Boosting productivity amidst falling manufacturing output

THE MANUFACTURING sector plays a major role in the overall economic health of the UK, accounting for up to 15% of business investment, 2.5 million jobs and more than half of all UK exports (51%). 

However, external factors such as the aftermath of Brexit, COVID-19 and the ongoing cost-of-doing-business crisis have contributed to multiple pinch points within manufacturing businesses, most notably a loss in productivity. While these external headwinds have had a significant knock-on effect, our research suggests that other factors, closer to home, may be responsible for the decline in productivity.

In a time of great uncertainty for manufacturing, as well as the UK more widely, it's clear that efficiency and enhanced productivity must come to the fore. This need can be seen most prominently on the factory floor, with inefficient use of tooling and machinery holding back manufacturing operations the country over. 

Specifically, tooling, machinery and personal protective equipment (PPE) are all potential inefficiencies that could contribute to a decline in productivity, in addition to wasting valuable business resources and costs. Our industry research on the subject found that 86% of manufacturers believe their productivity has been severely damaged by these tool-related inefficiencies, directly impacting the day-to-day operations of their business.

With that said, let's discuss how manufacturing companies can mitigate the impact of current sector shortages by paying attention to tool-related inefficiencies and, through this, maximising their productivity.

Investing in effective tool management solutions 

Given that tooling and machinery is the lifeblood that allows manufacturers to run, it is concerning that two thirds (63%) of manufacturers have reported company tools frequently disappearing from their workplace. Perhaps more surprisingly, considering that almost half (49%) of manufacturers also cited lost or misplaced tools as the most common problem in their business, four fifths of manufacturers lack a process to prevent the tools from being lost or misplaced in the first place.

Other reported problems were an inability to locate the correct tools at the desired time (39%) or the tools themselves being inadequate for the job (31%). 

So, if inefficiencies relating to tooling and equipment have become such a detriment to the productivity of manufacturers, what can be done to solve the problem? The answer lies in effective tool and inventory management, or more specifically, tool management and vending solutions.

These are intelligent stations within the business housing the tools needed by employees, ensuring supervision of those taking tools, as well as an easier method of making sure that tools are returned on time and to the proper place. Tool management stations also allow for tools to be stored in one place, meaning they can be found easily, and can be quickly identified should they go missing. 

Tool-related inefficiencies can cause significant disruption and irritation across an entire manufacturing business and severely impact the capacity for production, particularly when taking into account the need of sector-specific manufacturers, such as those in aerospace manufacturing, that require custom-made tools. 

Health and safety with inefficient tool use

Personal protective equipment (PPE) is an absolutely essential part of the manufacturing industry, protecting workers from both short and long-term injury. However, our research suggests that many manufacturing businesses investment in workplace safety may be lacking. Tellingly, almost a third (31%) of businesses reported not having enough safety equipment available to protect every member of staff at a given time. 

Interestingly, 27% of manufacturing leaders also reported that workers often fail to bring the PPE equipment they were given to their jobs, causing major disruption. This suggests that the problem extends beyond simple supply and demand issues, and that health and safety practices within manufacturing businesses may require a major overhaul in terms of standards and training.

Moving away from the equipment that protects manufacturers, the heavy machinery used daily also presents health and safety problems. For example, machinery typically needs calibration to operate at 100% efficiency and, if calibrated improperly, is prone to failure. This was a recurrent challenge for a significant portion of the industry, with 15% of manufacturers having stated inaccurate tool calibration leads to continuous frustration. Combined with the lack of health and safety equipment outlined above, it is little surprise that manufacturers productivity may suffer if they do not feel they can do their job properly and safely. 

Lean manufacturing solutions

The impact manufacturers face from external factors has created significant challenges for the industry, causing many manufacturers to reconsider their working methods and practices. Looking at the options available, lean manufacturing offers a practical and effective solution if executed correctly.

'Lean manufacturing', is a term that denotes manufacturing operations designed to minimise waste, while maximising production output and productivity as a whole. Given the current struggles faced by the manufacturing industry, utilsing these principles has arguably never been more critical. 

Minimising waste, in this context, refers to cutting down on over-allocation of resource allocated to various workplace activities. For example, a business may have five people working on a job that only requires two to three employees, meaning that resource could be re-allocated to drive greater productivity. Evaluating and removing potential inefficiencies within a manufacturing business will minimise waste, and likely boost productivity due to its streamlining effects on the day-to-day operations of the workplace. 

On the other end of the spectrum is maximising production output, which can be achieved through improving manufacturing operations by increasing competition, deadlines, higher levels of quality assurance, and regular evaluation of areas where the business may be lacking and where improvements can be made.  

Through successful implementation of lean manufacturing, productivity is sure to receive a boost, as it not only positively changes the overall work of a manufacturing business, but also the working conditions of the employees who operate within it. Well-organised working environments, regular motivation and the fair and balanced distributions of labour ultimately benefit both the business and its workforce.  

In summary

It's clear that the manufacturing industry requires change to reach and maintain its maximum potential. There are a number of positive changes that can be made to accomplish this, but they cannot be achieved immediately.

An investment of time and resourcing will be needed, as well as the patience to assess and evaluate the ongoing impact of this investment to make conscious changes for the future. If the struggles the UK are currently facing are to continue, many business sectors will have to adapt and make smart changes to their operations, with manufacturing foremost amongst this. 

Tim Paddison is managing director at Hoffmann Group UK

For more information: 

www.hoffmann-group.com

Tel: 0121 716 4301