The most basic need in manufacturing is to keep the system operating at optimum capacity. Every phase of the operation is geared toward reaching that goal, and there is a very good reason for it. Downtime is one of the biggest problems in manufacturing. It can waste perishable inputs, and it can threaten production deadlines, to the point of possibly missing contract commitments and endangering the company’s market share for the long term.
To keep these destructive interruptions from taking place, management needs a comprehensive view of what has to be done to keep things in operation. By developing an appropriate strategy for addressing all parts of the process, management can keep the risk of downtime to a minimum.
Equipment & Facility Design
There are two major capital components in the production process: The equipment being used and the facilities in which they are housed. Should there be any weaknesses in those two components, breakdowns are likely and downtime will follow.
Keeping everything online begins before it’s in operation. Proper design and construction of equipment and buildings will do more to prevent disruptions than anything attempted later on. In order to maximize the likelihood of uninterrupted operation of production processes, technology like that of the A.J. Weller Corporation excels in providing materials for both facilities and equipment to meet that goal.
While many firms are already committed to their current capital for years to come, others do have the freedom to specify more durable buildings and equipment. At every opportunity, potential upgrades should be considered, and every detail of construction and design should be examined before commitments are made.
Other considerations include utilities. Is interior wiring sufficient for the expected load? Can the utility provider maintain an uninterrupted supply? Is the local power grid adequate? Dips in power availability can damage sensitive electronics and other equipment, so the power source must be reliable.
Supply Chain Management
Materials management is a major part of any manufacturing process. The company needs to have adequate storage space for both the inputs and the outputs, and it should optimize inventories of each so that space demands aren’t excessive.
It would first seem that there is nothing worse than running out of raw materials, but that’s not entirely accurate. What might be worse is having raw materials that have expired or been degraded below standards for use, because this situation not only creates downtime but also costs the company money for materials it never got to use.
Generally speaking, logistics are a major consideration for downtime prevention. If raw materials are not available, production stops. If there is no room for completed inventory, production stops. If deliveries are interrupted–outgoing or incoming–production stops. Every new business needs a good logistics strategy for keeping shipments and inventories flowing properly.
Staff Competency
Part of that strategy has to include personnel. The company must be staffed with people who can quickly react to emerging situations and develop solutions that will keep the system moving.
Personnel must also be trained properly in the production processes. There is no one more likely to damage a piece of equipment or a tool than someone who simply doesn’t know how to use it. Unlike the basic assembly-line gear of decades ago, today’s manufacturing apparatus are highly computerized and do very precise work.Workers who do not know how to operate things properly will surely do damage.
Obviously, training is essential, but it can be easier in theory than in practice. When a new process is started, the line workers are typically trained thoroughly and all at once. In time, competency can erode as the initial group is transferred, promoted, or lost to attrition, bringing new people online piecemeal and with less rigorous orientation.
Downtime is the greatest enemy of profitability. Having a situation where costs continue to accumulate with no corresponding revenue stream to cover them is a recipe for disaster. Every manufacturing firm should gather the appropriate data to keep the process moving at all times, and build an appropriate strategy to do so.
How has downtime impacted your business? What impact has it had on your financials?
Check out some of our favorite personal finance resources:
Are you getting the best credit card rewards? Check out the top cash back credit card offers (updated daily)
Make extra money: 15 ways to make money from your computer
Get the First Chapter Free!
Join our online community and get the first chapter of the book Student Loan Solution absolutely FREE!
