to new models but if it is properly cared for it can run more efficiently.

It is sad that many floor managers keep on postponing repair and maintenance until it is too late. They will wait until the machine breaks down. For most managers, repair maintenance means loss of production. The fact, however, is that it is an integral part of running a manufacturing facility. Most of the times, maintenance involves nothing more than cleaning and oiling. This can prevent repair cost to spiral out of control.

Human Resource Management

Efficient human resource management is the third most important thing for increasing production efficiency. Any manufacturing facility is as good or bad as the staff that is running those machines. Build a strong relationship based on trust with your staff. Keep your workers happy by providing incentives. Make sure that you never miss to reward loyal workers who place the company’s interest before anything else.

It is crucial for production facilities to know ways to make production more efficient by optimal use of existing resources. Unless you can do that no amount of investment in new equipment or hiring more staff will be able to accomplish that.