It is easy to reduce the costs in a manufacturing business and then watch the quality follow suit. Of course, this is far from an ideal scenario and what you would really like is the best of both worlds. Luckily, there are ways in which you can achieve this, but you may have to make some hard decisions along the way. The outcome of these may not be an instant hit or win, but over time you will see that your workforce adjusts and what is new will soon become the norm.
#1 Use Outsourcing Facilities Where Possible
You may find that it is far cheaper to outsource whole departments than have those employees on your payroll. This is because the businesses that provide these services will only be working for your business part of the time, completing the necessary roles within desired time frames. Of course, you will have a hand in deciding how long these businesses will be allocated to you and so will therefore be able to budget accordingly.
#2 Re-Organise Your Delivery Fleet
You could re-organise your delivery fleet so that you have specified delivery routes for certain days rather than a more traditional haphazard method. This will mean that your drivers will not be zigzagging across themselves or each other in their task of getting all the orders delivered. This will save them time, and you the wear and tear on your vehicles plus the saving in fuel from having shorter delivery journeys.
#3 Purchase Only the Machinery You Need
You should make sure that you are only purchasing the machinery that you need – some companies hire out equipment such as forklifts which can save you their purchase costs. However, when it comes to investing money in the manufacturing part of your business you should look more to quality than that of price. For instance, purchasing a less-than-perfect piece of machinery may initially have a cheaper price tag, but could cost you a lot in scrap, rework, time and frustration.
Fortunately, there are established businesses that are experts in manufacturing machinery such as quality waterjet cutters from kerfdevelopments.com who will not only manufacture, and install the machinery for you, but will also make sure that you know how to work it by providing you with adequate training. Machinery such as this tends to have a high-value retention rate, so you will not see your investment dwindle as soon as they remove the packing.
#4 Take Advantage of Mentorships
You may find that across your business you could take advantage of providing mentorships to your employees. This means that your experienced and qualified members of staff could help train and assist those that are learning or are in a newer position. This could save you on the expense of hiring additional experienced or qualified employees which could be costly when you are trying to watch your outgoings. This also allows newer employees to form relationships with an established member of the workforce, helping them to be accepted by other employees.
The post How to reduce costs but not quality in your manufacturing business appeared first on HR News.