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How to Improve Operational Performance

    Written by M. Iannuzzi Edited by V. Killian on November 14, 2023

    When an Original Equipment Manufacturer (OEM) receives parts for assembly and further development, they only see their product’s journey. The rods, connectors, and bearings had to change shape and undergo several processes, from raw materials to parts they could compile.

    In manufacturing, everything depends on production quality. The entire manufacturing system, including people, machines, and raw materials, has to work towards one goal. 

    Client success, also known as revenue, is a critical metric. This article will talk about how a manufacturer can improve operational performance.

    What are Manufacturing Operations?

    Manufacturing Operations run the whole business. It’s a process that creates the parts that fulfill end customer demands. Key elements must be considered, analyzed, and optimized during this process to preserve quality. 

    When all the different elements come together, a manufacturing plant can deliver : 

    • What customers want
    •  Design the ultimate solution
    •  Procure optimum quality raw materials
    •  Maintain inventory
    •  Staff management
    •  Manufacture products
    •  Quality control

    What is Manufacturing Operations Management (MOM)?

    The work of overseeing and ensuring a smooth and optimized production is known as Manufacturing Operations Management. Its ultimate goal is to manufacture the best quality products at the lowest possible cost with the highest efficiency. 

    The manufacturing operations manager collects crucial data such as key performance indicators (KPIs) in this scenario. Then, they use applications to analyze, control, and improve the process. 

    Key Benefits of Manufacturing Operations Management

    • Waste reduction: helps companies better manage their raw materials, ultimately leading to low waste. 
    •  High product quality: naturally boosts quality as the production process becomes consistently efficient, minimizing damage to machines and raw materials.
    •  Customer satisfaction: when product quality increases, your customer is happy to receive what they will consider “value for money.” With improvement in order taking and fulfillment, customer satisfaction will keep increasing. It’s beneficial for both parties.
    •  Better employee management: increases employee performance or frontline worker engagement by encouraging teamwork and knowledge sharing. 
    • Better regulatory compliance: government regulations have to be met, and with effective manufacturing operations management, there is an increased focus on them. This approach helps avoid fines and penalties that could add to production costs.
    •  Boost profits: continuously refining processes to improve quality and output efficiency positively impacts your bottom line.

    Top 4 Tips to Improve Manufacturing Operations Efficiency

    1. Leverage Automation

    If you are a traditional manufacturer that has yet to keep up with how modern technologies optimize production, then you are faced with some difficult decisions. It’s never too late.

    The current automation landscape offers various ways to improve operational efficiency. Using data to analyze and make smarter decisions can take operational performance to the next level.

    Review your current state and look for ways to automate processes. Start with something simple like employee workload management to understand the benefits of automation. 

    2. Focus on Safety and Maintenance

    Employee safety is non-negotiable in a machine-driven environment. Equipment malfunction will stall production. An injured worker and a broken machine can quickly escalate operational issues. Factory performance will diminish dramatically and threaten output quality. 

    To avoid wasting time on unnecessary repairs, untimely maintenance, and time off, put some extra effort into ensuring safety. This includes equipment safety, employee health, and anything that could lead to a severe situation. So, focus more on preventive maintenance versus reactive solutions. 

    3. Continuous Training1

    Employee training ensures a lot of good things for businesses. Educating staff on best practices provides awareness of productivity and safety. Updating them on company-specific information keeps them invested in further development. 

    Upskilling is a valuable asset to your employee’s career. Sponsoring their career advancement initiatives regularly will strengthen your workforce, make them feel valued, and, in turn, help them stay loyal.

    4. Review Facility Floor Layout

    Quality manufacturing is the result of many processes that work together efficiently. The facility floor plan plays a significant role in how this pans out.

    You may have integrated new equipment or various processes over the years. Review your floor design to recalibrate workflows and identify optimum working conditions.

    Assess processes and review workflows and floor plans. Arrange machinery accordingly if moving them will save time and improve productivity. 

    Manufacturing is a multi-layered business. Efficiency is undeniably the most reliable KPI in terms of production quality. If all stakeholders, from frontline workers to higher management, share a common goal to improve performance, then your business is well-placed to thrive. 

    However, bringing all minds to the same dream will be challenging. But with proper operational management, you can create an environment that strives for more success. 

    At MMI, we have helped leading brands leverage our extensive network and sub-brands to overcome manufacturing and supply chain challenges. Our decades of experience will help you bring products to market on time, domestically and abroad.

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