How to Improve Manufacturing Productivity
In manufacturing terms, productivity means money. It affects costs, profitability, and the ability to remain competitive. In an increasingly tough global marketplace, having a competitive edge can be a make or break factor. How do you measure manufacturing productivity? In the simplest terms, manufacturing productivity is the ratio of output to input—how much a company can produce based on a given amount of input—and it focuses mainly on throughput and quantity. Input covers factors including labor hours, capital resources, and natural resources, while outputs are normally measured by the quantity of goods produced. Manufacturing productivity is more than a simple numbers game, though. If, for example, the strive to increase throughput causes quality to nose-dive, the ratio of output to input will take a hit and productivity will drop. 6 ways to improve productivity 1. Upskill employees A skilled workforce is a productive one. Employees who are knowledgeable make fewer mistakes and de...