flevyblog

Flevy Blog is an online business magazine covering Business Strategies, Business Theories, & Business Stories.
MANAGEMENT & LEADERSHIP STRATEGY, MARKETING, SALES OPERATIONS & SUPPLY CHAIN ORGANIZATION & CHANGE IT/MIS Other

6 Lessons You Can Learn to Improve Your Manufacturing Efficiency

textile factory quality controllerWhen Ford introduced the first moving assembly line, he changed more than the car industry. He transformed the culture of our workforce and the expectations that consumers have of producers. Since then, manufacturers have become the role models of savvy business and global cultural awareness.

Seeing the Big Picture

Unlike service providers who tend to have strict geographic limits, manufacturers have a global point of view that extends backward in the manufacturing process to suppliers and forward to delivery and customer care. Large scale manufacturers need to look at the entire supply chain and manage it on a worldwide level.

Amazon ranks as one of the best supply chain managers in the world, primarily because it has an eye on its delivery as well as incoming products and customer care. It is no coincidence that Amazon also ranks best in customer service.

Eye on the Niche

When the supply chain breaks down, the innovative manufacturer needs to rapidly adjust accordingly. This is what happened in the mid-1980s when the AIDS epidemic caused a shortage of latex for gloves. Neil Tillitson and Luc DeBecker shored up the shortage by developing nitrile based gloves and starting a new market in the process.

The Education Link

The United States Department of Energy routinely offers collaborative opportunities between companies, educational facilities and the government. With the idea that innovation does not happen without some intellectual muscle, Purdue University has partnered with manufacturers and the U.S. Office of Energy Efficiency and Renewable Energy to develop new sustainable manufacturing processes.

Sustainable Businesses

This leads to the marketing aspect of a sustainable manufacturer. Sustainability in business and marketing has a specific and well-researched meaning. A sustainable business is one in which ecological, economic, social and cultural aspects force on the singular fact that man is part of nature. With that in mind, simply look at Elon Musk and Tesla as an example of marketing a sustainable business. Tesla’s entire business plan is developed around making affordable cars that are environmentally sound so that they can make better cars that are more environmentally sound.

Low Waste and Efficiency

Lean manufacturing is the implementation of systems so that there is little or no waste. Nike is a good example of a lean company. In 2013, it decreased energy usage by 13 percent, water by 10 percent and overall waste by almost nine percent, reports Triple Pundit. Besides its impact on sustainable marketing, waste has a solid influence on a company’s bottom line. Waste costs money to remove. In some cases, a lot of money. One Ohio auto manufacturer was spending $12 million annually just on the waste associated with the painting process. Even a 10 percent cut in waste costs could save a company millions.

The Benefits of JIT Accounting

A lot of important accounting practices have come out of the manufacturing process. One of them is Just-In-Time accounting. A producer wants to have both supplies and inventory on hand to manage workflow, but having too much will place an undue burden on storage space and can lead to spoilage of ingredients. JIT is a system of tightly monitoring supply and demand of supply chain components so that you always have just enough on hand to keep your customers happy. Take a look at Toyota as an example since it was one of the first manufacturing companies to put JIT into practice.

About Shane Avron

Shane Avron is a freelance writer, specializing in business, general management, enterprise software, and digital technologies. In addition to Flevy, Shane's articles have appeared in Huffington Post, Forbes Magazine, among other business journals.

,




Complimentary Business Training Guides


Many companies develop robust strategies, but struggle with operationalizing their strategies into implementable steps. This presentation from flevy introduces 12 powerful business frameworks spanning both Strategy Development and Strategy Execution. [Learn more]   What does it take to achieve Operational Excellence? Read this guide and learn to build an integrated Business Execution System from Six Sigma Master Black Belt Frank Adler, co-founder of Operational Excellence Consulting. [Learn more]
The Fiaccabrino Selection Process (FSP) is a proven methodology for increasing sales and reducing turnover, developed by "Mr. Roche," Charles Fiaccabrino. Mr. Fiaccabrino is a Sales Executive with over 50 years of experience. [Learn more]   Learn this time-tested approach to Change Management authored by Ron Leeman, recipient of the Change Leader award by the World HRD Congress in 2012. Ron Leeman has been Change, Process and Project professional since 1974. [Learn more]
Recent Articles by Corporate Function

  

  

  

  

  


The Flevy Business Blog (http://flevy.com/blog) is a leading source of information on business strategies, business theories, and business stories. Most articles have been contributed for management consultants and industry executives with over 20 years of experience. If you would like to contribute an article, please email our editor David Tang at [email protected].

Flevy (http://flevy.com) is the marketplace for premium business documents, such as management frameworks, presentation templates, and financial models. Our documents are of the same caliber produced by top tier consulting firms, like McKinsey, Bain, Accenture, BCG, and Deloitte. Learn more about Flevy here.


Connect with Flevy:

   
  


About Flevy.com   /   Terms   /   Privacy Policy
© 2015. Flevy LLC. All Rights Reserved.