Increasing production capacity is the main focus of many, if not all, manufacturers. It becomes a problem when there should be an increase in production but investing in new machines or staff is not possible or not that necessary.
However, thanks to the 4.0 industry, it is possible to produce more with existing facilities. There are many technologies that help you increase productivity and speed up your business’s growth easily. As an example, we have ERP Software for Manufacturing. It integrates all areas in the factory along with IoT integration. Therefore, you can always monitor it and the production process becomes effective.
Here are the 5 simple ways to increase production capacity with the help of cloud technology.
Evaluate your internal process
This strategy applies if you want optimal production both for the short and long-term. Evaluating all areas in your factory helps you find out what can be improved.
You can ask your employees to know their thought about current internal process. Most of the time, their suggestion is practical and zero in on. Moreover, through the manufacturing system, you can immediately observe what consumes time and resources excessively. Then, consider the probability to cut it out.
Reduce machine downtime
There are a lot of companies who still manage their business manually. If you are one of them, you must have found it difficult to find the causes of the machine downtime.
With an ERP system that is integrated with the machines, you can monitor its operation in real-time. If it’s down, you will be notified automatically. Fast data access allows you to troubleshoot quickly and opt for the proper next action effectively.
With less downtime frequency, you can optimize your output capacity.
Related article: The Effective Ways to Maintain Your Manufacturing Machines
Ask the staffs to work overtime
The most obvious and common strategy to meet rocketing demand is to ask your staff to work overtime. We can say that this is the shortcut to increasing production capacity because it’s easier to implement.
However, you need to note that this is not a suitable strategy for long-term optimization. Continual working overtime will give pressure on employee’s wellbeing. It will also significantly reduce their productivity and consequently will slow your production.
Evaluate supplier effectiveness
Often times, the problem that prohibits you from increasing production capacity lies in purchasing management. The first problem might come directly from your vendors. If you experience late shipment or they send you wrong items, even the damaged ones, you should consider stopping purchasing from them. Find the right suppliers that can accommodate you in any situation.
The second problem might come from your own management. Conventional ways of managing business might impede the purchasing process. It is probably from lengthy approval process waiting time or not immediately returning damaged items.
Automate your procurement with Purchasing Management System. You can manage approval processes from everywhere at any time. Moreover, there are also features that allow you to have organized receiving management and seamless communication with the vendors. You can also manage the backorders or product returns easily.
Increasing production capacity without adding more machines or staff is possible. To do that, you need to monitor your business operations in real-time to optimize your production and manage your suppliers well. ERP System for Manufacturing implementation simplifies these tasks.
However, for a long-term effect, it’s better if you invest your money in new machines, expand your facilities, and hire more people.