Obstructing manufacturing: 3 factors impacting productivity
- 28/08/2023
Three key elements hinder productivity in the manufacturing industry: disorganized records, high costs and compliance with industry standards. Learn how to overcome these obstacles and boost productivity.
The manufacturing industry is undergoing a profound transformation driven by advances in technology, automation, and digitalization. Yet, despite this significant progress, many manufacturers continue to grapple with productivity challenges that obstruct their ability to thrive in an increasingly competitive landscape.
This is not new. For decades, companies have struggled with inefficiencies in business processes, impeding the seamless flow of information, collaboration, and decision-making which are critical elements in driving productivity gains.
To overcome these obstacles, you must first and foremost become aware of the problems surrounding business productivity. After all, 83 percent of global workers believe that technological advances have boosted their productivity.
In the following, you can dive into three key factors that undermine productivity in the manufacturing industry:
1. Cluttered data cost valuable time
The cost of data sharing has always been an obstacle to the manufacturing industry, hindering productivity and draining valuable resources. In 2012, McKinsey revealed that knowledge workers spend a staggering 19 percent of their time searching for and gathering information. A few years later, the International Data Corporation found that data professionals lose 50 percent of their time every week searching for, governing, and preparing data or duplicating work that already existed.
Today, 39 percent of workers across industries experience broken business processes due to trouble locating, versioning or sharing documents. These time-consuming activities result in not only lost productivity but also considerable financial losses. If a worker spends 2.5 hours per day looking for information, the inability to find and retrieve documents costs an organization that employs 1000 workers, around $25M per year.
2. Inefficient paper workflows
The substantial cost associated with paper-based processes is another ongoing issue for enterprises looking to improve productivity.
The average business paper-based business can easily spend an annual $8,000 on paper, $8,500 on filing and storage and $30,000 on labor costs with a dedicated file manager.
These expenses accumulate over time, especially for large organizations with high document volumes. As enterprises strive for cost efficiency and sustainability, transitioning to productivity solutions can significantly reduce paper-related expenses, streamline workflows, enhance productivity, and align with environmentally conscious practices.
3. Smooth business processes boost compliance
Compliance has emerged as a significant current trend in the manufacturing industry due to several factors. Stricter regulations, increased focus on consumer safety, and the importance of knowledge retention have intensified the need for manufacturers to ensure adherence to industry-specific standards.
By
implementing better business processes, manufacturers can prevent mistakes,
achieve compliance and make sure know-how stays at the company. Taking a
proactive approach to compliance not only safeguards the business, but also
enhances overall operational efficiency and reputation of the organization.
However, only 40 percent
of organizations use office productivity software for compliance management.
Download the whitepaper: From silos to synergy: How to improve manufacturing efficiency by supercharging your business processes
In today’s manufacturing landscape, efficient business processes have become a crucial element for success. From the factory floor to top management, managing an extensivearray of workflows and documents swiftly and without error is a pivotal precondition to growth.
By implementing effective productivity practices, manufacturers can unlock a new level of growth, accelerate innovation, and gain a competitive edge in the market.Join us in discovering how you can enhancethe business processes in your organization.
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