How to Improve Operational Efficiency in a Manufacturing Unit


The manufacturing industry is an operation oriented business sector. As a result, manufacturing units are always looking for ways to improve their operational efficiency. Any improvement in the operational efficiency of the unit will lead to a change in the profitability of the business. Therefore, it is essential to know the methods to improve the operational efficiency of manufacturing units.

What is operational efficiency?

The rate of productivity in the process of production of outputs against the quantity of inputs and other costs in addition to taking in account the time that is taken to produce the output.

Methods to improve operational efficiency

Following are some of the methods to improve operational efficiency:

Examine workflow

The primary concern for any manufacturing unit should be to examine the workflow patterns. In any floor of operation is several processes are working in collaboration with several other processes and other devices. The floor manager should analyze the work pattern and trends to develop a clear idea about the workflow.

  • Helps to eliminate unproductive process
  • Increases coordination
  • Increases workflow speed
  • Standardization of work


One of the features of newly developing smart manufacturing units of the modern world is their reliance on outsourcing the work. Outsourcing some part of the work will reduce the access burden from the operations department, and they can focus on their core expertise. The organization can reap several benefits from outsourcing the job such as

  • Reduced energy expense
  • Reduction in waste
  • Lower expenditure on human resource
  • Focus on core competency
  • Integration of operational expertise of different manufacturers

Quantify everything

In order to increase efficiency, the manager should quantify every process that is taking place in the manufacturing unit. The quantified information can be used to identify working patterns and rectify any unproductive methods. Information such as input cost, energy cost, and processing cost, should be quantified to assign a point of value to them.

  • Helps in SWOT analysis
  • Helps in decision-making
  • Have clear business goals


Manufacturing units produce a large amount of waste material. This material consumes unnecessary storage space, and at the same, it is a liability to decompose the waste. This process is times both consuming and money consuming for the organization. The amount of waste material that is producing during the manufacturing processes can be recycled and used again. The benefits of this method include that

  • Recycled material can be used as a raw material for other processes.
  • Reduction in waste
  • Reduction in input cost
  • Elimination of time delay in material procurement

Follow standards

It is essential to follow ISO standards for manufacturing industry to obtain optimum levels of operational efficiency. Standards are the set of guidelines and rules to perform business operations in the most productive manner possible.

  • Improves efficiency
  • Incubates global competency
  • Reduces input costs
  • Eliminates wasteful process


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