(Newswire.net — March 15, 2019) — For manufacturing plants, one of the key objectives is to maximize available resources by keeping costs low. Though this looks slightly different for every facility, there are some tried and true techniques that generally help businesses in this pursuit. The question is, are you currently leveraging the correct cost-cutting methods?
6 Ways to Cut Costs in Your Plant
Resourcefulness through cost cutting isn’t something you can approach with a cavalier mentality. It requires thoughtful planning and purposeful execution. As you develop your approach, here are some options to consider:
1. Conduct an Assessment
Don’t underestimate the value in conducting regular assessments. They’re more valuable than you probably realize.
“Assessments measure current plant performance against desired performance and identify the gap between the two as the improvement that needs to occur,” Pinnacle ART explains. “A comprehensive assessment is a valuable tool to indicate the relative quality of the fundamental aspects of your plant’s reliability and integrity programs; however, they should not be treated like an audit.”
While easily confused by most plant managers, an assessment isn’t an audit. An audit involves a pass/fail result that must be documented and enforced. An assessment is merely an evaluation that sparks conversation. Both are valuable, but far too many plants ignore the role of assessments.
2. Conduct an Energy Audit
Speaking of audits, it’s wise to conduct semi-regular energy audits. You can do this in-house, but it may be worth hiring an energy specialist to handle the process.
“A useful energy audit will quantify how much energy each department is consuming and will help identify peak consumption times throughout the year,” Constellation explains. “It should also offer recommendations on which energy efficiency upgrades will bring the best return on investment.”
3. Invest in Preventative Maintenance
Machinery doesn’t last forever. You’ll eventually have to repair and replace it. However, you can save a considerable amount of money by investing in thorough and timely preventative maintenance that maximizes the lifespan of your most important technological investments.
Using the power of analytics and machine learning, you can develop proactive maintenance schedules that identify issues early and address them before they become costly problems that hurt your plant’s workflow and risk permanent damage to the equipment.
4. Take Advantage of Off-Peak Hours
During your energy audit, you should look into how much you’re paying for utilities and the different utility companies you have to choose from. Furthermore, it would be smart to work with a company that offers lower rates during off-peak hours. You can then move certain tasks to these periods and potentially save thousands per month.
In essence, taking advantage of off-peak hours allows you to reduce your energy bills without having to reduce energy consumption. However, doing both will maximize your results.
5. Ask for Employee Input
Your employees on the floor are your best resources. In terms of identifying areas of waste or high need, they can help you identify problems. They may even help you formulate some solutions. Never underestimate the value in listening to the people who are in the trenches day and night. They generally have more relevant insights than the folks wearing suits and ties.
When you use an employee’s input, be sure to recognize them and give them some opportunity to help with strategizing, implementing, or overseeing. Employees who feel like their opinions are valued are more likely to stick around (which reduces the high cost of turnover).
6. Sell Your Scraps
Does your manufacturing plant produce a lot of waste material and scraps? Whether it’s wood, metal, or leftover parts, your trash may be another man’s treasure.
Selling scraps is helpful for a number of reasons. For starters, it can clear up space in your facility. Secondly, it produces an additional revenue stream. Thirdly, it emphasizes the importance of resourcefulness and encourages you to maximize materials.
Resourcefulness at Its Finest
The more resourceful your plant is, the more cost-effective it’ll be. The more cost-effective it is, the more the business grows. And the more the business grows, the greater your chances are of receiving raises, promotions, and new opportunities. Don’t underestimate the value in cutting costs and maximizing resources.