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Cost-Saving Tips for Parts Manufacturers

As a manufacturer, you’re most likely always looking for ways to reduce costs to help grow your bottom line and ultimately grow your business. You might think that the only way to do so is to cut corners and sacrifice quality, but that’s not true. There are more efficient ways to cut costs without having to compromise on quality. The following are just some ways you can keep quality up while keeping costs low:

Make intelligent use of automation

When you automate and consolidate manual processes, you can improve the speed of output, increase product quality, and cut down on costs. There are plenty of machines that can do this for you, depending on what you’re manufacturing. For example, if you manufacture sheet metal, you might want to look into a punch and die set which allows you to create more parts in a short period of time by providing low cycle times per part and a quick set-up time. Automation can also improve worker safety and significantly reduce lost-time costs.

Perform a thorough assessment

A complete and realistic assessment of all your manufacturing facilities will provide you with insight on what areas can be improved. This is one of the first steps you should take when tackling the problem of cost reduction. Make objective assessments of each component of your manufacturing facility and see how you can make it more cost-effective.

Talk to your employees

Hands-on employees know your factory best, so it’s important to reach out to them often to hear their ideas on how you can improve. Since they’re the ones working on the factory floor every day, you can gather lots of ideas for cost-effective improvements. You can even reward employees if they come up with effective improvement ideas as a way to incentivize the search for more ways to save.

Reduce your factory’s energy consumption

Besides labor, one of the biggest expenses for a manufacturing company is energy consumption. If you start to make production decisions based on demand, you can reduce energy costs without having to sacrifice your output or client satisfaction. Other ways to reduce energy consumption include optimizing air compressors and fixing leaks, forming an energy management team, installing energy-efficient lighting, repairing or replacing old HVAC systems, and rescheduling the usage of high-powered electric machinery. This also reduces your carbon footprint which makes you a greener company.

Sell scrap materials to vendors

Rather than throwing away excess material to a landfill, you can still sell scrap to vendors as a way to make some extra cash on the side. You’ll also be helping the earth through recycling. You can also send off unused material to a liquidator who can manage the sale for you.

Look into lean manufacturing

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Lean manufacturing is a systematic technique developed as a way to minimize waste in a manufacturing system while keeping productivity constant. You essentially prioritize the systems that add value to your process and eliminate waste that isn’t required. This method allows you to effectively reduce overhead costs and pinpoint the most crucial aspects of your business that you need to focus on.

Why would you ever think about sacrificing quality and customer satisfaction just to save on costs? These easy and practical tips prove that you can keep your costs low all while keeping quality and output at an all-time high.

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