How to Reduce Waste Throughout Your Industrial Facility Operations.
How to Reduce Waste Throughout Your Industrial Facility Operations.
discover | Sunday - 21 / 07 / 2024 - 9:59 am
Every industrial facility – including yours – seeks to increase profits, considering this a top priority.
The issue is that while change is supposed to be “from within,” changes typically end up being external (such as expanding customer base or creating new products for profit growth).
But you are already reducing waste, right?
Anyone knows, not necessarily a facility owner, that wasting anything turns quickly into lost money, something none of us want or can bear.
With rising competitive pressures and volatile market dynamics, manufacturing enterprises today face escalating production and operational costs. Cost management is crucial to maintaining decent profit margins and business sustainability, from rising raw material costs to increased labor and overhead expenses. However, the traditional approach of overall cost reduction often negatively impacts product quality, delivery schedules, and customer satisfaction. The smart way forward is improving costs through effective resource allocation, waste reduction, and continuous improvement. So, what do you think if we explore some common sources of manufacturing waste and how to reduce waste using Enterprise Resource Planning (ERP)? I assure you that you will be surprised by the amount of extra money you can invest in new innovations and expanding your customer base!
How to Reduce Waste Using Logix system:
Many small and medium-sized industrial enterprises view Enterprise Resource Planning (ERP) systems as an unnecessary investment, believing that they are only suitable for large-scale manufacturing businesses. However, today we will discuss the sources of waste that all establishments suffer from.
Defective Products:
Product defects are inevitable and can occur repeatedly. They not only waste money and resources but can also damage your company’s reputation. This is why you need to store all your production and operations data in a single enterprise system to help you avoid these disasters.
Logix (ERP) system ensures that different parts of your facility are synchronized to improve manufacturing accuracy. It also allows you to monitor the health of your production lines. Thus, as soon as a malfunction occurs or a specific machine on the line breaks down, the system will notify you immediately. From that point, you will be able to stop production from anywhere (since the system is cloud-based) and redirect the product to working lines.
It may be difficult to completely remove a defective product from your store, but using Logix (ERP) system you can – at least – do everything possible to minimize the damage.
Waiting Times:
A common oversight among industrial facility owners is the “unnecessary” time spent in transporting products from the production department to the quality control department or in the waiting routine for managerial approval on modifications before proceeding with implementation.
How does Logix system address this issue?
Our system integrates your operations to keep every team member informed. On the other hand, the system provides an automated notification mechanism that allows your facility’s product manager to approve modifications with a single click. All of this is reflected in faster-than-ever quality control, as your facility can schedule specific rules within the system; production stops if a specific factor (pH, temperature, resistance, etc.) does not meet the standards.
Transportation Costs:
What do you think of another dangerous source of wasted time (the source that most manufacturers don’t know about)? It’s transportation and logistics.
You might be using – unnecessarily – an excessive number of intermediaries to get your products to market. So, ask yourself:
– Are you using more intermediaries than necessary to distribute your products?
– Are there faster ways to get your final product to market, or a better delivery method?
Logix ERP system automates the entire shipping and delivery process, seamlessly reconnecting supply chain disruptions.
Overproduction:
Your top priority should always be to deliver the right amount of product to the right customers.
Overproduction can occur for the simplest of reasons, such as a drop in demand after seasons, or due to overutilization of production lines in hopes of reducing costs. If your company manufactures products that depreciate in value quickly (such as electronics), the problem is much more difficult!
Thanks to the accurate demand planning function provided by our system, you will be able to utilize historical sales information and trends to create an accurate schedule for future production.
Of course, you cannot predict the future, but our system can help you manage your supply chain, giving you the control and oversight to ensure that your production is at the right level, ensuring that you keep up with demand.
From there, you will be able to plan an effective manufacturing strategy that minimizes waste – whether material or storage space – to minimum limits.
Mismanagement of Production Machinery:
As your industrial facility continues to operate, production equipment inevitably experiences wear and tear over time. The more it is used, the higher the likelihood of needing replacement. You may recall the story of our customer who was saved from such a predicament by our integrated fixed asset management system.
Now, Logix ERP helps you create a streamlined process, reducing manufacturing task time and getting the most out of your equipment.
Poor Management for Workforce:
In other words, it is the squandering of your workforce’s capabilities, which can lead to injuries, material and psychological damage, as well as stress. Poor Management for Workforce usually results from randomly configuring production lines. This is why you need a modern and powerful ERP system that helps improve factory and warehouse planning. For example, the collected insights can be used to identify the most used machines and components that should be stored in their place based on the demand for the final products.
Logix ERP system helps to reduce unnecessary movement, facilitate better distribution of the workload between machines, and provide a better working environment.
Reducing waste is not enough!
A key aspect of maintaining a cost-improvement culture is to make improvement an ongoing journey through initiatives such as:
– Workflow automation: Using an ERP logistics system to plan, simplify, and automate repetitive manual tasks not only enhances productivity but also reduces labor costs and errors.
– Simulation modeling: ERP data can feed simulation models to analyze scenarios, “what-if” predictions, and support decision-making without disrupting actual production.
– Kaizen events: Small, repeated improvements through collaborative brainstorming sessions help shift mindsets towards positive innovation. Gradual changes lead to less resistance.
– Performance monitoring: Key performance indicators (KPIs) around cost drivers, operational efficiency, system utilization, and more, along with regular audits, help maintain improved processes and practices.
In conclusion:
The rate of waste may initially seem insignificant, but it can quickly accumulate to destructive levels within an organization if left unchecked. With increasing industry complexities, manufacturers need an adaptable yet robust Enterprise Resource Planning (ERP) system that goes beyond basic automation to drive cost improvement based on analytics and efficiency gains. Logix system offers comprehensive capabilities including procurement, inventory, production planning, quality management, finance, and more—all on a unified cloud platform known for reliability, security, and scalability. Empower your business with the necessary knowledge to navigate the world of integrated ERP solutions tailored to meet your specific needs. Gain insights, streamline processes, and propel your financial management to new heights using the best enterprise resource planning system in the Middle East.
