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August 22,2019, Philippines—Improving operational efficiency is of utmost importance for any industry, but it is especially important for the global manufacturing industry. In fact, according to the 2017 National Manufacturing Outlook and Insights survey by LEA Global, 47% of manufacturers that were surveyed identified cutting operational costs as a top priority for that year which also includes maximizing employee time and improving throughput.

This is extremely crucial for global manufacturing companies because higher operational efficiency usually translates to higher output, higher customer satisfaction, and better company sales. Not to mention, it also gives companies leverage over the ever-growing fierce competition in the industry.

To help your company become a better version of itself, here are few but key tips on how you can increase operational efficiency for global manufacturing.

Streamline processes 

In any organization, it is common to encounter bottleneck problems—a point of congestion in a production system—and it is more than necessary for global manufacturing companies to solve it if they want to increase their operational efficiency.

In order to identify a bottleneck, you simply need to find a machine or process that uses the highest percent of capacity or has the longest waiting times. Once identified, it is now the time to assess if it can be improved or simply be eliminated from the overall process. 

Doing this not only simplifies or shortens the production timeline  but also cuts costs and allow you to allocate your resources to more important tasks.

Reduce manual processes

With the vast improvements in technology as well as in the global manufacturing landscape, going digital is no longer optional in order to gain a competitive edge. Today, going digital is more than necessary if you want to stay relevant in the industry.

Something as simple as improving the way employees communicate with each other can raise their productivity and therefore increase operational efficiency. In fact, according to the McKinsey Global Institute’s 2012 report, The social economy: Unlocking value and productivity through social technologies, the average interaction a worker spends is estimated 28% of the workweek just for managing email. 

Cut down the time your employees spend at organizing their emails and other paper works by providing better online communication and cloud storage.

Change floor plan layout

This may seem off-topic at first, but changing your factory floor plan layout can definitely help increase operational efficiency in global manufacturing. A strategic factory floor layout will allow your employees to cut out unnecessary movements, helping them do their jobs with fewer distractions.

You may start by identifying which objects are not usually used, and assess if they can be removed or simply needs to be relocated. Try to also see how to shorten the travel paths of employees from one production phase to others. Rearranging the layout of worker stations should also be beneficial in increasing operational efficiency.

Recognize and reward employees

All attempts in increasing operational efficiency is basically useless if your main source of power (which are your employees) do not feel motivated or engaged in their work. Recognizing and rewarding hard work is the best way to uplift their spirits. A short “keep up the good work” message on a note or email is fine, but try to do beyond that.

Allowing your employees to take multiple breaks within the day or providing massage chairs for their use are simple but great rewards to motivate them. If possible, you may also try giving your employees huge rewards like an all-expense-paid trip after a job well done. 

Once your employees feel that they are appreciated and much needed by the company, they will definitely be more motivated to work which can positively affect your company’s operational efficiency.

Of course, the road to increasing the operational efficiency of your EMS Company in the Philippines will definitely not be fast or easy. Last but definitely not the least, it is important that you stay dedicated and willingly wait for positive results.