The Indian manufacturing sector comprises about 35.6 million employees and is capable ofenhancing national development alone.
Manpower productivity refers to the efficiency of an individual in the manufacturing process. Small roles like assembly line workers to top-level managers like the executives are all directly linked to the output and quality of a finished product.
However, to improve manufacturing productivity, you must have an idea about the challenges the Indian manufacturing sector faces. Some challenges include technological limitations, inefficient skills utilization, outdated production processes, etc.
This blog will provide you with some tried and tested strategies to improve the productivity of your workforce along with some additional challenges which you may encounter while implementing them.
Strategies for Enhancing Productivity
Here are some strategies you can implement that will help you to improve the productivity of your manufacturing unit:
A. Training and Skill Development
Implementing various training and skills development programs helps in enhancing the productivity of employees. You should provide workers with the necessary practical knowledge and expertise in their respective domains. Always ensure that the training should not only focus on technical skill development but also on various soft skills like communication, problem-solving, and teamwork.
B. Automation and Robotics
To increase productivity in manufacturing, we recommend taking the help of various automation tools and machinery. Automation helps in reducing the overall dependence on manual labor and simplifies repetitive tasks, thus increasing consistency in production. Additionally, utilizing robotic technologies will help you to continue with the manufacturing process around the clock, thus maximizing productivity.
C. Employee Engagement and Motivation
To maintain the culture of productivity within your organization, you must ensure proper employee engagement and motivation. It has been statistically proven that motivated employees demonstrate commitment and creativity towards their work with higher levels of productivity. Additionally, you can incentivize productivity with rewards to improve manufacturing productivity so that they can always strive for excellence in their specific role.
Performance Measurement and KPIs
With the help of various KPIs, you can identify the areas of improvement and make decisions for optimizing your manufacturing manpower accordingly. Some of the most commonly used KPIs and performance measurement indicators in the manufacturing industry are:
Overall Equipment Effectiveness (OEE)
It refers to the efficiency of any manufacturing machinery by calculating its performance and quality. OEE helps in identifying the equipment utilization ratio and various downtime issues.
Labor Productivity
Various manufacturing consulting firms in India use a wide variety of performance metrics like output per worker, labor cost per unit, labor utilization rates, etc. to pin-point the efficiency of a single worker. This helps them to advise companies regarding efficient workforce deployment and identify areas of production optimization.
Cycle Time
It refers to the time taken by the total workforce to complete a single task or process. Effective calculation of cycle time helps manufacturing companies identify any kind of inefficiency and reduce time wasted (if any).
Quality Metrics
Quality metrics like defect rates, first-pass yield, and rework percentages help companies calculate the delivery quality of an employee. If companies find that any employee has a higher percentage of reworks, then they may replace him /her with a more efficient employee. This helps a company adhere to the various quality standards required for production.
Inventory Turnover
Inventory turnover is a very important metric to improve manufacturing productivity as it helps a company identify the efficiencyat which the manufacturing department and the sales department work in synchronization.
Downtime and Maintenance Metrics
Various metrics like mean time between failures (MTBF) and mean time to repair (MTTR) help organizations check for areas for reduced production disruptions. Overall equipment downtime helps in the identification of areas for preventive maintenance, thus reducing any kind of unexpected failures.
Challenges and Risks
Despite having a lot of potential, the Indian manufacturing sector possesses a widerange of issues and challenges. Tecnova, a well-known manufacturing consulting firm in India, helps businesses in addressing these below-mentioned challenges to improve the productivity of employees.
Some most common challenges and risks in the Indian manufacturing sector are:
Skill Shortage One of the primary challenges in the Indian manufacturing sector is the shortage of skilled workers. There is a clear gap between the industry requirement and the available skill that leads to inefficient productivity. To combat this issue, you as a manufacturing company must conduct regular training sessions and skill development seminars to improve the quality and efficiency of your workers.
Infrastructural Issues Improper infrastructure along with transportation issues, energy allocation problems, and inefficient communications is also a leading factor for inefficient production. Poor and in efficient infrastructure often leads to improper supply chain management and reduces the productivity of your entire manufacturing capacity.
Budgetary Restrictions In India, limited accessibility of budget for MSMEs is also a leading factor of inefficient production in the manufacturing sector. Financial constraints oftenlead to less investment in technology, expansion of production units andequipment upgrades will lead to less production than the optimum capability.
Regulatory Compliance Complex red tape bureaucracy in India often leads to late production with increased costs of compliance requirements.
Innovation Due to limited budgets, there exists little or no innovation in technology by companies. This leads to a reduced adoption trend of small companies, causing limited productivity in the manufacturing sector.
Supply Chain Disruption Various disruptions in the supply chain like natural disasters, geopolitical tensions, pandemics, etc. lead to reduced manufacturing productivity. Aligning your manufacturing process along with the supply chain will lead to improvement in manufacturing production.
Market Demand Fluctuations in the market often lead to in efficient production in both the domestic and international markets. You can increase productivity in manufacturing by addressing these fluctuations in the manufacturing sector by balancing your production levels to avoid any kind of overstocking or under utilization of resources.
Future Outlook and Opportunities
As we have listed down the strategies and various performance measurement metrics, we must also have a brief understanding of the future of the manufacturing sector in India. Some of the major trends in the manufacturing sector we can expect in the recent years are:
1. Technological Advancements
There has been rapid development in the fields of digitalization, automation, and artificial intelligence in recent years. You can integrate smart technologies within your production process like IoT sensors, and robotics along with predictive analysis to optimize your operations and increase the overall productivity of your manufacturing process.
2. Sustainable Practices
Integrating sustainable forms of production is not only an ethical practice of recent years but also a way to improve your manufacturing efficiency. Implementing various eco-friendly practices like lean manufacturing with proper energy-saving procedures and waste reduction initiatives not only leads to a lesser production cost but also improves manufacturing productivity.
3. Industry 4.0 Adoption
With the popularity of Industry 4.0 practices, there has been a rapid change in the manufacturing sector. Inter connected systems or real-time data analysis and exchange with efficient alignment of cyber-physical production helps manufacturers get improved productivity and increase competitiveness.
4. Government Support and Policy Initiatives
The government of India in its recent years has offered various types of support to the manufacturing industry through incentives, regulatory frameworks, and subsidies. This helps businesses to increase their productivity without taking a massive toll on their costs and resources. This collaboration with the private and public sectors helps in the elimination of various regulatory barriers and promotes innovation along with growth in the manufacturing sector.
Conclusion
Inconclusion, India's manufacturing sector needs to adopt a wide range of principles and strategies to increase its efficiency. From the above blog, we understand the need for proper resource allocation and utilization along with skill development. However, you must be aware of various challenges like technological barriers, supply chain disruptions, and various legal complexities that affect productivity.
To improve manufacturing productivity, you should use various KPIs and performance measurement metrics that will help you get a good understanding of the existing efficiency of your workforce. Whether you track your labor productivity or capital utilization ratio, you can use data to identify areas of inefficiency and optimize your workforce accordingly.
Enhancing Manufacturing Efficiency: How Tecnova Drives Success in India
Here’s how Tecnova, as a management consulting firm in India, can enhance your manufacturing business's efficiency:
- Customized Solutions: Tecnova provides tailored strategies based on your business needs, focusing on specific manufacturing challenges.
- Process Optimization: They streamline operations and improve production processes, reducing waste and enhancing productivity.
- Supply Chain Management: Tecnova enhances supply chain efficiency, minimizing delays and cutting down costs.
- Technology Integration: By advising on automation and advanced technology, they help implement efficient, cost-saving solutions.
- Strategic Growth: They provide long-term strategies for sustainable growth, aligning with market demands and competition.
- Industry Expertise: Tecnova leverages its deep understanding of the Indian manufacturing sector to address unique challenges effectively.
By partnering with Tecnova, your manufacturing business can achieve lasting improvements and a competitive advantage in the marketplace.
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