Overcoming Process Barriers to Production Growth

Growth is always top of mind for any business.  It’s no different for manufacturers.  Whether looking to expand overall, or increase production with the resources at hand, growth is a key metric in just about all cases.  

At points in any growing manufacturer’s journey, the processes that served the business well yesterday, may start holding back growth tomorrow.  And often it also takes a bit of detective work to trace the symptoms of bottlenecks back to their source – typically manual processes that just aren’t scalable any longer. 

These processes, while they were sufficient for smaller operations, can really start to limit efficiency, reduce throughput, and delay production as demand grows. Addressing these process constraints is essential for achieving production growth, and the right software solutions can play a pivotal role in streamlining operations.

We’re all human, and many of us fall victim to the adage “If it ain’t broke, don’t fix it.”  We’ve got other fires to put out and more pressing things to deal with every day.  So we prioritize and triage the issues so the squeaky wheel gets the grease. So in this week’s article, we’ll give you a cheat sheet on the common processes that could be holding back your manufacturing production growth, the symptoms they cause, and how these issues can be addressed with the thoughtful application of software solutions.

If you want a quick way to see if your business is telling you it’s in need of a bit of streamlining, you can download our FREE Technology Wellness Scorecard.

1. Manual Inventory Tracking

If you’re still relying on manual stock counts, paper-based logs, and spreadsheets to manage inventory levels, you’re certainly not alone. About 40% of growing businesses are still tracking manually. Unfortunately, this method is inefficient and leads to frequent inaccuracies.  It can be a significant barrier to growth, and shows up as one or more of the following pains: 

• Stockouts and Delays: Inaccurate or delayed inventory counts lead to stockouts, causing production delays while waiting for materials to be replenished.
• Overstocking: To avoid shortages, companies may overstock materials, tying up capital and increasing warehousing costs.
• Lack of Visibility: Without real-time inventory tracking, production managers are left in the dark about actual stock levels, leading to inefficient material usage.

Inventory management software like PrismHQ integrates with production and supply chain systems to track inventory in real-time. Automated alerts are generated for reordering, and stock levels can be optimized based on demand patterns and lead times, leading to production growth.

Optimizing this process has a number of benefits.  For example, a textile manufacturer experienced frequent production halts due to stockouts. After implementing an inventory management system, they achieved real-time visibility of stock levels, reduced stockouts by 40%, and optimized their reordering process, allowing smoother production flows.

2. Manual Quality Control Inspections

Manual inspections are common in quality control, but they are slower, inconsistent, and more prone to human error. This limits a manufacturer’s ability to maintain high standards while scaling production.  The most likely issues to pop up as a symptom of this are:

• Inconsistent Quality: Human inspectors may apply varying standards, leading to product defects and higher rejection rates.
• High Rework Costs: Inadequate quality control leads to defective products slipping through, requiring costly rework or customer returns.
• Production Delays: Manual inspections slow down production lines, especially if every product needs to be physically checked.

Quality management software (QMS) automates the quality control process by integrating with production machines for real-time monitoring. It can track defects, generate quality reports, and predict potential quality issues using machine learning.

In one such case, a food packaging company suffered from high defect rates due to inconsistent manual inspections. After adopting a QMS, they automated quality checks directly on production lines, reducing defects by 30% and decreasing rework costs by 15%.

3. Manual Data Entry and Documentation

This one probably isn’t a surprise.  According to a survey by the Manufacturing Leadership Council, around 70% of manufacturers still collect data manually.  As a result, in many manufacturing environments, key production and operational data are entered manually into spreadsheets or paper logs. This is a painfully slow, labor-intensive process prone to all the typical human errors.  If your current production growth is straining against this manual process, it can manifest in a few ways:

• Frequent Data Entry Errors: Manual entries can lead to inaccurate data, resulting in inventory discrepancies, incorrect production schedules, or faulty quality tracking.
• Slow Decision-Making: Production managers may experience delays in accessing real-time data, leading to slower reaction times when problems arise.
• Inefficient Operations: Time spent on manual data entry detracts from the workforce’s ability to focus on production-critical activities.

Enterprise Resource Planning (ERP) systems automate the data collection process by integrating different production areas (inventory, procurement, quality control) into a unified system. Real-time data is captured directly from machines and IoT devices, eliminating the need for manual entry and ensuring data accuracy.

Just getting accurate data in a centralized, easy-to-access app can deliver big improvements right away. A small electronics manufacturer manually tracked production metrics, resulting in regular data errors and slow decision-making. After implementing a digital solution, they automated data capture from production lines, improving decision-making speed and accuracy. This enabled a 20% increase in production efficiency.

Related:  Top 5 Risks of Manual Data Entry in the Manufacturing Industry

4. Manual Production Scheduling and Planning

Production scheduling is frequently managed using spreadsheets and manual coordination, which can become inefficient as operations grow. Manual planning lacks flexibility and adaptability to real-time changes in demand, machine availability, or workforce constraints. 

Initially these methods work well for smaller businesses facing cost constraints.  However as the business grows, this method starts to break down quickly as more complexity is heaped onto an already strained process.  

On top of that, very often the knowledge of how to navigate this complicated patchwork process is locked in one individual’s head – usually the Production Manager.  This is a risky proposition because the loss of this person can have disastrous effects on the business.  

A few of the warning signs that a largely manual production planning process is failing are:

• Underutilized Resources: Poorly planned schedules may lead to idle machines or employees due to inefficient allocation of resources.
• Lengthy Lead Times: Manual scheduling struggles to respond to demand changes or equipment breakdowns, leading to longer lead times.
• Frequent Rescheduling: Last-minute changes often require manual rescheduling, which can cause confusion and delays on the shop floor.

Advanced Planning and Scheduling (APS) software automates the scheduling process. It uses algorithms to optimize machine utilization, workforce allocation, and material availability. APS can dynamically adjust schedules in real-time based on changes in production conditions.  Other production planning software can also offer tools to help bridge the gap between manual spreadsheets and a full blown APS if your business needs to ease into the automation process.

For example, an automotive parts manufacturer suffered from frequent delays due to inefficient scheduling, leading to underutilized machines. After implementing production planning software, they optimized their production schedules, reduced idle time by 25%, and shortened lead times by 20%.

5. Manual Maintenance Tracking

Most people that have spent any time in manufacturing will cite Murphy’s Law at one point or another.  Machine downtime is a costly headache which always seems to happen at the worst possible time.  This is why everyone should have some kind of maintenance tracking.  

Manual maintenance tracking typically involves paper logs or spreadsheets, which tends to make it difficult to track equipment health, plan preventive maintenance, and predict breakdowns. This leads to unplanned downtime and expensive repairs.  If you’re experiencing the following headaches, it could be time to give your maintenance tracking a much needed boost:

• Frequent Machine Failures: Without proper tracking, maintenance is often reactive, causing unplanned machine breakdowns that halt production.
• High Repair Costs: Reactive maintenance results in costly repairs or part replacements when equipment failures occur.
• Inefficient Maintenance Schedules: Manual processes make it difficult to plan and execute preventive maintenance effectively, leading to over-maintenance or missed intervals.

Specialized Computerized Maintenance Management Systems (CMMS) automate maintenance tracking by monitoring equipment health and scheduling preventive maintenance. IoT sensors can provide real-time data on machine performance, and predictive analytics help identify potential failures before they occur.  These can then be integrated with a main business management software like PrismHQ to include maintenance and provide a clear production status overview.

In one instance, a packaging company experienced frequent unplanned downtime due to poorly tracked maintenance. After adopting a CMMS, they reduced downtime by 30% by scheduling preventive maintenance based on real-time data, significantly cutting repair costs.

6. Manual Workflow Approvals and Communication

In many manufacturing settings, processes such as design approvals, procurement requests, or production changes are handled through manual workflows, often relying on emails, paper forms, or in-person communication. These days, most people can relate to being drowned in emails of both the important and trivial variety. But using these methods as pillars of the process, while easily implemented and straightforward, will create significant delays and bottlenecks in the production process.  These problems can appear as:

• Approval Delays: Manual approval chains create bottlenecks, especially when multiple levels of management are involved, leading to production delays.
• Miscommunication: Relying on manual communication (e.g., emails, phone calls) increases the risk of miscommunication or missing critical updates.
• Lack of Transparency: Manual systems often lack visibility into where a request or approval stands, leading to uncertainty in production scheduling.

Workflow automation software boosts approval processes and centralizes communication.  Other applications include dedicated features to keep appropriate communications grouped together. These platforms streamline approvals with automatic notifications, real-time status updates, and transparent communication across departments, providing a scalable path to production growth.

In one case, a pharmaceutical company experienced frequent production delays due to slow manual approvals for production orders. By implementing workflow automation software, they reduced approval times by 60%, allowing faster response times and improved coordination between departments.

7. Manual Supply Chain Coordination

In a post-pandemic world, rarely a week goes by that somebody isn’t discussing supply chains.  Usually in the context of delays and availability.  Many of those factors are out of your control, but manual processes only serve to make matters worse.  Coordinating with suppliers via manual methods (e.g., emails, spreadsheets, phone calls) often results in poor visibility, delayed shipments, and an inability to react quickly to supply chain disruptions. This limits the ability to maintain a steady flow of production materials and will rear its ugly head in the form of:

• Long Lead Times: Manual communication with suppliers leads to delayed shipments, impacting production schedules and causing stockouts.
• Inconsistent Deliveries: Without real-time tracking of deliveries, manufacturers may experience inconsistent delivery times, making it difficult to plan production effectively.
• Lack of Supplier Performance Data: Manual tracking often lacks the ability to monitor supplier performance, such as on-time delivery rates or quality issues, in real-time.

Supply chain management software provides real-time visibility into supplier orders, tracks shipments, and monitors supplier performance. Often this data can then be funneled into a production management app like PrismHQ through API integration, to ensure that manufacturers can react quickly to disruptions and maintain steady production.

One aerospace manufacturer faced delays in production due to inconsistent supplier deliveries. After implementing supply chain management software, they improved supplier lead times by 15% and reduced production downtime caused by material shortages by 35%.

Conclusion

Manual processes can create significant bottlenecks and inefficiencies that limit production growth in manufacturing environments. However, by identifying these constraints and implementing the right software solutions, manufacturers can streamline operations, improve efficiency, and scale more effectively.

From automating data entry and inventory tracking to optimizing production schedules and coordinating supply chains, software solutions offer a path to overcoming process constraints and unlocking production growth. By investing in automation and digitization, manufacturers can not only improve their current operations but also position themselves for long-term success in a competitive industry.

We Can Help

If you’re ready to take the first steps towards a faster and easier way to manage your business, PrismHQ provides a simple and flexible solution to streamline production, increase visibility, and improve communication across departments. Our mission is to serve growing manufacturers by providing a single, affordable solution that automates inventory management and integrates it with daily business processes for increased productivity and lower overhead. Contact us today to learn more!