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Ryan E. Day

Management

Increase Manufacturing Revenues With This Three-Pronged Approach

You can’t improve what you don’t measure

Published: Monday, October 2, 2017 - 11:00

You run a manufacturing business, so you know how it goes. The cost of doing business and manufacturing product never decreases; it always grows. Merely maintaining your revenue status quo will only ensure you get your lunch eaten by inflation. If you aren’t growing your profits, you aren’t just standing still—you’re going backward. Here are three ways investing in technology can help your business grow and increase profit margins.

1. Minimize inspection time

Although QC and QA are indispensable, outdated measurement tools can create a bottleneck in production. Talk to your QC/QA techs. They can tell you the shortcomings of existing equipment and how much time savings might be possible with upgrades. Making sure your techs are equipped with adequate technology usually shows ROI pretty quickly.

2. Maximize throughput

One way to increase production throughput is to enhance design efficiency. The better the initial design, the smoother the production line. Likewise, the easier it is to make design improvements on the fly, the smoother the production line. Having digital measurement solutions that integrate 3D CAD abilities are essential for growth. Underperforming metrology tools almost guarantee built-in waste on the shop floor.

3. Fill in the niches

Every manufacturing organization has a core value proposition for its customers, such as:
• Specializing in large volume production
• International distribution
• Rapid prototyping and small-run manufacturing
• Reverse engineering and refurbishing

Whatever your core value, look for small overlaps into other value streams where it isn’t an unimaginable stretch to serve a slightly different clientele with your existing experience and talent pool.

For instance:
• If rapid prototyping is your specialty, could you serve OEMs or their Tier 1 and 2 suppliers when they have unexpected gaps in part quotas?
• Are there units similar to what you manufacture already in service that have long lifespans? If so, can you expand into refurbishment as a new value stream?

Reinventing the wheel can be a drag. Instead, find niches in in the games of others and help provide a solution.

Tools and technology that enable growth

All three prongs of this approach depend on investing in the tools and technology that help make growth a possibility. If your current measurement solutions already contribute to a bottleneck in throughput, it’s going to be pretty tough to increase revenue without making a change.

Expanding your customer base will require that your design and metrology tools are able to integrate digitally with other organizations. That means having CAD and model-based tools.

So, investigate the technological options that will enable growth in your particular business, do the math on ROI, make the investment... and start growing.

Discuss

About The Author

Ryan E. Day’s picture

Ryan E. Day

Ryan E. Day is a contributing editor and the content-marketing coordinator at Quality Digest. With a varied career from mechanic to artist to inventor holding a U.S. patent, but a journalist at heart, he’s produced freelance feature articles, op-ed pieces, ad copy, and display communications.